Annualreport 2019

2019 A NNUA L REPORT
Financial Highlights
As of or for the year ended December 31,

(in millions, except per share, ratio data and headcount) 2019 2018 2017
Selected income statement data

Total net revenue $ 115,627 $ 109,029 $ 100,705
Total noninterest expense 65,497 63,394 59,515
Pre-provision profit 50,130 45,635 41,190
Provision for credit losses 5,585 4,871 5,290
Net income $ 36,431 $ 32,474 $ 24,441
Per common share data
Net income per share:
Basic $ 10.75 $ 9.04 $ 6.35
Diluted 10.72 9.00 6.31
Book value 75.98 70.35 67.04
Tangible book value (TBVPS)(a) 60.98 56.33 53.56
Cash dividends declared 3.40 2.72 2.12
Selected ratios
Return on common equity 15 % 13 % 10 %
Return on tangible common equity (ROTCE)(a) 19 17 12
Liquidity coverage ratio (average)(b) 116 113 119
Common equity Tier 1 capital ratio(c) 12.4 12.0 12.1
Tier 1 capital ratio(c) 14.1 13.7 13.8
Total capital ratio(c) 16.0 15.5 15.7
Selected balance sheet data (period-end)
Loans $ 959,769 $ 984,554 $ 930,697
Total assets 2,687,379 2,622,532 2,533,600
Deposits 1,562,431 1,470,666 1,443,982
Common stockholders’ equity 234,337 230,447 229,625
Total stockholders’ equity 261,330 256,515 255,693
Market data
Closing share price $ 139.40 $ 97.62 $ 106.94
Market capitalization 429,913 319,780 366,301
Common shares at period-end 3,084.0 3,275.8 3,425.3
Headcount 256,981 256,105 252,539
(a) TBVPS and ROTCE are each non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP
Financial Measures and Key Financial Performance Measures on pages 57–59 for additional information on these measures.
(b) Refer to Liquidity Risk Management on pages 93-98 for additional information on this measure.
(c) The ratios presented are calculated under the Basel III Fully Phased-In Approach. Refer to Capital Risk Management on pages 85-92
for additional information on these measures.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets
of $2.7 trillion and 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. A component of the Dow Jones Industrial
Average, JPMorgan Chase & Co. serves millions of customers in the United States and
many of the world’s most prominent corporate, institutional and government clients
under its J.P. Morgan and Chase brands.
Information about J.P. Morgan’s capabilities can be found at jpmorgan.com and about
Chase’s capabilities at chase.com. Information about JPMorgan Chase & Co. is available
at jpmorganchase.com.
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Dear Fellow Shareholders,
Jamie Dimon,
Chairman and
Chief Executive Officer
As we prepare this year’s annual letter to shareholders, the world is confronting

one of the greatest health threats of a generation, one that profoundly
impacts the global economy and all of its citizens. Our thoughts remain with
the communities and individuals, including healthcare workers and first
responders, most deeply hit by the COVID-19 crisis.
Throughout our history, JPMorgan Chase has built its reputation on being
there for clients, customers and communities in the most critical times. This
unprecedented environment is no different. Our actions during this global crisis
are essential to keeping the global economy going and will be remembered for
years to come.
In these annual letters, I usually cover a range of topics, including a review of

JPMorgan Chase’s principles, priorities and performance, as well as the broader
geopolitical issues facing our company and the most critical public policy issues
2
affecting our country. When the time is right and the future is clearer, I will
provide a more complete and current view on how this crisis might change
our strategies around how we run the company, work with our clients and
governments, and develop public policy solutions. However, right now, as we
deal with the spiraling effects of this pandemic, I want to focus on what we as
a bank can do to remain strong, resilient and well-positioned to support our
colleagues, clients, customers and communities across the globe.
Looking back on the last two decades — starting from my time as CEO of Bank
One in 2000 — the firm has weathered some unprecedented challenges, as we
will with this current pandemic, but they did not stop us from accomplishing
some extraordinary things. Once again, you should know how grateful and
proud I am of our more than 200,000 employees around the world. I also want
to thank Daniel Pinto, Gordon Smith, our Operating Committee, our Board of
Directors and our senior leaders for the exceptional leadership they have shown
under the most difficult of circumstances.
We entered this crisis in a position of strength. 2019 was another strong year
for JPMorgan Chase, with the firm generating record revenue and net income,
as well as setting numerous other records across our lines of business. We
earned $36.4 billion in net income on revenue1 of $118.7 billion, reflecting
strong underlying performance across our businesses. We now have delivered
record results in nine of the last 10 years2 and are confident we will continue
to do so in the future, though it should be expected that our earnings will be
down meaningfully in 2020. Our largest businesses grew revenue and net
income for the year, while the firm continued to make significant investments
in products, people and technology. We grew core loans by 2%, increased
deposits overall by 5% and generally broadened market share across our
businesses, all while maintaining credit discipline and a fortress balance sheet.
1
Represents managed revenue.
2
Adjusted net income, a non-GAAP
financial measure, excludes
$2.4 billion from net income in
In total, we extended credit and raised capital of $2.3 trillion for businesses,
2017 as a result of the enactment
of the Tax Cuts and Jobs Act. institutional clients and U.S. customers.
3
Earnings, Diluted Earnings per Share and Return on Tangible Common Equity
2004–2019
($ in billions, except per share and ratio data)
$36.4
$32.5
Adjusted net income1
$10.72

$26.9
$9.00
$24.4 $24.7 $24.4
24%
22% $21.3 $21.7

$19.0
$17.9
$17.4 $6.00 $6.19
15%
19%

$15.4 13% $6.31
11% 17%
15% $14.4 10% 15% 15%

Adjusted
$5.19

$5.29 13% 13% ROTCE1 was

12% 13.6%
10% $11.7
$4.48 $4.34 for 2017

$4.00 $4.33 6% $3.96
$8.5

$2.35 $5.6 $2.26

$4.5 $1.35
$1.52
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Net income Diluted earnings per share Return on tangible common equity (ROTCE)
1
Adjusted net income, a non-GAAP financial measure, excludes $2.4 billion from net income in 2017 as a result of the enactment of the Tax Cuts and Jobs Act.
Tangible Book Value and Average Stock Price per Share

2004–2019 High: $140.08
Low: $ 95.94
$113.80
$110.72
$92.01
$63.83 $65.62
$58.17
$51.88 $60.98
$47.75 $56.33
$43.93 $53.56
$38.70 $39.83 $40.36 $39.36 $39.22 $51.44
$36.07 $35.49 $48.13
$44.60
$38.68 $40.72
$33.62
$30.12
$27.09
$21.96 $22.52
$15.35 $16.45 $18.88
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
4
JPMorgan Chase stock is owned by large institutions, pension plans, mutual
funds and directly by individual investors. However, it is important to remember
that in almost all cases, the ultimate beneficiaries are individuals in our
communities. Approximately 100 million people in the United States own
stock, and a large percentage of these individuals, in one way or another, own
JPMorgan Chase stock. Many of these people are veterans, teachers, police
officers, firefighters, retirees, or those saving for a home, school or retirement.
Your management team goes to work every day recognizing the enormous
responsibility that we have to perform for our shareholders.
While we don’t run the company worrying about the stock price in the short
run, in the long run our stock price is a measure of the progress we have made
over the years. This progress is a function of continual investments, in good and
bad times, to build our capabilities — our people, systems and products. These
important investments drive the future prospects of our company and position
it to grow and prosper for decades. Whether looking back over five years, 10
years or since the JPMorgan Chase and Bank One merger (15 years ago), our
stock has significantly outperformed the Standard & Poor’s 500 Index and the
Standard & Poor’s Financials Index.
Bank One/JPMorgan Chase & Co. tangible book value per share performance vs. S&P 500 Index
Bank One S&P 500 Index Relative Results

(A) (B) (A) — (B)
Performance since becoming CEO of Bank One

(3/27/2000—12/31/2019)1
Compounded annual gain 11.5% 5.9% 5.6%
Overall gain 688.3% 210.8% 477.5%
JPMorgan Chase & Co. S&P 500 Index Relative Results

(A) (B) (A) — (B)
Performance since the Bank One

and JPMorgan Chase & Co. merger
(7/1/2004—12/31/2019)
Overall gain 499.2% 290.2% 209.0%
Tangible book value over time captures the company’s use of capital, balance sheet and profitability. In this chart, we are looking at
heritage Bank One shareholders and JPMorgan Chase & Co. shareholders. The chart shows the increase in tangible book value per share;
it is an after-tax number that assumes all dividends were retained vs. the Standard & Poor’s 500 Index (S&P 500 Index), which is a
pretax number that includes reinvested dividends.
1
On March 27, 2000, Jamie Dimon was hired as CEO of Bank One.
5
Stock total return analysis
Bank One S&P 500 Index S&P Financials Index
Performance since becoming CEO of Bank One

(3/27/2000—12/31/2019)1
Overall gain 988.2% 210.8% 132.9%
JPMorgan Chase & Co. S&P 500 Index S&P Financials Index
Performance since the Bank One

and JPMorgan Chase & Co. merger
(7/1/2004—12/31/2019)
Overall gain 441.9% 290.2% 85.6%
Performance for the period ended

December 31, 2019
Compounded annual gain
One year 47.3% 31.5% 32.1%
Five years 20.5% 11.7% 11.1%
Ten years 15.6% 13.6% 12.2%
These charts show actual returns of the stock, with dividends reinvested, for heritage shareholders of Bank One and JPMorgan Chase & Co.
vs. the Standard & Poor’s 500 Index (S&P 500 Index) and the Standard & Poor’s Financials Index (S&P Financials Index).
1
On March 27, 2000, Jamie Dimon was hired as CEO of Bank One.
The results shown above use our stock price as of December 31, 2019. If you
compare that with our stock price as of March 31, 2020, you would see a
dramatic change. For example, the overall stock price gain from the date of the
JPMorgan Chase and Bank One merger was 442% at the end of last year, but
it dropped to 252% three months later. While that’s still far better than many
companies’ performance, it illustrates the volatility of returns.
Unlike past letters, the placement of charts about the performance of our lines
of business and our fortress balance sheet is different — they can be found in an
appendix following this letter to peruse at your leisure. Instead, I am going to
focus my comments in the rest of this letter on issues that relate to our current
crisis. And while I enjoy sharing my opinion on many other matters, I will avoid
doing so this year.
6
Within this letter, I discuss the following:
Dealing With an Extraordinary Crisis
1. We go to extraordinary lengths to help our customers — consumers,

small businesses, midsize companies, large corporations, and state
and local governments.
2. We take excellent care of our employees.
3. We make extraordinary efforts to lift up our communities, especially

in challenging times.
4. We are transparent with our shareholders: What they should expect

regarding our financial and operating performance in 2020.
5. We are working closely with all levels of government during this

crisis — and while we will participate in government programs to
address the severe economic challenges, we will not request any
regulatory relief for ourselves.
6. We need a plan to get safely back to work.
7. We need to come together: My fervent hope for America.
7
D EAL IN G W I TH AN E XTR AO R DI N A RY C R I SI S
A corporation – essentially any institution – let us make quick and accurate decisions; a
is a living, breathing organism made up of devotion to our customers and communi-
people, technology, institutional knowledge ties; and continuous investing in technology
and relationships and is generally organized to better serve both our employees and our
around mission and purpose. Entering into customers. (These principles also underlie
a crisis is not the time to figure out what an organization’s preparedness for tough
you want to be. You must already be a competition – I was going to write this year
well-functioning organization prepared to that the competition is back in all of its
rapidly mobilize your resources, take your facets. There’ll be more to come on that next
losses and survive another day for the good year.)
of all your stakeholders.
We are there for our customers, employees
No matter the challenge, we manage our and communities in good and bad times
company consistently with principles that – we are a port in the storm. It is in the
have stood the test of time. I have written toughest of times that we need to use our
about these inviolable principles often – the capital and liquidity to help clients – large
need for extremely talented and motivated and small. COVID-19 is one of those extraor-
employees; a fortress balance sheet that dinary times. Below are some of the things
allows us to invest in good times and in bad we are doing to help our company and our
times; clear, comprehensive and accurate customers during this global crisis.
financial, risk and operating reporting to
1. We go to extraordinary lengths to help our customers — consumers, small businesses,

midsize companies, large corporations, and state and local governments.
First and foremost, we have to be prepared to How else would we process $6 trillion in
operate under extremely adverse circumstances. payments or buy and sell approximately
The significant economic fallout from this $2 trillion in securities and foreign exchange
crisis reinforces the critical need to keep the transactions for our clients on a daily basis?
global financial system fully functioning – And how else would we raise more than
and we recognize that our firm is an $2 trillion of credit and capital for our
important part of the global economy. clients each year? Our branches, collectively,
Therefore, we incorporate plans for resil- have 1 million customer visits each day, and
ience in everything we do – resilience for our combined credit card and debit card
hurricanes, data center failures, cyber attacks transaction volume totals $1.1 trillion a year.
and other issues. And while we had not During this crisis, we have been utilizing our
envisioned the effects of a pandemic like disaster recovery sites and implementing
this one, all of this preparation has paid off alternative work arrangements globally.
– and we have been able to accomplish far We now have more than 180,000 employees
more and far more quickly than we origi- working from home (and quite effectively),
nally thought possible. It is absolutely including traders, bankers, portfolio managers,
essential that we be up and functioning for
all of our customers each and every day.
8
DEALING W ITH AN EX TRAORDINARY C RISIS
and operations and call center teams across Of our approximately 5,000 Chase branches,
the globe. We are ensuring they continue we have managed to keep three-quarters of
to operate at the highest standards with the them open – and safe – for our customers
proper technological tools and access so they who need our services. In every one of our
can serve their clients safely and seamlessly. markets, almost all of our 2,300 branches
Over the past few weeks, we have had nearly with drive-up windows have remained open
150,000 concurrent virtual sessions – nearly for business, allowing people to maintain
five times our pre-pandemic average – and we a safe distance. Our 17,000 bankers have
have capacity in reserve to support signifi- continued to take appointments and proac-
cantly more demand if necessary. tively reach out to customers – helping them
manage their finances and use our digital
We’re taking significant steps to help our tools – often letting customers stay home.
consumer customers. In addition, the vast majority of our 16,850
After Superstorm Sandy, Hurricane Harvey ATMs are well-stocked and still functioning
and other devastating natural disasters to provide needed cash to our customers.
around the globe, after wildfires ravaged Our call centers have not fared as well;
California towns and after a number of many of them have been effectively shut
other tragic events, we stepped up for our down by local restrictions. As the volume of
customers. Today, we are doing the same calls has increased from customers seeking
across the country as we work individually assistance, hold times have also increased.
with customers facing COVID-19-related We have mobilized quickly to address this
hardships. issue, reminding customers that our digital
self-service capabilities are always available
We have been helping our customers, who for them to check balances, deposit checks
tell us about their financial struggles as a or make payments. Additionally, we have
result of the crisis, and are offering relief built new tools – digital and electronic – to
measures such as: allow customers to request relief without
• Providing a 90-day grace period for waiting for a specialist. And we are making it
mortgage and auto loan/lease payments possible for our displaced phone specialists
and waiving any associated late fees. to work from home.
• Removing minimum payment require- We are also taking significant action to support
ments on credit cards and waiving businesses — small, midsize and large — and state
associated late fees. and local governments.
• Not reporting payment deferrals such as Clearly, some clients may be much more
late payments to credit bureaus for up-to- vulnerable than others – for example, trans-
date clients. portation companies, hospitality enterprises,
hospitals, utilities and, in particular, small
• Continuing to responsibly lend to businesses that do not have enough capital
qualified consumers. to withstand sudden and sustained down-
turns in income. JPMorgan Chase Institute
• Waiving or refunding some fees, including
research reveals that 50% of small busi-
early withdrawal fees on certificates of
nesses have less than 15 cash buffer days,
deposit.
reinforcing why small businesses are being
You can learn more about our customer heavily disrupted by the current crisis and
response at: www.chase.com/stayconnected.
9
DEALING W I T H A N E XT R AO R D I N A RY C R I S I S
will feel the effects for a significant period of • Continuing to support vital institutions to
time – even as more capital from the recent keep our communities strong: Increased
federal stimulus program reaches them. funding in March included, for example,
$1.9 billion for hospitals and healthcare
To support businesses during this current
companies, $270 million for educational
crisis, we are doing the following:
institutions, $360 million for nonprofits,
• Prudently extending credit to businesses and $240 million for state and local
of all sizes for working capital and general governments.
corporate purposes. For example, in the
• Continuing to fund construction projects
past 60 days alone, we have extended $950
essential to our communities (affordable
million in new loans to small businesses.
housing, food banks and grocery stores)
• Waiving and refunding fees for those through our $5 billion commitment.
businesses in need and finding ways
Recognizing the extraordinary extension of
to help more small businesses through
new credit, mentioned above, and knowing
resources available at the Small Business
there will be a major recession mean that we
Administration.
are exposing ourselves to billions of dollars
• Servicing clients with additional credit of additional credit losses as we help both
through revolving facilities, when appro- consumer and business customers through
priate, and stepping in to try to help with these difficult times. (We will provide more
credit when others can’t or won’t. detail on these actions later in this letter.) Of
course, we are in continual contact with our
• Continuing in the ordinary course of busi- regulators about our actions and efforts.
ness to sustain consumers, businesses and
communities with about $500 billion of We stand ready to assist the government in
credit and capital raised every quarter. implementing stimulus package benefits to
• Continuing to maintain undrawn support the economy.
revolving commitments in our wholesale We applaud the speed with which the federal
businesses, which totaled approximately government and the Federal Reserve (the
$295 billion as of the close of business on Fed), as well as other central banks around
March 31, 2020. Companies have already the world, put together a stimulus package
drawn down more than $50 billion of their and other funding benefits to help individ-
revolvers to prepare themselves for the uals, businesses, and state and local entities
crisis (this already dramatically exceeds across the United States and beyond. Much
what happened in the global financial remains to be done to assure these resources
crisis). Many others have requested addi- can be quickly and effectively rolled out.
tional credit, which we have been offering We hope to be at the forefront of using this
judiciously – more than $25 billion of new assistance to help our customers get through
credit extensions were approved in the what is certain to be a difficult next few
month of March alone. months. We will not use this relief funding
for ourselves.
• Continuing the issuance of bonds for
highly rated companies ($85 billion) – it
may surprise you that the first quarter of
2020 will be our largest quarter for invest-
ment grade issuance, led by J.P. Morgan.
10
2. We take excellent care of our employees.
Times like these reinforce that our employees • A special payment of up to $1,000 has
are our most important asset – they are been granted to full- and part-time
fundamental to the vibrancy and success of employees whose job requires them to
our company. Excellence in everything we do continue working on-site and generally
– from operations and technology to service whose annual cash compensation is less
and reputation – depends upon the abilities than $60,000.
and character of our employees. Our vast and
• All branch employees are being paid for
diverse team of people serves our customers
their regularly scheduled hours even if
and communities, builds the technology,
those hours are reduced or their branch is
makes the strategic decisions, manages the
temporarily closed.
risks, determines our investments and drives
innovation. Setting aside differing views of • For those who must go to work on-site, we
our complex world and the risks and oppor- are reinforcing both basic and enhanced
tunities ahead, it is inarguable that having personal and office hygiene measures
such an extraordinary team – people with to keep them, their colleagues and their
guts, brains and enormous capabilities who clients safe. We have modified business
can navigate whatever circumstances bring – operations, staggered shifts, changed
is what ensures our future prosperity. seating arrangements, closed buildings to
nonessential visitors and provided addi-
In last year’s letter, I wrote about the
tional equipment where possible. We have
many ways we take excellent care of our
also intensified nightly and daily cleaning
employees: competitive wages and compen-
of all offices and branches worldwide that
sation, 401(k) retirement benefits, health
remain open.
benefits and wellness programs, extensive
training programs, volunteer and employee It’s amazing how quickly we have mobilized
engagement opportunities, generous parental and implemented work-from-home and other
leave policies and much more. resiliency measures – in weeks instead of
months or years. There are great lessons to
During this pandemic, we have also taken
be learned from this experience.
extensive steps to protect and support our
employees and their families. For example: While conditions may sometimes be unusual
and difficult, we are functioning smoothly. In
• We continue to pay employees who are
fact, over the last month in certain parts of
at home because they have had potential
our company, we’ve had the highest volume
exposure to the virus or whose health is
and transaction totals we have ever seen.
higher risk. Additionally, we provide paid
medical leave to employees who are unwell. Needless to say, this success would be impos-
sible without our exceptional employees, and
• We have clinical staff internally to support
we recognize our responsibility to support
our employees through this difficult time,
both their professional and personal lives
whether it is fielding general inquiries
now more than ever.
related to COVID-19 or locating testing or
other medical facilities.
• All employees are receiving five additional
paid days off to help manage personal
needs, which may include dependent care,
child care or other issues.
11
A DIVERSE AND INCLUSIVE COMPANY IS A STRONGER COMPANY
While the health crisis we are facing supersedes all other topics in this year’s letter, the subject of
diversity and inclusion is such an important one that I feel compelled to include it. As a firm, we have
an unwavering commitment to integrity, fairness and responsibility. That’s why any instances of racist
behavior and discrimination are so deeply unsettling.
Recently, Daniel Pinto and Gordon Smith, our Co-Presidents and Chief Operating Officers, sent a note to
employees about steps we’re taking to ensure our values reach all corners of our company.
Dear colleagues,
We are managing through uncertain times right now and recognize many of you are focusing much of your day on responding
to the ongoing spread of the COVID-19 coronavirus. While this is a top priority for all of us, we want to make sure you know we
haven’t lost sight of our commitment to keeping you informed about our ongoing efforts to strengthen our culture. Now, more
than ever, we need the best of everyone because only together will we get through these unprecedented times.
As you know, after the media reported on alleged discrimination in our firm last year, Jamie asked Gordon to lead an internal
team to take a hard look at how we do business so that we could gain a deeper understanding of what more we can do to root
out racism and discrimination anywhere it exists.
Challenging our people to be clear-eyed and open to change, we tasked many of our senior leaders from across the firm, from
multiple lines of business and control functions, to evaluate our policies, procedures and programs firmwide, to ensure they are
fair for all employees and customers. To be clear, we are looking across the whole firm and at everything we do.
As a result, we’ve identified a number of areas that, with enhanced, scaled or new programming or processes, would serve to
improve our culture in important ways. For example, we focused on employee and customer complaints — examining common
themes, where they originated and where opportunity exists to improve.
We also looked at how employee discretion may affect product accessibility across lines of business. We found opportunities
to increase awareness about the firm’s Diversity & Inclusion strategy, and we identified a need to expand our diversity
recruitment efforts to help us hire more diverse talent, and to implement mandatory firmwide training.
While this work is ongoing, here are five initial areas where work is now underway, including:
Enhancing our employee feedback process

We are looking hard at how we treat an employee complaint when it comes in. We are already working to simplify escalation
channels so employees are clear on where to submit complaints, in addition to further building out our capabilities across
complaints to better understand the full scope of the individual’s experience. Feedback suggests that employees are not
always clear on where to submit complaints, so we are working to identify where improvements are needed.
Employees are encouraged to use existing channels to report inappropriate conduct or discrimination. We will continue to
strengthen these “listening posts” and reporting channels in an effort to make sure every one of us feels safe and confident
identifying and reporting inappropriate behavior.
Making it easier for customers to access products and services

We regularly review the products and services we offer to customers, and we are looking for ways to boost customer
connectivity across our full spectrum of consumer products. To start, we are focusing on:
• Enhancing ease of navigating and guiding customers through our full range of products and services available across
our entire branch network; and
• Re-evaluating the qualification requirements for new product features and benefits.
We will improve product parameters and strengthen monitoring tools to ensure the exercise of discretion works as intended.
Bolstering our hiring systems to build a more robust pipeline of diverse talent
Attracting the best talent can only be achieved through a dedicated focus on inclusive recruiting, so we are recommitting
ourselves to this effort. We have made progress in this area, with programs such as Advancing Black Leaders, a program
12
focused specifically on increased hiring, retention and development of talent from within the black community. Over the past
four years, we have increased the number of black professionals in our most senior ranks, with the number of black managing
directors and executive directors up by more than 50 percent.
In addition, we are expanding our specialized team dedicated to conducting more targeted outreach to recruit diverse talent.
We will expand on our program to hold hiring managers and recruiters at the highest levels of the company accountable for
hiring a diverse group of professionals.
Instituting required firmwide Diversity & Inclusion Training

In order to drive more diverse and inclusive behaviors amongst our leaders, managers, employees and customers, we are
requiring diversity and inclusion training for all employees at various points throughout an employee lifecycle, including at the
time of hire, and periodically thereafter. We expect all employees to fulfill these requirements.
Because the role of the manager is arguably the most critical role in promoting our culture deep into the organization, we will
make additional manager training mandatory at the time of promotion to a people-manager role, and at the time of promotion
to a senior leader role, in addition to other developmental moments for managers. We already have training in many parts of
the organization, including programs like “Journey to Inclusive Teams” and the required unconscious bias training for branch
managers. We will continue to enhance and embed this required training throughout the manager’s career.
We know that it is essential for managers to be inclusive leaders and we will focus on helping them recognize ways they can be
intentional about inclusion as they recruit, hire, retain and develop diverse talent.
Increasing the diversity of the businesses we partner with firmwide

We are fully committed to a fair, equitable and inclusive company for our customers, our employees, our partners and our
suppliers. This is part of every manager’s job, and they will be held accountable.
The diversity of the businesses we partner with across the firm is just as important as our employee diversity — from the small
businesses to which we provide access to capital, to our asset managers, to our suppliers and to the companies we assist in
bringing public.
We intend to increase diverse representation through structural process improvements in how we select partners and build
our pipeline.
The firm will also continue to use data and research to further inform the development of products, services, employee
programs and community investments that help address racial disparities in wealth building.
This all goes to say our work described above is representative of our deep commitment and is ongoing. It is not a “one
and done” event. We will remain steadfast, continue to work now and in the future, and remain ever-vigilant in our effort to
maintain a culture where racism cannot live or thrive. Over the next 30 days, each business will review their current strategies
and contribute a plan to bring this to life and each business will be held accountable.
Let us say again, we are all the keepers of our culture and we are committed to ensuring that ours is one where all employees and
customers are treated equally and fairly, and where all of us receive the opportunity and mutual respect we deserve.
I can assure you, it did not take one particular story to make us realize that a diverse and inclusive culture
is important.
We know that too many people are being left behind – particularly in the black community. The Civil War
ended more than 150 years ago, and we still have not come even close to parity. We need to do more as a
nation, and we have more to do as a firm.
13
3. We make extraordinary efforts to lift up our communities, especially in challenging times.
I believe that our shareholders know • We provide small business loans in low-
we make extraordinary efforts to lift up and moderate-income neighborhoods.
our communities, both at a local level –
• We design products and services to
supporting schools and work skills training,
promote the financial health of lower-
for example – and at the national level,
income individuals.
helping to formulate policies that are good
for countries. These policies affect healthcare, • We support a number of employee- and
infrastructure, education and employment, community-based initiatives and philan-
including initiatives such as those that help thropic activities, including:
people with a criminal background get a
second chance. – Office of Military and Veterans Affairs,
which sponsors mentorship, devel-
We know that crises like COVID-19 create opment and recognition programs
further inequities in society so it is even to support the military and veterans
more important that we be present for those working at the firm;
communities hit hard by the pandemic.
JPMorgan Chase made a $50 million – Women on the Move, our global
commitment to help address the immediate firmwide effort that empowers female
humanitarian crisis, as well as the long-term employees, clients and consumers;
economic challenges people face. Funding – The Service Corps, which mobilizes
will be deployed over time with particular employee volunteers to help nonprofit
focus on the most vulnerable people and organizations around the world;
communities, including:
– Advancing Black Pathways, a compre-
• Immediate healthcare, food and other hensive program focused on providing
humanitarian relief globally; more opportunities for black people
• Help for existing nonprofit partners and black-owned businesses because
around the world that are responding to we know that opportunity is not always
the crisis in their communities; created equally;
• Assistance to small businesses vulnerable – Entrepreneurs of Color Fund, which

to significant economic hardships in the is expanding and provides minority
United States, China and Europe. entrepreneurs with access to capital,
education and other resources.
There is a tremendous amount we do day to
day – in addition to traditional banking – to • We expect to finance more than $100
help the communities in which we operate, billion in transactions aimed at supporting
including the following, some of which you development in emerging market coun-
might be surprised to know: tries – in infrastructure, education, health-
care, agribusiness and industry, among
• We finance more than $5.5 billion in other investments – to promote the United
affordable housing each year (including Nations’ Sustainable Development Goals.
residential and commercial lending and
mortgages in low- and moderate-income
communities).
14
• We are huge supporters of regional and example, while many community banks
community banks, which are critical to were seeking more liquidity to serve their
many cities and small towns around the local communities amidst COVID-19 fears,
country. We bank approximately 500 of we were able to help approximately 100
America’s 5,000 regional and commu- community banks secure $775 million in
nity banks. In 2019, we lent or raised a increased cash availability over a three-
total of $2.6 billion in capital for them. In week period in March, delivering $1.9
addition, we provide payment-processing billion of cash to support their branches
services for them, we finance some of their and ATMs. This is not only a win for our
mortgage activities, we advise on acqui- clients but also for the communities in
sitions, and we buy and sell securities which they operate.
for these banks. We also supply interest
rate swaps and foreign exchange both for
themselves – to help them hedge some of
their exposures – and for their clients. For
4. We are transparent with our shareholders: What they should expect regarding our
financial and operating performance in 2020.
Of course, we do not know how this crisis Our 2019 pretax earnings were $48 billion1
will ultimately end, including how long it – a huge and powerful earnings stream that
will last, how much economic damage it will enables us to absorb the loss of revenues and
do, or how fast or slow the recovery will be. the higher credit costs that inevitably follow
We have always been serious about stress a crisis. For comparison, the Comprehensive
testing and run an enormous number of tests Capital Analysis and Review (CCAR) results
per week so that we are prepared for most for 2020 that we submitted to the Federal
crises. But as is often the case, this “actual Reserve in 2019 (which assumed outcomes
new crisis” – while it shares attributes with like U.S. unemployment peaking at 10%
what is being stress tested – is dramatically and the stock market falling 50%) showed a
different from the expected. decline in revenue of almost 20% and credit
costs of approximately $20 billion more than
We stopped buying back our stock: We have
what we experienced in 2019. We believe we
always held the position that the highest
would perform better than this if the Fed’s
and best use of our equity is to reinvest it in
scenario were to actually occur. But even in
our own business and, of course, to be able
the Fed’s scenario, we would be profitable
to withstand tough times. Halting buybacks
in every quarter.2 These stress test results
was simply a very prudent action – we don’t
also show that following such a meaningful
know exactly what the future will hold – but
reduction in our revenue (and assuming we
at a minimum, we assume that it will include
continue to pay dividends), our common
a bad recession combined with some kind of
equity Tier 1 (CET1) ratio would likely hold
financial stress similar to the global financial
at a very strong 10%, and we would have in
crisis of 2008. Our bank cannot be immune
excess of $500 billion of liquid assets.
to the effects of this kind of stress.
Additionally, we have run an extremely
We will share in detail our latest thinking on
adverse scenario that assumes an even
the impact this crisis will have on our finan-
1
Represents managed pretax deeper contraction of gross domestic
cials in our first quarter earnings release in
income. product, down as much as 35% in the
2
We are adjusting these CCAR results mid-April; however, to put it in context, here
for the global market shock trading
second quarter and lasting through the end
losses and operational losses — and
is how our shareholders can think broadly
there have been none in this crisis. about a reasonable range of outcomes.
15
of the year, and with U.S. unemployment needs. Despite this, our capital resources and
continuing to increase, peaking at 14% in liquidity are very strong in both models. We
the fourth quarter. Even under this scenario, have over $500 billion in total liquid assets
the company would still end the year with and an incremental $300+ billion borrowing
strong liquidity and a CET1 ratio of approx- capacity at the Federal Reserve and Federal
imately 9.5% (common equity Tier 1 capital Home Loan Banks, if needed, to support
would still total $170 billion). This scenario is these loans, as well as meet our liquidity
quite severe and, we hope, unlikely. If it were requirements (these numbers do not include
to play out, the Board would likely consider the potential use of some of the Fed’s newly
suspending the dividend even though it is created facilities). We could, of course,
a rather small claim on our equity capital make our capital and liquidity buffer better
base. If the Board suspended the dividend, it by restricting our activities, but we do not
would be out of extreme prudence and based intend to do that – our clients need us.
upon continued uncertainty over what the
I would like to point out that, as we get closer
next few years will bring.
to the extremely adverse scenario, current
It is also important to be aware that in both regulatory constraints will limit additional
our central case scenario for 2020 results actions we can take to help clients – in spite
and in our extremely adverse scenario, we of the extraordinary amount of capital and
are lending – currently or plan to do so – liquidity we could deploy.
an additional $150 billion for our clients’
5. We are working closely with all levels of government during this crisis — and while we will
participate in government programs to address the severe economic challenges, we will
not request any regulatory relief for ourselves.
We are just beginning to analyze and work no impact on safety, soundness or regulatory
with the government on all of their various oversight. We are working with the govern-
programs. For the most part, these initiatives ment to make sure such crisis-relief measures
will need the deep involvement of the private are structured to work effectively – there are
sector to be properly executed. We intend a significant number of details that need to be
to do everything we can – and as soon as resolved, which I will not go into here.
possible – to ensure that government support
While we will aggressively help our
is reaching the people who need it most.
customers take advantage of these new
We applaud and support the recent actions programs (though we must take action
the U.S. Department of the Treasury and the to protect ourselves from ongoing – and,
Federal Reserve have taken to try to miti- more important, future – litigation risk),
gate the economic impact of the COVID-19 we want our shareholders to know that we
turmoil. The Fed’s overwhelming actions have have not requested any regulatory relief
already dramatically reduced the financial for ourselves. Saying that we will not ask
stress in the system, and there is still more for regulatory relief does not mean the
they could do if they need to. For example, government shouldn’t change some rules
balance sheet expansion, additional lending and regulations, however. For example,
facilities, and changes to capital and liquidity some rules can improperly prevent healthy,
requirements are steps designed to ensure well-capitalized banks from lending freely
that more capital will flow through the in times of stress. This can hurt customers
system, which will ultimately allow us to help as the crisis deepens. Leaving high-quality,
more families and small businesses. These available liquidity undeployed in times of
actions would bolster the U.S. economy with need is an opportunity forever lost.
16
I have written in detail in past letters that After the crisis subsides (and it will), our
the regulatory system is in need of both country should thoroughly review all aspects
reform and recalibration – not because we of our preparedness and response. And we
want it to happen but because it would be should use the opportunity to closely review
good for a deepening and widening of the the economic response and determine
financial system – something that would whether any additional regulatory changes
benefit all Americans. While a lot of the rules are warranted to improve our financial and
were constructive and made the financial economic system. There will be a time and
system stronger, we are now seeing the place for that – but not now.
impact of poorly coordinated, poorly cali-
brated and poorly organized rulemaking.
6. We need a plan to get safely back to work.
It is hoped that the number of new COVID-19 to be tested, and then for those who test
cases will decrease soon and – coupled with negative for the virus, we need to discover
greatly enhanced medical capabilities (more whether virus antibodies appear through
beds, proper equipment where it is needed, serology testing. Both the CDC and private
adequate testing) – the healthcare system is companies are scrambling to produce such
equipped to take care of all Americans, both tests: The U.K. has ordered 3.5 million
minimizing their suffering and maximizing of them, Germany will use them to issue
their chance of living. Once this occurs, immunity certificates to COVID-19 survi-
people can carefully start going back to work, vors, and China and Singapore already are
of course with proper social distancing, using tests to determine how extensively the
vigilant hygiene, proper testing and other virus spread in large populations in order
precautions. There are many jobs that can be to measure the true infection rate. In the
safely done; however, employees in certain United States, the Food and Drug Admin-
companies should return to business as usual istration is allowing doctors to use these
only if the Centers for Disease Control and serology tests to identify recovered patients
Prevention (CDC) and other government whose antibodies could treat emergency
entities deem it safe to do so. cases of the disease.
In addition, this “return to work” process The country was not adequately prepared for
could be accelerated if federal, state and local this pandemic – however, we can and should
governments make tests widely available be more prepared for what comes next. Done
that allow people to certify that they have right, a disciplined transition would maxi-
contracted and recovered from the disease, mize the health of Americans and minimize
have the necessary antibodies to prevent the time, extent and suffering caused by the
them from getting sick again and are not economic downturn.
infectious to anyone. Initially, we need a
buffer period of days or weeks for people
17
7. We need to come together: My fervent hope for America.
Sometimes extraordinary events in history system that cripples small businesses with
can cause a change in the body politic. As a red tape and bureaucracy; ineffective infra-
nation, we were clearly not equipped for this structure planning and investment; and huge
global pandemic, and the consequences have waste and inefficiency at both the state and
been devastating. But it is forcing us to work federal levels. We have failed to put proper
together, and it is improving civility and immigration policies in place; our social
reminding us that we all live on one planet. safety nets are poorly designed; and the
E Pluribus Unum. share of wages for the bottom 30% of
Americans has effectively been going down.
I am hoping that civility, humanity, empathy
We need to acknowledge these problems
and the goal of improving America will
and the damage they have done if we are
break through.
ever going to fix them.
We have the resources to emerge from this
There should have been a pandemic play-
crisis as a stronger country. America is still
book. Likewise, every problem I noted above
the most prosperous nation the world has
should have detailed and nonpartisan solu-
ever seen. We are blessed with the natural
tions. As we have seen in past crises of this
gifts of land; all the food, water and energy
magnitude, there will come a time when we
we need; the Atlantic and Pacific oceans as
will look back and it will be clear how we –
natural borders; and wonderful neighbors in
at all levels of society, government, business,
Canada and Mexico. And we are blessed with
healthcare systems, and civic and humani-
the extraordinary gifts from our Founding
tarian organizations – could have been and
Fathers, which are still unequaled: freedom
will be better prepared to face emergencies
of speech, freedom of religion, freedom
of this scale. While the inclination of some
of enterprise, and the promise of equality
will be to finger-point and look for blame,
and opportunity. These gifts have led to the
I hope we can avoid that. I also hope we can
most dynamic economy the world has ever
avoid people using times of crisis to argue
seen – one that nurtures vibrant businesses
for what they already believe. We need to
large and small, exceptional universities, and
demand more of ourselves and our leaders
a welcoming environment for innovation,
if we want to prevent or mitigate these
science and technology. America was an idea
disasters. This can be a moment when we
borne on principles, not based upon histor-
all come together and recognize our shared
ical relationships and tribal politics. It has
responsibility, acting in a way that reflects
and will continue to be a beacon of hope for
the best of all of us. As President Kennedy
the world and a magnet for the world’s best
historically said, “Ask not what your country
and brightest.
can do for you – ask what you can do for
Of course, America has always had its flaws. your country.”
The current pandemic is only one example
My fervent hope is that America rolls up its
of the bad planning and management that
sleeves and starts to attack these problems.
have hurt our country: Our inner city schools
Fixing them would better prepare us for
don’t graduate half of their students and
future catastrophes, create better economic
don’t give our children an education that
outcomes for everyone (with policies that
leads to a livelihood; our healthcare system
aim to maximize economic growth, driving
is increasingly costly with many of our citi-
the best potential outcomes), improve
zens lacking any access; and nutrition and
income inequality, protect the most vulner-
personal health aren’t even being taught at
able and foster economic growth that is
many schools. Obesity has become a national
more resilient, which would also strengthen
scourge. We have a litigation and regulatory
America’s role in the world. We must never
18
forget that America’s economic prosperity can work where you want and for whom you
is a necessary foundation for our military want). At the end of the day, the pursuit of
capability, which keeps us free and strong happiness, our freedoms and free enterprise
and is essential to world peace. These issues are inseparable.
could all be tackled while preserving the
If we acknowledge our problems and work
freedoms ascribed by our Founding Fathers:
together, we can lift up those who need help
life, liberty and the pursuit of happiness,
and society as a whole. Business and govern-
freedom of speech, freedom of religion and
ment collaborating together can conquer our
freedom of enterprise, which means the free
movement of capital and labor (meaning you biggest challenges.
I N C LO S I N G
While I have a deep and abiding faith in the United States of America
and its extraordinary resiliency and capabilities, we do not have
a divine right to success. Our challenges are significant, and we should
not assume they will take care of themselves. Let us all do what
we can to strengthen our exceptional union.
I would like to express my deep gratitude and appreciation for
the employees of JPMorgan Chase, and I’d also like to
thank all of you who shared your good wishes with me while
I was recuperating from my recent heart surgery. From this letter,
I hope shareholders and all readers gain an appreciation for
the tremendous character and capabilities of our people and how
they have helped communities around the world. They have
faced these times of adversity with grace and fortitude. I hope you
are as proud of them as I am. Finally, the countries and citizens of
the global community will get through this unprecedented situation,
undoubtedly stronger for it. Together, we will rise to the challenge.
Jamie Dimon
Chairman and Chief Executive Officer
April 6, 2020
19
A P PEN DIX
Client Franchises Built Over the Long Term
2006 2018 2019
Deposits market share1 3.6% 9.3% 9.3%  Serve ~63 million U.S. households, including
# of top 50 Chase markets 4.3 million small businesses5
where we are #1 (top 3) 11 (25) 14 (40) 13 (40)  52 million active digital customers6, including
Consumer & Average deposits growth rate 8% 5% 3% 37 million active mobile customers7
Community Active mobile customers growth rate NM 11% 12%  #1 primary bank within Chase footprint8
Banking Credit card sales market share2 16% 22% 23%  #1 U.S. credit card issuer based on sales and
Merchant processing volume3 ($B) $661 $1,366 $1,512 outstandings9
# of branches 3,079 5,036 4,976  #2 mortgage servicer10
Client investment assets ($B) ~$80 $282 $358  #3 bank auto lender11
Business Banking primary market share4 5.1% 8.8% 9.4%  All-time high Net Promoter Score12
Global investment banking fees13 #2 #1 #1  >80% of Fortune 500 companies do business with us
Market share13 8.7% 8.6% 9.0%  Presence in over 100 markets globally
Total Markets revenue14 #8 #1 #1  #1 in 16 businesses — compared with 8 in 201415
Corporate & Market share14 6.3% 11.5% 12.0%  #1 in global investment banking fees for the 11th
Investment FICC14 #7 #1 #1 consecutive year13
Bank Market share14 7.0% 11.8% 12.3%  Consistently ranked #1 in Markets revenue since 201214
Equities14 #8 co–#1 co–#1  #1 in USD payments volume16
Market share14 5.0% 11.0% 11.3%  #2 custodian globally17
Assets under custody ($T) $13.9 $23.2 $26.8
# of top 50 MSAs with dedicated teams 26 50 50  142 locations across the U.S. and 30 international
Bankers 1,203 1,922 2,101 locations
New relationships (gross) NA 1,232 1,706  Credit, banking, and treasury services to ~18K
Commercial Average loans ($B) $53.6 $205.5 $207.9 Commercial & Industrial clients and ~34K real estate
Banking Average deposits ($B) $73.6 $170.9 $172.7 owners and investors
Gross investment banking revenue ($B)18 $0.7 $2.5 $2.7  17 specialized industry coverage teams
Multifamily lending19 #28 #1 #1  #1 traditional Middle Market Bookrunner in the U.S.20
 26,000 affordable housing units financed in 2019
Ranking of 5-year cumulative net client  Serve clients across the entire wealth spectrum
asset flows21 NA #2 #2  Clients include 59% of the world’s largest pension
U.S. Private Bank (Euromoney) #1 #1 #1 funds, sovereign wealth funds and central banks
Client assets ($T) $1.3 $2.7 $3.2  Serves as a fiduciary across all asset classes
Asset & Wealth
Active AUM market share22 1.8% 2.4% 2.5%  88% of Asset Management's 10-year long-term mutual
Management
North America Private Bank client fund AUM performed above peer median25
assets market share23 3% 4% 4%  Revenue and long-term AUM grew more than 90%
Average loans ($B) $26.5 $138.6 $149.7 since 2006
# of Wealth Management client advisors 1,506 2,865 2,890
Refer to the 2020 Investor Day presentations for footnoted information, which is available on JPMorgan Chase & Co.’s website under the heading Investor Relations, Events & Presentations,
JPMorgan Chase 2020 Investor Day (www.jpmorganchase.com/corporate/investor-relations/event-calendar.htm), and on Form 8-K as furnished to the U.S. Securities and Exchange
Commission (SEC) on February 25, 2020, which is available on the SEC’s website (www.sec.gov), as follows: Refer to Firm Overview slide 3 for footnotes 1, 5, 9, 16, 17, 18, 22 and 25; refer to
Consumer & Community Banking slides 22, 3, 3, 2, 9, 9 and 7 for footnotes 2, 6, 7, 8, 10, 11 and 12, respectively; refer to Corporate & Investment Bank slides 5 and 4 for footnotes 13 and 15,
respectively; and refer to Asset & Wealth Management slide 3 for footnote 22.
Note: 2018 deposits market share and # of top 50 Chase markets where we are #1 (top 3) have been revised to conform with the 2019 methodology.
3
2006 reflects First Data joint venture.
4
Barlow Research Associates, Primary Bank Market Share Database as of 4Q19. Rolling 8-quarter average of small businesses with revenues of $100,000 – <$25 million.
14
Coalition, preliminary 2019 rank and market share analysis reflects JPMorgan Chase’s share of the global industry revenue pool and is based on JPMorgan Chase’s business structure.
2006 rank analysis is based on JPMorgan Chase analysis.
19
S&P Global Market Intelligence as of December 31, 2019.
20
Refinitiv LPC, 2019.
21
Source: Company filings and JPMorgan Chase estimates. Rankings reflect financial information publically reported by the following peers: Allianz Group, Bank of America Corporation,
Bank of New York Mellon Corporation, BlackRock, Inc., Credit Suisse Group AG, DWS Group, Franklin Resources, Inc., The Goldman Sachs Group, Inc., Invesco Ltd., Morgan Stanley, State
Street Corporation, T. Rowe Price Group, Inc. and UBS Group AG. JPMorgan Chase’s ranking reflects AWM client assets, Chase Wealth Management investments and new-to-the-firm
Chase Private Client deposits.
23
Source: Capgemini World Wealth Report 2019. Market share estimated based on 2018 data (latest available).
NM = Not meaningful B = Billions
NA = Not available T = Trillions
FICC = Fixed Income, Currencies and Commodities K = Thousands
MSAs = Metropolitan statistical areas
AUM = Assets under management
USD = U.S. dollar
20
AP PEN D IX
New and Renewed Credit and Capital for Our Clients

2008–2019 $2,496
$2,357 $227
($ in billions) $2,307
$2,263
$2,144 $265 $258
$2,102 $262
$2,044
$197 $480
$1,866 $274 $233
$1,820 $399
$430
$326 $476
$252
$1,577 $275 $309 $368
$1,567
$1,494
$222
$312 $252
$243 $281
$167
$167 $136 $1,789
$1,693
$1,621 $1,619
$1,519 $1,525
$1,392 $1,443
$1,264
$1,115 $1,158
$1,088
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Corporate clients Commercial clients Consumer
Assets Entrusted to Us by Our Clients

at December 31,
$4,820
Deposits and client assets1 $4,227 $4,211 $718

($ in billions) $3,740 $3,802
$3,617 $3,633 $660 $679
$844
$3,255 $464 $503 $618
$558
$3,011 $784 $792
$2,811 $439
$2,681 $398 $861 $757
$824 $722
$2,424 $365
$372
$755 $3,258
$361 $558 $730
$573
$2,783 $2,740
$648
$2,427
$2,329 $2,376 $2,353
$2,061
$1,743 $1,881 $1,883
$1,415
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Client assets Wholesale deposits Consumer deposits
Assets under custody2

$26.8
($ in trillions)
$23.5 $23.2
$20.5 $20.5 $19.9 $20.5
$18.8
$16.1 $16.9
$14.9
$13.2
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1
Represents assets under management, as well as custody, brokerage, administration and deposit accounts.
2
Represents activities associated with the safekeeping and servicing of assets.
21
APPEND I X
While we never expect to be best in class every year in every business, we normally compare
well with our best-in-class peers. The chart below shows our performance generally, by busi-
ness, versus our competitors in terms of efficiency and returns.
JPMorgan Chase Is in Line with Best-in-Class Peers in Both Efficiency and Returns
Efficiency Returns
JPM 2019 Best-in-class JPM medium-term
overhead peer overhead target overhead JPM 2019 Best-in-class JPM medium-term
ratio ratio1 ratio ROTCE peer ROTCE2, 3 target ROTCE
Consumer &
52% 46% 50%+/- 31% 35% 25%+
Community BAC–CB BAC–CB
Banking
Corporate &
56% 54% 54%+/- 14% 15% ~16%
Investment BAC–GB & GM BAC–GB & GM
Bank
Commercial 39% 43% 40%+/- 17% 17% ~18%

Banking USB–C & CB FITB
Asset & Wealth 73% 56% <75% 26% 37% 25%+

Management CS–PB & GS–AM MS–WM & MS–IM
JPMorgan Chase compared with peers4
Overhead ratio5 ROTCE

Target Target
JPM 55% JPM 19%
<55% ~17%
C 57% BAC 15%
BAC 60% MS 13%
GS 68% C 12%
WFC 68% WFC 12%
MS 73% GS 11%
Achievement of medium-term targets may take time and require more

normalized GDP, unemployment and interest rates.
1
Best-in-class peer overhead ratio represents the comparable business segments of JPMorgan Chase (JPM) peers: Bank of America
Consumer Banking (BAC–CB), Bank of America Global Banking and Global Markets (BAC–GB & GM), US Bancorp Corporate and Com-
mercial Banking (USB–C & CB), Credit Suisse Private Banking (CS–PB) and Goldman Sachs Asset Management (GS–AM).
2
Best-in-class peer ROTCE represents implied net income minus preferred stock dividends of the comparable business segments of
JPM peers when available or of JPM peers on a firmwide basis when there is no comparable business segment: BAC–CB, BAC–GB & GM,
Fifth Third Bancorp (FITB), Morgan Stanley Wealth Management (MS–WM) and Morgan Stanley Investment Management (MS–IM).
3
Comparisons are at the applicable business segment level, when available; the allocation methodologies of peers may not be consis-
tent with JPM’s.
4
Bank of America Corporation (BAC), Citigroup Inc. (C), The Goldman Sachs Group, Inc. (GS), Morgan Stanley (MS), Wells Fargo &
Company (WFC).
5
Managed overhead ratio = total noninterest expense/managed revenue; revenue for GS and MS is reflected on a reported basis.
ROTCE = Return on tangible common equity
GDP = Gross domestic product
22
AP PEN D IX
Our Fortress Balance Sheet

at December 31,
2008 2019
2019 Basel III
CET1 7.0%1 +540 bps 12.4%2 Advanced is
13.4%, or 18.6%,
excluding $389B
Tangible of operational
$84B +$104B $188B
common equity risk RWA3
Total assets $2.2T +$0.5T $2.7T 2019 Basel III

Advanced is $1.4T,
including $389B
+$0.3T of operational
RWA $1.2T1 $1.5T2
risk RWA3
Reported HQLA
Liquidity ~$300B +~$560B $860B is $545B4
1
CET1 reflects the Tier 1 common ratio under the Basel I measure. B = Billions
2
Reflects the Basel III Standardized measure, which is the firm's current binding constraint. T = Trillions
3
Operational risk RWA is a component of RWA under the Basel III Advanced measure. bps = basis points
4
Represents quarterly average HQLA included in the liquidity coverage ratio. Refer to Liquidity Coverage Ratio
on page 94 for additional information.
CET1 = C ommon equity Tier 1 ratio. Refer to Regulatory capital on pages 86-90 for additional information
RWA = Risk-weighted assets
Liquidity = HQLA plus unencumbered marketable securities, which includes excess liquidity at JPMorgan Chase Bank, N.A.
HQLA = High quality liquid assets include cash on deposit at central banks and highly liquid securities (predominantly U.S. Treasuries,
U.S. government-sponsored enterprises and U.S. government agency mortgage-backed securities, and sovereign bonds)
LCR = Liquidity coverage ratio
23
Consumer & Community Banking
We continue to make real progress 2019 financial results largest and, on an absolute basis, the
in Consumer & Community Banking, fastest growing among U.S. banks:
In 2019, Consumer & Community
and I am proud of what our great 37 million, up 12% year-over-year.
Banking delivered a 31% return on
team has accomplished. We have
equity on record net income of There was no way to predict that
built multiple market-leading busi-
$16.6 billion. Our $55.9 billion in credit performance would remain as
nesses while de-risking and
revenue was up 7% year-over-year. strong as it has over these last few
simplifying them, and we worked
We reduced our overhead ratio to years, and that has positively contrib-
with regulators to close gaps and
51.7% and self-funded significant uted to the performance we deliv-
make tough decisions. We do the
investments. We grew our customer ered in 2019.
hard work each and every day to
base to nearly 63 million U.S. house-
put our customers first and do the We achieved our 2019 results with
holds, including over 4 million
right thing. continued focus on six strategic prior-
small businesses. This performance
is a direct result of the growth in ities that have remained consistent
Our performance in 2019 is the result
our business drivers and our sus- and have proved to be effective. We
of that discipline and effort. We are
tained focus on investing for the bring in new customers, drive engage-
the #1 U.S. credit card issuer based
medium and long term. ment across multiple channels and
on sales and outstanding balances.
always focus on improving their expe-
We are the #1 primary bank in our
Our average deposits of $694 billion rience with us. We closely manage
footprint. We are the #1 business
were up 3% over 2018, and client expenses and simplify our business,
bank based on primary relationships.
investment assets reached $358 bil- and we seek efficiency and greater
We are the #2 mortgage servicer and
lion, up 27%. We ended the year productivity. We’re intensely focused
the #3 bank auto lender.
with $464 billion in average loans, on the regulatory and risk and control
We take nothing for granted and reflecting $43 billion in loan sales environment. We work to hire the
remain humble and motivated as we over the last two years. Our customer best, diverse talent in the industry
compete to be, or stay, best in class. base of active mobile users is the that also reflects the diverse commu-
nities we serve.
Here are some highlights of what we
accomplished in 2019 in each of
these areas:
Acquire, deepen and retain

customer relationships by offering
#1 #1
compelling value propositions
~63M We’re bringing in new customers
and earning more of their valuable
#1 in total U.S. credit card sales #1 primary bank Nearly 63 million
volume and outstandings within our footprint U.S. households served business. In 2019, we grew the total
number of households we serve and
increased the number of households
that have a relationship with more
than one Chase line of business even
faster than households overall.
Among our consumer households,
25% have a relationship with two or
#1 28M $1.1T more Chase lines of business.
Our lending businesses – Credit
#1 most visited banking 28 million daily visits, calls More than $1 trillion
portal in the U.S. and digital channel logins in credit and debit card Card, Home Lending and Auto – are
sales volume a significant acquisition funnel for
our deepest customer relationships,
24
NEW TOOLS FOR CUSTOMERS
We’ve started to bring together our digital assets; for example, their home. In 2019, we their current home and explore their neighbor-
experiences to engage customers at an earlier rolled out a digital mortgage offering, Chase hood before applying for a new loan.
stage in their financial journey. Doing so can MyHome, allowing customers to apply for a loan
These are just a few examples of how we con-
help them reach their goals faster. Our already- and initiate a mortgage origination digitally.
tinue to do more to help our customers with
established digital tools give customers a clear
Customers can use features such as Credit Jour- their everyday finances. We plan to create
view and understanding of their finances.
ney to receive a detailed view of their finances more of these experiences for customers with
Today, customers can better understand and and borrowing ability; Autosave allows them to similar opportunities, such as buying a car,
manage some of their most important financial set a down payment savings goal. And with saving for a vacation and staying on top of
Chase MyHome, they can review the value of everyday purchases.
Credit Journey Autosave Chase MyHome

Customers visit Customers can set Users can get home value
Credit Journey to goals to save for information on Chase
understand their major purchases. MyHome and track prog-
borrowing ability. ress through a simplified
Autosave helped
mortgage experience.
Approximately 22 our customers
million customers save more than More than 1 million
enrolled in Credit $1.5 billion in 2019. customers have visited
Journey as of Chase MyHome since
December 2019. April 2019, and about
80%1 of customers used
Chase MyHome in 4Q19.
1
Reflects percentage of consumer originations that used Chase MyHome for loan fulfillment in the fourth quarter of 2019.
bringing in more than half of all relationships, and we are the #1 channel to interact with us during
new-to-Chase households. Our lend- business bank based on primary the year. We are still committed to
ing customers respond to Consumer bank relationships. The deposits our omnichannel strategy because
Banking marketing at three times the these customers bring to us are the our customers are. And all of our
rate of pure prospects; in branch outcome of that relationship. channels have evolved based upon
expansion markets, the response rate our customers’ preferences and
is even better. Customers with these Drive engagement through expectations. For example, we’re
deeper relationships are more satis- omnichannel, customer-centered able to build branches in new
fied and less likely to leave Chase. experiences markets farther apart than branches
We continually improve and sim- The scale of our distribution gives us in our legacy markets because of
plify the customer experience and a competitive advantage. When we our new tools and capabilities: our
offer new, customer-centered digital bring new products and services to digital account opening functional-
capabilities using our data to benefit the marketplace, we bring them to ity and data about our existing
and protect our customers. nearly 63 million households that customers in those markets.
In Consumer & Business Banking, engage with us on a regular basis. In these newer markets, customers
our focus is to be our customers’ On any given day in 2019, 28 million can choose whether to open an
primary bank. Customers consider a customers visited us, called us or account in a branch or digitally.
wide range of factors when choosing logged in to our digital channels. Until 2018, our checking and sav-
their primary bank. Over 75% of our Two-thirds of our Consumer Bank- ings accounts could only be opened
checking households are primary ing customers used more than one
25
#1 28M $1.1T
#1 most visited banking 28 million daily visits, calls More than $1 trillion
portal in the U.S. and digital channel logins in credit and debit card
sales volume
These efforts have made us better at

providing the capabilities and fea-
tures that improve the customer
experience. As an example, we began
10+ 52+M 37+M
ACTIVE MOBILE CUSTOMERS
extending already-approved offers
to existing customers for whom we
PERCENTAGE POINTS
had enough information to make
10+ percentage point increase More than 52 million More than 37 million an approval decision. Being able to
in share of self-service Consumer active digital customers active mobile customers show customers products they are
Banking transactions since 2014
qualified for is a superior client
experience. Previously, these same
customers had been required to reap-
ply for products using the same
application as a new-to-Chase
customer. For certain customers –
$1.5+B 10 million to date – that wasn’t nec-

16 NEW MARKETS
ENTERED AUTOSAVE
essary; we wanted to save their time
and make it easier to do more busi-
ness with us. Customers value the
Secure Banking checking 16 new markets entered and $1.5+ billion saved by
account launched 90+ branches added since 2018 customers using Autosave transparency and certainty of these
already-approved offers and the sim-
ple one-click experience to accept
them. Personalized offers such as
these convert at rates up to 20%
in a branch. In addition, we were Improve productivity, agility and
higher than our traditional market-
able to use the information we have customer experience through data,
ing offers.
about where our customers live, analytics and technology
work and shop to determine the
We’re using data, analytics and tech- Manage expenses and simplify our
optimal locations to place our new
nology to improve the customer business while continuing to invest
branches and ATMs. This has
experience and drive productivity. for the future
allowed us to enter markets with the
Over the last five years, our opera-
smartest possible footprint and We closely manage expenses, con-
tional staff has become 20% more
helps explain why the early-stage tinuously simplifying and investing
productive, serving a larger cus-
performance of these branches has for the medium and long term –
tomer base with a smaller team.
exceeded our expectations. driving down our overhead ratio in
The cost to serve each household
the process. Our 2019 overhead ratio
In our digital channels, we are pro- has declined 14% over the same
of 51.7% was 170 basis points better
viding new features for our custom- time period, as the share of transac-
than in 2018 and 6 percentage
ers based on their relationship with tions completed through self-service
points better than five years ago. In
Chase. In Chase Mobile, our Snap- channels has grown more than
areas where we have become more
shot feature offers personalized 10 percentage points.
efficient, we have been able to self-
insights to help customers make the fund some of our investments in
We are adopting more agile ways of
most of their money. One insight our businesses.
working, including a product- and
that educates customers on how to
platform-based architecture. Product
begin saving automatically – Auto- Many of the investments we made
and platform owners have end-to-
save – enabled our customers to set have allowed us to reduce annual
end ownership, which puts decision
aside more than $1.5 billion in 2019. expenses via automation and
making closer to the customer, help-
enabled the improved productivity
ing us move faster than we could in
described earlier. In Consumer
an annual planning cycle.
Banking, our investments in digital
self-service capabilities have reduced
26
everyday branch transactions per send data that customers choose Over the last few weeks, we have
customer by 49% since 2014 – for us to provide on their behalf. been offering relief to our customers
eliminating transactions that are This reduces risk for all parties and small business clients who are
simple and easy for customers to while giving transparency and struggling financially. We have pro-
manage anywhere and at their con- control to our customers. vided payment relief for credit cards,
venience, such as depositing checks. auto loans and home loans. We also
Attract, develop and retain the best continue to lend money.
Our investments for the long term
talent for today and the future,
have also led to revenue growth. And as we forge ahead through this
harnessing the power of diversity
Examples include the 400 branches challenging time and get through it,
we are in the process of opening in Our talent sets us apart, and we we still see opportunities to help
new markets to extend our reach. work to attract and retain the best, and support more people. Two
Our new branches in existing mar- diverse talent for today and tomor- opportunities that stand out are:
kets break even seven months faster row. Our team must represent and helping a broader range of Ameri-
than they did five years ago, and the reflect the diverse customers we cans manage their financial lives
branches in our newer markets are serve every day. We are proud that and earning the chance to manage
trending even better than that. more than 57% of our employees in investments for the many millions
Consumer & Community Banking of households that work with Chase
Operate a disciplined risk and are female and more than half of our as their primary bank.
control environment, protect the U.S. employees identify as a minor-
ity. The roles with the highest Our Chase franchise is powerful and
firm’s systems, and safeguard
minority representation are dispro- differentiated from our peers. We will
customer and employee privacy
portionately our customer-facing, continue to support our customers,
As always, we are focused on manag- front-line roles rather than executive small business clients, communities
ing risk appropriately and using management. We are mindful of this and employees now and in the future.
well-designed controls. This work is imbalance and are working tirelessly
never done. Investing in these efforts to correct it.
remains our highest priority, and we
have done so consistently over time. Representation is only part of the
We are vigilant and never compla- equation when it comes to attracting
cent in this space. and retaining world-class talent. We
are focused on driving inclusiveness
Over the last five years, for example, and reinforcing the fact that we all
we’ve used technology and machine are responsible for keeping a culture
learning to reduce fraud losses in the where everyone is respected and
credit card business by 50%. valued for who they are and what
We have made great strides to pro- they contribute.
tect customer data, as well as our
own systems, when sharing data. Conclusion
Previously, to share information with We have built tremendous busi-
approved third parties, customers nesses that deliver repeatable reve-
provided their Chase login creden- nue. Each year, we work hard to
tials, giving access to their entire bring in new customers, retain exist-
Chase profile. This enabled third ing ones and generate earnings
parties to obtain information beyond throughout economic cycles. We are
the scope of the customer’s inten- experiencing turbulent times across Gordon Smith
tion. That wasn’t safe for the cus- the country – and the world – as we Co-President and Chief Operating Officer,
tomer or for us. Now we require get set to publish this letter. We are JPMorgan Chase & Co., and
these third parties to abide by our here for our customers in good times CEO, Consumer & Community Banking
data-sharing rules, and we securely and tough times, and that is true
now more than ever.
27
Corporate & Investment Bank
In 2019, the Corporate & Investment New regulations that followed the Having scale has been equally criti-
Bank (CIB) generated earnings of financial crisis helped make the cal to our success. Following the
$11.9 billion on revenue of $38.3 bil- banking system safer overall but also financial crisis, we believed that
lion – a record year for our business. made investment banking more clients would gravitate to the best
expensive. Banks had to hold a lot ideas and offerings, particularly if
This standout performance is the cul-
more capital, which reduced leverage they could be accessed anywhere
mination of a journey that began
and ROE. At the same time, major and at any time.
during the 2008 financial crisis when
investments were needed in technol-
clients turned to J.P. Morgan for capi- Over the years, that scale has become
ogy and compliance.
tal, liquidity and a safe haven. a springboard for growth. In 2010,
This created a predicament for banks we began to expand our interna-
In 2009, 10 years ago, client business
emerging from the crisis, and they tional corporate banking effort to
drove earnings in our investment
chose several different paths. Some include multinational clients around
bank to a record $6.9 billion. By 2019,
decided to cut back on businesses the globe, with 100 bankers dedi-
the CIB’s earnings had topped the
that were less profitable or carried cated to serving 2,200 clients. Today,
entire firm’s net income from 2009.
too much capital. Others retreated our 400 corporate bankers cover
As we close out the decade, it is worth
from traditional investment banking 3,300 companies and their subsidiar-
reflecting on the strategy that brought
businesses altogether. ies worldwide. In addition, we are
us to this point, helping us to gener-
partnering with Commercial Bank-
ate record revenue and profits and a At J.P. Morgan, we believed that cli-
ing to extend our services to middle
consistently strong return on equity ents would always need an array of
market clients internationally.
(ROE) while adding $42 billion to the global banking products even though
CIB’s capital base and investing sub- margins on these products varied. Commitment and consistency
stantially in the business. We looked at our client relationships
holistically and prioritized long-term Supporting clients during periods of
Global, complete and at scale value for them over short-term crisis has always been a hallmark of
profitability for us. That decision – our business. A decade ago, when
The success of our business over the
to continue to provide a full suite investors were worried about bank
last decade has hinged chiefly on our
of products and services for clients exposures in struggling economies
steadfast pursuit of three strategic
across the globe – has proved to be such as Ireland, Greece, Portugal,
goals: being global, complete and at
mutually beneficial. Spain and Italy, we did not retrench.
scale. The benefits of these qualities
On the contrary: In 2009 and 2010,
may seem obvious today but weren’t
we stood by those countries, raising
quite so clear a decade ago.
Strong Returns on Higher Capital

($ in billions)
20151 2016 2017 2018 2019
CIB ROE 12% 16% 14% 16% 14%
Capital $62 $64 $70 $70 $80
$36.4 $38.3
$35.3 $34.7
$33.7
Revenue
$10.8 $10.8 $11.8 $11.9
Net income $8.1
Overhead ratio 64% 54% 56% 57% 56%
1
Reported results for 2015 have been revised to reflect the adoption in 2018 of the new revenue recognition guidance.
28
BANKING MARKETS
#1
#1 DEBT CAPITAL MARKETS #1 13%
#1 in global Investment Banking #1 in global DCM, with #1 in bond #1 in Markets revenue 13%
fees for the 11th consecutive year underwriting for 10 years in a row and globally since 2012 return on equity
#1 in loan syndication since 2016
#1 #1
EQUITY CAPITAL MARKETS
#1 in global ECM wallet, #1 in subproducts including equity

with $13 billion raised for private markets derivatives, securitized products, and
and #1 in IPO wallet G10 rates, FX and financing
€7.5 billion and €11 billion for Greece Banking have delivered a combined And while we are more efficient
and Italy, respectively. That support ROE ranging from 14% to 18% over than we were five years ago, there is
continues to this day. Last year, we the past five years. Meanwhile, Secu- still more output to be won per dol-
SECURITIES
opened SERVICES
a state-of-the-art office in WHOLESALE
rities Services and Treasury Services, PAYMENTS
lar of investment. As we modernize
Dublin, which is now a thriving the traditional transaction banking our infrastructure and scale our
center of technology and commerce. businesses, have delivered between technology capabilities, we will
10% and 20% during the same continue to make key investments
That commitment and consistency are
period. This means that for the past required to “change the bank” while
#2
now spurring the firm’s expansion in
the world’s fastest-growing economies. $27T five years, the combined CIB has
achieved an average ROE of 15%.
#1
deploying resources needed to “run
the bank” efficiently.
$6T
Ten years ago, regulatory constraints
#2 custodian $27 trillion in assets under custody, #1 in U.S. dollar $6 trillion in payments
on foreign banks
globallyseverely restricted up 16% year-over-year
Equally critical to our long-term suc-volume 2019 performance
payments processed daily
what we could offer clients in China. cess is attracting and, more important,
Today, we have approvals from Chi- retaining top talent to ensure our The CIB’s record 2019 earnings of
nese authorities to open a majority- clients receive best-in-class execution $11.9 billion on record revenue of
owned securities joint venture with a and consistency in their experience. $38.3 billion allowed us to maintain
our position as the world’s top
20,000+
path to 100% ownership. Bringing our This is a particular priority in the
full suite of banking capabilities to Investment Banking business, where #1
investment banking franchise for
China will enable20,000+
its companies to
daily net asset valuations
clients choose us to lead deals because #1the 11th consecutive year. In addition,
merchant acquirer
grow beyond the country’s borders
provided to clients of trust earned over many years. weinearned
the U.S. $7.6 billion in global
and allow more investors to access its investment banking fees, narrowly
Our financial stability and continuity beating our all-time record of $7.5
market. This sets us up for tremen-
of personnel enable us to build effec- billion in 2018.
dous growth in one of the world’s
tively on our progress and invest
largest economies while retaining a In the context of generally flat
year after year. That investment
prudent approach to expansion. industry revenue, the CIB has won
includes a firmwide technology bud-
get of about $12 billion, much of it more business and gained greater
Stable returns and continuity wallet share than any other competi-
directed toward CIB systems. Not
The diversity of our CIB businesses only is technology the structural tor over the last five years, according
has served us well, especially during underpinning of our business, but it to Dealogic. We ended 2019 with a
times of market stress, and we have is also a power that we have learned global wallet share of 9.0%, the
delivered consistent returns through to scale and selectively share with cli- highest attained in a decade.
the entire economic and market
cycle. Our traditional investment $xxx ents who seek the same cutting-edge
analytical and risk mitigation tools
By line of business, we ranked #1 in
wallet share for both Equity and
$XX
banking businesses of Markets and payments
$TBD healthcare that our professionals
sector more easily addressable 16 NEW MARKETS
use
ENTERED
in-house. Debt Capital Markets during 2019,
CLIENT ASSETS with Instamed acquisition
29
SECURITIES SERVICES WHOLESALE PAYMENTS
#2 $27T #1 $6T
#2 custodian $27 trillion in assets under custody, #1 in U.S. dollar $6 trillion in payments
globally up 16% year-over-year payments volume processed daily
20,000+ #1
20,000+ daily net asset valuations #1 merchant acquirer
provided to clients in the U.S.
raising more than $530 billion for tinued to turn to us for complex and Wholesale Payments celebrated its
clients around the world. J.P. Morgan transformative deals. Although the first year as a combined business
was bookrunner on more equity global M&A wallet decreased 10% that brought together the services we
deals than any other bank, a feat we year-over-year, J.P. Morgan gained offer to corporate treasurers with
achieved in eight of the last 10 years. share across regions, earning global those for global merchants. The busi-
And our 9.4% share of the global advisory fees of $2.4 billion, 5% shy ness performed well during a year in
wallet was the highest of any bank of our 2018 record. which the Federal Reserve cut inter-
during the last decade. est rates multiple times and margins
In our Markets business, which
on deposits tightened.
J.P. Morgan brought 79 companies
public in 2019, including several
$xxx serves more than 6,500 clients, reve-
nue totaled nearly $21 billion in Wholesale Payments supports clients
$XX
highly anticipated “unicorns,”
ing the yearCLIENT
as the
finish- payments
$TBD healthcare 2019, up 7% from the prior year. The
sector more easily addressable
#1 underwriter 16 NEWENTERED
business achieved
MARKETS
an overall ROE of
across the bank; within the CIB alone,
Treasury Services revenue was up
ASSETS with Instamed acquisition
of initial public offerings (IPO) by 13% despite the additional capital we 39% since 2015. Cash management
wallet share. At the same time, our invested in our trading businesses in and clearing were among the strong
Private Capital Markets group raised recent years. revenue generators in 2019. In addi-
more than $13 billion for clients, tion, the acquisition of Philadelphia-
Approximately $46 billion of stocks
making it a fast-growing part of our based InstaMed, an innovative health-
cross our Equities Markets trading
business last year. care payments company, was the
desks each day. The business gener-
firm’s largest since the financial crisis.
In a year characterized by cross-border ated $6.5 billion in revenue in 2019,
deals, our Debt Capital Markets busi- making J.P. Morgan the top bank by Ongoing investments in the busi-
ness acted as the world’s leading wallet share, with 11.3%, up from ness, which processed $43 million in
bookrunner and retained its #1 posi- 8.4% in 2015. Our Cash Equities payments per second last year across
tion with 8.7% of global wallet share. business continued to grow revenue more than 120 currencies, helped
The business showed its strength and share, and our balances in drive organic growth and a healthy
across product lines, ranking #1 for Prime Finance finished the year at pipeline. In basic terms, Wholesale
wallet share in high-grade, high-yield all-time highs. Payments enables clients to make,
and investment-grade issuance, as manage and accept payments
It was an exceptional year for our
well as in leveraged loans. securely anytime, anywhere and by
Fixed Income Markets business.
any method. Our opportunity here is
In our Mergers and Acquisitions Revenue rose 13% to $14.4 billion,
tremendous, particularly as business
(M&A) business, J.P. Morgan ranked with a particularly good performance
gravitates to larger banks with
#2 globally in announced dollar vol- in securitized products and a recov-
global scale.
ume and wallet share, as clients con- ery in the credit and rates markets
from the previous year.
30
Securities Services, which provides We have also tightened restrictions on Finally, we must think creatively
post-trade services such as custody certain activities, such as financing for about next-generation transforma-
and fund administration, generated coal mining and Arctic drilling, and tion and ways that our businesses
$4.2 billion in revenue during 2019, are on track to meet our own commit- will change over the next five to 10
down slightly from the previous ment from three years ago to source years. To that end, we are evaluating
year but up 16% since 2015. renewable energy for our entire 2020 emerging technologies and reshap-
Although deposit margins narrowed global power needs. These initiatives ing our approach to data to bring the
due to lower interest rates, we con- are enthusiastically supported by power of artificial intelligence and
tinued to invest in products, sys- our employees, as well as by the next machine learning to all our busi-
tems and services. The business has generation of recruits, who want nesses. We’re also building out our
generated record growth over the J.P. Morgan to lead in this space. infrastructure to reduce friction,
last five years, with assets under improve client service and offer
That said, business alone cannot
custody1 up 41% and assets under access to sophisticated analytics.
ensure the transition to a lower-
administration2 up 55%.
carbon economy. Government policy We have the most solid underpin-
Embedding sustainability is crucial. Recently, we joined the nings for the enduring success of a
Climate Leadership Council, a group world-class business: the capital, the
At J.P. Morgan, a readiness to adapt promoting a bipartisan road map for brainpower and the hard-earned
has always characterized the way we a revenue-neutral, carbon tax-and- experience to get things right.
do business, and our approach to dividend framework for the U.S. Although we will be tested by any
environmental, social and gover- number and variety of uncertainties
nance issues is no different. The Conclusion in the years to come, these qualities
issue of environmental sustainabil- make me confident and optimistic
Our impressive 2019 performance
ity is gaining urgency by the day about our shared future.
was not easily won, as competition
and is among the growing risks
and geopolitical uncertainty intensi-
being evaluated by our business
fied. The year 2020, however, has
and policymakers.
already presented all of us with our
We understand the pressing nature most challenging problem yet: a
of climate change and believe that pandemic of proportions not seen
companies like ours can add tremen- for 100 years.
dous value by helping global compa-
Across the firm, taking care of our
nies – and the global economy –
employees and standing by our
transition to cleaner energy.
clients during events like the corona-
Currently, around 80% of the world’s virus are critical priorities. With so
energy is sourced from fossil fuels, many companies, institutions and
which remain the primary source for governments relying on J.P. Morgan
heating homes and powering cars. for their own operations and eco-
We are working to reduce this nomic well-being, it’s essential that
dependency by committing billions we do the right things day to day,
of dollars to sustainable projects in staying focused on risk, costs and
2020 alone, including green technol- making sure our clients have access to
ogies. Furthermore, we are embed- the capital they need. We must also
ding sustainability into many of our think about optimizing the business Daniel E. Pinto
daily business practices, from assess- for the near future, continuously mak- Co-President and Chief Operating Officer,
ing risk to designing products to ing adjustments to ensure that we are JPMorgan Chase & Co., and
advising clients. as efficient and effective as possible CEO, Corporate & Investment Bank
while closing addressable gaps.
1
Assets under custody: Represents assets held directly or indirectly on behalf of clients under safekeeping, custody and servicing arrangements.
2
Assets under administration: Represents the market value of client assets for which administrative and other related services are performed.
31
Commercial Banking
Across JPMorgan Chase, we measure Our intense client focus and disci- Enormous growth potential
our success not just by our financial plined execution have resulted in The overall potential to expand our
results, but by our ability to make a consistent strong financial perfor- business is tremendous, and as we
positive difference for our clients, mance across our business. In 2019, enter into a new decade, we remain
employees, communities and share- CB generated $9.0 billion in reve- focused on our multifaceted long-term
holders. Over the last several years in nue, $3.9 billion in net income and growth strategy. Our Middle Market
Commercial Banking (CB), we’ve been a return on equity of 17%. While expansion effort is a terrific example
executing a consistent, long-term our overall results were affected by of identifying a market opportunity
strategy focused on doing just that. lower interest rates, the fundamen- and executing with purpose. Since
tals of our business remained out- 2008, we’ve nearly doubled our foot-
Our shareholders: Investing for standing, with record Treasury print across the country, moving into
long-term value Services fee revenue of $1.5 billion 47 metropolitan statistical areas
and steady loan and deposit growth. (MSAs), adding locations in over 20
Strong 2019 financial performance
We continued to benefit from our states and hiring almost 500 bankers.
To create value in CB, we work hard strong partnership with the Corpo- We’ve been able to compete and suc-
every day to add great clients and rate & Investment Bank, delivering ceed in these new markets because of
deepen those relationships over time. record investment banking revenue the quality of our team, the strength
We’ve been making sustained invest- of $2.7 billion, up 10% from 2018. of our brand and JPMorgan Chase’s
ments in our people and capabilities
Our credit discipline has served us unmatched capabilities, delivered at
to drive results across our business.
well, and by maintaining our strict a very local level. To date, we’ve selec-
In the last two years, we’ve hired
underwriting standards, our net tively added almost 3,300 clients,
more than 300 bankers and
charge-off rate in 2019 was 8 basis over $15 billion of loans and over
expanded our presence to 24 high-
points. This marked the eighth $13 billion of deposits.
potential locations. These invest-
ments have led to more client activ- straight year in which net charge-offs We’re equally excited about expand-
ity than ever before, and in 2019, we were less than 10 basis points. ing our business internationally. In
added over 1,700 new client relation- 2019, we hired nearly 80 bankers to
ships, a 60% increase since 2017. serve non-U.S.-headquartered, multi-
MAINTAINING STRONG PERFORMANCE
Middle Market Expansion Revenue Commercial Banking Gross Investment Banking Revenue1
($ in millions) ($ in billions)
$1,000 $3.0
R 8%
CAG $2.7
$723 $2.2
34%
GR
CA
$1.3
$354
$53
2010 2015 2019 Long-term target 2010 2015 2019 Long-term target
1
Represents total JPMorgan Chase revenue from investment banking products provided to CB clients.
CARG = Compound annual growth rate
32
MAKING A POSITIVE DIFFERENCE IN OUR COMMUNITIES
We take great pride in the work we do to

support our communities. We ended 2019
with over $54 billion in financing to local
companies, states and municipalities, schools,
nonprofits and healthcare providers. We also
originated over $2 billion in loans for the
construction of affordable housing for low-
income individuals. In addition, our teams are
very active civically and volunteered more
than 25,000 hours with local organizations.
national companies across 18 coun- funding an important acquisition or from a global exchange to applica-
tries. We have a significant opportu- taking their company public. In 2019, tion programming interfaces. As a
nity to support these clients not across our business, we made more result of the investments we are
only in the U.S. but also in other key than 290,000 client calls and grew making in our comprehensive pay-
geographies around the world. As loans by $2.4 billion, ending the ments platform, we can deliver valu-
CB continues to build internation- year with $208 billion in average able analytics and insights to clients
ally, we benefit greatly from the loan balances. Our long-term view, across all of their treasury activities
firm’s existing local knowledge and unmatched solutions and enduring to optimize their businesses.
well-established risk, compliance commitment to our clients set us
and control infrastructure. Similar apart in the industry. Our communities: Serving as a
to our strategy in the U.S., we are positive force where we live and work
As our clients’ expectations continue
taking a long-term view, focused on In CB, we embrace our obligation to
to evolve, we have dedicated teams
selecting only the best clients, and be a positive force in our communi-
designing new functionality that
will continue to execute with ties. We ended 2019 with over $54
will deliver even greater value to our
patience and discipline. billion in financing to local compa-
clients and enhance their experience.
This design-led approach has informed nies, states and municipalities,
Our clients: Relentlessly focused on schools, nonprofits and healthcare
our investments in technology, data,
delivering solutions and capital to providers. We have dedicated teams
digital and payments. To date, our
drive their success across the country, working hard to
work has resulted in tangible bene-
Clients are at the absolute center of fits, such as faster credit delivery, support these vital institutions so
everything we do, and every day, we reduced account opening time and they can continue to keep our com-
strive to deliver differentiated advice, new integrated solutions. munities strong.
tailored solutions and meaningful
We can uniquely bring our clients Our Commercial Real Estate (CRE)
capital to help them succeed. The
an entire suite of wholly owned, businesses are also at the forefront
breadth and quality of our capabili-
global treasury capabilities, includ- of this important work. As the #1
ties, along with our outstanding
ing merchant acquiring, commercial multifamily lender in the U.S.1,
team, allow us to build deep, valuable
cards and cross-border payments. Commercial Term Lending (CTL)
relationships over time. By being
These integrated solutions allow provides capital to apartment build-
part of JPMorgan Chase, we have the
clients to accept any method of ing and workforce housing owners.
ability to serve clients throughout
payment, in any currency, around In 2019, more than 40% of the loans
the life cycle of their businesses –
the world. Moreover, clients can originated in CTL funded properties
from opening their first operating
connect with us however they want, in low- to moderate-income neighbor-
accounts and expanding overseas to
1
S&P Global Market Intelligence as of December 31, 2019.
33
GROWING
GROWINGOUR
OURCLIENT
CLIENTFRANCHISE
FRANCHISE
170+ 290K+ 1700+ 50 172

NEW CLIENT NEW CLIENT PRESENCE OFFICES IN
BANKERS CALLS RELATIONSHIPS IN TOP 50 MSAs 172 CITIES GLOBALLY
hoods. Our Community Development ical knowledge and enable our teams Managing the market challenges
Banking team had a record year, origi- to provide even more value to our emerging in 2020
nating over $2 billion in loans for the clients. Overall, in 2019, CB employ- We have a long history of supporting
construction of affordable housing ees completed more than 350,000 our clients and being a market leader
SECURITIES SERVICES
and extending nearly $200 million in hours of training. through challenging times. Our
financing to critical community devel- approach to the current global crisis
We’re also investing to empower
opment institutions. In total, our CRE
our teams with the best digital tools is no different. As we navigate this
business financed more than 25,000 complex situation, I have never
and data resources to ensure their
housing units for low-income individ- been more proud of the entire CB
uals in 2019. #2
success. Last year, we launched a
$27T
new client management system that team and am so grateful for their
harnesses the power
Across CB, our people best demon- #2 custodian hard work, compassion and tenacity.
$27 of cloud
trillion assetstech-
under custody,
strate the positive impact we create nology and our firmwide up
globally data
16% assets
YoY It’s inspiring to see everyone come
in our communities. Many of our to better support our bankers. This together to support one another,
employees are active civically and platform provides live dashboards and I am confident the work we
serve on philanthropic boards. Last with real-time client information – are doing for our clients and our
year, our team volunteered more alerting our team on service needs, communities right now will be
product usage and the overall health remembered forever.
than 25,000 hours with local organi-
zations. We take great pride in the 20,000+
of their client portfolio. So far, we’ve
work we do to support our commu- received>20,000
tremendous feedback, as
daily net asset
nities and the firm’s commitment the tool meaningfully
valuations increases
(NAVs) provided to clients
to make a difference. efficiency and allows more time
to be spent with our clients.
Our employees: Empowering and
enabling our teams Looking forward: Continuing to
Our success wouldn’t be possible execute with patience and discipline
without our incredible team. As such, Focused on our strategic priorities
we’re focused on having the best, Looking ahead, our attention
diverse talent with the right skills to remains focused on executing our
lead our business forward. We’re long-term strategic priorities. We
making significant investments in will continue to invest and drive
our training and development pro- innovation across our businesses,
grams to enhance our team’s exper-
290+K 290+K 290+K
build deep client relationships,
tise in emerging technologies, data maintain fortress principles, and
and digital solutions. We have cre- attract and retain the best talent.
CLIENT centers that
ated dedicated training CLIENT CLIENT
CALLS MADE Doing all of this with
CALLS patience and
MADE Douglas B. PetnoCALLS MADE
host intensive credit and treasury discipline will allow us to deliver CEO, Commercial Banking
services programs to build upon crit- value for our clients, employees,
communities and shareholders
throughout the cycle.
34
Asset & Wealth Management
2019 marked my 10th year as CEO of

Asset & Wealth Management. During
We strive to be the best, not the
biggest. If you relentlessly work to $3.2T
this past decade, we have success- be the best, you will have years like Record client assets of $3.2 trillion
fully helped millions of individuals 2019, in which we received $194
and institutions around the world
invest for their futures. Our clients
billion in net new client asset
flows2. In fact, since 2015, we $14.3B
come to us for advice, ideas and solu- received half a trillion dollars in Record revenue of $14.3 billion
tions for some of their most impor- net new client asset flows2. Similar
$3.7B
tant life events, and for help in navi- to our investment performance,
gating through turbulent times. We our flows are not concentrated in
cherish our clients’ trust and never any one asset class, region or client Record pretax income of $3.7 billion
take it for granted. segment, but come from a well-
$161B
diversified set of businesses.
Strong investment performance for
clients Strong financial performance for
Record end-of-period loan balances
Our success begins with a focus on shareholders of $161 billion
investment performance, which I am proud of our results for our
requires the unwavering, long-term
prioritization and retention of our
clients, while, at the same time, we
continue to deliver strong financial $100B
1,000+ investment professionals. performance for our shareholders. Record long-term AUM flows of
This has led to 88% of 10-year In 2019, Asset & Wealth Manage- $100 billion
long-term mutual fund assets under ment achieved record total client
management above peer median
and 196 mutual funds 4- or 5-star
assets of $3.2 trillion, record revenue
of $14.3 billion, record pretax income
88%
88%
rated1. It’s worth noting that our per- of $3.7 billion and return on equity 88% of 10-year AM long-term mutual
fund AUM above peer median
formance is not concentrated in any of 26%. Our reliable and consistent
asset class or region. It represents growth has been powered by
leading performance across all asset success across our diversified Asset
classes globally. Management (AM) and Wealth
Management (WM) franchises. Retention rate of over 95% of top
Given our long-term approach,88% we talent3 and 39% of AM AUM managed
are even prouder of our sustained 91% managers
by female portfolio
performance over the past 10 years.
2019 % of 10-year J.P. Morgan Asset Management Long-Term Mutual Fund AUM
Above Peer Median4
88%
(net of fees)
91% 81%
Total J.P. Morgan Multi-Asset Solutions
Equity Fixed Income
Asset Management & Alternatives
88% 91% 81% 90%
For footnoted information, refer to slides noted below in the 2020 Asset & Wealth Management Investor Day presentation, which is available at jpmorganchase.com/corporate/investor-relations/event-calendar.htm.
1
See slide 18; 2 See slide 25; 3 See slide 17; 4 See slide 20.
AUM = Assets under management
81% 90% 35
91%
JPMorgan Chase Total Client Asset Flows: 2015-20191
2015 2016 2017 2018 2019
Fixed Income     
Equity     
ASSET CLASS/PRODUCT
AUM Multi-Asset     
Assets= Alternatives     
AUM+AUS Liquidity     
Brokerage     
AUS Custody     
Deposits     
Wealth Management     
CHANNEL
Assets Retail     
Institutional     
U.S.     
REGION
LatAm     
Assets
EMEA     
Asia     
≥$0 <$0
For footnoted information, refer to slides noted below in the 2020 Asset & Wealth Management Investor Day presentation, which is available at jpmorganchase.com/corporate/investor-relations/event-calendar.htm.
1
See slide 25; 2 See slide 18; 3 See slide 19; 4 See slide 20.
AUS = Assets under supervision
Asset Management level. In addition, we’ve grown the internationally, where we have less
Since 2009, AM grew revenue by 2 number of managed accounts by than 2% market share3. We plan to
1.5x to $7.3 billion and pretax 7.6x to a record 730,000. capture share by continuing to be
income by 1.4x to $1.9 billion. That the go-to bank, delivering solutions
success has been driven by a broad, Growth priorities for the next across the balance sheet.
diversified platform. On long-term decade
• Scaling Asset Management: To scale,
AUM, we achieved record levels Looking ahead to the next decade, we need strong, diversified long-
across asset classes (Equity, Fixed we are highlighting five major term investment performance,
Income, Multi-Asset), segments drivers to continue our momentum: which we have with 91% of Equity,
(Retail and Institutional) and geogra- 81% of Fixed Income and 90% of
phies (U.S. and International). We • Focusing on U.S. Wealth Management:
This is one of the firm’s biggest Multi-Asset Solutions & Alternatives
also achieved success in key growth 10-year mutual fund AUM above
areas of the market, with Multi-Asset opportunities with the U.S. repre-
senting approximately $50 trillion peer median. This performance has
AUM growing by 6.4x to $267 billion driven our above-industry growth
and, in particular, Target Date AUS in market size3. For example,
Chase banks half of the 22 million over the last 10 years 4 and will con-
growing by 25x to $125 billion. tinue to be our foundation to scale
households within the $1 million
Wealth Management to $10 million net worth segment 3, over the next 10 years. And with
but only 5% have investments around 2% market share across
Growth since 2009 is an equally asset classes4, we have significant
powerful story in WM, where revenue with us. We have a tremendous
opportunity to capture new clients opportunity to capture share.
grew by 1.8x to a record $7.1 billion
and pretax income by 1.7x to $1.9 bil- and deepen current relationships. • Building Alternatives: We are cele-
lion. We continue to differentiate our- • Expanding the Global Private Bank: brating our 50th anniversary of
selves by providing the advice, solu- Over the last five years, we’ve managing what is now nearly a
tions and client experience that our hired approximately 1,300 advi- quarter of a trillion dollars in Alter-
clients need. As an example of their sors, successfully converted native assets. I am excited about
commitment, we’ve nearly tripled hundreds of referrals from around the opportunities to continue build-
the number of clients with over $100 the firm, attracted over 11,000 net ing our franchise, from expanding
million of total positions to a record new clients and captured around our leading core real estate capabil-
$200 billion in client asset flows. ities to building out our newly con-
x = times
We still have a significant expan- solidated private credit capabilities.
sion opportunity, particularly
36
Client Assets (EOP, $ in trillions) Revenue ($ in billions)1 Pretax Income ($ in billions)
10-yr 10-yr 10-yr
2009 2019 CAGR 2009 2019 CAGR 2009 2019 CAGR
$3.2* 7% $14.3* 5% $3.7* 5%
AUS + AUM $2.4* 7%
$1.7
AUM
$1.2
$8.6 $2.3
* Record
1
For footnoted information, refer to slide 17 in the 2020 Asset & Wealth Management Investor Day presentation, which is available at jpmorganchase.com/corporate/investor-relations/event-calendar.htm.
• Considering M&A: While we always • Environmental, Social & Governance being impacted concurrently in
prefer organic growth, there are (ESG): With the help of industry 2020, now is the most important time
times when the industry changes experts we have hired, we are to have portfolios actively managed.
drastically, and we need to be on doing more than ever before,
top of it, which is what we are focusing on our clients’ needs In times like these, I’m also reminded
doing now. We are very selective, and delivering across AM and of how fortunate I am to be part of
evaluating every M&A opportunity WM. In AM, we are working JPMorgan Chase. For more than 200
for an adjacent capability. But most toward 100% of AUM being ESG- years, we have been at our best in the
important, we always prioritize our integrated while we launch new most difficult of times. I am proud of,
clients’ needs and increasing share- ESG-focused WM strategies. and inspired by, how our colleagues
holder value. and partners have responded to this
• China: We’ve been in China since the crisis, and I remain incredibly opti-
Continuing to invest in the business 1970s, and we are set to become the mistic about the firm’s future.
first foreign asset manager to fully
Our long-term commitment means own a Chinese fund manager with
that we will continue to serve our China International Fund Manage-
clients and invest in making our ment. Our increased stake will fur-
business better for the future: ther solidify our position in China
• Front office: We will continue to and better address our clients’ needs.
hire top front office talent. Addi- As I write this letter, we are at an
tionally, we will continue to invest unprecedented moment in time.
in our investment capabilities, The global COVID-19 pandemic has
spending around $320 million on caused many people to suffer, created
AM research and making thou- historic volatility and changed how
sands of company visits annually. we work and live. However, we can
• Technology: We are creating and take comfort in knowing that people
leveraging tools, such as You Invest around the world are coming together
and machine learning, to help our to respond to these challenges in
clients and employees focus on powerful and inspiring ways.
higher-value activities and make
As a fiduciary, we view events that
better decisions. We always look to
completely disrupt an industry, coun-
simplify our production processes
try or way of living as the times Mary Callahan Erdoes
so that 50+% of our technology
when active security selection (and CEO, Asset & Wealth Management
spend is dedicated to new and excit-
deselection) is of the utmost impor-
ing capabilities that deliver stronger
tance. With all three of these areas
client outcomes.
37
Corporate Responsibility
As the world faces the health and eco- those most vulnerable as they face economic opportunity to more
nomic consequences of COVID-19, the financial hardship and uncertain people, including by giving those
challenges ahead are a stark reminder work opportunities, including neigh- who have a criminal history a second
that too many people already struggle borhood development, financial chance. We are advocating at the
with economic insecurity every day. health, and jobs and skills. state and federal levels for reforms
This struggle will likely escalate as including “banning the box,”
Our ongoing efforts to help prepare
this public health crisis continues to establishing automatic record
workers for the future of work
disrupt the global economy. expungement for certain offenses
exemplify this strategy in practice.
and promoting fair-chance hiring
Now more than ever, business must As technology alters nearly every
in the financial services sector. In
step up and collaborate with local, facet of work, the education and
2019, our firm gave second chances
civic and government leaders to lend skills that people need are rapidly
to 3,000 people in the U.S. with
our expertise toward solutions that changing. We have combined our
criminal backgrounds.
support our customers, communities resources and reach to give people
and employees in need. Business the education and skills they need to As the world responds to this health
Roundtable’s recent Statement succeed. We have committed $350 and economic crisis, we will need to
on the Purpose of a Corporation million globally to support and scale be nimble and lean into our strengths
made clear that America’s largest the most effective local initiatives to to best support those who have been
companies must operate for the equip people with in-demand skills. most vulnerable to economic disrup-
benefit of all stakeholders, and we This investment will be even more tion. We will continue to apply what
must be there for them in both good critical given the recent unforeseen we learn to scale solutions, deepen
and challenging times. disruption in the global economy and our impact and support our custom-
the longer-term need to rebuild the ers, communities and colleagues.
For JPMorgan Chase, this means
labor market. From Delhi to Detroit, Make no mistake: An inclusive
bringing the full force of our
efforts focused on opportunity and economy is a stronger economy,
business to lift up those we serve
inclusivity, like career and technical and we all have an interest in that.
around the world, focused on where
education in high schools to appren-
we can deliver the greatest impact
ticeships in growing industries, are
and reinvigorate the global economy
preparing more people to launch
to benefit more people.
successful careers. Additionally, in
In response to COVID-19 and in addi- partnership with our Human
tion to efforts across the firm to sup- Resources team, we’re redefining
port our customers and employees in how we train and develop our
need, we made an initial $50 million employees by identifying future-
philanthropic commitment to help critical skills.
those most affected by humanitarian
Scaling the most effective programs
challenges, as well as sustainable and
and creating greater economic oppor-
innovative solutions to help small
tunity for the most vulnerable will
businesses and underserved commu-
require thoughtful and effective pub-
nities recover when the crisis subsides.
lic policy. Last year, we launched the
We will continue to focus on areas
JPMorgan Chase PolicyCenter to
where we can leverage our core busi-
advance policies at the federal, state
ness, philanthropy and policy exper-
and local levels that strengthen com-
tise to help the most vulnerable in
munities and change lives.
the short and long term. In addition Peter L. Scher
Business leadership in developing
to supporting small businesses, this Head of Corporate Responsibility and
policy solutions is critical as we work
approach has effectively informed Chairman of the Mid-Atlantic Region
to address the longer-term impact of
and scaled solutions across pillars
this crisis. We have a track record
that will remain critical to helping
of supporting policies that provide
38
Creating an economy that works for payments affect the financial lives of 4.6 Cultivating thriving neighborhoods
more people million families; how Miami’s small businesses Housing that individuals and families can
turn a profit yet have limited cash buffers; afford, in proximity to economic opportunity
Companies like ours have a responsibility to
and how families are weathering financial and basic services, is the cornerstone of vibrant
step up and help solve pressing challenges.
volatility on a monthly basis. and resilient neighborhoods. Producing, pre-
When communities do well, our firm does well.
This conviction is reflected in how JPMorgan serving and protecting affordable housing is
Preparing workers for the future of work
Chase does business every day. We’re investing essential to our strategy for creating thriving
in our customers, employees and communities Technological change continues to transform neighborhoods. For example, we’re investing
around the world to break down barriers to the world of work. By 2030, more than 30% of $22 million to develop and preserve affordable
opportunity and create an economy that works American workers and 375 million workers housing in San Francisco and Oakland. This
for more people. globally will need to change jobs or upgrade investment, which combines long-term, low-cost
their skills significantly in order to advance loans and philanthropic capital, will provide
We are combining our business and policy within the workforce. We are investing $350 mil- more affordable housing and protect local
expertise, sustainable business practices, data, lion over the next five years to equip young residents from being displaced.
capital and global presence to advance solu- people and adults with the skills they need to be
tions worldwide. Our efforts focus on five key successful in a rapidly changing economy. We Advancing financial health
areas where we believe we can make the are working to create greater economic mobility
greatest impact: jobs and skills, neighborhood Sound financial health is the foundation on
and career pathways for workers both inside which strong and resilient households, com-
development, small business expansion, our firm and in our communities. Our firm is
financial health and sustainability. munities and economies are built. We’re using
investing in our employees through long-term our data, expertise and capital to improve the
training and reskilling efforts. We are also financial health of customers, employees and
Advancing policy solutions
making long-term commitments to boost career communities. In 2019, JPMorgan Chase made
Public policy is a critical tool to scale the most readiness. We invested $7 million in Denver, a $25 million commitment to the Financial
innovative and impactful approaches that bring Colorado’s youth apprenticeship system to Solutions Lab, which supports technology-
about lasting change. In 2019, we launched the develop strong connections between high based innovations that improve financial
JPMorgan Chase PolicyCenter to develop and schools and higher education, focused on well- health. This investment builds on our five-year
advance sustainable, evidence-based policy paying careers in the region’s growing industries. collaboration with the Financial Solutions Lab,
solutions that drive inclusive economic growth
which has supported nearly 40 innovative
in the U.S. and around the world.
financial technology companies (fintechs) that
Through the PolicyCenter, we are advancing pol- have raised over $500 million in capital since
icy changes to remove barriers to employment joining the program, saving U.S. residents
for people with a criminal background and more than $1 billion.
advocating for policy solutions that will enable
more young people — particularly those who Transitioning to a low-carbon economy
lack opportunity — to access high-quality career- JPMorgan Chase is committed to creating a
readiness programs that pave the way to well- more sustainable future for our employees,
paying jobs. In 2020, the PolicyCenter will customers and communities. Our firm has
expand its focus to tackle additional issue areas. committed to facilitate $200 billion in financing
Boosting small business growth in 2020 to support the objectives of the United
Harnessing the power of data Nations’ Sustainable Development Goals, with
Through our long-term investments around the
Sound public policy is informed by timely, a focus on addressing climate change and
world, we have seen firsthand how underserved,
granular data. The JPMorgan Chase Institute is advancing social and economic development.
minority entrepreneurs have the power to lift
dedicated to delivering data-rich analyses and
up entire communities. Yet these populations We are also promoting bipartisan, market-
expert insights for the public good. Leveraging
often face unique barriers that inhibit their suc- based policy solutions — such as a carbon
the firm’s unique assets and proprietary data,
cess. This is why our efforts focus on unleashing tax-and-dividend framework for the U.S. —
the Institute helps policymakers, businesses
their power as drivers of opportunity. We have to reduce carbon emissions and protect
and nonprofit leaders use timely data and
taken many insights learned from innovative consumers. And we’ve expanded restrictions
thoughtful analyses to address critical issues
models, such as the Entrepreneurs of Color on financing for coal mining and coal-fired
and advance global prosperity.
Fund (EOCF), and are applying them to more power and prohibited financing for new oil
Our data allow us to better understand and communities. For example, in Paris, we’re and gas development in the Arctic. Finally,
answer important questions about the finan- working with nonprofit partners to help local we’re on track to source renewable energy
cial health and resilience of U.S. consumers, and diverse entrepreneurs in Seine-Saint-Denis for 100% of our own global power needs by
businesses and communities, as well as study grow their businesses. In London, we’re giving a the end of 2020.
labor and financial markets. In 2019, the boost to female entrepreneurs by providing
Institute shared valuable insights across a technical support and hands-on mentorship.
range of areas, including how student loan
39
2019 HIGHLIGHTS AND ACCOMPLISHMENTS
Awards and recognition — Greater Paris: First year of our across the U.S. As of 2019, the winners
• Ranked Top 10 on Fortune magazine’s $30 million commitment: raised more than $870 million in outside
World’s Most Admired Companies list capital and made over 35,000 loans worth
4,000 people participated in career-
in excess of $475 million dedicated to low-
• Named to Fortune magazine’s Change the readiness programs; 12 small businesses
and moderate-income communities.
World list — third consecutive year received capital or technical assistance
• Small business expansion: We expanded
• Named to the Military Times’ Best for Vets — Greater Washington region: Two years
EOCF to five metros — Detroit, Chicago, the
Employers list into our $25 million commitment:
South Bronx, the Bay Area and the Greater
• Earned 100% on the Human Rights 224 people participated in workforce Washington region — providing minority
Campaign’s Corporate Equality Index — training programs; 955 units of afford- entrepreneurs with access to capital, educa-
17th consecutive year able housing were created or preserved; tion and other resources. Through 2019, we
1,120 jobs were created or retained; and committed over $17 million through EOCF,
• Inducted into the Billion Dollar Roundtable 2,092 small businesses received capital resulting in more than 475 loans, totaling
for attaining at least $1 billion in diverse or technical assistance $17 million in deployed loan capital that
supplier spend created or retained over 3,000 jobs.
Accomplishments • Sustainable finance: In 2019, we provided

over $3 billion for wind and solar projects.
• AdvancingCities: Bolstering the long-term
Since 2003, JPMorgan Chase has committed
vitality of the world’s cities through low-
or arranged $24 billion in financing for wind,
cost, long-term loans and philanthropic
solar and geothermal projects.
investments:
• Employees serving our communities:
— Detroit: Six years into our $200 million
commitment: — Nearly 73,000 employees volunteered
467,000 hours in 2019. This includes 325
14,728 people participated in workforce
employee volunteers from 14 countries
training programs; 2,002 units of afford-
— Bay Area: New $75 million, five-year who contributed nearly 20,000 hours
able housing were created or preserved;
commitment to help address housing working with about 70 nonprofits through
17,255 people received services to
affordability and displacement challenges the JPMorgan Chase Service Corps.
improve their financial health; 3,855
in San Francisco and Oakland.
jobs were created or retained; and 7,718
small businesses received capital or — The inaugural AdvancingCities competi-
technical assistance tion — which sources innovative and
sustainable solutions that address press-
ing challenges facing communities —
awarded a total of $15 million to winning
cities: Chicago, Louisville, Miami, San
Diego and Syracuse.
• Jobs and skills: Over the past six years, we

have helped more than 150,000 people
across 37 countries develop in-demand skills
for jobs in growing industries.
— More than 400 employees contributed to
• Financial health: In India, the Financial the Board Match program, which doubles
Inclusion Lab has supported 18 fintechs, the impact of eligible employees’ dona-
which have expanded their services to reach tions to nonprofits on whose boards they
more than 900,000 people in underserved serve, resulting in the firm matching more
— Chicago’s South and West sides: Two
communities in the country. Additionally, we than $1.6 million to those organizations.
years into our $40 million commitment:
committed $15 million to the Catalyst Fund,
— In 2019, our firm and employees donated
6,362 people participated in workforce in partnership with UK Aid, to advance
more than $2.8 million to disaster relief
training programs; 48 units of affordable financial inclusion in emerging markets.
efforts around the globe.
housing were created or preserved;
• Neighborhood development: To date,
49,314 people received services to
we’ve hosted six Partnerships for Raising
improve their financial health; 2,323 jobs
Opportunity in Neighborhoods (PRO
were created or retained; and 3,305
Neighborhoods) competitions, awarding
small businesses received capital or
more than $131 million to over 95 Commu-
technical assistance
nity Development Financial Institutions
40
Table of contents
Financial:
40 Five-Year Summary of Consolidated Financial
Highlights Audited financial statements:
41 Five-Year Stock Performance 142 Management’s Report on Internal Control Over
Financial Reporting
143 Report of Independent Registered Public Accounting
Management’s discussion and analysis: Firm
42 Introduction 146 Consolidated Financial Statements
43 Executive Overview 151 Notes to Consolidated Financial Statements
48 Consolidated Results of Operations
52 Consolidated Balance Sheets and Cash Flows Analysis
55 Off–Balance Sheet Arrangements and Contractual
Cash Obligations
57 Explanation and Reconciliation of the Firm’s Use of
Non-GAAP Financial Measures and Key Performance
Measures Supplementary information:
60 Business Segment Results 287 Selected quarterly financial data (unaudited)
79 Firmwide Risk Management 288 Distribution of assets, liabilities and stockholders’
– equity; interest rates and interest differentials
84 Strategic Risk Management 293 Glossary of Terms and Acronyms
85 Capital Risk Management
93 Liquidity Risk Management
100 Credit and Investment Risk Management
119 Market Risk Management Note:
127 Country Risk Management The following pages from JPMorgan Chase & Co.’s 2019
Form 10-K are not included herein: 1-38, 300-311
129 Operational Risk Management
136 Critical Accounting Estimates Used by the Firm
139 Accounting and Reporting Developments
141 Forward-Looking Statements
JPMorgan Chase & Co./2019 Form 10-K 39

Financial
FIVE-YEAR SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

(in millions, except per share, ratio, headcount data and where otherwise noted) 2019 2018 2017 2016 2015
Total net revenue $ 115,627 $ 109,029 $ 100,705 $ 96,569 $ 94,440
Total noninterest expense 65,497 63,394 59,515 56,672 59,911
Pre-provision profit 50,130 45,635 41,190 39,897 34,529
Provision for credit losses 5,585 4,871 5,290 5,361 3,827
Income before income tax expense 44,545 40,764 35,900 34,536 30,702
Income tax expense 8,114 8,290 11,459 9,803 6,260
(f)
Net income $ 36,431 $ 32,474 $ 24,441 $ 24,733 $ 24,442
Earnings per share data
Net income: Basic $ 10.75 $ 9.04 $ 6.35 $ 6.24 $ 6.05
Diluted 10.72 9.00 6.31 6.19 6.00
Average shares: Basic 3,221.5 3,396.4 3,551.6 3,658.8 3,741.2
Diluted 3,230.4 3,414.0 3,576.8 3,690.0 3,773.6
Market and per common share data
Market capitalization $ 429,913 $ 319,780 $ 366,301 $ 307,295 $ 241,899
Common shares at period-end 3,084.0 3,275.8 3,425.3 3,561.2 3,663.5
Book value per share 75.98 70.35 67.04 64.06 60.46
Tangible book value per share (“TBVPS”)(a) 60.98 56.33 53.56 51.44 48.13
Cash dividends declared per share 3.40 2.72 2.12 1.88 1.72
Selected ratios and metrics
Return on common equity (“ROE”) 15% 13% 10% 10% 11%
Return on tangible common equity (“ROTCE”)(a) 19 17 12 13 13
Return on assets (“ROA”) 1.33 1.24 0.96 1.00 0.99
Overhead ratio 57 58 59 59 63
Loans-to-deposits ratio 61 67 64 65 65
Liquidity coverage ratio (“LCR”) (average)(b) 116 113 119 N/A N/A
Common equity tier 1 (“CET1”) capital ratio(c) 12.4 12.0 12.2 12.3 11.8
Tier 1 capital ratio(c) 14.1 13.7 13.9 14.0 13.5
Total capital ratio(c) 16.0 15.5 15.9 15.5 15.1
Tier 1 leverage ratio(c) 7.9 8.1 8.3 8.4 8.5
Supplementary leverage ratio (“SLR”)(d) 6.3% 6.4% 6.5% 6.5% 6.5%
Trading assets $ 411,103 $ 413,714 $ 381,844 $ 372,130 $ 343,839
Investment securities 398,239 261,828 249,958 289,059 290,827
Loans 959,769 984,554 930,697 894,765 837,299
Core Loans 916,144 931,856 863,683 806,152 732,093
Average core loans 906,606 885,221 829,558 769,385 670,757
Total assets 2,687,379 2,622,532 2,533,600 2,490,972 2,351,698
Deposits 1,562,431 1,470,666 1,443,982 1,375,179 1,279,715
Long-term debt 291,498 282,031 284,080 295,245 288,651
Common stockholders’ equity 234,337 230,447 229,625 228,122 221,505
Total stockholders’ equity 261,330 256,515 255,693 254,190 247,573
Headcount 256,981 256,105 252,539 243,355 234,598
Credit quality metrics
Allowance for credit losses $ 14,314 $ 14,500 $ 14,672 $ 14,854 $ 14,341
Allowance for loan losses to total retained loans 1.39% 1.39% 1.47% 1.55% 1.63%
Allowance for loan losses to retained loans excluding purchased credit-impaired loans(e) 1.31 1.23 1.27 1.34 1.37
Nonperforming assets $ 4,497 $ 5,190 $ 6,426 $ 7,535 $ 7,034
Net charge-offs 5,629 4,856 5,387 4,692 4,086
(g)
Net charge-off rate 0.60% 0.52% 0.60% 0.54% 0.52%
(a) TBVPS and ROTCE are each non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures and Key
Performance Measures on pages 57–59 for a further discussion of these measures.
(b) For the years ended December 31, 2019, 2018 and 2017, the percentage represents the Firm’s reported average LCR for the three months ended December
31, 2019, 2018 and 2017, which became effective April 1, 2017. Refer to Liquidity Risk Management on pages 93–98 for additional information on the
Firm’s LCR.
(c) The Basel III capital rules became fully phased-in effective January 1, 2019. Prior to this date, the required capital measures were subject to the transitional
rules which, as of December 31, 2018, were the same on a fully phased-in and transitional basis. Refer to Capital Risk Management on pages 85–92 for
additional information on these measures.
(d) The Basel III rule for the SLR became fully phased-in effective January 1, 2018. Prior to this date, the SLR was calculated under the transitional rules. Refer to
Capital Risk Management on pages 85–92 for additional information on these measures.
(e) This ratio is a non-GAAP financial measure as it excludes the impact of residential real estate purchased credit-impaired (“PCI”) loans. Refer to Explanation
and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures and Key Performance Measures on pages 57–59, and the Allowance for credit losses on
pages 116–117 for further discussion of this measure.
(f) In December 2017, the Tax Cuts and Jobs Act (“TCJA”) was signed into law. The Firm’s results for the year ended December 31, 2017 included a $2.4 billion
decrease to net income as a result of the enactment of the TCJA. Refer to Note 25 for additional information related to the impact of the TCJA.
(g) Excluding net charge-offs of $467 million related to the student loan portfolio sale, the net charge-off rate for the year ended December 31, 2017 would have
been 0.55%.
40 JPMorgan Chase & Co./2019 Form 10-K

FIVE-YEAR STOCK PERFORMANCE
The following table and graph compare the five-year cumulative total return for JPMorgan Chase & Co. (“JPMorgan Chase” or
the “Firm”) common stock with the cumulative return of the S&P 500 Index, the KBW Bank Index and the S&P Financials Index.
The S&P 500 Index is a commonly referenced equity benchmark in the United States of America (“U.S.”), consisting of leading
companies from different economic sectors. The KBW Bank Index seeks to reflect the performance of banks and thrifts that are
publicly traded in the U.S. and is composed of leading national money center and regional banks and thrifts. The S&P Financials
Index is an index of financial companies, all of which are components of the S&P 500. The Firm is a component of all three
industry indices.
The following table and graph assume simultaneous investments of $100 on December 31, 2014, in JPMorgan Chase common
stock and in each of the above indices. The comparison assumes that all dividends were reinvested.
December 31,
(in dollars) 2014 2015 2016 2017 2018 2019
JPMorgan Chase $ 100.00 $ 108.37 $ 145.82 $ 184.81 $ 172.52 $ 254.07
KBW Bank Index 100.00 100.48 129.13 153.14 126.02 171.54
S&P Financials Index 100.00 98.44 120.38 147.58 128.33 169.52
S&P 500 Index 100.00 101.37 113.49 138.26 132.19 173.80
December 31,
(in dollars)

Management’s discussion and analysis
The following is Management’s discussion and analysis of the financial condition and results of operations (“MD&A”) of JPMorgan
Chase for the year ended December 31, 2019. The MD&A is included in both JPMorgan Chase’s Annual Report for the year ended
December 31, 2019 (“Annual Report”) and its Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Form
10-K”) filed with the Securities and Exchange Commission (“SEC”). Refer to the Glossary of terms and acronyms on pages 293–299
for definitions of terms and acronyms used throughout the Annual Report and the 2019 Form 10-K.
The MD&A contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of
1995. These statements are based on the current beliefs and expectations of JPMorgan Chase’s management and are subject to
significant risks and uncertainties. Refer to Forward-looking Statements on page 141) and Part 1, Item 1A: Risk factors in the
2019 Form 10-K on pages 6–28 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.
INTRODUCTION
JPMorgan Chase & Co. (NYSE: JPM), a financial holding For management reporting purposes, the Firm’s activities
company incorporated under Delaware law in 1968, is a are organized into four major reportable business
leading global financial services firm and one of the largest segments, as well as a Corporate segment. The Firm’s
banking institutions in the United States of America consumer business is the Consumer & Community Banking
(“U.S.”), with operations worldwide; JPMorgan Chase had (“CCB”) segment. The Firm’s wholesale business segments
$2.7 trillion in assets and $261.3 billion in stockholders’ are Corporate & Investment Bank (“CIB”), Commercial
equity as of December 31, 2019. The Firm is a leader in Banking (“CB”), and Asset & Wealth Management (“AWM”).
investment banking, financial services for consumers and Refer to Business Segment Results on pages 60–78, and
small businesses, commercial banking, financial transaction Note 32 for a description of the Firm’s business segments,
processing and asset management. Under the J.P. Morgan and the products and services they provide to their
and Chase brands, the Firm serves millions of customers in respective client bases.
the U.S. and globally many of the world’s most prominent
corporate, institutional and government clients.
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
38 states and Washington, D.C. as of December 31, 2019.
JPMorgan Chase’s principal nonbank 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
subsidiary outside the U.S. is J.P. Morgan Securities plc, a
U.K.-based subsidiary of JPMorgan Chase Bank, N.A.

EXECUTIVE OVERVIEW
This executive overview of the MD&A highlights selected • Noninterest expense was $65.5 billion, up 3%, driven by
information and does not contain all of the information that is continued investments across the businesses including
important to readers of this 2019 Form 10-K. For a complete employees, technology, real estate, and marketing, as
description of the trends and uncertainties, as well as the well as higher volume- and revenue-related expenses,
risks and critical accounting estimates affecting the Firm and including depreciation expense on auto lease assets,
its various lines of business (“LOBs”), this 2019 Form 10-K partially offset by lower FDIC charges.
should be read in its entirety. • Income tax expense included $1.1 billion of tax benefits
related to the resolution of certain tax audits.
Financial performance of JPMorgan Chase
• The provision for credit losses was $5.6 billion, up $714
Year ended December 31, million, reflecting increases in both wholesale and
(in millions, except per share data
and ratios) 2019 2018 Change consumer. The increase in the wholesale provision
Selected income statement data reflects additions to the allowance for credit losses in the
Total net revenue $115,627 $109,029 6% current year on select client downgrades. The prior year
Total noninterest expense 65,497 63,394 3 reflected a benefit related to a single name in the Oil &
Pre-provision profit 50,130 45,635 10
Gas portfolio and higher recoveries. The increase in the
consumer provision reflects higher net charge-offs and
Provision for credit losses 5,585 4,871 15
additions to the allowance for loan losses in Card,
Net income 36,431 32,474 12
predominantly offset by a higher reduction in the
Diluted earnings per share 10.72 9.00 19
allowance for loan losses in Home Lending. The prior year
Selected ratios and metrics also benefited from larger recoveries in Home Lending on
Return on common equity 15% 13% loan sales.
Return on tangible common equity 19 17
• The total allowance for credit losses was $14.3 billion at
Book value per share $ 75.98 $ 70.35 8 December 31, 2019, and the Firm had a loan loss
Tangible book value per share 60.98 56.33 8 coverage ratio of 1.39%, flat compared with the prior
Capital ratios(a) year; excluding the PCI portfolio, the equivalent ratio was
CET1 12.4% 12.0% 1.31% compared with 1.23% in the prior year. The
Tier 1 capital 14.1 13.7 Firm’s nonperforming assets totaled $4.5 billion at
Total capital 16.0 15.5 December 31, 2019, a decrease from $5.2 billion in the
prior year, primarily reflecting paydowns in the wholesale
(a) The Basel III capital rules became fully phased-in effective January 1, 2019.
Prior to this date, the required capital measures were subject to the portfolio and improved credit performance in the
transitional rules which, as of December 31, 2018, were the same on a fully consumer portfolio.
phased-in and transitional basis. Refer to Capital Risk Management on
pages 85–92 for additional information on these measures. • Firmwide average total loans of $955 billion were up 1%,
or up 3% excluding the impact of certain loan sales in
Comparisons noted in the sections below are for the full year Home Lending.
of 2019 versus the full year of 2018, unless otherwise
specified. Selected capital-related metrics
• The Firm’s CET1 capital was $188 billion, and the
Firmwide overview Standardized and Advanced CET1 ratios were 12.4% and
JPMorgan Chase reported strong results for 2019, with 13.4%, respectively.
record revenue, net income and EPS of $115.6 billion,
• The Firm’s SLR was 6.3%.
$36.4 billion and $10.72 per share, respectively. The Firm
reported ROE of 15% and ROTCE of 19%. • The Firm continued to grow tangible book value per share
(“TBVPS”), ending 2019 at $60.98, up 8%.
• Net income was $36.4 billion, up 12%.
ROTCE and TBVPS are non-GAAP financial measures. Refer
• Total net revenue increased 6%. Net interest income was
to Explanation and Reconciliation of the Firm’s Use of Non-
$57.2 billion, up 4%, driven by continued balance sheet
GAAP Financial Measures and Key Performance Measures
growth and mix as well as higher average short-term
on pages 57–59, and Capital Risk Management on pages
rates, partially offset by higher deposit pay rates.
85–92 for a further discussion of each of these measures.
Noninterest revenue was $58.4 billion, up 8%, driven by
growth across CCB as well as higher Markets revenue in
CIB. Noninterest revenue included approximately $500
million of gains on the sales of certain mortgage loans in
Home Lending.

Business segment highlights Credit provided and capital raised

Selected business metrics for each of the Firm’s four LOBs JPMorgan Chase continues to support consumers,
are presented below for the full year of 2019. businesses and communities around the globe. The Firm
provided new and renewed credit and raised capital for
• Record revenue of $55.9 billion, up 7%; wholesale and consumer clients during 2019, consisting of:
record net income of $16.6 billion, up 12%
• Average loans down 3%; Home Lending $2.3
Total credit provided and capital raised
CCB loans down 9% impacted by loan sales; trillion
ROE Card loans up 7%
31% • Client investment assets up 27%; average
deposits up 3% $262
Credit for consumers
billion
• Credit card sales volume up 10% and
merchant processing volume up 11%
$33
• Record revenue of $38.3 billion, up 5%; Credit for U.S. small businesses
billion
record net income of $11.9 billion, up 1%
• Maintained #1 ranking for Global
CIB Investment Banking fees with 9.0% wallet $860
share, up 40 basis points (“bps”) Credit for corporations
ROE billion
14% • Investment Banking revenue of $7.2
billion, up 3%
$1.0 Capital raised for corporate clients and
• Total Markets revenue of $20.9 billion, up
trillion non-U.S. government entities
7%
• Record Investment Banking revenue of $79 Credit and capital raised for nonprofit and
CB $2.7 billion, up 10% billion U.S. government entities(a)
ROE
• Average loans and deposits each up 1%
17% (a) Includes states, municipalities, hospitals and universities.
• Strong credit quality with NCOs of 8 bps
• Record revenue of $14.3 billion, up 2%

AWM • Average loans up 8%; average deposits up
ROE 2%
26% • Assets under management (“AUM”) of $2.4
trillion, up 19%
Refer to the Business Segment Results on pages 60–61 for a

detailed discussion of results by business segment.

Recent events JPMorgan Chase’s outlook for 2020 should be viewed
On February 25, 2020, JPMorgan Chase announced against the backdrop of the global and U.S. economies,
additional steps in its initiatives to address climate change financial markets activity, the geopolitical environment, the
and further promote sustainable development. This year, competitive environment, client and customer activity
JPMorgan Chase commits to facilitate $200 billion to levels, and regulatory and legislative developments in the
advance the objectives of the United Nations Sustainable U.S. and other countries where the Firm does business. Each
Development Goals (SDGs), including $50 billion toward of these factors will affect the performance of the Firm and
green initiatives. The new commitment is intended to its LOBs. The Firm will continue to make appropriate
address a broader set of challenges in the developing world adjustments to its businesses and operations in response to
and developed countries where social and economic ongoing developments in the business, economic,
development gaps persist. As part of this commitment, the regulatory, and legal environments in which it operates.
Firm had previously announced the creation of the J.P.
Firmwide full-year 2020
Morgan Development Finance Institution to expand
• Management expects full-year 2020 net interest income,
its financing activities for developing countries.
on a managed basis, to be approximately $57 billion,
On December 18, 2019, JPMorgan Chase announced that market dependent, reflecting the impact of lower interest
the China Securities Regulatory Commission has approved rates offset by balance sheet growth and mix.
the application of J.P. Morgan Securities (China) Company
• The Firm continues to take a disciplined approach to
Limited for a Securities and Futures Business Permit. This
managing expenses, while investing for growth and
approval allows J.P. Morgan’s majority-owned securities
innovation. As a result, management expects Firmwide
company in China to commence operations.
adjusted expense for the full-year 2020 to be
On December 11, 2019, JPMorgan Chase announced certain approximately $67 billion.
organizational changes to its U.S. Wealth Management
• The Firm continues to experience charge-off rates at very
business. The Firm’s advisors across Chase Wealth
low levels, reflecting favorable credit trends across the
Management and J.P. Morgan Securities will become one
consumer and wholesale portfolios. Management expects
business unit – U.S. Wealth Management.
full-year 2020 net charge-offs to be just over $6 billion,
2020 outlook an increase from prior year, driven by Card on growth and
These current expectations are forward-looking statements mix.
within the meaning of the Private Securities Litigation Reform
• Management expects the full-year 2020 effective tax
Act of 1995. Such forward-looking statements are based on
rate, on a reported basis, to be approximately 20%, and
the current beliefs and expectations of JPMorgan Chase’s
approximately 5 to 7 percentage points higher on a
management and are subject to significant risks and
managed basis.
uncertainties. Refer to Forward-Looking Statements on page
141, and the Risk Factors section on pages 6–28 of the Firm’s First-quarter 2020
2019 Form 10-K, for a further discussion of certain of those • Management expects first-quarter 2020 net interest
risks and uncertainties and the other factors that could cause income, on a managed basis, to be approximately $14.2
JPMorgan Chase’s actual results to differ materially because billion, market dependent.
of those risks and uncertainties. There is no assurance that
• Firmwide adjusted expense for the first-quarter 2020 is
actual results in 2019 will be in line with the outlook set forth
expected to be approximately $17 billion.
below, and the Firm does not undertake to update any
forward-looking statements. • The effective tax rate, on a reported basis, for the first
quarter of 2020 is expected to be approximately 17%
largely as a result of tax benefits related to the vesting of
employee share-based awards.
• Markets revenue for the first-quarter of 2020 is expected
to be higher when compared with the prior-year quarter
by mid-teens percentage points, depending on market
conditions.

Business Developments
Departure of the U.K. from the EU
The U.K.’s departure from the EU, which is commonly The Firm is focused on the following key areas to ensure
referred to as “Brexit,” occurred on January 31, 2020. continuation of service to its EU clients: regulatory and legal
entity readiness; client readiness; and business and
Following this departure, the U.K. has entered a transition
operational readiness. Following are the significant updates.
period that is scheduled to expire on December 31, 2020.
The purpose of the transition period is to enable the U.K. Regulatory and legal entity readiness
and the EU to negotiate the terms of their future The Firm’s legal entities in Germany, Luxembourg and
relationship. The transition period can be extended, but Ireland are now prepared and licensed to provide services
both sides need to agree to extend it by July 1, 2020. It is to the Firm’s EU clients, including a branch network
not clear whether the terms of the future relationship can covering locations such as Paris, Madrid and Milan.
be agreed before the end of 2020, and so significant
Client readiness
uncertainty remains about the relationship between the
The agreements covering a significant proportion of the
U.K. and the EU after the end of the transition period.
Firm’s EU client activity have been re-documented to other
The Firm has a long-standing presence in the U.K., which EU legal entities to help facilitate continuation of service.
currently serves as the regional headquarters of the Firm’s The Firm continues to actively engage with clients that have
operations in over 30 countries across Europe, the Middle not completed re-documentation to ensure preparedness
East, and Africa (“EMEA”). In the region, the Firm serves both in terms of documentation and any operational
clients and customers across its business segments. The changes that may be required. The Firm may be negatively
Firm has approximately 17,000 employees in the U.K., of impacted by any operational disruption stemming from
which approximately two-thirds are in London, with delays of or lapses in the readiness of other market
operational and technology support centers in locations participants or market infrastructures.
such as Bournemouth, Glasgow and Edinburgh.
Business and operational readiness
In light of the ongoing uncertainty, the Firm continues to The Firm relocated certain employees during 2019 and
execute the relevant elements of its Firmwide Brexit added specific employees to certain EU legal entities, where
Implementation program with the objective of being able to appropriate, to support the level of client activity that has
continue delivering the Firm’s capabilities to its EU clients. been migrated. The Firm’s longer term staffing plan will
The program covers strategic implementation across all develop in accordance with the increasing level of activity in
impacted businesses and functions and includes an ongoing the EU entities and alongside the future legal and
assessment of implementation risks including political, legal regulatory framework between the U.K. and EU. The Firm
and regulatory risks and plans for addressing and mitigating continues to closely monitor legislative developments, and
those risks under any scenario, including where the U.K. and its implementation plan allows for flexibility given the
the EU fail to reach an agreement on their future continued uncertainties.
relationship by the end of 2020 and the transition period is
not extended.
The principal operational risks associated with Brexit
continue to be the potential for disruption caused by
insufficient preparations by individual market participants
or in the overall market ecosystem, and risks related to
potential disruptions of connectivity among market
participants. There continues to be regulatory and legal
uncertainty with respect to various matters including
contract continuity, access by market participants to
liquidity in certain products, such as products subject to
potentially conflicting U.K. and EU regulatory requirements
in relation to eligible trading venues, including certain
cross-border derivative contracts and equities that are
listed on both U.K. and EU exchanges, as well as ongoing
access to central banks. It is uncertain as to whether any of
these issues will be resolved in the negotiations, or whether
any of the previous temporary solutions will be available at
the end of the transition period to mitigate these risks.

IBOR transition
As a result of the expected discontinuation of certain Market participants are continuing to work closely with the
unsecured benchmark interest rates, including the London public sector as part of National Working Groups (“NWGs”)
Interbank Offered Rate (“LIBOR”) and other Interbank towards the common goal of facilitating an orderly
Offered Rates (“IBORs”) regulators and market participants transition from IBORs. Current NWG efforts include the
in various jurisdictions have been working to identify continued development of cash and derivative markets
alternative reference rates that are compliant with the referencing alternative reference rates, as well as the
International Organization of Securities Commission’s development of industry consensus for fallback language
standards for transaction-based benchmarks. In the U.S., that would determine the replacement rates to use in
the Alternative Reference Rates Committee (the “ARRC”), a various IBOR-indexed contracts when a particular IBOR
group of market and official sector participants, identified ceases to be produced. The Firm is monitoring and
the Secured Overnight Financing Rate (“SOFR”) as its providing input in the development of the IBOR Fallbacks
recommended alternative benchmark rate. Other Protocol of the International Swaps and Derivatives
alternative reference rates have been recommended in Association (“ISDA”), which is expected to be published in
other jurisdictions. Industry sources estimate that IBORs are 2020, and is encouraging its clients to actively participate
referenced in approximately $400 trillion of wholesale and in ISDA and industry consultations in order to ensure the
consumer transactions globally spanning a broad range of broadest possible industry engagement in and
financial products and contracts. The Firm has a significant understanding of IBOR transition. The Firm continues to
number of IBOR-referenced contracts, including derivatives, monitor the development of alternative reference rates in
bilateral and syndicated loans, securities, and debt and other jurisdictions with NWGs.
preferred stock issuances. The Financial Accounting Standards Board (“FASB”) has
To manage the risks associated with the transition from confirmed that it will issue an accounting standards update
IBORs, JPMorgan Chase established a Firmwide LIBOR in 2020 providing optional expedients and exceptions for
Transition program in early 2018 that is overseen by the applying generally accepted accounting principles to
Firmwide CFO and the CEO of the CIB. When assessing risks contracts and hedge relationships affected by benchmark
associated with IBOR transition, the program monitors a reform. The International Accounting Standards Board
variety of scenarios, including disorderly transition, (“IASB”) has made amendments to IFRS hedge accounting
measured/regulated transition considering volatility along requirements that provide relief to market participants on
the SOFR curve and clearinghouse plans to change their the accounting treatment of IBOR-linked products in the
discount rates to alternative reference rates, and IBOR in period leading up to the expected cessation of IBORs and is
continuity beyond December 2021. also considering further relief for the accounting impacts
The Firm continues to monitor and facilitate the transition upon transition to an alternative reference rate.
by clients from IBOR-referencing products to products The U.S. Treasury Department has issued proposed
referencing alternative reference rates. The Firm’s regulations that are intended to avoid adverse tax
transition efforts to date include: consequences in connection with the transition from IBORs.
• ongoing implementation of new fallback provisions that Under the proposed regulations, amendments to contracts
provide for the determination of replacement rates for meeting certain requirements will not be treated as taxable
LIBOR-linked syndicated loans, securitizations, floating for U.S. federal income tax purposes.
rate notes and bi-lateral business loans based on the The Firm continues to monitor the transition relief being
recommendations of the ARRC, and introducing SOFR as a considered by the FASB, IASB and U.S. Treasury Department
replacement benchmark rate for certain of these regarding accounting and tax implications of reference rate
products; reform. The Firm also continues to develop and implement
plans to appropriately mitigate the risks associated with
• planning to adopt further fallback provisions
IBOR discontinuation as identified alternative reference
recommended by the ARRC, including for residential
rates develop and liquidity in these rates increases. The
ARMs, in conjunction with the adoption of these
Firm will continue to engage with regulators and clients as
provisions by market participants; and
the transition from IBORs progresses.
• completing its first bilateral SOFR loan in the U.S. and
executing its first interest rate swap linked to the Euro
short-term rate in Europe.

CONSOLIDATED RESULTS OF OPERATIONS

This section provides a comparative discussion of JPMorgan – higher revenue in Fixed Income Markets, reflecting an
Chase’s Consolidated Results of Operations on a reported overall strong performance, primarily in agency
basis for the two-year period ended December 31, 2019, mortgage trading within Securitized Products; the
unless otherwise specified. Refer to Consolidated Results of increase in 2019 also reflected the impact of
Operations on pages 48-51 of the Firm’s Annual Report on challenging market conditions in Credit in the fourth
Form 10-K for the year ended December 31, 2018 (the quarter of 2018; and
“2018 Form 10-K”) for a discussion of the 2018 versus 2017 – the favorable impact of tighter funding spreads on
results. Factors that relate primarily to a single business derivatives in Credit Adjustments & Other.
segment are discussed in more detail within that business
The net increase in CIB was partially offset by
segment. Refer to pages 136–138 for a discussion of the
Critical Accounting Estimates Used by the Firm that affect the • lower revenue in AWM related to hedges on certain
Consolidated Results of Operations. investments. The impact of these hedges was more than
offset by higher valuation gains on the related
Effective January 1, 2018, the Firm adopted several
investments reflected in other income
accounting standards. Certain of the accounting standards
were applied retrospectively and, accordingly, prior period Principal transactions revenue in Corporate was relatively
amounts were revised. Refer to Note 1 for additional flat, reflecting the combined impact of losses on cash
information. deployment transactions in Treasury and CIO, which were
more than offset by the related net interest income earned
on those transactions, and lower net markdowns on certain
Revenue
legacy private equity investments.
Year ended December 31,
(in millions) 2019 2018 2017 Principal transactions revenue in CIB may in certain cases
Investment banking fees $ 7,501 $ 7,550 $ 7,412 have offsets across other revenue lines, including net
Principal transactions 14,018 12,059 11,347 interest income. The Firm assesses its CIB Markets business
Lending- and deposit-related fees 6,369 6,052 5,933 performance on a total revenue basis.
Asset management, administration Refer to CIB, AWM and Corporate segment results on pages
and commissions 17,165 17,118 16,287
66-70, pages 74–76 and pages 77–78, respectively, and
Investment securities gains/(losses) 258 (395) (66)
Note 6 for additional information.
Mortgage fees and related income 2,036 1,254 1,616
Lending- and deposit-related fees increased primarily due
Card income 5,304 4,989 4,433
to higher deposit-related fees in CCB, reflecting growth in
Other income(a) 5,731 5,343 3,646
customer accounts and transactions, and higher lending-
Noninterest revenue 58,382 53,970 50,608
related commitment fees in the wholesale businesses.
Net interest income 57,245 55,059 50,097
Total net revenue $ 115,627 $ 109,029 $ 100,705 Refer to CCB, CIB and CB segment results on pages 62–65,
pages 66-70 and pages 71–73, respectively, and Note 6 for
(a) Included operating lease income of $5.5 billion, $4.5 billion and $3.6
billion for the years ended December 31, 2019, 2018 and 2017,
additional information.
respectively. Asset management, administration and commissions
2019 compared with 2018 revenue increased primarily due to higher asset
Investment banking fees were relatively flat, reflecting in management fees from growth in client investment assets
CIB: in CCB.
• higher debt underwriting fees driven by wallet share Refer to CCB and AWM segment results on pages 62–65 and
gains and increased activity in investment-grade and pages 74–76, respectively, and Note 6 for additional
high-yield bonds, information.
offset by Investment securities gains/(losses) in both periods reflect
the impact of repositioning the investment securities
• lower advisory fees driven by a decline in industry-wide
portfolio. Refer to Corporate segment results on pages 77–
fees despite wallet share gains.
78 and Note 10 for additional information.
Refer to CIB segment results on pages 66-70 and Note 6 for
Principal transactions revenue increased reflecting:
• higher revenue in CIB, which included a gain on the initial
public offering (“IPO”) of Tradeweb in the second quarter
of 2019. Excluding this gain, the increase in CIB’s revenue
was driven by:

Mortgage fees and related income increased driven by: Net interest income increased driven by continued balance
• higher net mortgage production revenue reflecting sheet growth and changes in mix, as well as higher average
approximately $500 million of gains on sales of certain short-term rates, partially offset by higher rates paid on
loans, as well as higher mortgage production volumes deposits.
and margins, The Firm’s average interest-earning assets were $2.3
partially offset by trillion, up $133 billion, and the yield was 3.61%, up 14
bps. The net yield on these assets, on an FTE basis, was
• lower net mortgage servicing revenue driven by lower
2.46%, a decrease of 6 bps. The net yield excluding CIB
operating revenue reflecting faster prepayment speeds
Markets was 3.27%, up 2bps.
on lower rates and the impact of reclassifying certain
loans to held-for-sale. Net yield excluding CIB Markets is a non-GAAP financial
measure. Refer to Explanation and Reconciliation of the
Refer to CCB segment results on pages 62–65, Note 6 and
Firm’s Use of Non-GAAP Financial Measures and Key
15 for further information.
Performance Measures on pages 57–59 for a further
Card income increased as the prior year included an discussion of this measure.
adjustment of approximately $330 million to the credit card
rewards liability. Excluding this item, Card income was
relatively flat. Refer to CCB segment results on pages 62–65
and Note 6 for further information.
Other income increased reflecting:
• higher operating lease income from growth in auto
operating lease volume in CCB, and
• higher investment valuation gains in AWM, which were
largely offset by the impact of the related hedges that
were reflected in principal transactions revenue,
largely offset by
• lower other income in CIB largely related to increased
amortization on a higher level of alternative energy
investments. The increased amortization was more than
offset by lower income tax expense from the associated
tax credits.
The prior year included:
• $505 million of fair value gains related to the adoption in
the first quarter of 2018 of the recognition and
measurement accounting guidance for certain equity
investments previously held at cost.
Refer to Note 6 for further information.

Provision for credit losses The increase in the total consumer provision reflects:
Year ended December 31, • an increase in credit card due to
(in millions) 2019 2018 2017 – higher net charge-offs on loan growth, in line with
Consumer, excluding credit card $ (383) $ (63) $ 620 expectations, and
Credit card 5,348 4,818 4,973 – a $500 million addition to the allowance for loan losses
Total consumer 4,965 4,755 5,593 reflecting loan growth and higher loss rates, as newer
Wholesale 620 116 (303) vintages season and become a larger part of the
Total provision for credit losses $ 5,585 $ 4,871 $ 5,290 portfolio, compared to a $300 million addition in the
prior year
2019 compared with 2018
largely offset by
The provision for credit losses increased driven by both the
wholesale and consumer portfolios. • a decrease in consumer, excluding credit card, in CCB due
to
The increase in the wholesale provision reflects additions to
the allowance for credit losses in the current year on select – a $650 million reduction in the allowance for loan
client downgrades. The prior year reflected a benefit related losses in the purchase credit-impaired (“PCI”)
to a single name in the Oil & Gas portfolio and higher residential real estate portfolio, reflecting continued
recoveries. improvement in home prices and delinquencies, and a
$100 million reduction in the allowance for loan losses
in the non credit-impaired residential real estate
portfolio, compared to a $250 million reduction in the
PCI residential real estate portfolio in the prior year,
and
– a $50 million reduction in the allowance for loan losses
in the business banking portfolio
partially offset by
– lower net recoveries in the residential real estate
portfolio as the prior year benefited from larger
recoveries on loan sales.
Refer to the segment discussions of CCB on pages 62–65,
CIB on pages 66-70, CB on pages 71–73, the Allowance for
Credit Losses on pages 116–117 and Note 13 for further
discussion of the credit portfolio and the allowance for
credit losses.

Noninterest expense Income tax expense
Year ended December 31, Year ended December 31,
(in millions) 2019 2018 2017 (in millions, except rate) 2019 2018 2017
Compensation expense $ 34,155 $ 33,117 $ 31,208 Income before income tax
expense $ 44,545 $ 40,764 $ 35,900
Noncompensation expense:
Income tax expense 8,114 8,290 11,459
Occupancy 4,322 3,952 3,723
Technology, communications and Effective tax rate 18.2% 20.3% 31.9%
equipment 9,821 8,802 7,715
Professional and outside services 8,533 8,502 7,890 2019 compared with 2018
Marketing 3,579 3,290 2,900 The effective tax rate decreased due to the recognition of
Other(a)(b) 5,087 5,731 6,079 $1.1 billion of tax benefits related to the resolution of
Total noncompensation expense 31,342 30,277 28,307 certain tax audits, and changes in the mix of income and
Total noninterest expense $ 65,497 $ 63,394 $ 59,515 expense subject to U.S. federal, and state and local taxes.
(a) Included Firmwide legal expense/(benefit) of $239 million, $72 The decrease was partially offset by lower tax benefits
million and $(35) million for the years ended December 31, 2019, related to the vesting of employee share-based awards. In
2018 and 2017, respectively. addition, the prior year included a $302 million net tax
(b) Included FDIC-related expense of $457 million, $1.2 billion and $1.5 benefit resulting from changes in the estimates under the
billion for the years ended December 31, 2019, 2018 and 2017,
respectively. TCJA related to the remeasurement of certain deferred
taxes and the deemed repatriation tax on non-U.S. earnings.
2019 compared with 2018 Refer to Note 25 for further information.
Compensation expense increased driven by investments
across the businesses, including front office, as well as
technology staff hires.
Noncompensation expense increased as a result of:
• higher investments across the businesses, including
technology, real estate and marketing
• higher volume-related expense, including depreciation
from growth in auto lease assets in CCB, and brokerage
expense in certain businesses in CIB
• higher legal expense, and
• higher pension costs due to changes to actuarial
assumptions and estimates,
largely offset by
• lower FDIC charges as a result of the elimination of the
surcharge at the end of the third quarter of 2018
• the impact of efficiencies
• lower other regulatory-related assessments in CIB.
The prior year included a loss of $174 million on the
liquidation of a legal entity in Corporate recorded in other
expense. Refer to Note 24 for additional information on the
liquidation of a legal entity.

CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS

Consolidated balance sheets analysis
The following is a discussion of the significant changes between December 31, 2019 and 2018.
Selected Consolidated balance sheets data

December 31, (in millions) 2019 2018 Change
Assets
Cash and due from banks $ 21,704 $ 22,324 (3)%
Deposits with banks 241,927 256,469 (6)
Federal funds sold and securities purchased under resale agreements 249,157 321,588 (23)
Securities borrowed 139,758 111,995 25
Trading assets 411,103 413,714 (1)
Investment securities 398,239 261,828 52
Loans 959,769 984,554 (3)
Allowance for loan losses (13,123) (13,445) (2)
Loans, net of allowance for loan losses 946,646 971,109 (3)
Accrued interest and accounts receivable 72,861 73,200 —
Premises and equipment 25,813 14,934 73
Goodwill, MSRs and other intangible assets 53,341 54,349 (2)
Other assets 126,830 121,022 5
Total assets $ 2,687,379 $ 2,622,532 2%
Cash and due from banks and deposits with banks Investment securities increased primarily due to net
decreased primarily as a result of a shift in the deployment purchases of U.S. Treasuries and U.S. GSE and government
of cash to investment securities, and net maturities of agency MBS in Treasury and CIO. The net purchases were
short-term borrowings and long term debt in Treasury and primarily driven by cash deployment and interest rate risk
CIO, partially offset by an increase in deposits. Deposits with management activities. Refer to Corporate segment results
banks reflect the Firm’s placements of its excess cash with on pages 77–78, Investment Portfolio Risk Management on
various central banks, including the Federal Reserve Banks. page 118 and Notes 2 and 10 for additional information on
Federal funds sold and securities purchased under resale investment securities.
agreements decreased as a result of client-driven market- Loans decreased reflecting loan sales in Home Lending, and
making activities in Fixed Income Markets in CIB and a shift lower loans in CIB, primarily driven by a loan syndication
in the deployment of cash in Treasury and CIO. Refer to and net paydowns, partially offset by growth in AWM and
Liquidity Risk Management on pages 93–98 and Note 10 for Card.
additional information. The allowance for loan losses decreased driven by:
Securities borrowed increased in CIB related to client- • an $800 million reduction in the CCB allowance for loan
driven market-making activities in Fixed Income Markets, losses, which included $650 million in the PCI residential
and to cover customer short positions in prime brokerage. real estate portfolio, reflecting continued improvement in
Refer to Liquidity Risk Management on pages 93–98 and home prices and delinquencies; $100 million in the non
Note 10 for additional information. credit-impaired residential real estate portfolio; and $50
Trading assets was relatively flat, reflecting: million in the business banking portfolio; as well as
• a reduction in short-term instruments associated with • a $151 million reduction for write-offs of PCI loans,
cash deployment activities in Treasury and CIO, largely offset by
offset by • a $500 million addition to the allowance for loan losses in
• growth in client-driven activities in CIB Markets, primarily the credit card portfolio reflecting loan growth and
debt instruments, and higher loss rates as newer vintages season and become a
• in CCB, growth related to originations of mortgage larger part of the portfolio, and
warehouse loans, resulting from the favorable rate • a $115 million addition in the wholesale allowance for
environment. loan losses driven by select client downgrades.
Refer to Notes 2 and 5 for additional information. Refer to Credit and Investment Risk Management on pages
100–118, and Notes 2, 3, 12 and 13 for further discussion
of loans and the allowance for loan losses.

Premises and equipment increased primarily due to the in MSRs was partially offset by an increase in goodwill
adoption of the new lease accounting guidance effective related to the acquisition of InstaMed. Refer to Note 15 for
January 1, 2019. Refer to Note 18 for additional additional information.
information. Other assets increased reflecting higher cash collateral
Goodwill, MSRs and other intangibles decreased reflecting placed with central counterparties in CIB, and higher auto
lower MSRs as a result of the realization of expected cash operating lease assets from growth in the business in CCB.
flows and faster prepayment speeds on lower rates,
partially offset by net additions to the MSRs. The decrease
Selected Consolidated balance sheets data

December 31, (in millions) 2019 2018 Change
Liabilities
Deposits $ 1,562,431 $ 1,470,666 6
Federal funds purchased and securities loaned or sold under repurchase agreements 183,675 182,320 1
Short-term borrowings 40,920 69,276 (41)
Trading liabilities 119,277 144,773 (18)
Accounts payable and other liabilities 210,407 196,710 7
Beneficial interests issued by consolidated variable interest entities (“VIEs”) 17,841 20,241 (12)
Long-term debt 291,498 282,031 3
Total liabilities 2,426,049 2,366,017 3
Stockholders’ equity 261,330 256,515 2
Total liabilities and stockholders’ equity $ 2,687,379 $ 2,622,532 2%
Deposits increased reflecting: Accounts payable and other liabilities increased reflecting:
• continued growth driven by new accounts in CCB • the impact of the adoption of the new lease accounting
• growth in operating deposits in CIB driven by client guidance effective January 1, 2019, and
activity, primarily in Treasury Services, and an increase in • higher client payables related to client-driven activities in
client-driven net issuances of structured notes in Markets, CIB.
and Refer to Note 18 for additional information on Leases.
• higher deposits in CB and AWM from growth in interest- Beneficial interests issued by consolidated VIEs decreased
bearing deposits; for AWM, the growth was partially offset due to:
by migration, predominantly into the Firm’s investment- • maturities of credit card securitizations,
related products.
largely offset by
Refer to the Liquidity Risk Management discussion on pages
93–98; and Notes 2 and 17 for more information. • higher levels of Firm-administered multi-seller conduit
commercial paper issued to third parties.
Federal funds purchased and securities loaned or sold
under repurchase agreements was relatively flat,as the net Refer to Off-Balance Sheet Arrangements on pages 55–56
increase from the Firm’s participation in the Federal and Note 14 and 28 for further information on Firm-
Reserve’s open market operations was offset by client- sponsored VIEs and loan securitization trusts.
driven activities, and lower secured financing of trading Long-term debt increased as a result of client-driven net
assets-debt instruments, all in CIB. Refer to the Liquidity issuances of structured notes in CIB’s Markets business,
Risk Management discussion on pages 93–98 and Note 11 partially offset by net maturities of FHLB advances in
for additional information. Treasury and CIO.
Short-term borrowings decreased reflecting lower Refer to Liquidity Risk Management on pages 93–98 and
commercial paper issuances and short-term advances from Note 20 for additional information on the Firm’s long-term
Federal Home Loan Banks (“FHLB”) in Treasury and CIO, debt activities.
primarily driven by liquidity management. Refer to pages Refer to page 149 for information on changes in
93–98 for information on changes in Liquidity Risk stockholders’ equity, and Capital actions on pages 90–91.
Management.
Trading liabilities decreased due to client-driven market-
making activities in CIB, which resulted in lower levels of
short positions in both debt and equity instruments in
Markets. Refer to Notes 2 and 5 for additional information.

Consolidated cash flows analysis Investing activities

The following is a discussion of cash flow activities during The Firm’s investing activities predominantly include
the years ended December 31, 2019 and 2018. Refer to originating held-for-investment loans and investing in the
Consolidated cash flows analysis on page 54 of the Firm’s investment securities portfolio and other short-term
2018 Form 10-K for a discussion of the 2017 activities. instruments.
• In 2019, cash used reflected net purchases of investment
securities, partially offset by lower securities purchased
(in millions) 2019 2018 2017
under resale agreements, and net proceeds from sales
Net cash provided by/(used in) and securitizations of loans held-for-investment.
Operating activities $ 6,046 $ 14,187 $ (10,827)
• In 2018, cash used reflected an increase in securities
Investing activities (54,013) (197,993) 28,249 purchased under resale agreements, higher net
Financing activities 32,987 34,158 14,642 originations of loans and net purchases of investment
Effect of exchange rate securities.
changes on cash (182) (2,863) 8,086
Financing activities
Net increase/(decrease) in
cash and due from banks and The Firm’s financing activities include acquiring customer
deposits with banks $ (15,162) $(152,511) $ 40,150 deposits and issuing long-term debt, as well as preferred
and common stock.
Operating activities
JPMorgan Chase’s operating assets and liabilities primarily • In 2019, cash provided reflected higher deposits,
support the Firm’s lending and capital markets activities. partially offset by a decrease in short-term borrowings
These assets and liabilities can vary significantly in the and net payments of long term borrowings.
normal course of business due to the amount and timing of • In 2018, cash provided reflected higher deposits, short-
cash flows, which are affected by client-driven and risk term borrowings, and securities loaned or sold under
management activities and market conditions. The Firm repurchase agreements, partially offset by net payments
believes that cash flows from operations, available cash and of long term borrowings.
other liquidity sources, and its capacity to generate cash • For both periods, cash was used for repurchases of
through secured and unsecured sources, are sufficient to common stock and cash dividends on common and
meet its operating liquidity needs. preferred stock.
• In 2019, cash provided primarily reflected net income * * *
excluding noncash adjustments and net proceeds of sales,
Refer to Consolidated Balance Sheets Analysis on pages 52–
securitizations, and paydowns of loans held-for-sale,
53, Capital Risk Management on pages 85–92, and Liquidity
partially offset by higher securities borrowed, an increase
Risk Management on pages 93–98 for a further discussion
in other assets and a decrease in trading liabilities.
of the activities affecting the Firm’s cash flows.
• In 2018, cash provided primarily reflected net income
excluding noncash adjustments, increased trading
liabilities and accounts payable and other liabilities,
partially offset by an increase in trading assets and net
originations of loans held-for-sale.

OFF-BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL CASH OBLIGATIONS
In the normal course of business, the Firm enters into The Firm holds capital, as appropriate, against all SPE-
various off-balance sheet arrangements and contractual related transactions and related exposures, such as
obligations that may require future cash payments. Certain derivative contracts and lending-related commitments and
obligations are recognized on-balance sheet, while others guarantees.
are disclosed off-balance sheet under accounting principles
The Firm has no commitments to issue its own stock to
generally accepted in the U.S. (“U.S. GAAP”).
support any SPE transaction, and its policies require that
Special-purpose entities transactions with SPEs be conducted at arm’s length and
The Firm has several types of off–balance sheet reflect market pricing. Consistent with this policy, no
arrangements, including through nonconsolidated special- JPMorgan Chase employee is permitted to invest in SPEs
purpose entities (“SPEs”), which are a type of VIE, and with which the Firm is involved where such investment
through lending-related financial instruments (e.g., would violate the Firm’s Code of Conduct.
commitments and guarantees).
The table below provides an index of where in this 2019 Form 10-K a discussion of the Firm’s various off-balance sheet
arrangements can be found. Refer to Note 1 for additional information about the Firm’s consolidation policies.
Type of off-balance sheet arrangement Location of disclosure Page references

Special-purpose entities: variable interests and other Refer to Note 14 242–249
obligations, including contingent obligations, arising
from variable interests in nonconsolidated VIEs
Off-balance sheet lending-related financial instruments, Refer to Note 28 272–277
guarantees, and other commitments

Contractual cash obligations

The accompanying table summarizes, by remaining The carrying amount of on-balance sheet obligations on the
maturity, JPMorgan Chase’s significant contractual cash Consolidated balance sheets may differ from the minimum
obligations at December 31, 2019. The contractual cash contractual amount of the obligations reported below. Refer
obligations included in the table below reflect the minimum to Note 28 for a discussion of mortgage repurchase
contractual obligation under legally enforceable contracts liabilities and other obligations.
with terms that are both fixed and determinable. Excluded
from the table are certain liabilities with variable cash flows
and/or no obligation to return a stated amount of principal
at maturity.
Contractual cash obligations

By remaining maturity at December 31, 2019 2018
(in millions) 2020 2021-2022 2023-2024 After 2024 Total Total
On-balance sheet obligations
Deposits(a) $ 1,546,142 $ 5,840 $ 3,550 $ 2,508 $ 1,558,040 $ 1,468,031
Federal funds purchased and securities loaned or
sold under repurchase agreements 183,304 — — 371 183,675 182,320
Short-term borrowings(a) 35,107 — — — 35,107 62,393
Beneficial interests issued by consolidated VIEs 13,628 3,950 — 296 17,874 20,258
Long-term debt(a) 35,031 58,847 50,680 105,857 250,415 258,658
Operating leases(b) 1,604 2,704 2,025 3,757 10,090 10,992
Other(c) 8,695 2,046 1,851 2,976 15,568 11,794
Total on-balance sheet obligations 1,823,511 73,387 58,106 115,765 2,070,769 2,014,446
Off-balance sheet obligations
Unsettled resale and securities borrowed
agreements(d) 117,203 748 — — 117,951 102,008
Contractual interest payments(e) 7,844 10,517 7,876 28,444 54,681 58,252
Equity investment commitments 539 — — — 539 271
Contractual purchases and capital expenditures 1,920 766 210 33 2,929 3,599
Obligations under co-brand programs 351 710 382 105 1,548 1,937
Total off-balance sheet obligations 127,857 12,741 8,468 28,582 177,648 166,067
Total contractual cash obligations $ 1,951,368 $ 86,128 $ 66,574 $ 144,347 $ 2,248,417 $ 2,180,513
(a) Excludes structured notes on which the Firm is not obligated to return a stated amount of principal at the maturity of the notes, but is obligated to return
an amount based on the performance of the structured notes.
(b) Includes noncancelable operating leases for premises and equipment used primarily for business purposes. Excludes the benefit of noncancelable
sublease rentals of $846 million and $825 million at December 31, 2019 and 2018, respectively. Refer to Note 18 for further information on operating
leases.
(c) Primarily includes dividends declared on preferred and common stock, deferred annuity contracts, pension and other postretirement employee benefit
obligations, insurance liabilities and income taxes payable associated with the deemed repatriation under the TCJA.
(d) Refer to unsettled resale and securities borrowed agreements in Note 28 for further information.
(e) Includes accrued interest and future contractual interest obligations. Excludes interest related to structured notes for which the Firm’s payment obligation
is based on the performance of certain benchmarks.

EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES AND KEY
PERFORMANCE MEASURES
Non-GAAP financial measures
The Firm prepares its Consolidated Financial Statements in management to assess the comparability of revenue from
accordance with U.S. GAAP; these financial statements year-to-year arising from both taxable and tax-exempt
appear on pages 146–150. That presentation, which is sources. The corresponding income tax impact related to
referred to as “reported” basis, provides the reader with an tax-exempt items is recorded within income tax expense.
understanding of the Firm’s results that can be tracked These adjustments have no impact on net income as
consistently from year-to-year and enables a comparison of reported by the Firm as a whole or by the LOBs.
the Firm’s performance with other companies’ U.S. GAAP
Management also uses certain non-GAAP financial
financial statements.
measures at the Firm and business-segment level, because
In addition to analyzing the Firm’s results on a reported these other non-GAAP financial measures provide
basis, management reviews Firmwide results, including the information to investors about the underlying operational
overhead ratio, on a “managed” basis; these Firmwide performance and trends of the Firm or of the particular
managed basis results are non-GAAP financial measures. business segment, as the case may be, and, therefore,
The Firm also reviews the results of the LOBs on a managed facilitate a comparison of the Firm or the business segment
basis. The Firm’s definition of managed basis starts, in each with the performance of its relevant competitors. Refer to
case, with the reported U.S. GAAP results and includes Business Segment Results on pages 60–78 for additional
certain reclassifications to present total net revenue for the information on these non-GAAP measures. Non-GAAP
Firm (and each of the reportable business segments) on an financial measures used by the Firm may not be comparable
FTE basis. Accordingly, revenue from investments that to similarly named non-GAAP financial measures used by
receive tax credits and tax-exempt securities is presented in other companies.
the managed results on a basis comparable to taxable
investments and securities. These financial measures allow
The following summary table provides a reconciliation from the Firm’s reported U.S. GAAP results to managed basis.
2019 2018 2017
Year ended Fully taxable- Fully taxable- Fully taxable-

December 31, equivalent Managed equivalent Managed equivalent Managed
(in millions, except ratios) Reported adjustments(a) basis Reported adjustments(a) basis Reported adjustments(a) basis
Other income $ 5,731 $ 2,534 $ 8,265 $ 5,343 $ 1,877 (b)
$ 7,220 $ 3,646 $ 2,704 $ 6,350
Total noninterest revenue 58,382 2,534 60,916 53,970 1,877 55,847 50,608 2,704 53,312
Net interest income 57,245 531 57,776 55,059 628 (b)
55,687 50,097 1,313 51,410
Total net revenue 115,627 3,065 118,692 109,029 2,505 111,534 100,705 4,017 104,722
Pre-provision profit 50,130 3,065 53,195 45,635 2,505 48,140 41,190 4,017 45,207
Income before income tax
expense 44,545 3,065 47,610 40,764 2,505 43,269 35,900 4,017 39,917
Income tax expense 8,114 3,065 11,179 8,290 2,505 (b)
10,795 11,459 4,017 15,476
Overhead ratio 57% NM 55% 58% NM 57% 59% NM 57%
(a) Predominantly recognized in CIB, CB and Corporate.

(b) The decrease in fully taxable-equivalent adjustments for the year ended December 31, 2018, reflects the impact of the TCJA.

Net interest income and net yield excluding CIB’s Markets Calculation of certain U.S. GAAP and non-GAAP financial measures
businesses
Certain U.S. GAAP and non-GAAP financial measures are calculated as
In addition to reviewing net interest income and the net follows:
yield on a managed basis, management also reviews these Book value per share (“BVPS”)
metrics excluding CIB’s Markets businesses, as shown Common stockholders’ equity at period-end /
below; these metrics, which exclude CIB’s Markets Common shares at period-end
businesses, are non-GAAP financial measures. Management Overhead ratio
Total noninterest expense / Total net revenue
reviews these metrics to assess the performance of the
Return on assets (“ROA”)
Firm’s lending, investing (including asset-liability Reported net income / Total average assets
management) and deposit-raising activities. The resulting Return on common equity (“ROE”)
metrics that exclude CIB’s Markets businesses are referred Net income* / Average common stockholders’ equity
to as non-markets-related net interest income and net yield. Return on tangible common equity (“ROTCE”)
CIB’s Markets businesses are Fixed Income Markets and Net income* / Average tangible common equity
Equity Markets. Management believes that disclosure of Tangible book value per share (“TBVPS”)
Tangible common equity at period-end / Common shares at period-end
non-markets-related net interest income and net yield
* Represents net income applicable to common equity
provides investors and analysts with other measures by
which to analyze the non-markets-related business trends
of the Firm and provides a comparable measure to other The Firm also reviews adjusted expense, which is
financial institutions that are primarily focused on lending, noninterest expense excluding Firmwide legal expense and
investing and deposit-raising activities. is therefore a non-GAAP financial measure. Additionally,
certain credit metrics and ratios disclosed by the Firm
Year ended December 31, exclude PCI loans, and are therefore non-GAAP measures.
(in millions, except rates) 2019 2018 2017 Management believes that these measures help investors
Net interest income – understand the effect of these items on reported results
reported $ 57,245 $ 55,059 $ 50,097
and provide an alternate presentation of the Firm’s
Fully taxable-equivalent performance. Refer to Credit and Investment Risk
adjustments 531 628 1,313
Management on pages 100–118 for additional information
Net interest income –
managed basis(a) $ 57,776 $ 55,687 $ 51,410 on credit metrics and ratios excluding PCI loans.
Less: CIB Markets net
interest income(b) 3,120 3,087 4,630
Net interest income
excluding CIB Markets(a) $ 54,656 $ 52,600 $ 46,780
Average interest-earning
assets(c) $2,345,491 $2,212,908 $ 2,170,974
Less: Average CIB Markets
interest-earning assets(b)(c) 672,629 593,355 531,217
Average interest-earning
assets excluding CIB
Markets $1,672,862 $1,619,553 $ 1,639,757
Net yield on average
interest-earning assets –
managed basis(c) 2.46% 2.52% 2.37%
Net yield on average CIB
Markets interest-earning
assets(b)(c) 0.46 0.52 0.87
Net yield on average
interest-earning assets
excluding CIB Markets 3.27% 3.25% 2.85%
(a) Interest includes the effect of related hedges. Taxable-equivalent

amounts are used where applicable.
(b) Refer to page 69 for further information on CIB’s Markets businesses.
(c) In the second quarter of 2019, the Firm reclassified balances related
to certain instruments from interest-earning to noninterest-earning
assets, as the associated returns are recorded in principal transactions
revenue and not in net interest income. These changes were applied
retrospectively and, accordingly, prior period amounts were revised to
conform with the current presentation.

Tangible common equity, ROTCE and TBVPS
Tangible common equity (“TCE”), ROTCE and TBVPS are each non-GAAP financial measures. TCE represents the Firm’s common
stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other
than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s net income applicable to common equity as a
percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. TCE,
ROTCE and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.
The following summary table provides a reconciliation from the Firm’s common stockholders’ equity to TCE.
Period-end Average
Dec 31, Dec 31,
(in millions, except per share and ratio data) 2019 2018 2019 2018 2017
Common stockholders’ equity $ 234,337 $ 230,447 $ 232,907 $ 229,222 $ 230,350
Less: Goodwill 47,823 47,471 47,620 47,491 47,317
Less: Other intangible assets 819 748 789 807 832
Add: Certain deferred tax liabilities(a) 2,381 2,280 2,328 2,231 3,116
Tangible common equity $ 188,076 $ 184,508 $ 186,826 $ 183,155 $ 185,317
Return on tangible common equity NA NA 19% 17% 12%

Tangible book value per share $ 60.98 $ 56.33 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.
Key performance measures

Core loans is considered a key performance measure. Core
loans represents loans considered central to the Firm’s
ongoing businesses, and excludes loans classified as trading
assets, runoff portfolios, discontinued portfolios and
portfolios the Firm has an intent to exit. Core loans is a
measure utilized by the Firm and its investors and analysts
in assessing actual growth in the loan portfolio.

BUSINESS SEGMENT RESULTS

The Firm is managed on an LOB basis. There are four major The business segments are determined based on the
reportable business segments – Consumer & Community products and services provided, or the type of customer
Banking, Corporate & Investment Bank, Commercial served, and they reflect the manner in which financial
Banking and Asset & Wealth Management. In addition, there information is currently evaluated by the Firm’s Operating
is a Corporate segment. Committee. Segment results are presented on a managed
basis. Refer to Explanation and Reconciliation of the Firm’s
use of Non-GAAP Financial Measures and Key Performance
Measures, on pages 57–59 for a definition of managed
basis.
JPMorgan Chase
Consumer Businesses Wholesale Businesses
Commercial Asset & Wealth

Consumer & Community Banking Corporate & Investment Bank Banking(a) Management
• Middle
Consumer & Card, Merchant Markets & • Asset
Business Banking Home Lending Services & Auto Banking Securities Services Market Management
Banking
• Consumer • Home • Card • Investment • Fixed • Corporate • Wealth
Banking/ Lending Services Banking Income Client Management
Chase Wealth Production – Credit Card • Treasury Markets Banking
Management • Home Services(a)
– Merchant • Equity • Commercial
• Business Lending Services(a) • Lending
Banking Servicing Markets Real Estate
• Auto • Securities Banking
• Real Estate
Portfolios Services
• Credit
Adjustments
& Other
(a) Effective in the first quarter of 2020, the Merchant Services business was realigned from CCB to CIB as part of the Firm’s Wholesale Payments business.
The revenue and expenses of the Merchant Services business will be reported across CCB, CIB and CB based primarily on client relationship.
Description of business segment reporting methodology

Results of the business segments are intended to present Revenue sharing
each segment as if it were a stand-alone business. The When business segments join efforts to sell products and
management reporting process that derives business services to the Firm’s clients, the participating business
segment results includes the allocation of certain income segments may agree to share revenue from those
and expense items, described in more detail below. The transactions. Revenue is generally recognized in the
Firm also assesses the level of capital required for each LOB segment responsible for the related product or service on a
on at least an annual basis. The Firm periodically assesses gross basis, with an allocation to the other segment(s)
the assumptions, methodologies and reporting involved in the transaction. The segment results reflect
classifications used for segment reporting, and further these revenue-sharing agreements.
refinements may be implemented in future periods.

Expense Allocation Debt expense and preferred stock dividend allocation
Where business segments use services provided by As part of the funds transfer pricing process, almost all of
corporate support units, or another business segment, the the cost of the credit spread component of outstanding
costs of those services are allocated to the respective unsecured long-term debt and preferred stock dividends is
business segments. The expense is generally allocated to the reportable business segments, while the
allocated based on the actual cost and use of services balance of the cost is retained in Corporate. The
provided. In contrast, certain costs and investments related methodology to allocate the cost of unsecured long-term
to corporate support units, technology and operations not debt and preferred stock dividends to the business
currently leveraged by any LOB, are not allocated to the segments is aligned with the Firm’s process to allocate
business segments and are retained in Corporate. Expense capital. The allocated cost of unsecured long-term debt is
retained in Corporate generally includes parent company included in a business segment’s net interest income, and
costs that would not be incurred if the segments were net income is reduced by preferred stock dividends to arrive
stand-alone businesses; adjustments to align corporate at a business segment’s net income applicable to common
support units; and other items not aligned with a particular equity.
business segment. Business segment capital allocation
Funds transfer pricing The amount of capital assigned to each business is referred
Funds transfer pricing is the process by which the Firm to as equity. Periodically, the assumptions and
allocates interest income and expense to each business methodologies used to allocate capital are assessed and as
segment and transfers the primary interest rate risk and a result, the capital allocated to the LOBs may change. Refer
liquidity risk exposures to Treasury and CIO within to Line of business equity on page 90 for additional
Corporate. The funds transfer pricing process considers the information on business segment capital allocation.
interest rate risk, liquidity risk and regulatory requirements
on a product-by-product basis within each business
segment. This process is overseen by senior management
and reviewed by the Firm’s Treasurer Committee.
Segment Results – Managed Basis

The following tables summarize the Firm’s results by segment for the periods indicated.
Year ended December 31, Consumer & Community Banking Corporate & Investment Bank Commercial Banking
(in millions, except ratios) 2019 2018 2017 2019 2018 2017 2019 2018 2017
Total net revenue $ 55,883 $ 52,079 $ 46,485 $ 38,298 $ 36,448 $ 34,657 $ 8,984 $ 9,059 $ 8,605
Total noninterest expense 28,896 27,835 26,062 21,519 20,918 19,407 3,500 3,386 3,327
Pre-provision profit/(loss) 26,987 24,244 20,423 16,779 15,530 15,250 5,484 5,673 5,278
Provision for credit losses 4,952 4,753 5,572 277 (60) (45) 296 129 (276)
Net income/(loss) 16,641 14,852 9,395 11,922 11,773 10,813 3,924 4,237 3,539
Return on equity (“ROE”) 31% 28% 17% 14% 16% 14% 17% 20% 17%
Year ended December 31, Asset & Wealth Management Corporate Total
Total net revenue $ 14,316 $ 14,076 $ 13,835 $ 1,211 $ (128) $ 1,140 $118,692 $111,534 $104,722
Total noninterest expense 10,515 10,353 10,218 1,067 902 501 65,497 63,394 59,515
Pre-provision profit/(loss) 3,801 3,723 3,617 144 (1,030) 639 53,195 48,140 45,207
Provision for credit losses 61 53 39 (1) (4) — 5,585 4,871 5,290
Net income/(loss) 2,833 2,853 2,337 1,111 (1,241) (1,643) 36,431 32,474 24,441
Return on equity (“ROE”) 26% 31% 25% NM NM NM 15% 13% 10%
Note: Net income in 2019 and 2018 for each of the business segments reflects the favorable impact of the reduction in the U.S. federal statutory income tax
rate as a result of the TCJA.
The following sections provide a comparative discussion of the Firms results by segment as of or for the years ended
December 31, 2019 and 2018.

CONSUMER & COMMUNITY BANKING
Consumer & Community Banking offers services to Selected income statement data
consumers and businesses through bank branches, Year ended December 31,
ATMs, digital (including mobile and online) and (in millions, except ratios) 2019 2018 2017
telephone banking. CCB is organized into Consumer & Revenue
Business Banking (including Consumer Banking/Chase Lending- and deposit-related fees $ 3,859 $ 3,624 $ 3,431
Wealth Management and Business Banking), Home
Asset management,
Lending (including Home Lending Production, Home administration and
Lending Servicing and Real Estate Portfolios) and Card, commissions 2,499 2,402 2,212
Merchant Services & Auto. Consumer & Business Mortgage fees and related
Banking offers deposit and investment products and income 2,035 1,252 1,613
services to consumers, and lending, deposit, and cash Card income 4,847 4,554 4,024
management and payment solutions to small All other income 5,402 4,428 3,430
businesses. Home Lending includes mortgage Noninterest revenue 18,642 16,260 14,710
origination and servicing activities, as well as Net interest income 37,241 35,819 31,775
portfolios consisting of residential mortgages and Total net revenue 55,883 52,079 46,485
home equity loans. Card, Merchant Services & Auto
issues credit cards to consumers and small businesses, Provision for credit losses 4,952 4,753 5,572
offers payment processing services to merchants, and Noninterest expense
originates and services auto loans and leases.
Compensation expense 10,700 10,534 10,133
Noncompensation expense (a)
18,196 17,301 15,929
expense 22,035 19,491 14,851
Net income $ 16,641 $ 14,852 $ 9,395
Revenue by line of business

Consumer & Business Banking $ 26,495 $ 24,805 $ 21,104
Home Lending 5,179 5,484 5,955
Card, Merchant Services & Auto 24,209 21,790 19,426
Mortgage fees and related

income details:
Net production revenue 1,618 268 636
Net mortgage servicing
revenue(b) 417 984 977
Mortgage fees and related
income $ 2,035 $ 1,252 $ 1,613
Financial ratios
Return on equity 31% 28% 17%
Overhead ratio 52 53 56
Note: In the discussion and the tables which follow, CCB presents certain
financial measures which exclude the impact of PCI loans; these are non-
GAAP financial measures.
(a) Included depreciation expense on leased assets of $4.1 billion, $3.4
billion and $2.7 billion for the years ended December 31, 2019, 2018
and 2017, respectively.
(b) Included MSR risk management results of $(165) million, $(111)
million and $(242) million for the years ended December 31, 2019,
2018 and 2017, respectively.

2019 compared with 2018 The provision for credit losses was $5.0 billion, an increase of
Net income was $16.6 billion, an increase of 12%. 4%, reflecting:
Net revenue was $55.9 billion, an increase of 7%. Net • an increase in credit card due to
production revenue included approximately $500 million of – higher net charge-offs on loan growth, in line with
gains on the sales of certain mortgage loans that were expectations, and
predominantly offset by charges in net interest income for the
– a $500 million addition to the allowance for loan losses
unwind of the related internal funding from Treasury and CIO
reflecting loan growth and higher loss rates, as newer
associated with these loans. The charges reflect the net
vintages season and become a larger part of the portfolio,
present value of that funding and is recognized as interest
compared to a $300 million addition in the prior year
income in Treasury and CIO. Refer to Corporate on pages 77–
78 and Funds Transfer Pricing (“FTP”) on page 61 of this Form largely offset by
10-K for further information. • a decrease in consumer, excluding credit card due to
Net interest income was $37.2 billion, up 4%, and included – a $650 million reduction in the allowance for loan losses
charges from the loan sales mentioned above. Excluding these in the PCI residential real estate portfolio, reflecting
charges, net interest income increased, driven by: continued improvement in home prices and delinquencies,
• higher loan balances and margin expansion in Card, as well and a $100 million reduction in the allowance for loan
as higher deposit margins and growth in deposit balances in losses in the non credit-impaired residential real estate
CBB, portfolio, compared to a $250 million reduction in the PCI
residential real estate portfolio in the prior year, and
partially offset by
– a $50 million reduction in the allowance for loan losses in
• lower loan balances due to loan sales, as well as loan spread
the business banking portfolio
compression in Home Lending.
partially offset by
Noninterest revenue was $18.6 billion, up 15%, and included
gains from the loan sales mentioned above as well as the – lower net recoveries in the residential real estate portfolio
impact of the prior-year adjustment of approximately $330 as the prior year benefited from larger recoveries on loan
million to the credit card rewards liability. Excluding these sales.
notable items, noninterest revenue increased 9%, driven by:
• higher auto lease volume, and
• higher net mortgage production revenue reflecting higher
production volumes and margins,
partially offset by
• lower net mortgage servicing revenue driven by lower
operating revenue reflecting faster prepayment speeds on
lower rates and the impact of reclassifying certain loans to
held-for-sale.
Refer to Note 15 for further information regarding changes in
value of the MSR asset and related hedges, and mortgage fees
and related income.
Noninterest expense was $28.9 billion, up 4%, driven by:
• investments in the business including technology and
marketing and higher depreciation on auto lease assets,
partially offset by
• expense efficiencies and lower FDIC charges.

Selected metrics Selected metrics

As of or for the year ended As of or for the year ended
December 31, December 31,
(in millions, except headcount) 2019 2018 2017 (in millions, except ratio data) 2019 2018 2017
Selected balance sheet data Credit data and quality
(period-end) statistics
Total assets $ 539,090 $ 557,441 $ 552,601 Nonaccrual loans(a)(b) $ 3,018 $ 3,339 $ 4,084
Loans: Net charge-offs/(recoveries)(c)
Consumer & Business Banking 27,199 26,612 25,789 Consumer & Business
Banking 296 236 257
Home equity 30,163 36,013 42,751
Home equity (48) (7) 63
Residential mortgage 169,636 203,859 197,339
Residential mortgage (50) (287) (16)
Home Lending 199,799 239,872 240,090
Home Lending (98) (294) 47
Card 168,924 156,632 149,511
Card 4,848 4,518 4,123
Auto 61,522 63,573 66,242
Auto 206 243 331
Total loans 457,444 486,689 481,632
Student — — 498 (g)
Core loans 414,107 434,466 415,167
Total net charge-offs/
Deposits 718,416 678,854 659,885 (recoveries) $ 5,252 $ 4,703 $ 5,256 (g)
Equity 52,000 51,000 51,000

Net charge-off/(recovery)
Selected balance sheet data rate(c)
(average)
Consumer & Business
Total assets $ 542,191 $ 547,368 $ 532,756 Banking 1.11% 0.90 % 1.03%
Loans: Home equity(d) (0.19) (0.02) 0.18
Consumer & Business Banking 26,608 26,197 24,875 Residential mortgage(d) (0.03) (0.16) (0.01)
Home equity 32,975 39,133 46,398 Home Lending(d) (0.05) (0.14) 0.02
Residential mortgage 186,557 202,624 190,242 Card 3.10 3.10 2.95
Home Lending 219,532 241,757 236,640 Auto 0.33 0.38 0.51
Card 156,325 145,652 140,024 Student — — NM
Auto 61,862 64,675 65,395 Total net charge-offs/
Student — — 2,880 (recovery) rate(d) 1.20 1.04 1.21 (g)
Total loans 464,327 478,281 469,814 30+ day delinquency rate

Core loans 416,694 419,066 393,598 Home Lending(e)(f) 0.76% 0.77% 1.19%
Deposits 693,550 670,388 640,219 Card 1.87 1.83 1.80
Equity 52,000 51,000 51,000 Auto 0.94 0.93 0.89
Headcount 127,137 129,518 133,721 90+ day delinquency rate -

Card 0.95 0.92 0.92
Allowance for loan losses

Consumer & Business
Banking $ 746 $ 796 $ 796
Home Lending, excluding
PCI loans 903 1,003 1,003
Home Lending — PCI loans(c) 987 1,788 2,225
Card 5,683 5,184 4,884
Auto 465 464 464
Total allowance for loan
losses(c) $ 8,784 $ 9,235 $ 9,372
(a) Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI
loans as each of the pools is performing.
(b) At December 31, 2019, 2018 and 2017, nonaccrual loans excluded mortgage
loans 90 or more days past due and insured by U.S. government agencies of
$961 million, $2.6 billion and $4.3 billion, respectively. These amounts have
been excluded based upon the government guarantee.
(c) Net charge-offs/(recoveries) and the net charge-off/(recovery) rates for the
years ended December 31, 2019, 2018 and 2017, excluded $151 million, $187
million and $86 million, respectively, of write-offs in the PCI portfolio. These
write-offs decreased the allowance for loan losses for PCI loans. Refer to
Summary of changes in the allowance for credit losses on page 117 for further
information on PCI write-offs.
(d) Excludes the impact of PCI loans. For the years ended December 31, 2019, 2018
and 2017, the net charge-off/(recovery) rates including the impact of PCI loans
were as follows: (1) home equity of (0.15)%, (0.02)% and 0.14%, respectively;
(2) residential mortgage of (0.03)%, (0.14)% and (0.01)%, respectively; (3)

Home Lending of (0.05)%, (0.12)% and 0.02%, respectively; and (4) total CCB
of 1.14%, 0.98% and 1.12%, respectively. Selected metrics
(e) At December 31, 2019, 2018 and 2017, excluded mortgage loans insured by As of or for the year ended
U.S. government agencies of $1.7 billion, $4.1 billion and $6.2 billion, December 31,
respectively, that are 30 or more days past due. These amounts have been
excluded based upon the government guarantee. (in billions, except ratios and
(f) Excludes PCI loans. The 30+ day delinquency rate for PCI loans was 8.44%, where otherwise noted) 2019 2018 2017
9.16% and 10.13% at December 31, 2019, 2018 and 2017, respectively.
(g) Excluding net charge-offs of $467 million related to the student loan portfolio Business Metrics
transfer, the total net charge-off rates for the full year 2017 would have been CCB households (in millions) 62.6 61.7 61.1
1.10%.
Number of branches 4,976 5,036 5,130
Active digital customers
(in thousands)(a) 52,421 49,254 46,694
Active mobile customers
(in thousands)(b) 37,297 33,260 30,056
Debit and credit card sales
volume $ 1,114.4 $ 1,016.9 $ 916.9
Consumer & Business Banking

Average deposits $ 678.9 $ 656.5 $ 625.6
Deposit margin 2.49% 2.38% 1.98%
Business banking origination
volume $ 6.6 $ 6.7 $ 7.3
Client investment assets 358.0 282.5 273.3
Home Lending
Mortgage origination volume
by channel
Retail $ 51.0 $ 38.3 $ 40.3
Correspondent 54.2 41.1 57.3
Total mortgage
origination volume(c) $ 105.2 $ 79.4 $ 97.6
Total loans serviced
(period-end) $ 761.4 $ 789.8 $ 816.1
Third-party mortgage loans
serviced (period-end) 520.8 519.6 553.5
MSR carrying value
(period-end) 4.7 6.1 6.0
Ratio of MSR carrying value
(period-end) to third-party
mortgage loans serviced
(period-end) 0.90% 1.17% 1.08%
MSR revenue multiple (d)

2.65x 3.34x 3.09x
Card, excluding Commercial Card

Credit card sales volume $ 762.8 $ 692.4 $ 622.2
New accounts opened
(in millions) 7.8 7.8 8.4
Card Services
Net revenue rate 11.52% 11.27% 10.57%
Merchant Services
Merchant processing volume $ 1,511.5 $ 1,366.1 $ 1,191.7
Auto
Loan and lease origination
volume $ 34.0 $ 31.8 $ 33.3
Average Auto operating lease
assets 21.6 18.8 15.2
(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) Firmwide mortgage origination volume was $115.9 billion, $86.9 billion and
$107.6 billion for the years ended December 31, 2019, 2018 and 2017,
respectively.
(d) Represents the ratio of MSR carrying value (period-end) to third-party mortgage
loans serviced (period-end) divided by the ratio of loan servicing-related revenue
to third-party mortgage loans serviced (average).

CORPORATE & INVESTMENT BANK
The Corporate & Investment Bank, which consists of Selected income statement data
Banking and Markets & Securities Services, offers a Year ended December 31,
broad suite of investment banking, market-making, (in millions, except ratios) 2019 2018 2017
prime brokerage, and treasury and securities products Financial ratios
and services to a global client base of corporations, Return on equity 14% 16% 14%
investors, financial institutions, government and Overhead ratio 56 57 56
municipal entities. Banking offers a full range of Compensation expense as
investment banking products and services in all major percentage of total net
revenue 28 28 28
capital markets, including advising on corporate
Revenue by business
strategy and structure, capital-raising in equity and
debt markets, as well as loan origination and Investment Banking $ 7,215 $ 6,987 $ 6,852
syndication. Banking also includes Treasury Services, Treasury Services 4,565 4,697 4,172
which provides transaction services, consisting of cash Lending 1,331 1,298 1,429
management and liquidity solutions. Markets & Total Banking 13,111 12,982 12,453
Securities Services is a global market-maker in cash Fixed Income Markets 14,418 12,706 12,812
securities and derivative instruments, and also offers Equity Markets 6,494 6,888 5,703
sophisticated risk management solutions, prime Securities Services 4,154 4,245 3,917
brokerage, and research. Markets & Securities Services Credit Adjustments & Other(a) 121 (373) (228)
also includes Securities Services, a leading global Total Markets & Securities
custodian which provides custody, fund accounting and Services 25,187 23,466 22,204
administration, and securities lending products Total net revenue $38,298 $36,448 $ 34,657
principally for asset managers, insurance companies
(a) Includes credit valuation adjustments (“CVA”) managed centrally
and public and private investment funds. within CIB and funding valuation adjustments (“FVA”) on derivatives,
which are primarily reported in principal transactions revenue. Results
are presented net of associated hedging activities and net of CVA and
Selected income statement data FVA amounts allocated to Fixed Income Markets and Equity Markets.
Year ended December 31, Refer to Notes 2, 3 and 24 for additional information.
(in millions) 2019 2018 2017
Revenue
Net income was $11.9 billion, up 1%.
Investment banking fees $ 7,575 $ 7,473 $ 7,356
Principal transactions 14,396 12,271 10,873 Net revenue was $38.3 billion, up 5%.
Lending- and deposit-related fees 1,518 1,497 1,531 Banking revenue was $13.1 billion, up 1%.
Asset management, • Investment Banking revenue was $7.2 billion, up 3%,
administration and commissions 4,545 4,488 4,207
with higher debt underwriting fees, largely offset by
All other income 1,108 1,239 572
lower advisory and equity underwriting fees. The Firm
maintained its #1 ranking for Global Investment Banking
fees with overall share gains, according to Dealogic.
Total net revenue(a) 38,298 36,448 34,657
– Debt underwriting fees were $3.5 billion, up 8%,
Provision for credit losses 277 (60) (45) reflecting wallet share gains and increased activity in
investment-grade and high-yield bonds.
Noninterest expense
– Advisory fees were $2.4 billion, down 5%, and Equity
underwriting fees were $1.7 billion, down 1%, driven
Noncompensation expense 10,901 10,703 9,876
by a decline in industry-wide fees despite wallet share
Total noninterest expense 21,519 20,918 19,407 gains.
expense 16,502 15,590 15,295 • Treasury Services revenue was $4.6 billion, down 3%,
Income tax expense 4,580 3,817 4,482 driven by deposit margin compression predominantly
Net income $ 11,922 $ 11,773 $ 10,813
offset by higher balances and fee growth.
• Lending revenue was $1.3 billion, up 3%, with higher net
(a) Includes tax-equivalent adjustments, predominantly due to income tax
credits related to alternative energy investments; income tax credits interest income largely offset by losses on hedges of
and amortization of the cost of investments in affordable housing accrual loans.
projects; and tax-exempt income from municipal bonds of $2.3 billion,
$1.7 billion and $2.4 billion for the years ended December 31, 2019,

Markets & Securities Services revenue was $25.2 billion, up
7%. Markets revenue was $20.9 billion, up 7% which
included a gain on the IPO of Tradeweb in the second
quarter of 2019. Prior year results included approximately
$500 million of fair value gains recorded in the first quarter
of 2018 related to the adoption of the recognition and
measurement accounting guidance for certain equity
investments previously held at cost.
• Fixed Income Markets revenue was $14.4 billion, up
13%, reflecting an overall strong performance, notably in
Securitized Products. The increase in 2019 also reflected
the impact of challenging market conditions in Credit and
Rates in the fourth quarter of 2018.
• Equity Markets revenue was $6.5 billion, down 6%,
compared to a strong prior year, driven by lower client
activity in derivatives partially offset by higher client
activity in Cash Equities.
• Securities Services revenue was $4.2 billion, down 2%,
driven by deposit margin compression and the impact of
a business exit largely offset by organic growth.
• Credit Adjustments & Other was a gain of $121 million
reflecting tighter funding spreads on derivatives,
compared with a loss of $373 million in the prior year.
The provision for credit losses was $277 million, compared
with a $60 million net benefit in the prior year. This
increase reflects additions to the allowance for credit losses
in the current year on select client downgrades, and a
benefit related to a single name in the Oil & Gas portfolio
and higher recoveries, both in the prior year.
Noninterest expense was $21.5 billion, up 3%,
predominantly driven by higher volume-related expenses
and investments, including front office and technology staff
hires, as well as higher legal expense, partially offset by
lower FDIC charges.


(in millions, except headcount) 2019 2018 2017 (in millions, except ratios) 2019 2018 2017
Selected balance sheet data Credit data and quality
(period-end) statistics
Assets $ 908,153 $ 903,051 $ 826,384 Net charge-offs/
(recoveries) $ 183 $ 93 $ 71
Loans:
Nonperforming assets:
Loans retained(a) 121,733 129,389 108,765
Nonaccrual loans:
Loans held-for-sale and
loans at fair value 10,112 13,050 4,321 Nonaccrual loans
retained(a) 308 443 812
Total loans 131,845 142,439 113,086
Nonaccrual loans held-
Core loans 131,672 142,122 112,754 for-sale and loans at
Equity 80,000 70,000 70,000 fair value 95 220 —
Selected balance sheet data Total nonaccrual loans 403 663 812
(average) Derivative receivables 30 60 130
Assets $ 985,544 $ 922,758 $ 857,060 Assets acquired in loan
Trading assets-debt and equity satisfactions 70 57 85
instruments 404,363 349,169 342,124 Total nonperforming
Trading assets-derivative assets 503 780 1,027
receivables 48,196 60,552 56,466 Allowance for credit losses:
Loans: Allowance for loan
Loans retained(a) 122,371 114,417 108,368 losses 1,202 1,199 1,379
Loans held-for-sale and Allowance for lending-
loans at fair value 8,609 6,412 4,995 related commitments 848 754 727
Total loans 130,980 120,829 113,363 Total allowance for credit
losses 2,050 1,953 2,106
Core loans 130,810 120,560 113,006
Net charge-off/(recovery)
Equity 80,000 70,000 70,000 rate(b) 0.15% 0.08% 0.07%
Headcount 55,991 54,480 51,181 Allowance for loan losses to

period-end loans
(a) Loans retained includes credit portfolio loans, loans held by retained 0.99 0.93 1.27
consolidated Firm-administered multi-seller conduits, trade finance Allowance for loan losses to
loans, other held-for-investment loans and overdrafts. period-end loans retained,
excluding trade finance
and conduits(c) 1.31 1.24 1.92
Allowance for loan losses to
nonaccrual loans
retained(a) 390 271 170
Nonaccrual loans to total
period-end loans 0.31 0.47 0.72
(a) Allowance for loan losses of $110 million, $174 million and $316
million were held against these nonaccrual loans at December 31,
2019, 2018 and 2017, respectively.
(b) Loans held-for-sale and loans at fair value were excluded when
calculating the net charge-off/(recovery) rate.
(c) Management uses allowance for loan losses to period-end loans
retained, excluding trade finance and conduits, a non-GAAP financial
measure, to provide a more meaningful assessment of CIB’s allowance
coverage ratio.
Investment banking fees

(in millions) 2019 2018 2017
Advisory $ 2,377 $ 2,509 $ 2,150
Equity underwriting 1,666 1,684 1,468
Debt underwriting (a)
3,532 3,280 3,738
Total investment banking fees $ 7,575 $ 7,473 $ 7,356
(a) Represents long-term debt and loan syndications.

League table results – wallet share
2019 2018 2017
Year ended
December 31, Rank Share Rank Share Rank Share
Based on fees(a)
M&A(b)
Global # 2 9.2% # 2 8.7% # 2 8.4%
U.S. 2 9.4 2 8.9 2 9.0
Equity and equity-related(c)
Global 1 9.4 1 9.0 2 7.1
U.S. 1 13.4 1 12.3 1 11.5
Long-term debt(d)
Global 1 7.8 1 7.2 1 7.8
U.S. 1 12.0 1 11.2 2 11.1
Loan syndications
Global 1 10.1 1 9.7 1 9.3
U.S. 1 12.8 1 12.3 1 10.9
Global investment banking fees(e) # 1 9.0% # 1 8.6% # 1 8.1%
(a) Source: Dealogic as of January 2, 2020. 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.
(c) Global equity and equity-related ranking includes rights offerings and Chinese A-Shares.
(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 deals.
Markets revenue
The following table summarizes select income statement client demand, and changes in the fair value of instruments
data for the Markets businesses. Markets includes both used by the Firm to actively manage the risk exposure
Fixed Income Markets and Equity Markets. Markets revenue arising from such inventory. Principal transactions revenue
comprises principal transactions, fees, commissions and recognized upon executing new transactions with market
other income, as well as net interest income. The Firm participants is driven by many factors including the level of
assesses its Markets business performance on a total client activity, the bid-offer spread (which is the difference
revenue basis, as offsets may occur across revenue line between the price at which a market participant is willing
items. For example, securities that generate net interest and able to sell an instrument to the Firm and the price at
income may be risk-managed by derivatives that are which another market participant is willing and able to buy
recorded in principal transactions revenue. Refer to Notes 6 it from the Firm, and vice versa), market liquidity and
and 7 for a description of the composition of these income volatility. These factors are interrelated and sensitive to the
statement line items. same factors that drive inventory-related revenue, which
include general market conditions, such as interest rates,
Principal transactions reflects revenue on financial
foreign exchange rates, credit spreads, and equity and
instruments and commodities transactions that arise from
commodity prices, as well as other macroeconomic
client-driven market-making activity. Principal transactions
conditions.
revenue includes amounts recognized upon executing new
transactions with market participants, as well as “inventory- For the periods presented below, the predominant source of
related revenue”, which is revenue recognized from gains principal transactions revenue was the amount recognized
and losses on derivatives and other instruments that the upon executing new transactions.
Firm has been holding in anticipation of, or in response to,
2019 2018 2017
Year ended December 31, Fixed Fixed Fixed
(in millions, except where Income Equity Total Income Equity Total Income Equity Total
otherwise noted) Markets Markets Markets Markets Markets Markets Markets Markets Markets
Principal transactions $ 8,786 $ 5,739 $ 14,525 $ 7,560 $ 5,566 $ 13,126 $ 7,393 $ 3,855 $ 11,248
Lending- and deposit-related fees 198 7 205 197 6 203 191 6 197
Asset management,
administration and commissions 407 1,775 2,182 410 1,794 2,204 390 1,635 2,025
All other income 872 8 880 952 22 974 436 (21) 415
Noninterest revenue 10,263 7,529 17,792 9,119 7,388 16,507 8,410 5,475 13,885
Net interest income(a) 4,155 (1,035) 3,120 3,587 (500) 3,087 4,402 228 4,630
Total net revenue $ 14,418 $ 6,494 $ 20,912 $ 12,706 $ 6,888 $ 19,594 $ 12,812 $ 5,703 $ 18,515
Loss days(b) 1 5 4
(a) The decline in Markets net interest income in 2018 was driven by higher funding costs.
(b) Loss days represent the number of days for which Markets posted losses. The loss days determined under this measure differ from the disclosure of daily
market risk-related gains and losses for the Firm in the value-at-risk (“VaR”) back-testing discussion on pages 121–123.

Selected metrics
As of or for the year ended
December 31,
(in millions, except where otherwise noted) 2019 2018 2017
Assets under custody (“AUC”) by asset class (period-end) (in billions):
Fixed Income $ 13,498 $ 12,440 $ 13,043
Equity 10,100 8,078 7,863
Other(a) 3,233 2,699 2,563
Total AUC $ 26,831 $ 23,217 $ 23,469
Client deposits and other third party liabilities (average)(b) $ 464,770 $ 434,422 $ 408,911
(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 Treasury Services and Securities Services businesses.
International metrics
December 31,
(in millions, except where otherwise noted) 2019 2018(c) 2017(c)
Total net revenue(a)
Europe/Middle East/Africa $ 11,718 $ 12,260 $ 11,590
Asia-Pacific 5,330 5,077 4,313
Latin America/Caribbean 1,549 1,473 1,232
Total international net revenue 18,597 18,810 17,135
North America 19,701 17,638 17,522
Total net revenue $ 38,298 $ 36,448 $ 34,657
Loans retained (period-end)(a)

Asia-Pacific 15,144 17,192 15,385
Total international loans 44,389 48,549 44,969
North America 77,344 80,840 63,796
Total loans retained $ 121,733 $ 129,389 $ 108,765
Client deposits and other third-party liabilities (average)(b)

Asia-Pacific 90,364 82,867 76,673
Total international $ 293,868 $ 272,381 $ 256,817
North America 170,902 162,041 152,094
Total client deposits and other third-party liabilities $ 464,770 $ 434,422 $ 408,911
AUC (period-end) (b)
(in billions)
North America $ 16,855 $ 14,359 $ 13,971
All other regions 9,976 8,858 9,498
Total AUC $ 26,831 $ 23,217 $ 23,469
(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 Treasury Services and Securities Services businesses, and AUC, are based on the domicile
of the client.
(c) The prior period amounts have been revised to conform with the current period presentation.

COMMERCIAL BANKING
Commercial Banking provides comprehensive financial Net income was $3.9 billion, a decrease of 7%.
solutions, including lending, treasury services,
investment banking and asset management products Net revenue was $9.0 billion, a decrease of 1%. Net
across three primary client segments: Middle Market interest income was $6.6 billion, a decrease of 2%,
Banking, Corporate Client Banking and Commercial predominantly driven by lower deposit margins. Noninterest
Real Estate Banking. Other includes amounts not revenue was $2.4 billion, an increase of 4%, driven by
aligned with a primary client segment. higher investment banking revenue, predominantly due to
increased equity underwriting and M&A activity, and growth
Middle Market Banking covers small business and in lending and deposit related fees.
midsized corporations, local governments and
nonprofit clients. Noninterest expense was $3.5 billion, an increase of 3%,
driven by continued investments in the business, largely
Corporate Client Banking covers large corporations. offset by lower FDIC charges.
Commercial Real Estate Banking covers investors, The provision for credit losses was $296 million, up from
developers, and owners of multifamily, office, retail, $129 million in the prior year. The increase in the provision
industrial and affordable housing properties. reflects additions to the allowance for credit losses on select
client downgrades in the current year and higher recoveries
in the prior year.
(in millions) 2019 2018 2017
Revenue
Lending- and deposit-related fees $ 913 $ 870 $ 919
All other income(a) 1,517 1,473 1,603
Total net revenue(b) 8,984 9,059 8,605
Provision for credit losses 296 129 (276)
Noninterest expense
Income before income tax expense 5,188 5,544 5,554

Net income $ 3,924 $ 4,237 $ 3,539
(a) Effective in the first quarter of 2019, includes revenue from
investment banking products, commercial card transactions and asset
management fees. The prior period amounts have been revised to
conform with the current period presentation.
(b) Total net revenue included tax-equivalent adjustments from income tax
credits related to equity investments in designated community
development entities and in entities established for rehabilitation of
historic properties, as well as tax-exempt income related to municipal
financing activities of $460 million, $444 million and $699 million for
the years ended December 31, 2019, 2018 and 2017, respectively.

CB product revenue consists of the following: Selected income statement data (continued)
Lending includes a variety of financing alternatives, which Year ended December 31,
(in millions, except ratios) 2019 2018 2017
are primarily provided on a secured basis; collateral
includes receivables, inventory, equipment, real estate or Revenue by product
other assets. Products include term loans, revolving lines of Lending $ 4,057 $ 4,049 $ 4,094
credit, bridge financing, asset-based structures, leases, and Treasury services 3,920 4,074 3,444
standby letters of credit.
Investment banking(a) 919 852 805
Treasury services includes revenue from a broad range of Other 88 84 262
products and services that enable CB clients to manage
Total Commercial Banking net
payments and receipts, as well as invest and manage funds. revenue $ 8,984 $ 9,059 $ 8,605
Investment banking includes revenue from a range of
products providing CB clients with sophisticated capital- Investment banking revenue, gross(b) $ 2,744 $ 2,491 $ 2,385
raising alternatives, as well as balance sheet and risk
Revenue by client segment
management tools through advisory, equity underwriting,
and loan syndications. Revenue from Fixed Income and Middle Market Banking $ 3,702 $ 3,708 $ 3,341
Equity Markets products used by CB clients is also included. Corporate Client Banking 2,994 2,984 2,727
Commercial Real Estate Banking(c) 2,169 2,249 2,416
Other product revenue primarily includes tax-equivalent
adjustments generated from Community Development Other(c) 119 118 121
Banking activities and certain income derived from principal Total Commercial Banking net
transactions. revenue $ 8,984 $ 9,059 $ 8,605
Financial ratios
Return on equity 17% 20% 17%
(a) Includes CB’s share of revenue from investment banking products sold
to CB clients through the CIB.
(b) Refer to page 60 for a discussion of revenue sharing.
(c) Effective in the first quarter of 2019, client segment data includes
Commercial Real Estate Banking which comprises the former
Commercial Term Lending and Real Estate Banking client segments,
and Community Development Banking (previously part of Other). The
prior period amounts have been revised to conform with the current
period presentation.

December 31, (in millions, December 31, (in millions, except
except headcount) 2019 2018 2017 ratios) 2019 2018 2017
Selected balance sheet data Credit data and quality statistics
(period-end)
Net charge-offs/(recoveries) $ 160 $ 53 $ 39
Total assets $ 220,514 $ 220,229 $ 221,228 Nonperforming assets
Loans: Nonaccrual loans:
Loans retained 207,287 204,219 202,400 Nonaccrual loans retained(a) 498 511 617
Loans held-for-sale and Nonaccrual loans held-for-sale
loans at fair value 1,009 1,978 1,286 and loans at fair value — — —
Total loans $ 208,296 $ 206,197 $ 203,686 Total nonaccrual loans 498 511 617
Core loans 208,181 206,039 203,469
Equity 22,000 20,000 20,000 Assets acquired in loan
satisfactions 25 2 3
Period-end loans by client Total nonperforming assets 523 513 620
segment Allowance for credit losses:
Middle Market Banking $ 54,188 $ 56,656 $ 56,965 Allowance for loan losses 2,780 2,682 2,558
Corporate Client Banking 51,165 48,343 46,963 Allowance for lending-related
commitments 293 254 300
Commercial Real Estate
Banking(a) 101,951 100,088 98,297 Total allowance for credit losses 3,073 2,936 2,858
Other(a) 992 1,110 1,461
Net charge-off/(recovery) rate(b) 0.08% 0.03% 0.02%
Total Commercial Banking
loans $ 208,296 $ 206,197 $ 203,686 Allowance for loan losses to
period-end loans retained 1.34 1.31 1.26
Selected balance sheet data Allowance for loan losses to
(average) nonaccrual loans retained(a) 558 525 415
Total assets $ 218,896 $ 218,259 $ 217,047 Nonaccrual loans to period-end
total loans 0.24 0.25 0.30
Loans:
Loans retained 206,837 204,243 197,203 (a) Allowance for loan losses of $114 million, $92 million and $92 million
was held against nonaccrual loans retained at December 31, 2019,
Loans held-for-sale and
loans at fair value 1,082 1,258 909 2018 and 2017, respectively.
(b) Loans held-for-sale and loans at fair value were excluded when
Total loans $ 207,919 $ 205,501 $ 198,112 calculating the net charge-off/(recovery) rate.
Core loans 207,787 205,320 197,846
Client deposits and other
third-party liabilities 172,734 170,901 177,018
Equity 22,000 20,000 20,000
Average loans by client

segment
Middle Market Banking $ 55,690 $ 57,092 $ 55,474
Corporate Client Banking 50,360 47,780 46,037
Commercial Real Estate
Banking(a) 100,884 99,243 95,038
Other(a) 985 1,386 1,563
Total Commercial Banking
loans $ 207,919 $ 205,501 $ 198,112
Headcount 11,629 11,042 10,061
(a) Effective in the first quarter of 2019, client segment data includes
Commercial Real Estate Banking which comprises the former
Commercial Term Lending and Real Estate Banking client segments,
and Community Development Banking (previously part of Other). The
prior period amounts have been revised to conform with the current

ASSET & WEALTH MANAGEMENT

Asset & Wealth Management, with client assets of $3.2 2019 compared with 2018
trillion, is a global leader in investment and wealth Net income was $2.8 billion, a decrease of 1%.
management. AWM clients include institutions, high- Net revenue was $14.3 billion, an increase of 2%. Net
net-worth individuals and retail investors in major interest income was $3.5 billion, down 1%, driven by
markets throughout the world. AWM offers investment deposit margin compression, predominantly offset by loan
management across most major asset classes including and deposit growth. Noninterest revenue was $10.8 billion,
equities, fixed income, alternatives and money market up 3%, driven by higher net investment valuation gains and
funds. AWM also offers multi-asset investment growth in fees on higher average market levels, partially
management, providing solutions for a broad range of offset by a shift in the mix toward lower fee products.
clients’ investment needs. For Wealth Management
clients, AWM also provides retirement products and Revenue from Asset Management was $7.3 billion, up 1%,
services, brokerage and banking services including driven by higher investment valuation gains. The impact on
trusts and estates, loans, mortgages and deposits. The fees from higher average market levels was more than
majority of AWM’s client assets are in actively managed offset by a shift in the mix toward lower fee products.
portfolios. Revenue from Wealth Management was $7.1 billion, up 2%,
driven by loan and deposit growth, growth in fees on the
Selected income statement data cumulative impact of net inflows and higher average market
Year ended December 31, levels and brokerage activity, largely offset by deposit
(in millions, except ratios
and headcount) 2019 2018 2017 margin compression.
Revenue The provision for credit losses was $61 million, up from
Asset management, administration $53 million in the prior year, reflecting higher net-charge
and commissions $10,212 $ 10,171 $ 9,856
All other income 604 368 600
offs, as well as net additions to the allowance for loan
losses, predominantly due to loan growth.
Net interest income 3,500 3,537 3,379 Noninterest expense was $10.5 billion, an increase of 2%,
Total net revenue 14,316 14,076 13,835 predominantly driven by investments in the business as well
Provision for credit losses 61 53 39 as volume- and revenue-related expenses.
Noninterest expense

Income tax expense 907 817 1,241
Net income $ 2,833 $ 2,853 $ 2,337
Revenue by line of business

Asset Management $ 7,254 $ 7,163 $ 7,257
Wealth Management 7,062 6,913 6,578
Total net revenue $14,316 $ 14,076 $ 13,835
Financial ratios
Return on common equity 26% 31% 25%
Pre-tax margin ratio:
Asset Management 26 26 22
Wealth Management 26 26 30
Asset & Wealth Management 26 26 26
Headcount 24,191 23,920 22,975
Number of Wealth Management

client advisors 2,890 2,865 2,605

AWM’s lines of business consist of the following: Selected metrics
Asset Management provides comprehensive global investment As of or for the year ended
services, including asset management, pension analytics, asset-liability December 31,
(in millions, except ranking
management and active risk-budgeting strategies. data and ratios) 2019 2018 2017
Wealth Management offers investment advice and wealth % of JPM mutual fund assets
management, including investment management, capital markets and rated as 4- or 5-star(a) 61% 58% 60%
risk management, tax and estate planning, banking, lending and
% of JPM mutual fund assets
specialty-wealth advisory services. ranked in 1st or 2nd
quartile:(b)
AWM’s client segments consist of the following: 1 year 59 68 64
Private Banking clients include high- and ultra-high-net-worth 3 years 77 73 75
individuals, families, money managers, business owners and small 5 years 75 85 83
corporations worldwide.
Institutional clients include both corporate and public institutions, Selected balance sheet data
endowments, foundations, nonprofit organizations and governments (period-end)(c)
worldwide. Total assets $ 182,004 $ 170,024 $ 151,909
Retail clients include financial intermediaries and individual investors. Loans 160,535 147,632 130,640
Core loans 160,535 147,632 130,640
Asset Management has two high-level measures of its Deposits 147,804 138,546 146,407
overall fund performance. Equity 10,500 9,000 9,000
• Percentage of mutual fund assets under management in funds
rated 4- or 5-star: Mutual fund rating services rank funds based on Selected balance sheet data
their risk-adjusted performance over various periods. A 5-star rating (average)(c)
is the best rating and represents the top 10% of industry-wide ranked Total assets $ 170,764 $ 160,269 $ 144,206
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- Loans 149,655 138,622 123,464
wide ranked funds. A 2-star rating represents the next 22.5% of Core loans 149,655 138,622 123,464
industry-wide ranked funds. A 1-star rating is the worst rating and
Deposits 140,118 137,272 148,982
represents the bottom 10% of industry-wide ranked funds. The
“overall Morningstar rating” is derived from a weighted average of the Equity 10,500 9,000 9,000
performance associated with a fund’s three-, five- and ten-year (if
applicable) Morningstar Rating metrics. For U.S. domiciled funds, Credit data and quality
separate star ratings are given at the individual share class level. The statistics(c)
Nomura “star rating” is based on three-year risk-adjusted Net charge-offs $ 31 $ 10 $ 14
performance only. Funds with fewer than three years of history are
not rated and hence excluded from this analysis. All ratings, the Nonaccrual loans 116 263 375
assigned peer categories and the asset values used to derive this Allowance for credit losses:
analysis are sourced from these fund rating providers mentioned in
Allowance for loan losses 354 326 290
footnote (a). The data providers re-denominate the asset values into
U.S. dollars. This % of AUM is based on star ratings at the share class Allowance for lending-
level for U.S. domiciled funds, and at a “primary share class” level to related commitments 19 16 10
represent the star rating of all other funds except for Japan where Total allowance for credit
Nomura provides ratings at the fund level. The “primary share class”, losses 373 342 300
as defined by Morningstar, denotes the share class recommended as
Net charge-off rate 0.02% 0.01% 0.01%
being the best proxy for the portfolio and in most cases will be the
most retail version (based upon annual management charge, Allowance for loan losses to
minimum investment, currency and other factors). The performance period-end loans 0.22 0.22 0.22
data could have been different if all funds/accounts would have been Allowance for loan losses to
included. Past performance is not indicative of future results. nonaccrual loans 305 124 77
• Percentage of mutual fund assets under management in funds Nonaccrual loans to period-
ranked in the 1st or 2nd quartile (one, three and five years): All end loans 0.07 0.18 0.29
quartile rankings, the assigned peer categories and the asset values
used to derive this analysis are sourced from the fund ranking (a) Represents the Nomura “star rating” for Japan domiciled funds and
providers mentioned in footnote (b). Quartile rankings are done on Morningstar for all other domiciled funds. Includes only Asset
the net-of-fee absolute return of each fund. The data providers re- Management retail open-ended mutual funds that have a rating.
denominate the asset values into U.S. dollars. This % of AUM is based Excludes money market funds, Undiscovered Managers Fund, and
on fund performance and associated peer rankings at the share class Brazil domiciled funds.
level for U.S. domiciled funds and at the “primary share class” level or (b) Quartile ranking sourced from Lipper, Morningstar, Nomura and Fund
fund level for all other funds. The “primary share class”, as defined by Doctor based on country of domicile. Includes only Asset Management
Morningstar, denotes the share class recommended as being the best retail open-ended mutual funds that are ranked by the aforementioned
proxy for the portfolio and in most cases will be the most retail sources. Excludes money market funds, Undiscovered Managers Fund,
version (based upon annual management charge, minimum and Brazil domiciled funds.
investment, currency and other factors). Where peer group rankings (c) Loans, deposits and related credit data and quality statistics relate to
given for a fund are in more than one “primary share class” territory the Wealth Management business.
both rankings are included to reflect local market competitiveness.
The performance data could have been different if all funds/accounts
would have been included. Past performance is not indicative of
future results.

Client assets International metrics

2019 compared with 2018 Year ended December 31,
(in billions, except where otherwise
Client assets were $3.2 trillion, an increase of 18%. Assets noted) 2019 2018 2017
under management were $2.4 trillion, an increase of 19% Total net revenue (in millions)(a)
driven by the impact of higher market levels and net inflows Europe/Middle East/Africa(b) $ 2,869 $ 2,850 $ 2,837
into both long-term and liquidity products.
Asia-Pacific(b) 1,509 1,538 1,405
Latin America/Caribbean (b)
724 755 702
Client assets Total international net revenue 5,102 5,143 4,944
December 31,
(in billions) 2019 2018 2017 North America 9,214 8,933 8,891
Assets by asset class Total net revenue $ 14,316 $ 14,076 $ 13,835
Liquidity $ 542 $ 480 $ 459
Fixed income 602 464 474 Assets under management
Equity 474 384 428 Europe/Middle East/Africa(b) $ 428 $ 366 $ 393
Multi-asset and alternatives 746 659 673 Asia-Pacific (b)

192 163 161
Total assets under management 2,364 1,987 2,034 Latin America/Caribbean(b) 62 51 51
Custody/brokerage/ Total international assets under
administration/deposits 862 746 755 management 682 580 605
Total client assets $ 3,226 $ 2,733 $ 2,789
North America 1,682 1,407 1,429
Memo: Total assets under management $ 2,364 $ 1,987 $ 2,034
Alternatives client assets(a) $ 185 $ 171 $ 166 Client assets
Assets by client segment Europe/Middle East/Africa(b) $ 520 $ 440 $ 466
Private Banking $ 672 $ 552 $ 526 Asia-Pacific (b)
272 226 230
Institutional 1,074 926 968 Latin America/Caribbean(b) 147 125 124
Retail 618 509 540 Total international client assets 939 791 820
Total assets under management $ 2,364 $ 1,987 $ 2,034
North America 2,287 1,942 1,969
Private Banking $ 1,504 $ 1,274 $ 1,256 Total client assets $ 3,226 $ 2,733 $ 2,789
Institutional 1,099 946 990 (a) Regional revenue is based on the domicile of the client.
Retail 623 513 543 (b) The prior period amounts have been revised to conform with the
Total client assets $ 3,226 $ 2,733 $ 2,789 current period presentation.
(a) Represents assets under management, as well as client balances in

brokerage accounts.
Client assets (continued)

(in billions) 2019 2018 2017
Assets under management
rollforward
Beginning balance $ 1,987 $ 2,034 $ 1,771
Net asset flows:
Liquidity 60 31 9
Fixed income 106 (1) 36
Equity (10) 2 (11)

Multi-asset and alternatives 4 24 43
Market/performance/other impacts 217 (103) 186
Ending balance, December 31 $ 2,364 $ 1,987 $ 2,034
Client assets rollforward

Net asset flows 178 88 93
Market/performance/other impacts 315 (144) 243
Ending balance, December 31 $ 3,226 $ 2,733 $ 2,789

CORPORATE
The Corporate segment consists of Treasury and Chief Net Income was $1.1 billion compared with a net loss of
Investment Office and Other Corporate, which includes $1.2 billion in the prior year.
corporate staff functions and expense that is centrally Net revenue was $1.2 billion, compared with a net loss of
managed. Treasury and CIO is predominantly $128 million in the prior year driven by higher net interest
responsible for measuring, monitoring, reporting and income and noninterest revenue. The increase in net
managing the Firm’s liquidity, funding, capital, interest income was driven by balance sheet growth and
structural interest rate and foreign exchange risks. The changes in mix, and also includes income related to the
major Other Corporate functions include Real Estate, unwind of the internal funding provided to CCB upon the
Technology, Legal, Corporate Finance, Human sale of certain mortgage loans. The income reflects the net
Resources, Internal Audit, Risk Management, present value of that funding and is recognized as a charge
Compliance, Control Management, Corporate to net interest income in CCB. Refer to CCB on pages 62–65
Responsibility and various Other Corporate groups. and FTP on page 61 of this Form 10-K for further
information.
Noninterest revenue increased reflecting:
Selected income statement and balance sheet data
• investment securities gains, compared with losses in the
(in millions, except headcount) 2019 2018 2017 prior year, due to the repositioning of the investment
Revenue
securities portfolio, and
Principal transactions $ (461) $ (426) $ 284 • lower net markdowns on certain legacy private equity
Investment securities gains/ investments,
(losses) 258 (395) (66) partially offset by
All other income(a) 89 558 867 • market-driven impacts on certain Corporate investments,
Noninterest revenue (114) (263) 1,085 and
Net interest income 1,325 135 55 • higher losses on cash deployment transactions which
Total net revenue(b) 1,211 (128) 1,140 were more than offset by the related net interest income
Provision for credit losses (1) (4) — earned on those transactions.
Noninterest expense (c)
1,067 902 501 Noninterest expense of $1.1 billion was up $165 million
Income/(loss) before income reflecting higher investments in technology and real estate,
tax expense/(benefit) 145 (1,026) 639
and higher pension costs due to changes to actuarial
Income tax expense/(benefit) (966) 215 2,282
assumptions and estimates.
Net income/(loss) $ 1,111 $ (1,241) $ (1,643)
Total net revenue The prior year included a pre-tax loss of $174 million on
Treasury and CIO 2,032 510 566 the liquidation of a legal entity.
Other Corporate (821) (638) 574 The current period included $1.1 billion of tax benefits
Total net revenue $ 1,211 $ (128) $ 1,140
related to the resolution of certain tax audits. The prior year
Net income/(loss)
expense reflected a net benefit of $302 million resulting
Treasury and CIO 1,394 (69) 60
Other Corporate (283) (1,172) (1,703)
from changes in estimates under the TCJA related to the
Total net income/(loss) $ 1,111 $ (1,241) $ (1,643) remeasurement of certain deferred taxes and the deemed
repatriation tax on non-U.S. earnings, which was more than
Total assets (period-end) $837,618 $ 771,787 $ 781,478
offset by changes to certain tax reserves and other tax
Loans (period-end) 1,649 1,597 1,653
Core loans(d) 1,649 1,597 1,653
adjustments.
Headcount 38,033 37,145 34,601
(a) Included revenue related to a legal settlement of $645 million for the year
ended December 31, 2017.
(b) Included tax-equivalent adjustments, driven by tax-exempt income from
municipal bonds, of $314 million, $382 million and $905 million for the
years ended December 31, 2019, 2018 and 2017, respectively. The
decrease in taxable-equivalent adjustments for the year ended December
31, 2018, reflects the impact of the TCJA.
(c) Included a net legal benefit of $(214) million, $(241) million and $(593)
million for the years ended December 31, 2019, 2018 and 2017,
respectively.
(d) Average core loans were $1.7 billion, $1.7 billion and $1.6 billion for the
years ended December 31, 2019, 2018 and 2017, respectively.

Treasury and CIO overview

Treasury and CIO is predominantly responsible for
measuring, monitoring, reporting and managing the Firm’s Selected income statement and balance sheet data
liquidity, funding, capital, structural interest rate and As of or for the year ended
December 31, (in millions) 2019 2018 2017
foreign exchange risks. The risks managed by Treasury and
Investment securities gains/
CIO arise from the activities undertaken by the Firm’s four (losses) $ 258 $ (395) $ (78)
major reportable business segments to serve their Available-for-sale (“AFS”)
respective client bases, which generate both on- and off- investment securities
balance sheet assets and liabilities. (average) 283,205 203,449 219,345
Held-to-maturity (“HTM”)
Treasury and CIO seek to achieve the Firm’s asset-liability investment securities
management objectives generally by investing in high- (average) 34,939 31,747 47,927
quality securities that are managed for the longer-term as Investment securities portfolio
(average) 318,144 235,196 267,272
part of the Firm’s investment securities portfolio. Treasury
and CIO also use derivatives to meet the Firm’s asset- AFS investment securities
(period-end) 348,876 228,681 200,247
liability management objectives. Refer to Note 5 for further
HTM investment securities
information on derivatives. In addition, Treasury and CIO (period-end) 47,540 31,434 47,733
manage the Firm’s cash position primarily through deposits Investment securities portfolio
at central banks and investments in short-term instruments. (period–end) 396,416 260,115 247,980
Refer to Liquidity Risk Management on pages 93–98 for
further information on liquidity and funding risk. Refer to
Market Risk Management on pages 119–126 for
information on interest rate, foreign exchange and other
risks.
The investment securities portfolio primarily consists of U.S.
GSE and government agency and nonagency mortgage-
backed securities, U.S. and non-U.S. government securities,
obligations of U.S. states and municipalities, other ABS and
corporate debt securities. At December 31, 2019, the
investment securities portfolio was $396.4 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 Note 10 for further
information on the investment securities portfolio and
internal risk ratings.

FIRMWIDE RISK MANAGEMENT
Risk is an inherent part of JPMorgan Chase’s business • Credit and investment risk is the risk associated with the
activities. When the Firm extends a consumer or wholesale default or change in credit profile of a client,
loan, advises customers and clients on their investment counterparty or customer; or loss of principal or a
decisions, makes markets in securities, or offers other reduction in expected returns on investments, including
products or services, the Firm takes on some degree of risk. consumer credit risk, wholesale credit risk, and
The Firm’s overall objective is to manage its businesses, and investment portfolio risk.
the associated risks, in a manner that balances serving the
• Market risk is the risk associated with the effect of
interests of its clients, customers and investors and protects
changes in market factors, such as interest and foreign
the safety and soundness of the Firm.
exchange rates, equity and commodity prices, credit
The Firm believes that effective risk management requires, spreads or implied volatilities, on the value of assets and
among other things: liabilities held for both the short and long term.
• Acceptance of responsibility, including identification and • Operational risk is the risk associated with an adverse
escalation of risk issues, by all individuals within the outcome resulting from inadequate or failed internal
Firm; processes or systems; human factors; or external events
impacting the Firm’s processes or systems; it includes
• Ownership of risk identification, assessment, data and compliance, conduct, legal, and estimations and model
management within each of the LOBs and Corporate; risk.
and
Impacts of Risks are consequences of risks, both
• Firmwide structures for risk governance. quantitative and qualitative. There may be many
The Firm strives for continual improvement in its efforts to consequences of risks manifesting, such as a reduction in
enhance controls, ongoing employee training and earnings and capital, liquidity outflows, and fines or
development, talent retention, and other measures. The penalties, or qualitative impacts such as reputation
Firm follows a disciplined and balanced compensation damage, loss of clients and customers, and regulatory and
framework with strong internal governance and enforcement actions.
independent oversight by the Board of Directors (the The Firm’s risk governance and oversight framework is
“Board”). The impact of risk and control issues is carefully managed on a Firmwide basis. The Firm has an Independent
considered in the Firm’s performance evaluation and Risk Management (“IRM”) function, which consists of the
incentive compensation processes. Risk Management and Compliance organizations. The Chief
Risk governance and oversight framework Executive Officer (“CEO”) appoints, subject to approval by
The Firm’s risk management governance and oversight the Risk Committee of the Board (“Board Risk Committee”),
framework involves understanding drivers of risks, types of the Firm’s Chief Risk Officer (“CRO”) to lead the IRM
risks, and impacts of risks. organization and manage the risk governance structure of
the Firm. The framework is subject to approval by the Board
Risk Committee in the form of the primary risk management
policies. The Firm’s CRO oversees and delegates authorities
to LOB CROs, Firmwide Risk Executives (“FREs”), and the
Firm’s Chief Compliance Officer (“CCO”), who each establish
Risk Management and Compliance organizations, set the
Firm’s risk governance policies and standards, and define
and oversee the implementation of the Firm’s risk
governance. The LOB CROs are responsible for risks that
Drivers of Risks are factors that cause a risk to exist. Drivers arise in their LOBs, while FREs oversee risk areas that span
of risks include the economic environment, regulatory and across the individual LOB, functions and regions.
government policy, competitor and market evolution,
business decisions, process and judgment error, deliberate Three lines of defense
wrongdoing, dysfunctional markets, and natural disasters. The Firm relies upon each of its LOBs and Corporate areas
Types of Risks are categories by which risks manifest giving rise to risk to operate within the parameters
themselves. Risks are generally categorized in the following identified by the IRM function, and within its own
four risk types: management-identified risk and control standards. Each
• Strategic risk is the risk to earnings, capital, liquidity or LOB and Treasury & CIO, including their aligned Operations,
reputation associated with poorly designed or failed Technology and Control Management are the Firm’s “first
business plans or inadequate response to changes in the line of defense” and own the identification of risks, as well
operating environment. as the design and execution of controls to manage those
risks. The first line of defense is responsible for adherence

to applicable laws, rules and regulations and for the Risk identification and ownership
implementation of the risk management structure (which Each LOB and Corporate area owns the ongoing
may include policy, standards, limits, thresholds and identification of risks, as well as the design and execution of
controls) established by IRM. controls, inclusive of IRM-specified controls, to manage
those risks. To support this activity, the Firm has a risk
The IRM function is independent of the businesses and is identification process designed to facilitate their
the Firm’s “second line of defense.” The IRM function sets responsibility to identify material risks inherent to the Firm,
and oversees the risk management structure for Firmwide catalog them in a central repository and review the most
risk governance, and independently assesses and challenges material risks on a regular basis. The IRM function reviews
the first line of defense risk management practices. IRM is and challenges the LOB and Corporate’s identification of
also responsible for its own adherence to applicable laws, risks, maintains the central repository and provides the
rules and regulations and for the implementation of policies consolidated Firmwide results to the Firmwide Risk
and standards established by IRM with respect to its own Committee (“FRC”) and Board Risk Committee.
processes.
Risk appetite
The Internal Audit function operates independently from The Firm’s overall appetite for risk is governed by a “Risk
other parts of the Firm and performs independent testing Appetite” framework. The framework and the Firm’s risk
and evaluation of processes and controls across the Firm as appetite are set and approved by the Firm’s CEO, Chief
the “third line of defense.” The Internal Audit Function is Financial Officer (“CFO”) and CRO. Quantitative parameters
headed by the General Auditor, who reports to the Audit and qualitative factors are used to monitor and measure the
Committee and administratively to the CEO. Firm’s capacity to take risk consistent with its stated risk
appetite. Qualitative factors have been established to assess
In addition, there are other functions that contribute to the select operational risks that impact the Firm’s reputation.
Firmwide control environment including Finance, Human Risk Appetite results are reported to the Board Risk
Resources, Legal and Control Management. Committee.

Risk governance and oversight structure
The independent status of the IRM function is supported by a governance structure that provides for escalation of risk issues to
senior management, the FRC, and the Board of Directors, as appropriate.
The chart below illustrates the Board of Directors’ and key senior management-level committees in the Firm’s risk governance
structure. In addition, there are other committees, forums and paths of escalation that support the oversight of risk which are
not shown in the chart below or described in this Form 10-K.
The Firm’s Operating Committee, which consists of the The JPMorgan Chase Bank, N.A. Board of Directors is
Firm’s CEO, CRO, CFO and other senior executives, is responsible for the oversight of management of the bank.
accountable to and may refer matters to the Firm’s Board of The JPMorgan Chase Bank, N.A. Board accomplishes this
Directors. The Operating Committee is responsible for function acting directly and through the principal standing
escalating to the Board the information necessary to committees of the Firm’s Board of Directors. Risk and
facilitate the Board’s exercise of its duties. control oversight on behalf of JPMorgan Chase Bank N.A. is
primarily the responsibility of the Risk Committee and the
Board oversight
Audit Committee, respectively, and, with respect to
The Firm’s Board of Directors provides oversight of risk. The
compensation and other management-related matters, the
Board Risk Committee is the principal committee that
Compensation & Management Development Committee.
oversees risk matters. The Audit Committee oversees the
control environment, and the Compensation & Management
Development Committee oversees compensation and other
management-related matters. Each committee of the Board
oversees reputational risks and conduct risks within its
scope of responsibility.

The Board Risk Committee assists the Board in its oversight Management oversight
of management’s responsibility to implement a global risk The Firm’s senior management-level committees that are
management framework reasonably designed to identify, primarily responsible for key risk-related functions include:
assess and manage the Firm’s risks. The Board Risk The Firmwide Risk Committee (“FRC”) is the Firm’s highest
Committee’s responsibilities include approval of applicable management-level risk committee. It provides oversight of
primary risk policies and review of certain associated the risks inherent in the Firm’s businesses and serves as an
frameworks, analysis and reporting established by escalation point for risk topics and issues raised by
management. Breaches in risk appetite and parameters, underlying committees and/or FRC members.
issues that may have a material adverse impact on the Firm,
including capital and liquidity issues, and other significant The Firmwide Control Committee (“FCC”) is an escalation
risk-related matters are escalated to the Board Risk committee for senior management to review and discuss
Committee, as appropriate. the Firmwide operational risk environment including
identified issues, operational risk metrics and significant
The Audit Committee assists the Board in its oversight of events that have been escalated.
management’s responsibility to ensure that there is an
effective system of controls reasonably designed to The Firmwide Fiduciary Risk Governance Committee
safeguard the Firm’s assets and income, ensure the integrity (“FFRGC”) provides oversight of the governance framework
of the Firm’s financial statements, and maintain compliance for fiduciary risk or fiduciary-related conflict of interest risk
with the Firm’s ethical standards, policies, plans and inherent in each of the Firm’s LOBs. The FFRGC approves
procedures, and with laws and regulations. It also assists risk or compliance policy exceptions and reviews periodic
the Board in its oversight of the Firm’s independent reports from the LOBs and control functions including
registered public accounting firm’s qualifications, fiduciary metrics and control trends.
independence and performance, and of the performance of The Firmwide Estimations Risk Committee (“FERC”) provides
the Firm’s Internal Audit function. oversight of the governance framework for quantitative and
The Compensation & Management Development Committee qualitative estimations and models as specified in the
(“CMDC”) assists the Board in its oversight of the Firm’s Estimations and Model Risk Management Policy. The FERC
compensation principles and practices. The CMDC reviews also has responsibility to set the prioritization of
and approves the Firm’s compensation and benefits estimations and model risk activities and drive consistency
programs. In addition, the Committee reviews Operating through review of LOB activities and escalated issues.
Committee members’ performance against their goals, and The Conduct Risk Steering Committee (“CRSC”) is responsible
approves their compensation awards. The CMDC also for reviewing, calibrating and consolidating Firmwide
reviews the development of and succession for key Conduct Risk Appetite and setting overall direction for the
executives, and provides oversight of the Firm’s culture, Firm’s Conduct Risk Program.
including reviewing updates from management regarding
significant conduct issues and any related employee Line of Business and Regional Risk Committees are
actions, including compensation actions. responsible for providing oversight of the governance,
limits, and controls that are in place through the scope of
The Public Responsibility Committee assists the Board in its their activities. These committees review the ways in which
oversight of the Firm's positions and practices on public the particular LOB or the business operating in a particular
responsibility matters such as community investment, fair region could be exposed to adverse outcomes with a focus
lending, sustainability, consumer practices and other public on identifying, accepting, escalating and/or requiring
policy issues that reflect the Firm's values and character remediation of matters brought to these committees.
and could impact the Firm's reputation among all of its
stakeholders. The Committee also provides guidance on Line of Business and Corporate Control Committees oversee
these matters to management and the Board, as the control environment of their respective business or
appropriate. function. As part of that mandate, they are responsible for
reviewing indicators of elevated or emerging risks and other
The Corporate Governance & Nominating Committee data that may impact the quality and stability of the
exercises general oversight with respect to the governance processes in a business or function, addressing key
of the Board. The Committee evaluates and recommends to operational risk issues, focusing on processes with control
the Board corporate governance practices applicable to the concerns and overseeing control remediation.
Firm. It also appraises the framework for assessing the
Board’s performance and self-evaluation. Line of Business Reputation Risk Committees review and
assess transactions, activities and clients that have the
potential for material reputation risk to the Firm.

The Firmwide Asset and Liability Committee (“ALCO”) is Risk governance and oversight functions
responsible for overseeing the Firm’s asset and liability The Firm manages its risk through risk governance and
management (“ALM”) activities and the management of oversight functions. The scope of a particular function may
liquidity risk, balance sheet, interest rate risk, and capital include one or more drivers, types and/or impacts of risk.
risk. The ALCO is supported by the Treasurer Committee and For example, Country Risk Management oversees country
the Capital Governance Committee. The Treasurer risk which may be a driver of risk or an aggregation of
Committee is responsible for monitoring the Firm’s overall exposures that could give rise to multiple risk types such as
balance sheet, liquidity risk and interest rate risk. The credit or market risk.
Capital Governance Committee is responsible for overseeing The following sections discuss the risk governance and
and providing guidance concerning the effectiveness of the oversight functions in place to manage the risks inherent in
Firm’s capital framework, capital policies and regulatory the Firms business activities.
capital implementation.
The Firmwide Valuation Governance Forum (“VGF”) is Risk governance and oversight functions Page
Strategic risk 84
composed of senior finance and risk executives and is
Capital risk 85–92
responsible for overseeing the management of fair value
Liquidity risk 93–98
risks arising from valuation activities conducted across the Reputation risk 99
Firm. Consumer credit risk 103–107
Wholesale credit risk 108–115
Investment portfolio risk 118
Market risk 119–126
Country risk 127–128
Operational risk 129–135
Compliance risk 132
Conduct risk 133
Legal risk 134
Estimations and Model risk 135

STRATEGIC RISK MANAGEMENT

Strategic risk is the risk to earnings, capital, liquidity or The Firm’s strategic planning process, which includes the
reputation associated with poorly designed or failed development and execution of strategic initiatives, is one
business plans or inadequate response to changes in the component of managing the Firm’s strategic risk. Guided by
operating environment. the Firm’s How We Do Business Principles (the “Principles”),
the Operating Committee and management teams in each
Management and oversight
LOB and Corporate review and update the strategic plan
The Operating Committee and the senior leadership of each
periodically. The process includes evaluating the high-level
LOB and Corporate are responsible for managing the Firm’s
strategic framework and performance against prior-year
most significant strategic risks. Strategic risks are overseen
initiatives, assessing the operating environment, refining
by IRM through participation in business reviews, LOB and
existing strategies and developing new strategies.
Corporate senior management committees and other
relevant governance forums and ongoing discussions. The These strategic initiatives, along with IRM’s assessment, are
Board of Directors oversees management’s strategic incorporated in the Firm’s budget and provided to the Board
decisions, and the Board Risk Committee oversees IRM and for review.
the Firm’s risk management framework.
The Firm’s balance sheet strategy, which focuses on risk-
In the process of developing business plans and strategic adjusted returns, strong capital and robust liquidity, is also
initiatives, LOB and Corporate leadership identify the a component in the management of strategic risk. Refer to
associated risks that are incorporated into the Firmwide Capital Risk Management on pages 85–92 for further
Risk Identification process and monitored and assessed as information on capital risk. Refer to Liquidity Risk
part of the Firmwide Risk Appetite framework. Management on pages 93–98 for further information on
liquidity risk. In addition, for further information on
In addition, IRM conducts a qualitative assessment of the
reputation risk, refer to Reputation Risk Management on
LOB and Corporate strategic initiatives to assess their
page 99.
impact on the risk profile of the Firm.

CAPITAL RISK MANAGEMENT
Capital risk is the risk the Firm has an insufficient level or • Promote the Firm’s ability to serve as a source of
composition of capital to support the Firm’s business strength to its subsidiaries;
activities and associated risks during normal economic • Ensure the Firm operates above the minimum regulatory
environments and under stressed conditions. capital ratios as well as maintain “well-capitalized”
A strong capital position is essential to the Firm’s business status for the Firm and its insured depository institution
strategy and competitive position. Maintaining a strong (“IDI”) subsidiaries at all times under applicable
balance sheet to manage through economic volatility is regulatory capital requirements;
considered a strategic imperative of the Firm’s Board of • Meet capital distribution objectives; and
Directors, CEO and Operating Committee. The Firm’s • Maintain sufficient capital resources to operate
fortress balance sheet philosophy focuses on risk-adjusted throughout a resolution period in accordance with the
returns, strong capital and robust liquidity. The Firm’s Firm’s preferred resolution strategy.
capital risk management strategy focuses on maintaining
long-term stability to enable the Firm to build and invest in The Firm addresses these objectives through establishing
market-leading businesses, including in highly stressed internal minimum capital requirements and a strong capital
environments. Senior management considers the management governance framework, both in business as
implications on the Firm’s capital prior to making any usual conditions and in the event of stress.
significant decisions that could impact future business Capital risk management is intended to be flexible in order
activities. In addition to considering the Firm’s earnings to react to a range of potential events. In its management of
outlook, senior management evaluates all sources and uses capital, the Firm takes into consideration economic risk and
of capital with a view to ensuring the Firm’s capital all applicable regulatory capital requirements to determine
strength. the level of capital needed.
Capital management oversight The Firm considers regulatory capital requirements as well
The Firm has a Capital Management Oversight function as an internal assessment of capital adequacy, in normal
whose primary objective is to provide independent economic cycles and in stress events, when setting its
assessment, measuring, monitoring and control of capital minimum capital levels. The capital governance framework
risk across the Firm. requires regular monitoring of the Firm’s capital positions,
Capital Management Oversight’s responsibilities include: stress testing and defining escalation protocols, both at the
Firm and material legal entity levels.
• Defining, monitoring and reporting capital risk metrics;
Governance
• Establishing, calibrating and monitoring capital risk Committees responsible for overseeing the Firm’s capital
limits and indicators, including capital risk appetite; management include the Capital Governance Committee,
• Developing a process to classify, monitor and report the Treasurer Committee and the Firmwide ALCO. Capital
limit breaches; and management oversight is governed through the CIO,
• Performing an independent assessment of the Firm’s Treasury and Corporate (“CTC”) risk committee. In addition,
capital management activities, including changes made the Board Risk Committee periodically reviews the Firm’s
to the contingency capital plan described below. capital risk tolerance. Refer to Firmwide Risk Management
on pages 79–83 for additional discussion on the Board Risk
In addition, the Basel Independent Review function (“BIR”), Committee and the ALCO.
which is a part of the IRM function, conducts independent
assessments of the Firm’s regulatory capital framework. Capital planning and stress testing
These assessments are intended to ensure compliance with Comprehensive Capital Analysis and Review
the applicable regulatory capital rules in support of senior The Federal Reserve requires large bank holding
management’s responsibility for managing capital and for companies, including the Firm, to submit on an annual basis
the Board Risk Committee’s oversight of management in a capital plan that has been reviewed and approved by the
executing that responsibility. Board of Directors. The Federal Reserve uses
Comprehensive Capital Analysis and Review (“CCAR”) and
Capital management
other stress testing processes to ensure that large bank
Treasury & CIO is responsible for capital management.
holding companies (“BHC”) have sufficient capital during
The primary objectives of effective capital management are periods of economic and financial stress, and have robust,
to: forward-looking capital assessment and planning processes
• Maintain sufficient capital in order to continue to build in place that address each BHC’s unique risks to enable it to
and invest in the Firm’s businesses through the cycle and absorb losses under certain stress scenarios. Through CCAR,
in stressed environments; the Federal Reserve evaluates each BHC’s capital adequacy
• Retain flexibility to take advantage of future investment and internal capital adequacy assessment processes
opportunities; (“ICAAP”), as well as its plans to make capital distributions,
such as dividend payments or stock repurchases.
On June 27, 2019, the Federal Reserve informed the Firm balance sheet assets and off-balance sheet exposures,
that it did not object to the Firm’s 2019 capital plan. Refer weighted according to risk. Two comprehensive approaches
to Capital actions on pages 90-91 for information on are prescribed for calculating RWA: a standardized
actions taken by the Firm’s Board of Directors following the approach (“Basel III Standardized”), and an advanced
2019 CCAR results. approach (“Basel III Advanced”). Effective January 1, 2019,
Internal Capital Adequacy Assessment Process the capital adequacy of the Firm is evaluated against the
Annually, the Firm prepares the ICAAP, which informs the fully phased-in measures under Basel III and represents the
Board of Directors of the ongoing assessment of the Firm’s lower of the Standardized or Advanced approaches. During
processes for managing the sources and uses of capital as 2018, the required capital measures were subject to the
well as compliance with supervisory expectations for capital transitional rules and as of December 31, 2018 the results
planning and capital adequacy. The Firm’s ICAAP integrates were the same on a fully phased-in and on a transitional
stress testing protocols with capital planning. basis.
The CCAR and other stress testing processes assess the Basel III establishes capital requirements for calculating
potential impact of alternative economic and business credit risk RWA and market risk RWA, and in the case of
scenarios on the Firm’s earnings and capital. Economic Basel III Advanced, operational risk RWA. Key differences in
scenarios, and the parameters underlying those scenarios, the calculation of credit risk RWA between the Standardized
are defined centrally and applied uniformly across the and Advanced approaches are that for Basel III Advanced,
businesses. These scenarios are articulated in terms of credit risk RWA is based on risk-sensitive approaches which
macroeconomic factors, which are key drivers of business largely rely on the use of internal credit models and
results; global market shocks, which generate short-term parameters, whereas for Basel III Standardized, credit risk
but severe trading losses; and idiosyncratic operational risk RWA is generally based on supervisory risk-weightings
events. The scenarios are intended to capture and stress which vary primarily by counterparty type and asset class.
key vulnerabilities and idiosyncratic risks facing the Firm. Market risk RWA is calculated on a generally consistent
However, when defining a broad range of scenarios, actual basis between Basel III Standardized and Basel III
events can always be worse. Accordingly, management Advanced. In addition to the RWA calculated under these
considers additional stresses outside these scenarios, as approaches, the Firm may supplement such amounts to
necessary. These results are reviewed by management and incorporate management judgment and feedback from its
the Board of Directors. regulators.
Contingency capital plan Basel III also includes a requirement for Advanced
The Firm’s contingency capital plan establishes the capital Approach banking organizations, including the Firm, to
management framework for the Firm and specifies the calculate the SLR. Refer to SLR on page 90 for additional
principles underlying the Firm’s approach towards capital information.
management in normal economic conditions and during Key Regulatory Developments
stress. The contingency capital plan defines how the Firm Effective January 1, 2020, the Firm adopted the Financial
calibrates its targeted capital levels and meets minimum Instruments – Credit Losses (“CECL”) guidance under U.S.
capital requirements, monitors the ongoing appropriateness GAAP. As provided by the U.S. banking agencies, the Firm
of planned capital distributions, and sets out the capital elected to phase-in the impact to retained earnings of $2.7
contingency actions that are expected to be taken or billion to regulatory capital, at 25 percent per year in each
considered at various levels of capital depletion during a of 2020 to 2023 (“CECL transitional period”). Based on the
period of stress. Firm’s capital as of December 31, 2019, the estimated
Regulatory capital impact to the Standardized CET1 capital ratio will be a
The Federal Reserve establishes capital requirements, reduction of approximately 4 bps for each transitional year.
including well-capitalized standards, for the consolidated Refer to Accounting and Reporting Developments on pages
financial holding company. The Office of the Comptroller of 139-140 and Note 1 for further information.
the Currency (“OCC”) establishes similar minimum capital
requirements for the Firm’s IDI subsidiaries, including
JPMorgan Chase Bank, N.A. The U.S. capital requirements
generally follow the Capital Accord of the Basel Committee,
as amended from time to time.
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. BHCs and banks, including the
Firm and its IDI subsidiaries, including 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-
Risk-based Capital Regulatory Minimums
The following chart presents the Firm’s Basel III minimum CET1 capital ratio during the Basel III transitional periods and on a
fully phased-in basis under the Basel III rules currently in effect.
The Firm’s Basel III Standardized risk-based ratios are “multiplication factor”. The following table presents the
currently more binding than the Basel III Advanced risk- Firm’s GSIB surcharge.
based ratios, and the Firm expects that this will remain the
case for the foreseeable future. 2019 2018
Fully Phased-In:
Additional information regarding the Firm’s capital ratios, as
Method 1 2.50% 2.50%
well as the U.S. federal regulatory capital standards to
Method 2 3.50% 3.50%
which the Firm is subject, is presented in Note 27. Refer to
the Firm’s Pillar 3 Regulatory Capital Disclosures reports, Transitional(a) N/A 2.625%
which are available on the Firm’s website, for further (a) The GSIB surcharge was subject to transition provisions (in 25%
increments) through the end of 2018.
information on the Firm’s Basel III measures.
The Firm’s effective regulatory minimum GSIB surcharge
All banking institutions are currently required to have a
calculated under Method 2 remains unchanged at 3.5% for
minimum CET1 capital ratio of 4.5% of risk-weighted
2020.
assets. Certain banking organizations, including the Firm,
are also required to hold additional amounts of capital to The Federal Reserve's framework for setting the
serve as a “capital conservation buffer”. The capital countercyclical capital buffer takes into account the macro
conservation buffer is intended to be used to absorb losses financial environment in which large, internationally active
in times of financial or economic stress. The capital banks function. As of December 31, 2019, the U.S.
conservation buffer was subject to a phase-in period that countercyclical capital buffer remained at 0%. The Federal
began January 1, 2016 and continued through the end of Reserve will continue to review the buffer at least annually.
2018. The buffer can be increased if the Federal Reserve, FDIC and
OCC determine that systemic risks are meaningfully above
As an expansion of the capital conservation buffer, the Firm
normal and can be calibrated up to an additional 2.5% of
is also required to hold additional levels of capital in the
RWA subject to a 12-month implementation period.
form of a global systemically important bank (“GSIB”)
surcharge and a countercyclical capital buffer. Failure to maintain regulatory capital equal to or in excess
Under the Federal Reserve’s GSIB rule, the Firm is required of the risk-based regulatory capital minimum plus the
to calculate its GSIB surcharge on an annual basis under two capital conservation buffer (inclusive of the GSIB surcharge)
separately prescribed methods, and is subject to the higher and any countercyclical buffer may result in limitations to
of the two. The first (“Method 1”), reflects the GSIB the amount of capital that the Firm may distribute, such as
surcharge as prescribed by the Basel Committee’s through dividends and common equity repurchases.
assessment methodology, and is calculated across five Leverage-based Capital Regulatory Minimums
criteria: size, cross-jurisdictional activity, Supplementary leverage ratio
interconnectedness, complexity and substitutability. The The SLR is defined as Tier 1 capital under Basel III divided
second (“Method 2”), modifies the Method 1 requirements by the Firm’s total leverage exposure. Total leverage
to include a measure of short-term wholesale funding in exposure is calculated by taking the Firm’s total average on-
place of substitutability, and introduces a GSIB score balance sheet assets, less amounts permitted to be

deducted for Tier 1 capital, and adding certain off-balance In addition to meeting the capital ratio requirements of
sheet exposures, such as undrawn commitments and Basel III, the Firm and its IDI subsidiaries also must
derivatives potential future exposure. maintain minimum capital and leverage ratios in order to be
Failure to maintain an SLR ratio equal to or greater than the “well-capitalized” under the regulations issued by the
regulatory minimum may result in limitations on the Federal Reserve and the Prompt Corrective Action (“PCA”)
amount of capital that the Firm may distribute such as requirements of the FDIC Improvement Act (“FDICIA”),
through dividends and common equity repurchases. respectively. Refer to Note 27 for additional information.
Other regulatory capital
The following tables present the Firm’s risk-based and leverage-based capital measures under both the Basel III Standardized
and Advanced approaches.
December 31, 2019 December 31, 2018

Minimum Minimum
(in millions) Standardized Advanced capital ratios Standardized(b) Advanced(b) capital ratios
Risk-based capital metrics:
CET1 capital $ 187,753 $ 187,753 $ 183,474 $ 183,474
Tier 1 capital 214,432 214,432 209,093 209,093
Total capital 242,589 232,112 237,511 227,435
Risk-weighted assets 1,515,869 1,397,878 1,528,916 1,421,205
CET1 capital ratio 12.4% 13.4% 10.5% 12.0% 12.9% 9.0%
Tier 1 capital ratio 14.1 15.3 12.0 13.7 14.7 10.5
Total capital ratio 16.0 16.6 14.0 15.5 16.0 12.5
Leverage-based capital metrics:
Adjusted average assets(a) $ 2,730,239 $ 2,730,239 $ 2,589,887 $ 2,589,887
Tier 1 leverage ratio 7.9% 7.9% 4.0% 8.1% 8.1% 4.0%
Total leverage exposure NA $ 3,423,431 NA $ 3,269,988
SLR NA 6.3% 5.0% (c)
NA 6.4% 5.0% (c)
(a) Adjusted average assets, for purposes of calculating the Tier 1 leverage ratio, includes total quarterly average assets adjusted for on-balance sheet assets
that are subject to deduction from Tier 1 capital, predominantly goodwill and other intangible assets.
(b) The Firm’s capital ratios as of December 31, 2018 were equivalent whether calculated on a transitional or fully phased-in basis.
(c) Represents minimum SLR requirement of 3.0%, as well as supplementary leverage buffer of 2.0%.
The Firm believes that it will operate with a Basel III CET1 capital ratio between 11.5% and 12% over the medium term.

Capital components Capital rollforward
The following table presents reconciliations of total The following table presents the changes in Basel III CET1
stockholders’ equity to Basel III CET1 capital, Tier 1 capital capital, Tier 1 capital and Tier 2 capital for the year ended
and Total capital as of December 31, 2019 and 2018. December 31, 2019.
December 31, December 31, Year Ended December 31, (in millions) 2019
(in millions) 2019 2018
Standardized/Advanced CET1 capital at December 31, 2018 $ 183,474
Total stockholders’ equity $ 261,330 $ 256,515
Net income applicable to common equity 34,844
Less: Preferred stock 26,993 26,068
Dividends declared on common stock (10,897)
Common stockholders’ equity 234,337 230,447
Less: Net purchase of treasury stock (22,555)
Goodwill 47,823 47,471 Changes in additional paid-in capital (640)
Other intangible assets 819 748 Changes related to AOCI 2,904
Other CET1 capital adjustments 323 1,034 Adjustment related to DVA(a) 1,103
Add: Changes related to other CET1 capital adjustments (480)
Certain deferred tax liabilities(a) 2,381 2,280 Change in Standardized/Advanced CET1 capital 4,279
Standardized/Advanced CET1 capital 187,753 183,474 Standardized/Advanced CET1 capital at
December 31, 2019 187,753
Preferred stock 26,993 26,068
Less: Other Tier 1 adjustments 314 449
Standardized/Advanced Tier 1 capital at
December 31, 2018 209,093
Standardized/Advanced Tier 1 capital 214,432 209,093
Change in CET1 capital 4,279
Long-term debt and other instruments
qualifying as Tier 2 capital 13,733 13,772 Net issuance of noncumulative perpetual preferred stock 925
Qualifying allowance for credit losses 14,314 14,500 Other 135
Other 110 146 Change in Standardized/Advanced Tier 1 capital 5,339
Standardized Tier 2 capital 28,157 28,418 Standardized/Advanced Tier 1 capital at
December 31, 2019 214,432
Standardized Total capital 242,589 237,511 Standardized Tier 2 capital at December 31, 2018 28,418
Adjustment in qualifying allowance for Change in long-term debt and other instruments qualifying
credit losses for Advanced Tier 2 as Tier 2 (39)
capital (10,477) (10,076)
Change in qualifying allowance for credit losses (186)
Advanced Tier 2 capital 17,680 18,342
Other (36)
Advanced Total capital $ 232,112 $ 227,435
Change in Standardized Tier 2 capital (261)
(a) Represents deferred tax liabilities related to tax-deductible goodwill Standardized Tier 2 capital at December 31, 2019 28,157
and to identifiable intangibles created in nontaxable transactions,
which are netted against goodwill and other intangibles when Standardized Total capital at December 31, 2019 242,589
calculating CET1 capital. Advanced Tier 2 capital at December 31, 2018 18,342
Change in long-term debt and other instruments qualifying
as Tier 2 (39)
Change in qualifying allowance for credit losses (587)
Other (36)
Change in Advanced Tier 2 capital (662)
Advanced Tier 2 capital at December 31, 2019 17,680
Advanced Total capital at December 31, 2019 $ 232,112
(a) Includes DVA related to structured notes recorded in AOCI.

RWA rollforward
The following table presents changes in the components of RWA under Basel III Standardized and Advanced approaches for the
year ended December 31, 2019. The amounts in the rollforward categories are estimates, based on the predominant driver of
the change.
Standardized Advanced
Year ended December 31, 2019 Credit risk Market risk Credit risk Market risk Operational risk
(in millions) RWA RWA Total RWA RWA RWA RWA Total RWA
December 31, 2018 $ 1,423,053 $ 105,863 $ 1,528,916 $ 926,647 $ 105,976 $ 388,582 $ 1,421,205
Model & data changes(a) (6,406) (24,433) (30,839) (34,584) (24,433) — (59,017)
Portfolio runoff(b) (5,800) — (5,800) (5,500) — — (5,500)
Movement in portfolio levels(c) 29,373 (5,781) 23,592 46,385 (5,891) 696 41,190
Changes in RWA 17,167 (30,214) (13,047) 6,301 (30,324) 696 (23,327)
December 31, 2019 $ 1,440,220 $ 75,649 $ 1,515,869 $ 932,948 $ 75,652 $ 389,278 $ 1,397,878
(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); and an update to the wholesale credit risk Advanced Approach parameters.
(b) Portfolio runoff for credit risk RWA primarily reflects reduced risk from position rolloffs in legacy portfolios in Home Lending.
(c) Movement in portfolio levels (inclusive of rule changes) refers to: changes in book size, composition, credit quality, and market movements for credit risk RWA;
changes in position and market movements for market risk RWA; and updates to cumulative losses for operational risk RWA.
Supplementary leverage ratio

The following table presents the components of the Firm’s Line of business equity (Allocated capital)
SLR as of December 31, 2019 and 2018. December 31,
January 1,
December 31, December 31, (in billions) 2020 2019 2018
(in millions, except ratio) 2019 2018
Consumer & Community Banking $ 52.0 $ 52.0 $ 51.0
Tier 1 capital $ 214,432 $ 209,093
Corporate & Investment Bank 80.0 80.0 70.0
Total average assets 2,777,270 $ 2,636,505
Commercial Banking 22.0 22.0 20.0
Less: Adjustments for deductions
from Tier 1 capital 47,031 46,618 Asset & Wealth Management 10.5 10.5 9.0
Total adjusted average assets(a) 2,730,239 2,589,887 Corporate(a) 67.1 69.8 80.4
Off-balance sheet exposures(b) 693,192 680,101 Total common stockholders’ equity $ 231.6 $ 234.3 $ 230.4
Total leverage exposure $ 3,423,431 $ 3,269,988
(a) Includes the $2.7 billion (after-tax) impact to retained earnings upon
SLR 6.3% 6.4%
the adoption of CECL on January 1, 2020.
(a) Adjusted average assets, for purposes of calculating the SLR, includes
total quarterly average assets adjusted for on-balance sheet assets
Capital actions
that are subject to deduction from Tier 1 capital, predominantly
goodwill and other intangible assets. Preferred stock
(b) Off-balance sheet exposures are calculated as the average of the three Preferred stock dividends declared were $1.6 billion for the
month-end spot balances during the reporting quarter. year ended December 31, 2019.
Refer to Note 27 for JPMorgan Chase Bank, N.A.’s SLR During the year ended December 31, 2019 and through the
ratios. date of filing of the 2019 Form 10-K, the Firm issued and
Line of business equity redeemed several series of non-cumulative preferred stock.
Each business segment is allocated capital by taking into Refer to Note 21 for additional information on the Firm’s
consideration a variety of factors including capital levels of preferred stock, including issuances and redemptions.
similarly rated peers and applicable regulatory capital Common stock dividends
requirements. ROE is measured and internal targets for The Firm’s common stock dividends are planned as part of
expected returns are established as key measures of a the Capital Management governance framework in line with
business segment’s performance. the Firm’s capital management objectives.
The Firm’s allocation methodology incorporates Basel III On September 17, 2019, the Firm announced that its Board
Standardized RWA, Basel III Advanced RWA, leverage, the of Directors had declared a quarterly common stock
GSIB surcharge, and a simulation of capital in a severe dividend of $0.90 per share, an increase from $0.80 per
stress environment. Periodically, the assumptions and share, effective with the dividend paid on October 31,
methodologies used to allocate capital are assessed and as 2019. The Firm’s dividends are subject to the Board of
a result, the capital allocated to the LOBs may change. The Directors’ approval on a quarterly basis.
Firm will assess impacts from any regulatory changes to the Refer to Note 21 and Note 26 for information regarding
capital framework as changes are finalized. dividend restrictions.
The table below presents the Firm’s assessed level of capital
allocated to each LOB as of the dates indicated.

The following table shows the common dividend payout The minimum external TLAC and the minimum level of
ratio based on net income applicable to common equity. eligible long-term debt requirements are shown below:
Year ended December 31, 2019 2018 2017

Common dividend payout ratio 31% 30% 33%
Common equity
The Firm’s Board of Directors has authorized the repurchase
of up to $29.4 billion of gross common equity between July
1, 2019 and June 30, 2020 as part of the Firm’s annual
capital plan. As of December 31, 2019, $15.6 billion of
authorized repurchase capacity remained under this
common equity repurchase program.
The following table sets forth the Firm’s repurchases of
common equity for the years ended December 31, 2019,
2018 and 2017.
Year ended December 31, (in millions) 2019 2018 2017
Total number of shares of common
stock repurchased 213.0 181.5 166.6
Aggregate purchase price of common
stock repurchases $ 24,121 $ 19,983 $ 15,410
The Firm from time to time enters into written trading plans
under Rule 10b5-1 of the Securities Exchange Act of 1934 (a) RWA is the greater of Standardized and Advanced.
to facilitate repurchases in accordance with the common
Failure to maintain TLAC equal to or in excess of the
equity repurchase program. A Rule 10b5-1 repurchase plan
regulatory minimum plus applicable buffers may result in
allows the Firm to repurchase its equity during periods
limitations to the amount of capital that the Firm may
when it may otherwise not be repurchasing common equity distribute, such as through dividends and common equity
— for example, during internal trading blackout periods. repurchases.
The authorization to repurchase common equity is utilized
The following table presents the eligible external TLAC and
at management’s discretion, and the timing of purchases
LTD amounts, as well as a representation of the amounts as
and the exact amount of common equity that may be a percentage of the Firm’s total RWA and total leverage
repurchased is subject to various factors, including market exposure.
conditions; legal and regulatory considerations affecting the
amount and timing of repurchase activity; the Firm’s capital December 31, 2019
position (taking into account goodwill and intangibles);
Eligible
internal capital generation; and alternative investment (in billions, except ratio) external TLAC Eligible LTD
opportunities. The repurchase program does not include Total eligible TLAC & LTD $ 386.4 $ 161.8
specific price targets or timetables; may be executed % of RWA 25.5% 10.7%
through open market purchases or privately negotiated Minimum requirement 23.0 9.5
transactions, or utilizing Rule 10b5-1 plans; and may be
Surplus/(shortfall) $ 37.7 $ 17.8
suspended by management at any time.
% of total leverage exposure 11.3% 4.7%
Refer to Part II, Item 5: Market for Registrant’s Common
Minimum requirement 9.5 4.5
Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities on page 30 of the 2019 Form 10-K for Surplus/(shortfall) $ 61.2 $ 7.8
additional information regarding repurchases of the Firm’s
Refer to Part I, Item 1A: Risk Factors on pages 6–28 of the
equity securities.
2019 Form 10-K for information on the financial
Other capital requirements consequences to holders of the Firm’s debt and equity
Total Loss-Absorbing Capacity (“TLAC”) securities in a resolution scenario.
Effective January 1, 2019, the Federal Reserve’s TLAC rule
requires the U.S. GSIB top-tier holding companies, including
JPMorgan Chase & Co., to maintain minimum levels of
external TLAC and eligible long-term debt (“eligible LTD”).

Broker-dealer regulatory capital

J.P. Morgan Securities J.P. Morgan Securities plc
JPMorgan Chase’s principal U.S. broker-dealer subsidiary is J.P. Morgan Securities plc is a wholly-owned subsidiary of
J.P. Morgan Securities. J.P. Morgan Securities is subject to JPMorgan Chase Bank, N.A. and has authority to engage in
Rule 15c3-1 under the Securities Exchange Act of 1934 banking, investment banking and broker-dealer activities.
(the “Net Capital Rule”). J.P. Morgan Securities is also J.P. Morgan Securities plc is jointly regulated by the U.K.
registered as a futures commission merchant and subject to Prudential Regulation Authority (“PRA”) and the Financial
the Rules of the Commodity Futures Trading Commission Conduct Authority (“FCA”). J.P. Morgan Securities plc is
(“CFTC”). subject to the European Union Capital Requirements
Regulation and the PRA capital rules, each of which
J.P. Morgan Securities has elected to compute its minimum implemented Basel III and thereby subject J.P. Morgan
net capital requirements in accordance with the “Alternative Securities plc to its requirements.
Net Capital Requirements” of the Net Capital Rule.
The Bank of England requires, on a transitional basis, that
The following table presents J.P. Morgan Securities’ net U.K. banks, including U.K. regulated subsidiaries of overseas
capital: groups, maintain a minimum requirement for own funds
and eligible liabilities (“MREL”). As of December 31, 2019,
December 31, 2019
J.P. Morgan Securities plc was compliant with the
(in millions) Actual Minimum
requirements of the MREL rule.
Net Capital $ 21,050 $ 3,751
The following table presents J.P. Morgan Securities plc’s
capital metrics:
In addition to its alternative minimum net capital
December 31, 2019
requirements, J.P. Morgan Securities is required to hold
(in millions, except ratios) Estimated Minimum ratios
“tentative net capital” in excess of $1.0 billion and is also
required to notify the SEC in the event that its tentative net Total capital $ 52,983
capital is less than $5.0 billion. Tentative net capital is net CET1 ratio 16.5% 4.5%
capital before deducting market and credit risk charges as Total capital ratio 21.3% 8.0%
defined by the Net Capital Rule. As of December 31, 2019,
J.P. Morgan Securities maintained tentative net capital in
excess of the minimum and notification requirements.

LIQUIDITY RISK MANAGEMENT
Liquidity risk is the risk that the Firm will be unable to meet • Developing internal liquidity stress testing assumptions;
its contractual and contingent financial obligations as they • Defining and monitoring firmwide and legal entity-
arise or that it does not have the appropriate amount, specific liquidity strategies, policies, reporting and
composition and tenor of funding and liquidity to support contingency funding plans;
its assets and liabilities.
• Managing liquidity within the Firm’s approved liquidity
Liquidity risk oversight risk appetite tolerances and limits;
The Firm has a liquidity risk oversight function whose • Managing compliance with regulatory requirements
primary objective is to provide independent assessment, related to funding and liquidity risk; and
measurement, monitoring, and control of liquidity risk
• Setting transfer pricing in accordance with underlying
across the Firm. Liquidity Risk Oversight’s responsibilities
liquidity characteristics of balance sheet assets and
include:
liabilities as well as certain off-balance sheet items.
• Defining, monitoring and reporting liquidity risk metrics;
Governance
• Establishing and monitoring limits and indicators,
Committees responsible for liquidity governance include the
including Liquidity Risk Appetite;
firmwide ALCO as well as LOB and regional ALCOs, the
• Developing a process to classify, monitor and report Treasurer Committee, and the CTC Risk Committee. In
limit breaches; addition, the Board Risk Committee reviews and
• Performing an independent review of liquidity risk recommends to the Board of Directors, for formal approval,
management processes; the Firm’s liquidity risk tolerances, liquidity strategy, and
• Monitoring and reporting internal firmwide and legal liquidity policy. Refer to Firmwide Risk Management on
entity liquidity stress tests as well as regulatory defined pages 79–83 for further discussion of ALCO and other risk-
liquidity stress tests; related committees.
• Approving or escalating for review new or updated Internal stress testing
liquidity stress assumptions; and Liquidity stress tests are intended to ensure that the Firm
• Monitoring liquidity positions, balance sheet variances has sufficient liquidity under a variety of adverse scenarios,
and funding activities; including scenarios analyzed as part of the Firm’s resolution
and recovery planning. Stress scenarios are produced for
Liquidity management
JPMorgan Chase & Co. (“Parent Company”) and the Firm’s
Treasury and CIO is responsible for liquidity management.
material legal entities on a regular basis, and other stress
The primary objectives of effective liquidity management
tests are performed in response to specific market events or
are to:
concerns. Liquidity stress tests assume all of the Firm’s
• Ensure that the Firm’s core businesses and material legal contractual financial obligations are met and take into
entities are able to operate in support of client needs consideration:
and meet contractual and contingent financial
• Varying levels of access to unsecured and secured
obligations through normal economic cycles as well as
funding markets,
during stress events, and
• Estimated non-contractual and contingent cash outflows,
• Manage an optimal funding mix and availability of
and
liquidity sources.
• Potential impediments to the availability and
As part of the Firm’s overall liquidity management strategy,
transferability of liquidity between jurisdictions and
the Firm manages liquidity and funding using a centralized,
material legal entities such as regulatory, legal or other
global approach in order to:
restrictions.
• Optimize liquidity sources and uses;
Liquidity outflow assumptions are modeled across a range
• Monitor exposures; of time horizons and currency dimensions and contemplate
• Identify constraints on the transfer of liquidity between both market and idiosyncratic stresses.
the Firm’s legal entities; and
Results of stress tests are considered in the formulation of
• Maintain the appropriate amount of surplus liquidity at the Firm’s funding plan and assessment of its liquidity
a firmwide and legal entity level, where relevant. position. The Parent Company acts as a source of funding
In the context of the Firm’s liquidity management, Treasury for the Firm through equity and long-term debt issuances,
and CIO is responsible for: and its intermediate holding company, JPMorgan Chase
• Analyzing and understanding the liquidity characteristics Holdings LLC (the “IHC”) provides funding support to the
of the assets and liabilities of the Firm, LOBs and legal ongoing operations of the Parent Company and its
entities, taking into account legal, regulatory, and subsidiaries. The Firm maintains liquidity at the Parent
operational restrictions; Company, IHC, and operating subsidiaries at levels sufficient
to comply with liquidity risk tolerances and minimum

liquidity requirements, and to manage through periods of The Firm’s average LCR increased during the three months
stress when access to normal funding sources may be ended December 31, 2019, compared with both the three-
disrupted. month periods ended September 30, 2019 and December
31, 2018, due to an increase in HQLA from unsecured long-
Contingency funding plan term debt issuances. Additionally, liquidity in JPMorgan
The Firm’s contingency funding plan (“CFP”), which is Chase Bank, N.A. increased during the fourth quarter and
approved by the firmwide ALCO and the Board Risk from the prior year period primarily due to growth in stable
Committee, is a compilation of procedures and action plans deposits. This increase in excess liquidity is excluded from
for managing liquidity through stress events. The CFP the Firm’s reported LCR under the LCR rule.
incorporates the limits and indicators set by the Liquidity
Risk Oversight group. These limits and indicators are The Firm’s average LCR fluctuates from period to period,
reviewed regularly to identify emerging risks or due to changes in its HQLA and estimated net cash outflows
vulnerabilities in the Firm’s liquidity position. The CFP as a result of ongoing business activity. Refer to the Firm’s
identifies the alternative contingent funding and liquidity U.S. LCR Disclosure reports, which are available on the
resources available to the Firm and its legal entities in a Firm’s website for a further discussion of the Firm’s LCR.
period of stress. Other liquidity sources
Liquidity Coverage Ratio In addition to the assets reported in the Firm’s HQLA above,
The LCR rule requires that the Firm maintain an amount of the Firm had unencumbered marketable securities, such as
unencumbered High Quality Liquid Assets (“HQLA”) that is equity securities and fixed income debt securities, that the
sufficient to meet its estimated total net cash outflows over Firm believes would be available to raise liquidity of
a prospective 30 calendar-day period of significant stress. approximately $315 billion and $226 billion as of
HQLA is the amount of liquid assets that qualify for December 31, 2019 and 2018, respectively. This includes
inclusion in the LCR. HQLA primarily consist of securities included as part of the excess liquidity at
unencumbered cash and certain high-quality liquid JPMorgan Chase Bank, N.A. that are not transferable to non-
securities as defined in the LCR rule. bank affiliates, as described above. The amount of such
securities increased from the prior year.
Under the LCR rule, the amount of HQLA held by JPMorgan
Chase Bank, N.A. that is in excess of its stand-alone 100% The Firm also had available borrowing capacity at FHLBs
minimum LCR requirement, and that is not transferable to and the discount window at the Federal Reserve Bank as a
non-bank affiliates, must be excluded from the Firm’s result of collateral pledged by the Firm to such banks of
reported HQLA. approximately $322 billion and $276 billion as of
December 31, 2019 and 2018, respectively. This borrowing
Estimated net cash outflows are based on standardized capacity excludes the benefit of cash and securities
stress outflow and inflow rates prescribed in the LCR rule, reported in the Firm’s HQLA or other unencumbered
which are applied to the balances of the Firm’s assets, securities that are currently pledged at the Federal Reserve
sources of funds, and obligations. The LCR is required to be Bank discount window and other central banks. Available
a minimum of 100%. borrowing capacity increased from the prior year primarily
The following table summarizes the Firm’s average LCR for as a result of an increase in collateral available to be
the three months ended December 31, 2019, September pledged as a result of the merger of Chase Bank USA, N.A.
30, 2019 and December 31, 2018 based on the Firm’s with and into JPMorgan Chase Bank, N.A., and an increase
interpretation of the finalized LCR framework. in available collateral as a result of maturities of borrowings
from FHLBs. Although available, the Firm does not view this
Three months ended borrowing capacity at the Federal Reserve Bank discount
Average amount December 31, September December 31, window and the other central banks as a primary source of
(in millions) 2019 30, 2019 2018
liquidity.
HQLA
Eligible cash(a) $ 203,296 $ 199,757 $ 297,069
Eligible securities(b)(c)
341,990 337,704 232,201
Total HQLA(d) $ 545,286 $ 537,461 $ 529,270
Net cash outflows $ 469,402 $ 468,452 $ 467,704
LCR 116% 115% 113%
Net excess HQLA (d)
$ 75,884 $ 69,009 $ 61,566
(a) Represents cash on deposit at central banks, primarily the Federal

Reserve Banks.
(b) Predominantly U.S. Treasuries, U.S. GSE and government agency MBS,
and sovereign bonds net of applicable haircuts under the LCR rule.
(c) HQLA eligible securities may be reported in securities borrowed or
purchased under resale agreements, trading assets, or investment
securities on the Firm’s Consolidated balance sheets.
(d) Excludes average excess HQLA at JPMorgan Chase Bank, N.A. that are
not transferable to non-bank affiliates.

Funding
Sources of funds
Management believes that the Firm’s unsecured and secured borrowings, through the issuance of unsecured long-term
funding capacity is sufficient to meet its on- and off-balance debt, or from borrowings from the Parent company or the
sheet obligations. IHC. The Firm’s non-bank subsidiaries are primarily funded
The Firm funds its global balance sheet through diverse from long-term unsecured borrowings and short-term
sources of funding including stable deposits, secured and secured borrowings, primarily securities loaned or sold under
unsecured funding in the capital markets and stockholders’ repurchase agreements. Excess funding is invested by
equity. Deposits are the primary funding source for JPMorgan Treasury and CIO in the Firm’s investment securities portfolio
Chase Bank, N.A. Additionally, JPMorgan Chase Bank, N.A. or deployed in cash or other short-term liquid investments
may also access funding through short- or long-term secured based on their interest rate and liquidity risk characteristics.
Deposits
The table below summarizes, by LOB, the period-end and average deposit balances as of and for the years ended December 31,
2019 and 2018.
As of or for the year ended December 31, Average
(in millions) 2019 2018 2019 2018
Consumer & Community Banking $ 718,416 $ 678,854 $ 693,550 $ 670,388
Corporate & Investment Bank 511,843 482,084 515,913 477,250
Commercial Banking 184,115 170,859 172,666 170,822
Asset & Wealth Management 147,804 138,546 140,118 137,272
Corporate 253 323 820 729
Total Firm $ 1,562,431 $ 1,470,666 $ 1,523,067 $ 1,456,461
Deposits provide a stable source of funding and reduce the The Firm believes that average deposit balances are
Firm’s reliance on the wholesale funding markets. A generally more representative of deposit trends than period-
significant portion of the Firm’s deposits are consumer end deposit balances.
deposits and wholesale operating deposits, which are both
considered to be stable sources of liquidity. Wholesale Average deposits across the Firm increased for the year
operating deposits are considered to be stable sources of ended December 31, 2019.
liquidity because they are generated from customers that
maintain operating service relationships with the Firm. The increase in CIB reflects growth in operating deposits
driven by client activity, primarily in Treasury Services, and
The table below shows the loan and deposit balances, the an increase in client-driven net issuances of structured notes
loans-to-deposits ratios, and deposits as a percentage of in Markets. The increase in CCB was driven by continued
total liabilities, as of December 31, 2019 and 2018.
growth in new accounts. The increases in AWM and CB were
primarily driven by growth in interest-bearing deposits; for
As of December 31,
(in billions except ratios) 2019 2018
AWM, the growth was partially offset by migration,
predominantly into the Firm’s investment-related products.
Deposits $ 1,562.4 $ 1,470.7
Deposits as a % of total liabilities 64% 62% Refer to the discussion of the Firm’s Business Segment
Loans 959.8 984.6 Results and the Consolidated Balance Sheets Analysis on
Loans-to-deposits ratio 61% 67% pages 60–78 and pages 52–53, respectively, for further
information on deposit and liability balance trends.

The following table summarizes short-term and long-term funding, excluding deposits, as of December 31, 2019 and 2018,
and average balances for the years ended December 31, 2019 and 2018. Refer to the Consolidated Balance Sheets Analysis on
pages 52–53 and Note 20 for additional information.
Sources of funds (excluding deposits)

As of or for the year ended December 31, Average
(in millions) 2019 2018 2019 2018
Commercial paper $ 14,754 $ 30,059 $ 22,977 $ 27,834
Other borrowed funds 7,544 8,789 10,369 11,369
Total short-term unsecured funding $ 22,298 $ 38,848 $ 33,346 $ 39,203
Securities sold under agreements to repurchase (a)
$ 175,709 $ 171,975 $ 217,807 $ 177,629
Securities loaned(a) 5,983 9,481 8,816 10,692
Other borrowed funds(b) 18,622 30,428 26,050 24,320
Obligations of Firm-administered multi-seller conduits(c) 9,223 4,843 10,929 3,396
Total short-term secured funding $ 209,537 $ 216,727 $ 263,602 $ 216,037
Senior notes $ 166,185 $ 162,733 $ 168,546 $ 153,162

Trust preferred securities — — — 471
Subordinated debt 17,591 16,743 17,387 16,178
Structured notes(d) 74,724 53,090 65,487 49,640
Total long-term unsecured funding $ 258,500 $ 232,566 $ 251,420 $ 219,451
Credit card securitization(c) $ 6,461 $ 13,404 $ 9,707 $ 15,900

FHLB advances 28,635 44,455 34,143 52,121
Other long-term secured funding(e) 4,363 5,010 4,643 4,842
Total long-term secured funding $ 39,459 $ 62,869 $ 48,493 $ 72,863
Preferred stock(f) $ 26,993 $ 26,068 $ 27,511 $ 26,249

Common stockholders’ equity (f)
$ 234,337 $ 230,447 $ 232,907 $ 229,222
(a) Primarily consists of short-term securities loaned or sold under agreements to repurchase.
(b) There were no FHLB advances with original maturities of less than one year as of December 31, 2019. As of December 31, 2018, includes FHLB advances with
original maturities of less than one year of $11.4 billion.
(c) Included in beneficial interests issued by consolidated variable interest entities on the Firm’s Consolidated balance sheets.
(d) Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.
(e) Includes long-term structured notes which are secured.
(f) Refer to Capital Risk Management on pages 85–92, Consolidated statements of changes in stockholders’ equity on page 149, and Note 21 and Note 22 for additional
information on preferred stock and common stockholders’ equity.
Short-term funding The Firm’s sources of short-term unsecured funding

The Firm’s sources of short-term secured funding primarily primarily consist of issuance of wholesale commercial
consist of securities loaned or sold under agreements to paper. The decrease in commercial paper at December 31,
repurchase. These instruments are secured predominantly 2019, from December 31, 2018, was due to lower net
by high-quality securities collateral, including government- issuance primarily for short-term liquidity management.
issued debt, U.S. GSE and government agency MBS.
Securities loaned or sold under agreements to repurchase Long-term funding and issuance
were relatively flat at December 31, 2019, compared with Long-term funding provides additional sources of stable
December 31, 2018, as the net increase from the Firm’s funding and liquidity for the Firm. The Firm’s long-term
participation in the Federal Reserve’s open market funding plan is driven primarily by expected client activity,
operations was offset by client-driven activities, and lower liquidity considerations, and regulatory requirements,
secured financing of trading assets-debt instruments, all in including TLAC. Long-term funding objectives include
CIB. maintaining diversification, maximizing market access and
optimizing funding costs. The Firm evaluates various
The balances associated with securities loaned or sold funding markets, tenors and currencies in creating its
under agreements to repurchase fluctuate over time due to optimal long-term funding plan.
customers’ investment and financing activities, 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 significant majority of the Firm’s long-term unsecured funding is issued by the Parent Company to provide flexibility in
support of both bank and non-bank subsidiary funding needs. The Parent Company advances substantially all net funding
proceeds to its subsidiary, the IHC. The IHC does not issue debt to external counterparties. The following table summarizes
long-term unsecured issuance and maturities or redemptions for the years ended December 31, 2019 and 2018. Refer to Note
20 for additional information on long-term debt.
Long-term unsecured funding

Year ended December 31, 2019 2018 2019 2018
(Notional in millions) Parent Company Subsidiaries
Issuance
Senior notes issued in the U.S. market $ 14,000 $ 22,000 $ 1,750 $ 9,562
Senior notes issued in non-U.S. markets 5,867 1,502 — —
Total senior notes 19,867 23,502 1,750 9,562
Structured notes(a) 5,844 2,444 33,563 25,410
Total long-term unsecured funding – issuance $ 25,711 $ 25,946 $ 35,313 $ 34,972
Maturities/redemptions
Senior notes $ 18,098 $ 19,141 $ 5,367 $ 4,466
Subordinated debt 183 136 — —
Structured notes 2,944 2,678 19,271 15,049
Total long-term unsecured funding – maturities/redemptions $ 21,225 $ 21,955 $ 24,638 $ 19,515
(a) Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.
The Firm can also raise secured long-term funding through securitization of consumer credit card loans and advances from the
FHLBs. The following table summarizes the securitization issuance and FHLB advances and their respective maturities or
redemptions for the years ended December 31, 2019 and 2018.
Long-term secured funding

Year ended December 31, Issuance Maturities/Redemptions
(in millions) 2019 2018 2019 2018
Credit card securitization $ — $ 1,396 $ 6,975 $ 9,250
FHLB advances — 9,000 15,817 25,159
Other long-term secured funding(a) 204 377 927 289
Total long-term secured funding $ 204 $ 10,773 $ 23,719 $ 34,698
(a) Includes long-term structured notes which are secured.
The Firm’s wholesale businesses also securitize loans for client-driven transactions; those client-driven loan securitizations are
not considered to be a source of funding for the Firm and are not included in the table above. Refer to Note 14 for further
description of the client-driven loan securitizations.

Credit ratings
The cost and availability of financing are influenced by which the Firm believes are incorporated in its liquidity risk
credit ratings. Reductions in these ratings could have an and stress testing metrics. The Firm believes that it
adverse effect on the Firm’s access to liquidity sources, maintains sufficient liquidity to withstand a potential
increase the cost of funds, trigger additional collateral or decrease in funding capacity due to ratings downgrades.
funding requirements and decrease the number of investors
and counterparties willing to lend to the Firm. The nature Additionally, the Firm’s funding requirements for VIEs and
and magnitude of the impact of ratings downgrades other third- party commitments may be adversely affected
depends on numerous contractual and behavioral factors, by a decline in credit ratings.
The credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries as of December 31, 2019,
were as follows.
J.P. Morgan Securities LLC
JPMorgan Chase & Co. JPMorgan Chase Bank, N.A.(a) J.P. Morgan Securities plc
Long-term Short-term Long-term Short-term Long-term Short-term

December 31, 2019 issuer issuer Outlook issuer issuer Outlook issuer issuer Outlook
Moody’s Investors Service A2 P-1 Stable Aa2 P-1 Stable Aa3 P-1 Stable
Standard & Poor’s A- A-2 Stable A+ A-1 Stable A+ A-1 Stable
Fitch Ratings AA- F1+ Stable AA F1+ Stable AA F1+ Stable
(a) On May 18, 2019, Chase Bank USA, N.A. merged with and into JPMorgan Chase Bank, N.A., with JPMorgan Chase Bank, N.A. as the surviving bank. The
credit rating for JPMorgan Chase Bank, N.A. reflects the credit rating of the merged entity.
JPMorgan Chase’s unsecured debt does not contain liquidity ratios, strong credit quality and risk management
requirements that would call for an acceleration of controls, and diverse funding sources. Rating agencies
payments, maturities or changes in the structure of the continue to evaluate economic and geopolitical trends,
existing debt, provide any limitations on future borrowings regulatory developments, future profitability, risk
or require additional collateral, based on unfavorable management practices, and litigation matters, as well as
changes in the Firm’s credit ratings, financial ratios, their broader ratings methodologies. Changes in any of
earnings, or stock price. these factors could lead to changes in the Firm’s credit
Critical factors in maintaining high credit ratings include a ratings.
stable and diverse earnings stream, strong capital and

REPUTATION RISK MANAGEMENT
Reputation risk is the risk that an action or inaction may Governance and oversight
negatively impact the Firm’s integrity and reduce The Firm’s Reputation Risk Governance policy establishes
confidence in the Firm’s competence held by various the principles for managing reputation risk for the Firm. It is
constituents, including clients, counterparties, customers, the responsibility of employees in each LOB and Corporate
investors, regulators, employees, communities or the to consider the reputation of the Firm when deciding
broader public. whether to offer a new product, engage in a transaction or
client relationship, enter a new jurisdiction, initiate a
Organization and management
business process or other matters. Increasingly,
Reputation Risk Management is an independent risk
sustainability, social responsibility and environmental
management function that establishes the governance
impacts are important considerations in assessing the
framework for managing reputation risk across the Firm. As
Firm’s reputation risk, and are considered as part of
reputation risk is inherently difficult to identify, manage,
reputation risk governance.
and quantify, an independent reputation risk management
governance function is critical. Reputation risk issues deemed material are escalated as
appropriate.
The Firm’s reputation risk management function includes
the following activities:
• Establishing a Firmwide Reputation Risk Governance
policy and standards consistent with the reputation risk
framework
• Managing the governance infrastructure and processes
that support consistent identification, escalation,
management and monitoring of reputation risk issues
Firmwide
• Providing guidance to LOB Reputation Risk Offices
(“RRO”), as appropriate
The types of events that give rise to reputation risk are
broad and could be introduced in various ways, including by
the Firm’s employees and the clients, customers and
counterparties with which the Firm does business. These
events could result in financial losses, litigation and
regulatory fines, as well as other damages to the Firm.

CREDIT AND INVESTMENT RISK MANAGEMENT

Credit and investment risk is the risk associated with the Risk identification and measurement
default or change in credit profile of a client, counterparty The Credit Risk Management function monitors, measures,
or customer; or loss of principal or a reduction in expected manages and limits credit risk across the Firm’s businesses.
returns on investments, including consumer credit risk, To measure credit risk, the Firm employs several
wholesale credit risk, and investment portfolio risk. methodologies for estimating the likelihood of obligor or
counterparty default. Methodologies for measuring credit
Credit risk management
risk vary depending on several factors, including type of
Credit risk is the risk associated with the default or change
asset (e.g., consumer versus wholesale), risk measurement
in credit profile of a client, counterparty or customer. The
parameters (e.g., delinquency status and borrower’s credit
Firm provides credit to a variety of customers, ranging from
score versus wholesale risk-rating) and risk management
large corporate and institutional clients to individual
and collection processes (e.g., retail collection center versus
consumers and small businesses. In its consumer
centrally managed workout groups). Credit risk
businesses, the Firm is exposed to credit risk primarily
measurement is based on the probability of default of an
through its home lending, credit card, auto, and business
obligor or counterparty, the loss severity given a default
banking businesses. In its wholesale businesses, the Firm is
event and the exposure at default.
exposed to credit risk through its underwriting, lending,
market-making, and hedging activities with and for clients Based on these factors and the methodology and estimates
and counterparties, as well as through its operating services described in Note 13, the Firm estimates credit losses for its
activities (such as cash management and clearing exposures. The allowance for loan losses reflects credit
activities), securities financing activities, investment losses related to the consumer and wholesale held-for-
securities portfolio, and cash placed with banks. investment loan portfolios, and the allowance for lending-
related commitments reflects credit losses related to the
Credit Risk Management is an independent risk
Firm’s lending-related commitments. Refer to Note 13 and
management function that monitors, measures and
Critical Accounting Estimates used by the Firm on pages
manages credit risk throughout the Firm and defines credit
136-138 for further information.
risk policies and procedures. The Firm’s credit risk
management governance includes the following activities: In addition, potential and unexpected credit losses are
• Establishing a credit risk policy framework reflected in the allocation of credit risk capital and
represent the potential volatility of actual losses relative to
• Monitoring, measuring and managing credit risk across all
the established allowances for loan losses and lending-
portfolio segments, including transaction and exposure
related commitments. The analyses for these losses include
approval
stress testing that considers alternative economic scenarios
• Setting industry and geographic concentration limits, as as described in the Stress testing section below.
appropriate, and establishing underwriting guidelines
Stress testing
• Assigning and managing credit authorities in connection
Stress testing is important in measuring and managing
with the approval of credit exposure
credit risk in the Firm’s credit portfolio. The process
• Managing criticized exposures and delinquent loans assesses the potential impact of alternative economic and
• Estimating credit losses and ensuring appropriate credit business scenarios on estimated credit losses for the Firm.
risk-based capital management Economic scenarios and the underlying parameters are
defined centrally, articulated in terms of macroeconomic
factors and applied across the businesses. The stress test
results may indicate credit migration, changes in
delinquency trends and potential losses in the credit
portfolio. In addition to the periodic stress testing
processes, management also considers additional stresses
outside these scenarios, including industry and country-
specific stress scenarios, as necessary. The Firm uses stress
testing to inform decisions on setting risk appetite both at a
Firm and LOB level, as well as to assess the impact of stress
on individual counterparties.

Risk monitoring and management In addition to Credit Risk Management, an independent
The Firm has developed policies and practices that are Credit Review function is responsible for:
designed to preserve the independence and integrity of the • Independently validating or changing the risk grades
approval and decision-making process of extending credit to assigned to exposures in the Firm’s wholesale and
ensure credit risks are assessed accurately, approved commercial-oriented retail credit portfolios, and
properly, monitored regularly and managed actively at both assessing the timeliness of risk grade changes initiated by
the transaction and portfolio levels. The policy framework responsible business units; and
establishes credit approval authorities, concentration limits,
• Evaluating the effectiveness of business units’ credit
risk-rating methodologies, portfolio review parameters and
management processes, including the adequacy of credit
guidelines for management of distressed exposures. In
analyses and risk grading/LGD rationales, proper
addition, certain models, assumptions and inputs used in
monitoring and management of credit exposures, and
evaluating and monitoring credit risk are independently
compliance with applicable grading policies and
validated by groups that are separate from the LOBs.
underwriting guidelines.
Consumer credit risk is monitored for delinquency and other
Refer to Note 12 for further discussion of consumer and
trends, including any concentrations at the portfolio level,
wholesale loans.
as certain of these trends can be modified through changes
in underwriting policies and portfolio guidelines. Consumer Risk reporting
Risk Management evaluates delinquency and other trends To enable monitoring of credit risk and effective decision-
against business expectations, current and forecasted making, aggregate credit exposure, credit quality forecasts,
economic conditions, and industry benchmarks. Historical concentration levels and risk profile changes are reported
and forecasted economic performance and trends are regularly to senior members of Credit Risk Management.
incorporated into the modeling of estimated consumer Detailed portfolio reporting of industry, clients,
credit losses and are part of the monitoring of the credit counterparties and customers, product and geography are
risk profile of the portfolio. prepared, and the appropriateness of the allowance for
credit losses is reviewed by senior management at least on
Wholesale credit risk is monitored regularly at an aggregate
a quarterly basis. Through the risk reporting and
portfolio, industry, and individual client and counterparty
governance structure, credit risk trends and limit exceptions
level with established concentration limits that are reviewed
are provided regularly to, and discussed with, risk
and revised periodically as deemed appropriate by
committees, senior management and the Board of Directors
management. Industry and counterparty limits, as
as appropriate.
measured in terms of exposure and economic risk appetite,
are subject to stress-based loss constraints. In addition,
wrong-way risk, that is the risk that exposure to a
counterparty is positively correlated with the impact of a
default by the same counterparty, which could cause
exposure to increase at the same time as the counterparty’s
capacity to meet its obligations is decreasing - is actively
monitored as this risk could result in greater exposure at
default compared with a transaction with another
counterparty that does not have this risk.
Management of the Firm’s wholesale credit risk exposure is
accomplished through a number of means, including:
• Loan underwriting and credit approval process
• Loan syndications and participations
• Loan sales and securitizations
• Credit derivatives
• Master netting agreements
• Collateral and other risk-reduction techniques

CREDIT PORTFOLIO
Credit risk is the risk associated with the default or change
in credit profile of a client, counterparty or customer. Total credit portfolio
Credit exposure Nonperforming(d)(e)
In the following tables, reported loans include loans December 31,
(in millions) 2019 2018 2019 2018
retained (i.e., held-for-investment); loans held-for-sale; and
Loans retained $ 945,601 $ 969,415 $ 3,983 $ 4,611
certain loans accounted for at fair value. The following
Loans held-for-sale 7,064 11,988 7 —
tables do not include loans which the Firm accounts for at
Loans at fair value 7,104 3,151 90 220
fair value and classifies as trading assets; refer to Notes 2 Total loans – reported 959,769 984,554 4,080 4,831
and 3 for further information regarding these loans. Refer Derivative receivables 49,766 54,213 30 60
to Notes 12, 28, and 5 for additional information on the Receivables from
Firm’s loans, lending-related commitments and derivative customers and other(a) 33,706 30,217 — —
receivables, including the Firm’s accounting policies. Total credit-related

assets 1,043,241 1,068,984 4,110 4,891
Refer to Note 10 for information regarding the credit risk Assets acquired in loan
satisfactions
inherent in the Firm’s investment securities portfolio; and
Real estate owned NA NA 344 269
refer to Note 11 for information regarding credit risk Other NA NA 43 30
inherent in the securities financing portfolio. Refer to Total assets acquired in
Consumer Credit Portfolio on pages 103–107 and Note 12 loan satisfactions NA NA 387 299
for a further discussion of the consumer credit environment Lending-related

commitments 1,106,247 1,039,258 474 469
and consumer loans. Refer to Wholesale Credit Portfolio on Total credit portfolio $ 2,149,488 $ 2,108,242 $ 4,971 $ 5,659
pages 108–115 and Note 12 for a further discussion of the Credit derivatives used
wholesale credit environment and wholesale loans. in credit portfolio
management
activities(b) $ (18,030) $ (12,682) $ — $ —
Liquid securities and
other cash collateral
held against
derivatives(c) (16,009) (15,322) NA NA

(in millions, except ratios) 2019 2018
Net charge-offs $ 5,629 $ 4,856
Average retained loans
Loans 941,919 936,829
Loans – reported, excluding
residential real estate PCI loans 919,702 909,386
Net charge-off rates
Loans 0.60% 0.52%
Loans – excluding PCI 0.61 0.53
(a) Receivables from customers and other primarily represents brokerage-

related held-for-investment customer receivables.
(b) Represents the net notional amount of protection purchased and sold
through credit derivatives 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 115 and Note 5 for additional information.
(c) Includes collateral related to derivative instruments where appropriate
legal opinions have not been either sought or obtained with respect to
master netting agreements.
(d) Excludes PCI loans. The Firm is recognizing interest income on each
pool of PCI loans as each of the pools is performing.
(e) At December 31, 2019 and 2018, nonperforming assets excluded
mortgage loans 90 or more days past due and insured by U.S.
government agencies of $961 million and $2.6 billion, respectively,
and real estate owned (“REO”) insured by U.S. government agencies of
$41 million and $75 million, respectively. These amounts have been
excluded based upon the government guarantee. In addition, the
Firm’s policy is generally to exempt credit card loans from being placed
on nonaccrual status as permitted by regulatory guidance issued by
the Federal Financial Institutions Examination Council (“FFIEC”).

CONSUMER CREDIT PORTFOLIO
The Firm’s retained consumer portfolio consists primarily of
residential real estate loans, credit card loans, auto loans,
and business banking loans, as well as associated lending-
related commitments. The Firm’s focus is on serving
primarily the prime segment of the consumer credit market.
Originated mortgage loans are retained in the mortgage
portfolio, securitized or sold to U.S. government agencies
and U.S. government-sponsored enterprises; other types of
consumer loans are typically retained on the balance sheet.
The credit performance of the consumer portfolio continues
to benefit from discipline in credit underwriting as well as
improvement in the economy driven by low unemployment
and increasing home prices. Refer to Note 12 for further
information on the consumer loan portfolio. Refer to Note 28
for further information on lending-related commitments.

The following table presents consumer credit-related information with respect to the credit portfolio held by CCB, scored prime
mortgage and scored home equity loans held by AWM, and scored prime mortgage loans held by Corporate. Refer to Note 12 for
further information about the Firm’s nonaccrual and charge-off accounting policies.
Consumer credit portfolio

Net charge-offs/ Net charge-off/
Credit exposure Nonaccrual loans(f)(g) (recoveries)(h) (recovery) rate(h)(i)
(in millions, except ratios) 2019 2018 2019 2018 2019 2018 2019 2018
Consumer, excluding credit card
Loans, excluding PCI loans and loans held-for-sale
Residential mortgage $ 199,037 $ 231,078 $ 1,618 $ 1,765 $ (44) $ (291) (0.02)% (0.13)%
Home equity 23,917 28,340 1,162 1,323 (46) (5) (0.18) (0.02)
Auto(a)(b) 61,522 63,573 113 128 206 243 0.33 0.38
Consumer & Business Banking(b)(c) 27,199 26,612 247 245 296 236 1.11 0.90
Total loans, excluding PCI loans and loans held-for-sale 311,675 349,603 3,140 3,461 412 183 0.13 0.05
Loans – PCI
Home equity 7,377 8,963 NA NA NA NA NA NA
Prime mortgage 3,965 4,690 NA NA NA NA NA NA
Subprime mortgage 1,740 1,945 NA NA NA NA NA NA
Option ARMs 7,281 8,436 NA NA NA NA NA NA
Total loans – PCI 20,363 24,034 NA NA NA NA NA NA
Total loans – retained 332,038 373,637 3,140 3,461 412 183 0.12 0.05
Loans held-for-sale 3,002 95 2 — NA NA NA NA
Total consumer, excluding credit card loans 335,040 373,732 3,142 3,461 412 183 0.12 0.05
Lending-related commitments(d) 51,412 46,066
Receivables from customers — 154
Total consumer exposure, excluding credit card 386,452 419,952
Credit Card
Loans retained(e) 168,924 156,616 — — 4,848 4,518 3.10 3.10
Loans held-for-sale — 16 — — NA NA NA NA
Total credit card loans 168,924 156,632 — — 4,848 4,518 3.10 3.10
Lending-related commitments(d) 650,720 605,379
Total credit card exposure 819,644 762,011
Total consumer credit portfolio $ 1,206,096 $ 1,181,963 $ 3,142 $ 3,461 $ 5,260 $ 4,701 1.04 % 0.90 %
Memo: Total consumer credit portfolio, excluding PCI $ 1,185,733 $ 1,157,929 $ 3,142 $ 3,461 $ 5,260 $ 4,701 1.09 % 0.95 %
(a) At December 31, 2019 and 2018, excluded operating lease assets of $22.8 billion and $20.5 billion, respectively. These operating lease assets are included
in other assets on the Firm’s Consolidated balance sheets. Refer to Note 18 for further information.
(b) Includes certain business banking and auto dealer risk-rated loans for which the wholesale methodology is applied for determining the allowance for loan
losses; these loans are managed by CCB, and therefore, for consistency in presentation, are included within the consumer portfolio.
(c) Predominantly includes Business Banking loans.
(d) Credit card and home equity 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, the Firm can reduce or cancel these lines of credit by providing the borrower notice or, in some cases as permitted by law, without
notice. Refer to Note 28 for further information.
(e) Includes billed interest and fees net of an allowance for uncollectible interest and fees.
(f) At December 31, 2019 and 2018, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $961
million and $2.6 billion, respectively. These amounts have been excluded from nonaccrual loans based upon the government guarantee. In addition, the
Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status, as permitted by regulatory guidance issued by the FFIEC.
(g) Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as each of the pools is performing.
(h) Net charge-offs/(recoveries) and net charge-off/(recovery) rates excluded write-offs in the PCI portfolio of $151 million and $187 million for the years
ended December 31, 2019 and 2018, respectively. These write-offs decreased the allowance for loan losses for PCI loans. Refer to Allowance for Credit
Losses on pages 116–117 for further information.
(i) Average consumer loans held-for-sale were $2.9 billion and $387 million for the years ended December 31, 2019 and 2018, respectively. These amounts
were excluded when calculating net charge-off/(recovery) rates.

Consumer, excluding credit card
Portfolio analysis
Loan balances decreased from December 31, 2018 due to (“HELOCs”) and the remainder consisted of home equity
lower residential real estate loans, predominantly driven by loans (“HELOANs”). HELOANs are generally fixed-rate,
loan sales. closed-end, amortizing loans, with terms ranging from 3–30
The following discussions provide information concerning years. In general, HELOCs originated by the Firm are
individual loan products, excluding PCI loans which are revolving loans for a 10-year period, after which time the
addressed separately. Refer to Note 12 for further HELOC recasts into a loan with a 20-year amortization
information about this portfolio, including information period.
about delinquencies, loan modifications and other credit The carrying value of HELOCs outstanding was $22 billion at
quality indicators. December 31, 2019. This amount included $10 billion of
Residential mortgage: The residential mortgage portfolio, HELOCs that have recast from interest-only to fully
including loans held-for-sale, predominantly consists of amortizing payments or have been modified and $3 billion
prime mortgage loans. The portfolio decreased from of interest-only balloon HELOCs, which primarily mature
December 31, 2018 driven by paydowns as well as loan after 2030. The Firm manages the risk of HELOCs during
sales in Home Lending, largely offset by originations of their revolving period by closing or reducing the undrawn
prime mortgage loans that have been retained on the line to the extent permitted by law when borrowers are
balance sheet. Net recoveries for the year ended exhibiting a material deterioration in their credit risk
December 31, 2019 were lower when compared with the profile.
prior year as the prior year benefited from larger recoveries Auto: The auto portfolio predominantly consists of prime-
on loan sales. quality loans. The portfolio declined when compared with
At December 31, 2019 and 2018, the Firm’s residential December 31, 2018, as paydowns and charge-offs or
mortgage portfolio included $22.4 billion and $21.6 billion, liquidation of delinquent loans were predominantly offset
respectively, of interest-only loans. These loans have an by new originations.
interest-only payment period generally followed by an Consumer & Business Banking: Consumer & Business
adjustable-rate or fixed-rate fully amortizing payment Banking loans increased when compared with
period to maturity and are typically originated as higher- December 31, 2018 as loan originations were
balance loans to higher-income borrowers, predominantly predominantly offset by paydowns and charge-offs of
in AWM. Performance of this portfolio for the year ended delinquent loans. Net charge-offs for the year ended
December 31, 2019 was consistent with the performance of December 31, 2019 increased when compared with the
the broader residential mortgage portfolio for the same prior year primarily due to higher deposit overdraft losses.
period.
Purchased credit-impaired loans: PCI loans represent
The following table provides a summary of the Firm’s certain loans that were acquired and deemed to be credit-
residential mortgage portfolio insured and/or guaranteed impaired on the acquisition date. PCI loans decreased from
by U.S. government agencies, including loans held-for-sale. December 31, 2018 due to portfolio run-off. As of
The Firm monitors its exposure to certain potential December 31, 2019, approximately 9% of the option ARM
unrecoverable claim payments related to government PCI loans were delinquent and approximately 71% of the
insured loans and considers this exposure in estimating the portfolio has been modified into fixed-rate, fully amortizing
allowance for loan losses. loans. The borrowers for substantially all of the remaining
December 31, December 31, option ARM loans are making amortizing payments,
(in millions) 2019 2018 although such payments are not necessarily fully
Current $ 1,280 $ 2,884 amortizing. This latter group of loans is subject to the risk of
30-89 days past due 695 1,528 payment shock due to future payment recast. Default rates
90 or more days past due 961 2,600 generally increase on option ARM loans when payment
Total government guaranteed loans $ 2,936 $ 7,012 recast results in a payment increase. The expected increase
in default rates is considered in the Firm’s quarterly
Home equity: The home equity portfolio declined from impairment assessment.
December 31, 2018 primarily reflecting paydowns.
At December 31, 2019, approximately 90% of the Firm’s
home equity portfolio consists of home equity lines of credit

The following table provides a summary of lifetime principal loss estimates included in either the nonaccretable difference or
the allowance for loan losses.
Summary of PCI loans lifetime principal loss estimates

Lifetime loss estimates(a) Life-to-date liquidation losses(b)
December 31, (in billions) 2019 2018 2019 2018
Home equity $ 13.9 $ 14.1 $ 13.0 $ 13.0
Prime mortgage 4.1 4.1 3.9 3.9
Subprime mortgage 3.4 3.3 3.2 3.2
Option ARMs 10.3 10.3 10.0 9.9
Total $ 31.7 $ 31.8 $ 30.1 $ 30.0
(a) Includes the original nonaccretable difference established in purchase accounting of $30.5 billion for principal losses plus additional principal losses
recognized subsequent to acquisition through the provision and allowance for loan losses. The remaining nonaccretable difference for principal losses was
$466 million and $512 million at December 31, 2019 and 2018, respectively.
(b) Represents both realization of loss upon loan resolution and any principal forgiven upon modification.
Refer to Note 12 for further information on the Firm’s PCI loans, including write-offs.
Geographic composition of residential real estate loans

2019 2018
At December 31, 2019, $142.7 billion, or 64% of the total
retained residential real estate loan portfolio, excluding Nonaccrual Nonaccrual
December 31, Retained retained Retained retained
mortgage loans insured by U.S. government agencies and (in millions) loans loans (d) loans loans(d)
PCI loans, were concentrated in California, New York, Modified residential
Illinois, Texas and Florida, compared with $160.3 billion, or real estate loans,
excluding PCI loans(a)(b)
63%, at December 31, 2018. Refer to Note 12 for Residential mortgage $ 4,005 $ 1,367 $ 4,565 $ 1,459
additional information on the geographic composition of the
Home equity 1,921 965 2,058 963
Firm’s residential real estate loans.
Total modified
Current estimated loan-to-values of residential real residential real estate
loans, excluding PCI
estate loans loans $ 5,926 $ 2,332 $ 6,623 $ 2,422
Average current estimated loan-to-value (“LTV”) ratios have Modified PCI loans(c)
declined consistent with recent improvements in home Home equity $ 1,986 NA $ 2,086 NA
prices, customer pay-downs, and charge-offs or liquidations Prime mortgage 2,825 NA 3,179 NA
of higher LTV loans. Refer to Note 12 for further Subprime mortgage 1,869 NA 2,041 NA
information on current estimated LTVs of residential real Option ARMs 5,692 NA 6,410 NA
estate loans.
Total modified PCI loans $12,372 NA $13,716 NA
Modified residential real estate loans
(a) Amounts represent the carrying value of modified residential real
The following table presents information as of estate loans.
December 31, 2019 and 2018, relating to modified (b) At December 31, 2019 and 2018, $14 million and $4.1 billion,
retained residential real estate loans for which concessions respectively, of loans modified subsequent to repurchase from Ginnie
have been granted to borrowers experiencing financial Mae in accordance with the standards of the appropriate government
agency (i.e., Federal Housing Administration (“FHA”), U.S. Department
difficulty. Refer to Note 12 for further information on of Veterans Affairs (“VA”), Rural Housing Service of the U.S.
modifications for the years ended December 31, 2019 and Department of Agriculture (“RHS”)) are not included in the table
2018. above. When such loans perform subsequent to modification in
accordance with Ginnie Mae guidelines, they are generally sold back
into Ginnie Mae loan pools. Modified loans that do not re-perform
become subject to foreclosure. Refer to Note 14 for additional
information about sales of loans in securitization transactions with
Ginnie Mae.
(c) Amounts represent the unpaid principal balance of modified PCI loans.
(d) As of December 31, 2019 and 2018, nonaccrual loans included $1.9
billion and $2.0 billion, respectively, of troubled debt restructurings
(“TDRs”) for which the borrowers were less than 90 days past due.
Refer to Note 12 for additional information about loans modified in a
TDR that are on nonaccrual status.

Nonperforming assets Nonaccrual loans: The following table presents changes in
The following table presents information as of the consumer, excluding credit card, nonaccrual loans for
December 31, 2019 and 2018, about consumer, excluding the years ended December 31, 2019 and 2018.
credit card, nonperforming assets.
Nonaccrual loan activity
Nonperforming assets(a) Year ended December 31,
December 31, (in millions) 2019 2018 (in millions) 2019 2018
Nonaccrual loans(b) Beginning balance $ 3,461 $ 4,209
Residential real estate $ 2,782 $ 3,088 Additions 2,210 2,799
Other consumer 360 373 Reductions:
Total nonaccrual loans 3,142 3,461 Principal payments and other(a) 1,026 1,407
Assets acquired in loan satisfactions Charge-offs 421 468
Returned to performing status 834 1,399
Real estate owned(c) 214 196
Foreclosures and other liquidations 248 273
Other 24 30
Total reductions 2,529 3,547
Total assets acquired in loan satisfactions 238 226
Net changes (319) (748)
Total nonperforming assets $ 3,380 $ 3,687 Ending balance $ 3,142 $ 3,461
(a) At December 31, 2019 and 2018, nonperforming assets excluded
(a) Other reductions includes loan sales.
mortgage loans 90 or more days past due and insured by U.S.
government agencies of $961 million and $2.6 billion, respectively,
Active and suspended foreclosure: Refer to Note 12 for
and real estate owned (“REO”) insured by U.S. government agencies of
$41 million and $75 million, respectively. These amounts have been information on loans that were in the process of active or
excluded based upon the government guarantee. suspended foreclosure.
(b) Excludes PCI loans, which are accounted for on a pool basis. Since each
pool is accounted for as a single asset with a single composite interest Credit card
rate and an aggregate expectation of cash flows, the past-due status of
the pools, or that of individual loans within the pools, is not Total credit card loans increased from December 31, 2018
meaningful. The Firm is recognizing interest income on each pool of due to higher sales volume from existing customers and
loans as each of the pools is performing. new account growth. Net charge-offs increased for the year
(c) The prior period amount has been revised to conform with the current
ended December 31, 2019 when compared with the prior
year, due to loan growth, in line with expectations.
Consistent with the Firm’s policy, all credit card loans
typically remain on accrual status until charged off.
However, the Firm establishes an allowance, which is offset
against loans and reduces interest income, for the
estimated uncollectible portion of accrued and billed
interest and fee income. Refer to Note 12 for further
information about this portfolio, including information
about delinquencies.
Geographic and FICO composition of credit card loans
At December 31, 2019, $77.5 billion, or 46% of the total
retained credit card loan portfolio, was concentrated in
California, Texas, New York, Florida and Illinois, compared
with $71.2 billion, or 45%, at December 31, 2018. Refer to
Note 12 for additional information on the geographic and
FICO composition of the Firm’s credit card loans.
Modifications of credit card loans
At December 31, 2019 and 2018, the Firm had $1.5 billion
and $1.3 billion, respectively, of credit card loans
outstanding that have been modified in TDRs. Refer to Note
12 for additional information about loan modification
programs for borrowers.

WHOLESALE CREDIT PORTFOLIO

In its wholesale businesses, the Firm is exposed to credit In the following tables, the Firm’s wholesale credit portfolio
risk primarily through its underwriting, lending, market- includes exposure held in CIB, CB, AWM and Corporate. It
making, and hedging activities with and for clients and excludes all exposure managed by CCB, scored prime
counterparties, as well as through various operating mortgage and scored home equity loans held in AWM and
services (such as cash management and clearing activities), scored prime mortgage loans held in Corporate.
securities financing activities and cash placed with banks. A
portion of the loans originated or acquired by the Firm’s Wholesale credit portfolio
wholesale businesses is generally retained on the balance December 31,
Credit exposure Nonperforming
sheet. The Firm distributes a significant percentage of the (in millions) 2019 2018 2019 2018
loans that it originates into the market as part of its Loans retained $444,639 $439,162 $ 843 $ 1,150
syndicated loan business and to manage portfolio Loans held-for-sale 4,062 11,877 5 —
concentrations and credit risk. Loans at fair value 7,104 3,151 90 220
Loans – reported 455,805 454,190 938 1,370
The credit performance of the wholesale portfolio remained Derivative receivables 49,766 54,213 30 60
favorable for the year ended December 31, 2019,
Receivables from
characterized by continued low levels of criticized exposure, customers and other(a) 33,706 30,063 — —
nonaccrual loans and charge-offs. Refer to the industry Total wholesale credit-
discussion on pages 109–111 for further information. related assets 539,277 538,466 968 1,430
Loans held-for-sale decreased, driven by a loan syndication Assets acquired in loan
satisfactions
in CIB. The wholesale portfolio is actively managed, in part
by conducting ongoing, in-depth reviews of client credit Real estate owned NA NA 130 73
quality and transaction structure inclusive of collateral Other NA NA 19 —
where applicable, and of industry, product and client Total assets acquired in
loan satisfactions NA NA 149 73
concentrations.
Lending-related
commitments 404,115 387,813 474 469
Total wholesale credit
portfolio $943,392 $926,279 $ 1,591 $ 1,972
Credit derivatives used
in credit portfolio
management activities(b) $ (18,030) $ (12,682) $ — $ —
Liquid securities and
other cash collateral
held against derivatives (16,009) (15,322) NA NA
(a) Receivables from customers and other include $33.7 billion and $30.1
billion of brokerage-related held-for-investment customer receivables
at December 31, 2019 and 2018, respectively, to clients in CIB and
AWM; these are classified in accrued interest and accounts receivable
on the Consolidated balance sheets.
(b) Represents the net notional amount of protection purchased and sold
through credit derivatives 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 115 and Note 5 for additional information.

The following tables present the maturity and internal risk ratings profiles of the wholesale credit portfolio as of
December 31, 2019 and 2018. The Firm considers internal ratings equivalent to BBB-/Baa3 or higher as investment grade.
Refer to Note 12 for further information on internal risk ratings.
Wholesale credit exposure – maturity and ratings profile

Maturity profile(d) Ratings profile
Due after
1 year
December 31, 2019 Due in 1 through Due after 5 Investment- Noninvestment Total %
(in millions, except ratios) year or less 5 years years Total grade -grade Total of IG
Loans retained $ 128,430 $ 209,397 $ 106,812 $ 444,639 $ 344,199 $ 100,440 $ 444,639 77%
Derivative receivables 49,766 49,766
Less: Liquid securities and other cash collateral
held against derivatives (16,009) (16,009)
Total derivative receivables, net of all collateral 6,561 6,960 20,236 33,757 26,966 6,791 33,757 80
Lending-related commitments 77,298 314,281 12,536 404,115 288,864 115,251 404,115 71
Subtotal 212,289 530,638 139,584 882,511 660,029 222,482 882,511 75
Loans held-for-sale and loans at fair value(a) 11,166 11,166
Receivables from customers and other 33,706 33,706
Total exposure – net of liquid securities and other
cash collateral held against derivatives $ 927,383 $ 927,383
Credit derivatives used in credit portfolio

management activities(b)(c) $ (4,912) $ (10,031) $ (3,087) $ (18,030) $ (16,276) $ (1,754) $ (18,030) 90%
Maturity profile(d) Ratings profile
Due after
1 year
December 31, 2018 Due in 1 through Due after 5 Investment- Noninvestment- Total %
(in millions, except ratios) year or less 5 years years Total grade grade Total of IG
Loans retained $ 138,458 $ 196,974 $ 103,730 $ 439,162 $ 339,729 $ 99,433 $ 439,162 77%
Derivative receivables 54,213 54,213
Less: Liquid securities and other cash collateral
held against derivatives (15,322) (15,322)
Total derivative receivables, net of all collateral 11,038 9,169 18,684 38,891 31,794 7,097 38,891 82
Lending-related commitments 79,400 294,855 13,558 387,813 288,724 99,089 387,813 74
Subtotal 228,896 500,998 135,972 865,866 660,247 205,619 865,866 76
Loans held-for-sale and loans at fair value(a) 15,028 15,028
Receivables from customers and other 30,063 30,063
Total exposure – net of liquid securities and other
cash collateral held against derivatives $ 910,957 $ 910,957
Credit derivatives used in credit portfolio

management activities (b)(c) $ (447) $ (9,318) $ (2,917) $ (12,682) $ (11,213) $ (1,469) $ (12,682) 88%
(a) Represents loans held-for-sale, primarily related to syndicated loans and loans transferred from the retained portfolio, and loans at fair value.
(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.
(d) The maturity profile of retained loans, lending-related commitments and derivative receivables is based on remaining contractual maturity. Derivative
contracts that are in a receivable position at December 31, 2019, may become payable prior to maturity based on their cash flow profile or changes in
market conditions.
Wholesale credit exposure – industry exposures categories. The total criticized component of the portfolio,
The Firm focuses on the management and diversification of excluding loans held-for-sale and loans at fair value, was
its industry exposures, and pays particular attention to $14.3 billion at December 31, 2019, compared with $12.1
industries with actual or potential credit concerns. billion at December 31, 2018. The increase was driven by
Exposures deemed criticized align with the U.S. banking select client downgrades.
regulators’ definition of criticized exposures, which consist
of the special mention, substandard and doubtful

Below are summaries of the Firm’s exposures as of December 31, 2019 and 2018. The industry of risk category is generally
based on the client or counterparty’s primary business activity. Refer to Note 4 for additional information on industry
concentrations.
Wholesale credit exposure – industries(a)

Selected metrics
Liquid
Noninvestment-grade securities
and other
30 days or cash
more past collateral
As of or for the year ended due and Net charge- Credit held against
December 31, 2019 Credit Investment- Criticized Criticized accruing offs/ derivative derivative
(in millions) exposure(f) grade Noncriticized performing nonperforming loans (recoveries) hedges(g) receivables
Real Estate $ 149,267 $ 121,283 $ 26,534 $ 1,401 $ 49 $ 98 $ 12 $ (100) $ —
Individuals and Individual Entities(b) 102,292 90,865 11,219 171 37 386 28 — (641)
Consumer & Retail 99,331 57,587 39,524 2,062 158 80 112 (235) (11)
Technology, Media &
Telecommunications 59,021 35,602 20,368 2,923 128 13 26 (658) (17)
Industrials 58,250 38,760 18,264 1,050 176 161 41 (746) (9)
Asset Managers 51,775 45,208 6,550 4 13 18 — — (4,785)
Banks & Finance Cos 50,091 34,599 14,692 795 5 — — (834) (2,112)
Healthcare 46,638 36,231 9,248 1,074 85 79 6 (405) (145)
Oil & Gas 41,570 22,221 17,780 992 577 — 98 (429) (10)
Utilities 34,753 22,196 12,246 301 10 1 39 (414) (50)
State & Municipal Govt(c) 26,697 26,195 502 — — 29 — — (46)
Automotive 17,317 10,000 6,759 558 — 5 — (194) —
Chemicals & Plastics 17,276 11,984 5,080 212 — 3 — (10) (13)
Metals & Mining 15,337 7,020 7,620 658 39 1 (1) (33) (6)
Central Govt 14,843 14,502 341 — — — — (9,018) (1,963)
Transportation 13,917 8,644 4,863 347 63 29 7 (37) (37)
Insurance 12,202 9,413 2,768 17 4 3 — (36) (1,998)
Securities Firms 7,335 5,969 1,339 27 — — — (48) (3,201)
Financial Markets Infrastructure 4,116 3,969 147 — — — — — (6)
All other(d) 76,492 72,565 3,548 376 3 4 1 (4,833) (959)
Subtotal $ 898,520 $ 674,813 $ 209,392 $ 12,968 $ 1,347 $ 910 $ 369 $ (18,030) $ (16,009)
Loans held-for-sale and loans at fair

value 11,166
Receivables from customers and other 33,706
Total(e) $ 943,392

Selected metrics
Liquid
Noninvestment-grade securities
and other
30 days or cash
more past collateral
As of or for the year ended due and Net charge- Credit held against
December 31, 2018 Credit Investment- Criticized Criticized accruing offs/ derivative derivative
(in millions) exposure(f) grade Noncriticized performing nonperforming loans (recoveries) hedges(g) receivables
Real Estate $ 143,316 $ 117,988 $ 24,174 $ 1,019 $ 135 $ 70 $ (20) $ (2) $ (1)
Individuals and Individual Entities(b) 97,077 86,581 10,164 174 158 703 12 — (915)
Consumer & Retail 94,815 60,678 31,901 2,033 203 43 55 (248) (14)
Technology, Media &
Telecommunications 72,646 46,334 24,081 2,170 61 8 12 (1,011) (12)
Industrials 58,528 38,487 18,594 1,311 136 171 20 (207) (29)
Asset Managers 42,807 36,722 6,067 4 14 10 — — (5,829)
Banks & Finance Cos 49,920 34,120 15,496 299 5 11 — (575) (2,290)
Healthcare 48,142 36,687 10,625 761 69 23 (5) (150) (133)
Oil & Gas 42,600 23,356 17,451 1,158 635 6 36 (248) —
Utilities 28,172 23,558 4,326 138 150 — 38 (142) (60)
State & Municipal Govt(c) 27,351 26,746 603 2 — 18 (1) — (42)
Automotive 17,339 9,637 7,310 392 — 1 — (125) —
Chemicals & Plastics 16,035 11,490 4,427 118 — 4 — — —
Metals & Mining 15,359 8,188 6,767 385 19 1 — (174) (22)
Central Govt 18,456 18,251 124 81 — 4 — (7,994) (2,130)
Transportation 15,660 10,508 4,699 393 60 21 6 (31) (112)
Insurance 12,639 9,777 2,830 — 32 — — (36) (2,080)
Securities Firms 4,558 3,099 1,459 — — — — (158) (823)
Financial Markets Infrastructure 7,484 6,746 738 — — — — — (26)
All other(d) 68,284 64,664 3,606 12 2 2 2 (1,581) (804)
Subtotal $ 881,188 $ 673,617 $ 195,442 $ 10,450 $ 1,679 $ 1,096 $ 155 $ (12,682) $ (15,322)
Loans held-for-sale and loans at fair

value 15,028
Receivables from customers and other 30,063
Total (e)
$ 926,279
(a) The industry rankings presented in the table as of December 31, 2018, are based on the industry rankings of the corresponding exposures at
December 31, 2019, not actual rankings of such exposures at December 31, 2018.
(b) Individuals and Individual Entities predominantly consists of Wealth Management clients within AWM 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 December 31, 2019 and 2018, noted above, the
Firm held: $6.5 billion and $7.8 billion, respectively, of trading assets; $29.8 billion and $37.7 billion, respectively, of AFS securities; and $4.8 billion at
both periods of held-to-maturity (“HTM”) securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 10 for further information.
(d) All other includes: SPEs and Private education and civic organizations, representing approximately 92% and 8%, respectively, at both December 31, 2019
and 2018.
(e) Excludes cash placed with banks of $254.0 billion and $268.1 billion, at December 31, 2019 and 2018, 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 used in credit portfolio management activities held against
derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables.
(g) Represents the net notional amounts of protection purchased and sold through credit derivatives 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.

Real Estate
Presented below is additional information on the Real Estate industry, to which the Firm has significant exposure.
Real Estate exposure increased $6.0 billion to $149.3 billion during the year ended December 31, 2019, and the investment
grade percentage of the portfolio remained relatively flat at 81%. Refer to Note 12 for further information on Real Estate
loans.
December 31, 2019
Loans and %
Lending-related Derivative Credit Investment-
(in millions, except ratios) Commitments Receivables exposure grade % Drawn(c)
Multifamily (a)
$ 86,326 $ 58 $ 86,384 91% 92%
Other 62,322 561 62,883 68 59
Total Real Estate Exposure(b) 148,648 619 149,267 81 78
December 31, 2018

Loans and %
Lending-related Derivative Credit Investment-
(in millions, except ratios) Commitments Receivables exposure grade % Drawn(c)
Multifamily(a) $ 85,683 $ 33 $ 85,716 89% 92%
Other 57,469 131 57,600 72 63
Total Real Estate Exposure(b) 143,152 164 143,316 82 81
(a) Multifamily exposure is largely in California.
(b) Real Estate exposure is predominantly secured; unsecured exposure is largely investment-grade.
(c) Represents drawn exposure as a percentage of credit exposure.
Loans
In its wholesale businesses, the Firm provides loans to a The following table presents net charge-offs/recoveries,
variety of clients, ranging from large corporate and which are defined as gross charge-offs less recoveries, for
institutional clients to high-net-worth individuals. Refer to the years ended December 31, 2019 and 2018. The
Note 12 for a further discussion on loans, including amounts in the table below do not include gains or losses
information about delinquencies, loan modifications and from sales of nonaccrual loans.
other credit quality indicators.
Wholesale net charge-offs/(recoveries)
The following table presents the change in the nonaccrual Year ended December 31,
loan portfolio for the years ended December 31, 2019 and (in millions, except ratios) 2019 2018
2018. Loans – reported
Average loans retained $ 435,876 $ 416,828
Wholesale nonaccrual loan activity
Gross charge-offs 411 313
Year ended December 31, (in millions) 2019 2018
Gross recoveries (42) (158)
Beginning balance $ 1,370 $ 1,734
Net charge-offs/(recoveries) 369 155
Additions 2,141 1,188
Net charge-off/(recovery) rate 0.08% 0.04%
Reductions:
Paydowns and other 1,435 692
Gross charge-offs 376 299
Returned to performing status 556 234
Sales 206 327
Total reductions 2,573 1,552
Net changes (432) (364)
Ending balance $ 938 $ 1,370

Lending-related commitments counterparty. For exchange-traded derivatives (“ETD”),
The Firm uses lending-related financial instruments, such as such as futures and options, and cleared over-the-counter
commitments (including revolving credit facilities) and (“OTC-cleared”) derivatives, the Firm is generally exposed
guarantees, to address the financing needs of its clients. to the credit risk of the relevant CCP. Where possible, the
The contractual amounts of these financial instruments Firm seeks to mitigate its credit risk exposures arising from
represent the maximum possible credit risk should the derivative contracts through the use of legally enforceable
clients draw down on these commitments or when the Firm master netting arrangements and collateral agreements.
fulfills its obligations under these guarantees, and the Refer to Note 5 for a further discussion of derivative
clients subsequently fail to perform according to the terms contracts, counterparties and settlement types.
of these contracts. Most of these commitments and
The following table summarizes the net derivative
guarantees are refinanced, extended, cancelled, or expire
receivables for the periods presented.
without being drawn upon or a default occurring. As a
result, the Firm does not believe that the total contractual Derivative receivables
amount of these wholesale lending-related commitments is December 31, (in millions) 2019 2018
representative of the Firm’s expected future credit exposure
Total, net of cash collateral $ 49,766 $ 54,213
or funding requirements. Refer to Note 28 for further
Liquid securities and other cash collateral
information on wholesale lending-related commitments. held against derivative receivables(a) (16,009) (15,322)
Receivables from Customers Total, net of all collateral $ 33,757 $ 38,891
Receivables from customers primarily represent held-for- (a) Includes collateral related to derivative instruments where appropriate
investment margin loans to brokerage clients in CIB and legal opinions have not been either sought or obtained with respect to
master netting agreements.
AWM that are collateralized by assets maintained in the
clients’ brokerage accounts (e.g., cash on deposit, liquid and The fair value of derivative receivables reported on the
readily marketable debt or equity securities), as such no Consolidated balance sheets were $49.8 billion and $54.2
allowance is held against these receivables. To manage its billion at December 31, 2019 and 2018, respectively.
credit risk the Firm establishes margin requirements and Derivative receivables represent the fair value of the
monitors the required margin levels on an ongoing basis, derivative contracts after giving effect to legally enforceable
and requires clients to deposit additional cash or other master netting agreements and cash collateral held by the
collateral, or to reduce positions, when appropriate. These Firm. However, in management’s view, the appropriate
receivables are reported within accrued interest and measure of current credit risk should also take into
accounts receivable on the Firm’s Consolidated balance consideration additional liquid securities (primarily U.S.
sheets. government and agency securities and other group of seven
nations (“G7”) government securities) and other cash
Clearing services collateral held by the Firm aggregating $16.0 billion and
The Firm provides clearing services for clients entering into $15.3 billion at December 31, 2019 and 2018,
certain securities and derivative contracts. Through the respectively, that may be used as security when the fair
provision of these services the Firm is exposed to the risk of value of the client’s exposure is in the Firm’s favor.
non-performance by its clients and may be required to The Firm also holds additional collateral (primarily cash, G7
share in losses incurred by CCPs. Where possible, the Firm government securities, other liquid government agency and
seeks to mitigate its credit risk to its clients through the guaranteed securities, and corporate debt and equity
collection of adequate margin at inception and throughout securities) delivered by clients at the initiation of
the life of the transactions and can also cease the provision transactions, as well as collateral related to contracts that
of clearing services if clients do not adhere to their have a non-daily call frequency and collateral that the Firm
obligations under the clearing agreement. Refer to Note 28 has agreed to return but has not yet settled as of the
for a further discussion of clearing services. reporting date. Although this collateral does not reduce the
balances and is not included in the table above, it is
Derivative contracts available as security against potential exposure that could
Derivatives enable clients and counterparties to manage arise should the fair value of the client’s derivative contracts
risks including credit risk and risks arising from fluctuations move in the Firm’s favor. The derivative receivables fair
in interest rates, foreign exchange, equities, and value, net of all collateral, also does not include other credit
commodities. The Firm makes markets in derivatives in enhancements, such as letters of credit. Refer to Note 5 for
order to meet these needs and uses derivatives to manage additional information on the Firm’s use of collateral
certain risks associated with net open risk positions from its agreements.
market-making activities, including the counterparty credit While useful as a current view of credit exposure, the net
risk arising from derivative receivables. The Firm also uses fair value of the derivative receivables does not capture the
derivative instruments to manage its own credit and other potential future variability of that credit exposure. To
market risk exposure. The nature of the counterparty and capture the potential future variability of credit exposure,
the settlement mechanism of the derivative affect the credit the Firm calculates, on a client-by-client basis, three
risk to which the Firm is exposed. For OTC derivatives the measures of potential derivatives-related credit loss: Peak,
Firm is exposed to the credit risk of the derivative Derivative Risk Equivalent (“DRE”), and Average exposure
(“AVG”). These measures all incorporate netting and exposure to a counterparty (AVG) and the counterparty’s
collateral benefits, where applicable. credit quality. Many factors may influence the nature and
Peak represents a conservative measure of potential magnitude of these correlations over time. To the extent
that these correlations are identified, the Firm may adjust
exposure to a counterparty calculated in a manner that is
the CVA associated with that counterparty’s AVG. The Firm
broadly equivalent to a 97.5% confidence level over the life
risk manages exposure to changes in CVA by entering into
of the transaction. Peak is the primary measure used by the
credit derivative contracts, as well as interest rate, foreign
Firm for setting credit limits for derivative contracts, senior exchange, equity and commodity derivative contracts.
management reporting and derivatives exposure
management. The below graph shows exposure profiles to the Firm’s
current derivatives portfolio over the next 10 years as
DRE exposure is a measure that expresses the risk of calculated by the Peak, DRE and AVG metrics. The three
derivative exposure on a basis intended to be equivalent to measures generally show that exposure will decline after
the risk of loan exposures. DRE is a less extreme measure of the first year, if no new trades are added to the portfolio.
potential credit loss than Peak and is used as an input for
aggregating derivative credit risk exposures with loans and Exposure profile of derivatives measures
December 31, 2019
other credit risk. (in billions)
Finally, AVG is a measure of the expected fair value of the
Firm’s derivative receivables at future time periods,
including the benefit of collateral. AVG over the total life of
the derivative contract is used as the primary metric for
pricing purposes and is used to calculate credit risk capital
and CVA, as further described below.
The fair value of the Firm’s derivative receivables
incorporates CVA to reflect the credit quality of
counterparties. CVA is based on the Firm’s AVG to a
counterparty and the counterparty’s credit spread in the
credit derivatives market. The Firm believes that active risk
management is essential to controlling the dynamic credit
risk in the derivatives portfolio. In addition, the Firm’s risk
management process takes into consideration the potential
impact of wrong-way risk, which is broadly defined as the
potential for increased correlation between the Firm’s
The following table summarizes the ratings profile of the Firm’s derivative receivables, including credit derivatives, net of all
collateral, at the dates indicated. The Firm considers internal ratings equivalent to BBB-/Baa3 or higher as investment grade.
Refer to Note 12 for further information on internal risk ratings.
Ratings profile of derivative receivables

Internal rating equivalent 2019 2018
December 31, Exposure net of % of exposure net Exposure net of % of exposure net
(in millions, except ratios) all collateral of all collateral all collateral of all collateral
AAA/Aaa to AA-/Aa3 $ 8,347 25% $ 11,831 31%
A+/A1 to A-/A3 5,471 16 7,428 19
BBB+/Baa1 to BBB-/Baa3 13,148 39 12,536 32
BB+/Ba1 to B-/B3 6,225 18 6,373 16
CCC+/Caa1 and below 566 2 723 2
Total $ 33,757 100% $ 38,891 100%
As previously noted, the Firm uses collateral agreements to

mitigate counterparty credit risk. The percentage of the
Firm’s over-the-counter 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
90% at both December 31, 2019 and 2018.

Credit derivatives Credit derivatives used in credit portfolio management
The Firm uses credit derivatives for two primary purposes: activities
first, in its capacity as a market-maker, and second, as an Notional amount of
end-user, to manage the Firm’s own credit risk associated protection
purchased and sold (a)
with various exposures.
December 31, (in millions) 2019 2018
Credit portfolio management activities Credit derivatives used to manage:
Included in the Firm’s end-user activities are credit Loans and lending-related commitments $ 2,047 $ 1,272
derivatives used to mitigate the credit risk associated with Derivative receivables 15,983 11,410
traditional lending activities (loans and unfunded Credit derivatives used in credit portfolio
commitments) and derivatives counterparty exposure in the management activities $ 18,030 $ 12,682
Firm’s wholesale businesses (collectively, “credit portfolio (a) Amounts are presented net, considering the Firm’s net protection
management” activities). Information on credit portfolio purchased or sold with respect to each underlying reference entity or
management activities is provided in the table below. index.
The Firm also uses credit derivatives as an end-user to The credit derivatives used in credit portfolio management
manage other exposures, including credit risk arising from activities do not qualify for hedge accounting under U.S.
certain securities held in the Firm’s market-making GAAP; these derivatives are reported at fair value, with
businesses. These credit derivatives are not included in gains and losses recognized in principal transactions
credit portfolio management activities. revenue. In contrast, the loans and lending-related
commitments being risk-managed are accounted for on an
accrual basis. This asymmetry in accounting treatment,
between loans and lending-related commitments and the
credit derivatives used in credit portfolio management
activities, causes earnings volatility that is not
representative, in the Firm’s view, of the true changes in
value of the Firm’s overall credit exposure.
The effectiveness of credit default swaps (“CDS”) as a hedge
against the Firm’s exposures may vary depending on a
number of factors, including the named reference entity
(i.e., the Firm may experience losses on specific exposures
that are different than the named reference entities in the
purchased CDS); the contractual terms of the CDS (which
may have a defined credit event that does not align with an
actual loss realized by the Firm); and the maturity of the
Firm’s CDS protection (which in some cases may be shorter
than the Firm’s exposures). However, the Firm generally
seeks to purchase credit protection with a maturity date
that is the same or similar to the maturity date of the
exposure for which the protection was purchased, and
remaining differences in maturity are actively monitored
and managed by the Firm. Refer to Credit derivatives in
Note 5 for a detailed description of credit derivatives.

ALLOWANCE FOR CREDIT LOSSES

The Firm’s allowance for credit losses covers the retained The allowance for credit losses decreased compared with
consumer and wholesale loan portfolios, as well as the December 31, 2018 driven by:
Firm’s wholesale and certain consumer lending-related • an $800 million reduction in the CCB allowance for loan
commitments. losses, which included $650 million in the PCI residential
Refer to Critical Accounting Estimates Used by the Firm on real estate portfolio, reflecting continued improvement in
pages 136–138 and Note 13 for further information on the home prices and delinquencies; $100 million in the non
components of the allowance for credit losses and related credit-impaired residential real estate portfolio; and $50
management judgments. million in the business banking portfolio; as well as
• a $151 million reduction for write-offs of PCI loans,
At least quarterly, the allowance for credit losses is
reviewed by the CRO, the CFO and the Controller of the predominantly offset by
Firm. As of December 31, 2019, JPMorgan Chase deemed • a $500 million addition to the allowance for loan losses in
the allowance for credit losses to be appropriate and the credit card portfolio reflecting loan growth and
sufficient to absorb probable credit losses inherent in the higher loss rates as newer vintages season and become a
portfolio. larger part of the portfolio, and
• a $251 million addition in the wholesale allowance for
credit losses driven by select client downgrades.
Refer to Consumer Credit Portfolio on pages 103–107,
Wholesale Credit Portfolio on pages 108–115 and Note 12
for additional information on the consumer and wholesale
credit portfolios.

Summary of changes in the allowance for credit losses
2019 2018
Year ended December 31, Consumer, Consumer,
excluding excluding
(in millions, except ratios) credit card Credit card Wholesale Total credit card Credit card Wholesale Total
Beginning balance at January 1, $ 4,146 $ 5,184 $ 4,115 $ 13,445 $ 4,579 $ 4,884 $ 4,141 $ 13,604
Gross charge-offs 963 5,436 411 6,810 1,025 5,011 313 6,349
Gross recoveries (551) (588) (42) (1,181) (842) (493) (158) (1,493)
Net charge-offs 412 4,848 369 5,629 183 4,518 155 4,856
Write-offs of PCI loans(a) 151 — — 151 187 — — 187
Provision for loan losses (383) 5,348 484 5,449 (63) 4,818 130 4,885
Other (1) (1) 11 9 — — (1) (1)
Ending balance at December 31, $ 3,199 $ 5,683 $ 4,241 $ 13,123 $ 4,146 $ 5,184 $ 4,115 $ 13,445
Impairment methodology
Asset-specific(b) $ 136 $ 477 $ 234 $ 847 $ 196 $ 440 $ 297 $ 933
Formula-based 2,076 5,206 4,007 11,289 2,162 4,744 3,818 10,724
PCI 987 — — 987 1,788 — — 1,788
Total allowance for loan losses $ 3,199 $ 5,683 $ 4,241 $ 13,123 $ 4,146 $ 5,184 $ 4,115 $ 13,445
Allowance for lending-related commitments
Beginning balance at January 1, $ 33 $ — $ 1,022 $ 1,055 $ 33 $ — $ 1,035 $ 1,068
Provision for lending-related commitments — — 136 136 — — (14) (14)
Other — — — — — — 1 1
Ending balance at December 31, $ 33 $ — $ 1,158 $ 1,191 $ 33 $ — $ 1,022 $ 1,055
Impairment methodology
Asset-specific $ — $ — $ 102 $ 102 $ — $ — $ 99 $ 99
Formula-based 33 — 1,056 1,089 33 — 923 956
Total allowance for lending-related
commitments(c) $ 33 $ — $ 1,158 $ 1,191 $ 33 $ — $ 1,022 $ 1,055
Total allowance for credit losses $ 3,232 $ 5,683 $ 5,399 $ 14,314 $ 4,179 $ 5,184 $ 5,137 $ 14,500
Memo:
Retained loans, end of period $ 332,038 $ 168,924 $ 444,639 $ 945,601 $ 373,637 $ 156,616 $ 439,162 $ 969,415
Retained loans, average 349,724 156,319 435,876 941,919 374,395 145,606 416,828 936,829
PCI loans, end of period 20,363 — — 20,363 24,034 — 3 24,037
Credit ratios
Allowance for loan losses to retained loans 0.96% 3.36% 0.95% 1.39% 1.11% 3.31% 0.94% 1.39%
Allowance for loan losses to retained nonaccrual
loans(d) 102 NM 503 329 120 NM 358 292
loans excluding credit card 102 NM 503 187 120 NM 358 179
Net charge-off rates 0.12 3.10 0.08 0.60 0.05 3.10 0.04 0.52
Credit ratios, excluding residential real estate
PCI loans
Allowance for loan losses to
retained loans 0.71 3.36 0.95 1.31 0.67 3.31 0.94 1.23
Allowance for loan losses to retained
nonaccrual loans(d) 70 NM 503 305 68 NM 358 253
loans excluding credit card 70 NM 503 162 68 NM 358 140
Net charge-off rates 0.13% 3.10% 0.08% 0.61% 0.05% 3.10% 0.04% 0.53%
Note: In the table above, the financial measures which exclude the impact of PCI loans are non-GAAP financial measures.
(a) Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as
purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool.
(b) Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a TDR. The asset-specific credit card allowance
for loan losses modified in a TDR is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
(c) The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets.
(d) The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

INVESTMENT PORTFOLIO RISK MANAGEMENT

Investment portfolio risk is the risk associated with the loss Principal investment risk
of principal or a reduction in expected returns on Principal investments are typically private non-traded
investments arising from the investment securities portfolio financial instruments representing ownership or other
or from principal investments. The investment securities forms of junior capital. Principal investments span multiple
portfolio is predominantly held by Treasury and CIO in asset classes and are made either in stand-alone investing
connection with the Firm's balance sheet or asset-liability businesses or as part of a broader business platform. In
management objectives. Principal investments are general, new principal investments include tax-oriented
predominantly privately-held financial instruments and are investments, as well as investments made to enhance or
managed in the LOBs and Corporate. Investments are accelerate LOB and Corporate strategic business initiatives.
typically intended to be held over extended periods and, The Firm’s principal investments are managed by the LOBs
accordingly, the Firm has no expectation for short-term and Corporate and are reflected within their respective
realized gains with respect to these investments. financial results.
Investment securities risk As of December 31, 2019 and 2018, the aggregate
Investment securities risk includes the exposure associated carrying values of the principal investment portfolios were
with a default in the payment of principal and interest. This $24.2 billion and $22.2 billion, respectively, which included
risk is mitigated given that the investment securities tax-oriented investments (e.g., affordable housing and
portfolio held by Treasury and CIO is predominantly alternative energy investments) of $18.2 billion and $16.6
invested in high-quality securities. At December 31, 2019, billion, respectively, and private equity, various debt and
the Treasury and CIO investment securities portfolio was equity instruments, and real assets of $6.0 billion and $5.6
$396.4 billion, and the average credit rating of the billion, respectively.
securities comprising the portfolio was AA+ (based upon
Governance and oversight
external ratings where available and where not available,
The Firm’s approach to managing principal risk is consistent
based primarily upon internal risk ratings. Refer to
with the Firm’s risk governance structure. A Firmwide risk
Corporate segment results on pages 77–78 and Note 10 for
policy framework exists for all principal investing activities
further information on the investment securities portfolio
and includes approval by executives who are independent
and internal risk ratings. Refer to Market Risk Management
from the investing businesses, as appropriate.
on pages 119–126 for further information on the market
risk inherent in the portfolio. Refer to Liquidity Risk The Firm’s independent control functions are responsible
Management on pages 93–98 for further information on for reviewing the appropriateness of the carrying value of
related liquidity risk. investments in accordance with relevant policies. As part of
the risk governance structure, approved levels for
investments are established and monitored for each
Investment securities risks are governed by the Firm’s Risk
relevant business or segment in order to manage the overall
Appetite framework, and reviewed at the CTC Risk
size of the portfolios. The Firm also conducts stress testing
Committee with regular updates to the Board Risk
on these portfolios using specific scenarios that estimate
Committee.
losses based on significant market moves and/or other risk
The Firm’s independent control functions are responsible events.
for reviewing the appropriateness of the carrying value of
investment securities in accordance with relevant policies.
Approved levels for investment securities are established
for each risk category, including capital and credit risks.

MARKET RISK MANAGEMENT
Market risk is the risk associated with the effect of changes Risk monitoring and control
in market factors, such as interest and foreign exchange Market risk exposure is managed primarily through a series
rates, equity and commodity prices, credit spreads or of limits set in the context of the market environment and
implied volatilities, on the value of assets and liabilities held business strategy. In setting limits, Market Risk
for both the short and long term. Management takes into consideration factors such as
market volatility, product liquidity, accommodation of client
Market Risk Management
business, and management experience. Market Risk
Market Risk Management monitors market risks throughout
Management maintains different levels of limits. Firm level
the Firm and defines market risk policies and procedures.
limits include VaR and stress limits. Similarly, LOB and
Market Risk Management seeks to manage risk, facilitate Corporate limits include VaR and stress limits and may be
efficient risk/return decisions, reduce volatility in operating supplemented by certain nonstatistical risk measures such
performance and provide transparency into the Firm’s as profit and loss drawdowns. Limits may also be set within
market risk profile for senior management, the Board of the LOBs and Corporate, as well as at the legal entity level.
Directors and regulators. Market Risk Management is
Market Risk Management sets limits and regularly reviews
responsible for the following functions:
and updates them as appropriate. Senior management is
• Establishing a market risk policy framework responsible for reviewing and approving certain of these
• Independently measuring, monitoring and controlling risk limits on an ongoing basis. Limits that have not been
LOB, Corporate, and Firmwide market risk reviewed within specified time periods by Market Risk
• Defining, approving and monitoring of limits Management are escalated to senior management. The
LOBs and Corporate are responsible for adhering to
• Performing stress testing and qualitative risk assessments
established limits against which exposures are monitored
Risk measurement and reported.
Measures used to capture market risk Limit breaches are required to be reported in a timely
There is no single measure to capture market risk and manner to limit approvers, which include Market Risk
therefore Market Risk Management uses various metrics, Management and senior management. In the event of a
both statistical and nonstatistical, to assess risk including: breach, Market Risk Management consults with appropriate
• Value-at-risk (VaR) members of the Firm to determine the suitable course of
• Stress testing action required to return the applicable positions to
compliance, which may include a reduction in risk in order
• Profit and loss drawdowns
to remedy the breach or granting a temporary increase in
• Earnings-at-risk limits to accommodate an expected increase in client
• Other sensitivity-based measures activity and/or market volatility. Certain Firm, Corporate or
LOB-level limit breaches are escalated as appropriate.

The following table summarizes the predominant business activities and related market risks, as well as positions which give
rise to market risk and certain measures used to capture those risks, for each LOB and Corporate.
In addition to the predominant business activities, each LOB and Corporate may engage in principal investing activities. To the
extent principal investments are deemed market risk sensitive, they are reflected in relevant risk measures (i.e., VaR or Other
sensitivity-based measures) and captured in the table below. Refer to Investment Portfolio Risk Management on page 118 for
additional discussion on principal investments.
LOBs and Predominant business Related market risks Positions included in Risk Positions included in Positions included in other
Corporate activities Management VaR earnings-at-risk sensitivity-based measures
CCB • Services mortgage • Risk from changes in the • Mortgage commitments, • Retained loan portfolio
loans probability of newly classified as derivatives • Deposits
• Originates loans and originated mortgage • Warehouse loans, classified
takes deposits commitments closing as trading assets – debt
• Interest rate risk and instruments
prepayment risk
• MSRs
• Hedges of mortgage
commitments, warehouse
loans and MSRs, classified
as derivatives
• Interest-only securities,
classified as trading assets
debt instruments, and
related hedges, classified as
derivatives
• Fair value option elected
liabilities
CIB • Makes markets and • Risk of loss from adverse • Trading assets/liabilities – • Retained loan portfolio • Privately held equity and
services clients across movements in market debt and marketable equity • Deposits other investments
fixed income, foreign prices and implied instruments, and measured at fair value
exchange, equities and volatilities across interest derivatives, including • Derivatives FVA and fair
commodities rate, foreign exchange, hedges of the retained loan value option elected
• Originates loans and credit, commodity and portfolio liabilities DVA
takes deposits equity instruments • Certain securities
• Basis and correlation risk purchased, loaned or sold
from changes in the way under resale agreements
asset values move and securities borrowed
relative to one another • Fair value option elected
• Interest rate risk and liabilities
prepayment risk • Derivative CVA and
associated hedges
• Marketable equity
investments
CB • Originates loans and • Interest rate risk and • Marketable equity • Retained loan portfolio
takes deposits prepayment risk investments(a) • Deposits
AWM • Provides initial capital • Risk from adverse • Debt securities held in • Retained loan portfolio • Initial seed capital
investments in movements in market advance of distribution to • Deposits investments and related
products such as factors (e.g., rates and clients, classified as trading hedges, classified as
mutual funds and credit spreads) assets - debt instruments(a) derivatives
capital invested • Interest rate risk and • Capital invested alongside
alongside third-party prepayment risk third-party investors,
investors typically in privately
• Originates loans and distributed collective
takes deposits vehicles managed by AWM
(i.e., co-investments)
Corporate • Manages the Firm’s • Structural interest rate • Derivative positions • Deposits with banks • Privately held equity and
liquidity, funding, risk from the Firm’s measured at fair value • Investment securities other investments
capital, structural traditional banking through noninterest portfolio and related measured at fair value
interest rate and activities revenue in earnings interest rate hedges • Foreign exchange exposure
foreign exchange risks • Structural non-USD • Marketable equity related to Firm-issued non-
• Long-term debt and
foreign exchange risks investments related interest rate USD long-term debt (“LTD”)
hedges and related hedges
(a) The AWM and CB contributions to Firmwide average VaR were not material for the year ended December 31, 2019 and 2018.

Value-at-risk
JPMorgan Chase utilizes VaR, a statistical risk measure, to As VaR is based on historical data, it is an imperfect
estimate the potential loss from adverse market moves in measure of market risk exposure and potential future
the current market environment. The Firm has a single VaR losses. In addition, based on their reliance on available
framework used as a basis for calculating Risk Management historical data, limited time horizons, and other factors, VaR
VaR and Regulatory VaR. measures are inherently limited in their ability to measure
The framework is employed across the Firm using historical certain risks and to predict losses, particularly those
simulation based on data for the previous 12 months. The associated with market illiquidity and sudden or severe
framework’s approach assumes that historical changes in shifts in market conditions.
market values are representative of the distribution of For certain products, specific risk parameters are not
potential outcomes in the immediate future. The Firm captured in VaR due to the lack of inherent liquidity and
believes the use of Risk Management VaR provides a daily availability of appropriate historical data. The Firm uses
measure of risk that is closely aligned to risk management proxies to estimate the VaR for these and other products
decisions made by the LOBs and Corporate and, along with when daily time series are not available. It is likely that
other market risk measures, provides the appropriate using an actual price-based time series for these products,
information needed to respond to risk events. if available, would affect the VaR results presented. The
The Firm’s Risk Management VaR is calculated assuming a Firm therefore considers other nonstatistical measures such
one-day holding period and an expected tail-loss as stress testing, in addition to VaR, to capture and manage
methodology which approximates a 95% confidence level. its market risk positions.
Risk Management VaR provides a consistent framework to The daily market data used in VaR models may be different
measure risk profiles and levels of diversification across than the independent third-party data collected for VCG
product types and is used for aggregating risks and price testing in its monthly valuation process. For example,
monitoring limits across businesses. VaR results are in cases where market prices are not observable, or where
reported to senior management, the Board of Directors and proxies are used in VaR historical time series, the data
regulators. sources may differ. Refer to Valuation process in Note 2 for
further information on the Firm’s valuation process. As VaR
Under the Firm’s Risk Management VaR methodology,
model calculations require daily data and a consistent
assuming current changes in market values are consistent
source for valuation, it may not be practical to use the data
with the historical changes used in the simulation, the Firm
collected in the VCG monthly valuation process for VaR
would expect to incur VaR “back-testing exceptions,”
model calculations.
defined as losses greater than that predicted by VaR
estimates, an average of five times every 100 trading days. The Firm’s VaR model calculations are periodically
The number of VaR back-testing exceptions observed can evaluated and enhanced in response to changes in the
differ from the statistically expected number of back-testing composition of the Firm’s portfolios, changes in market
exceptions if the current level of market volatility is conditions, improvements in the Firm’s modeling techniques
materially different from the level of market volatility and measurements, and other factors. Such changes may
during the 12 months of historical data used in the VaR affect historical comparisons of VaR results. Refer to
calculation. Estimations and Model Risk Management on page 135 for
information regarding model reviews and approvals.
Underlying the overall VaR model framework are individual
VaR models that simulate historical market returns for The Firm calculates separately a daily aggregated VaR in
individual risk factors and/or product types. To capture accordance with regulatory rules (“Regulatory VaR”), which
material market risks as part of the Firm’s risk management is used to derive the Firm’s regulatory VaR-based capital
framework, comprehensive VaR model calculations are requirements under Basel III. This Regulatory VaR model
performed daily for businesses whose activities give rise to framework currently assumes a ten business-day holding
market risk. These VaR models are granular and incorporate period and an expected tail loss methodology which
numerous risk factors and inputs to simulate daily changes approximates a 99% confidence level. Regulatory VaR is
in market values over the historical period; inputs are applied to “covered” positions as defined by Basel III, which
selected based on the risk profile of each portfolio, as may be different than the positions included in the Firm’s
sensitivities and historical time series used to generate daily Risk Management VaR. For example, credit derivative
market values may be different across product types or risk hedges of accrual loans are included in the Firm’s Risk
management systems. The VaR model results across all Management VaR, while Regulatory VaR excludes these
portfolios are aggregated at the Firm level. credit derivative hedges. In addition, in contrast to the
Firm’s Risk Management VaR, Regulatory VaR currently
excludes the diversification benefit for certain VaR models.

Refer to JPMorgan Chase’s Basel III Pillar 3 Regulatory VaR and the other components of market risk regulatory
Capital Disclosures reports, which are available on the capital for the Firm (e.g., VaR-based measure, stressed VaR-
Firm’s website, for additional information on Regulatory based measure and the respective backtesting).
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
As of or for the year ended December 31, 2019 2018
(in millions) Avg. Min Max Avg. Min Max
CIB trading VaR by risk type
Fixed income $ 40 $ 31 $ 50 $ 33 $ 25 $ 46
Foreign exchange 7 4 15 6 3 15
Equities 20 13 31 17 13 26
Commodities and other 8 6 12 8 4 13
Diversification benefit to CIB trading VaR (33) (a)
NM (b)
NM (b)
(26) (a)
NM (b)
NM (b)
(b) (b) (b) (b)

CIB trading VaR 42 29 61 38 26 58
Credit portfolio VaR 5 3 7 3 3 4
(a) (b) (b) (a) (b) (b)
Diversification benefit to CIB VaR (5) NM NM (2) NM NM
(b) (b) (b) (b)
CIB VaR 42 29 63 39 26 59
CCB VaR 5 1 11 1 — 3
Corporate and other LOB VaR 10 9 13 12 9 14
(a) (b) (b) (a) (b) (b)
Diversification benefit to other VaR (4) NM NM (1) NM NM
(b) (b) (b) (b)
Other VaR 11 8 17 12 9 14
(a) (b) (b) (a) (b) (b)
Diversification benefit to CIB and other VaR (10) NM NM (10) NM NM
Total VaR $ 43 $ 30 (b)
$ 65 (b)
$ 41 $ 28 (b)
$ 62 (b)
(a) Average portfolio VaR is less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification
effect reflects that the risks are not perfectly correlated.
(b) Diversification benefit represents the difference between the total VaR and each reported level and the sum of its individual components. Diversification
benefit reflects the non-additive nature of VaR due to imperfect correlation across LOBs, Corporate, and risk types. The maximum and minimum VaR for
each portfolio may have occurred on different trading days than the components and consequently diversification benefit is not meaningful.
Average Total VaR increased $2 million for the year-ended VaR back-testing
December 31, 2019 as compared with the prior year. This The Firm performs daily VaR model back-testing, which
was predominantly due to increased exposure in the Fixed compares the daily Risk Management VaR results with the
Income risk type, increases in the Equities risk type driven daily gains and losses actually recognized on market-risk
by the inclusion of Tradeweb following its IPO in the second related revenue.
quarter of 2019, and increased volatility in the one-year
historical look-back period, partially offset by increases in The Firm’s definition, of market risk-related gains and losses
diversification benefit. is consistent with the definition used by the banking
regulators under Basel III. Under this definition, market
In addition, average CCB VaR increased by $4 million, driven risk-related gains and losses are defined as: gains and
by MSR risk management activities. losses on the positions included in the Firm’s Risk
Management VaR excluding select components of revenue
such as fees, commissions, certain valuation adjustments,
net interest income, and gains and losses arising from
intraday trading.

The following chart compares actual daily market risk-related gains and losses with the Firm’s Risk Management VaR for the
year ended December 31, 2019. As the chart presents market risk-related gains and losses related to those positions included
in the Firm’s Risk Management VaR, the results in the table below differ from the results of back-testing 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. For the year ended December 31, 2019 the Firm observed eight VaR back-testing exceptions and
posted market risk-related gains on 141 of the 259 days.
Daily Market Risk-Related Gains and Losses

vs. Risk Management VaR (1-day, 95% Confidence level)
Year ended December 31, 2019
Market Risk-Related Gains and Losses Risk Management VaR
First Quarter Second Quarter Third Quarter Fourth Quarter

2019 2019 2019 2019

Other risk measures

Stress testing Earnings-at-risk
Along with VaR, stress testing is an important tool used to The effect of interest rate exposure on the Firm’s reported
assess risk. While VaR reflects the risk of loss due to net income is important as interest rate risk represents one
adverse changes in markets using recent historical market of the Firm’s significant market risks. Interest rate risk
behavior, stress testing reflects the risk of loss from arises not only from trading activities but also from the
hypothetical changes in the value of market risk sensitive Firm’s traditional banking activities, which include extension
positions applied simultaneously. Stress testing measures of loans and credit facilities, taking deposits and issuing
the Firm’s vulnerability to losses under a range of stressed debt as well as from the investment securities portfolio.
but possible economic and market scenarios. The results Refer to the table on page 120 for a summary by LOB and
are used to understand the exposures responsible for those Corporate, identifying positions included in earnings-at-risk.
potential losses and are measured against limits.
The CTC Risk Committee establishes the Firm’s structural
The Firm’s stress framework covers Corporate and all LOBs interest rate risk policy and related limits, which are subject
with market risk sensitive positions. The framework is used to approval by the Board Risk Committee. Treasury and CIO,
to calculate multiple magnitudes of potential stress for both working in partnership with the LOBs, calculates the Firm’s
market rallies and market sell-offs, assuming significant structural interest rate risk profile and reviews it with senior
changes in market factors such as credit spreads, equity management, including the CTC Risk Committee. In addition,
prices, interest rates, currency rates and commodity prices, oversight of structural interest rate risk is managed through
and combines them in multiple ways to capture an array of a dedicated risk function reporting to the CTC. This risk
hypothetical economic and market scenarios. function is responsible for providing independent oversight
and governance around assumptions and establishing and
The Firm generates a number of scenarios that focus on tail
monitoring limits for structural interest rate risk. The Firm
events in specific asset classes and geographies, including
manages structural interest rate risk generally through its
how the event may impact multiple market factors
investment securities portfolio and interest rate derivatives.
simultaneously. Scenarios also incorporate specific
idiosyncratic risks and stress basis risk between different Structural interest rate risk can occur due to a variety of
products. The flexibility in the stress framework allows the factors, including:
Firm to construct new scenarios that can test the outcomes
• Differences in timing among the maturity or repricing of
against possible future stress events. Stress testing results
assets, liabilities and off-balance sheet instruments
are reported on a regular basis to senior management of
the Firm, as appropriate. • Differences in the amounts of assets, liabilities and off-
balance sheet instruments that are maturing or repricing
Stress scenarios are governed by an overall stress at the same time
framework and are subject to the standards outlined in the
Firm’s policies related to model risk management. • Differences in the amounts by which short-term and long-
Significant changes to the framework are reviewed as term market interest rates change (for example, changes
appropriate. in the slope of the yield curve)
• The impact of changes in the maturity of various assets,
The Firm’s stress testing framework is utilized in calculating
liabilities or off-balance sheet instruments as interest
the Firm’s CCAR and other stress test results, which are
rates change
reported to the Board of Directors. In addition, stress
testing results are incorporated into the Firm’s Risk Appetite The Firm manages interest rate exposure related to its
framework, and are reported periodically to the Board Risk assets and liabilities on a consolidated, Firmwide basis.
Committee. Business units transfer their interest rate risk to Treasury
and CIO through funds transfer pricing, which takes into
Profit and loss drawdowns
account the elements of interest rate exposure that can be
Profit and loss drawdowns are used to highlight trading
risk-managed in financial markets. These elements include
losses above certain levels of risk tolerance. A profit and
asset and liability balances and contractual rates of interest,
loss drawdown is a decline in revenue from its year-to-date
contractual principal payment schedules, expected
peak level.
prepayment experience, interest rate reset dates and
maturities, rate indices used for repricing, and any interest
rate ceilings or floors for adjustable rate products. All
transfer-pricing assumptions are dynamically reviewed.

One way the Firm evaluates its structural interest rate risk is The Firm’s U.S. dollar sensitivities are presented in the table
through earnings-at-risk. Earnings-at-risk estimates the below.
Firm’s interest rate exposure for a given interest rate
scenario. It is presented as a sensitivity to a baseline, which December 31,
(in billions) 2019 2018
includes net interest income and certain interest rate
Parallel shift:
sensitive fees. The baseline uses market interest rates and
+100 bps shift in rates $ 0.3 $ 0.9
in the case of deposits, pricing assumptions. The Firm
conducts simulations of changes to this baseline for interest -100 bps shift in rates (2.0) (2.1)
rate-sensitive assets and liabilities denominated in U.S. Steeper yield curve:
dollars and other currencies (“non-U.S. dollar” currencies). +100 bps shift in long-term rates 1.2 0.5
These simulations primarily include retained loans, -100 bps shift in short-term rates (0.2) (1.2)
deposits, deposits with banks, investment securities, long- Flatter yield curve:
term debt and any related interest rate hedges, and exclude +100 bps shift in short-term rates (0.9) 0.4
other positions in risk management VaR and other -100 bps shift in long-term rates (1.8) (0.9)
sensitivity-based measures as described on page 120.
The change in the Firm’s U.S. dollar sensitivities as of
Earnings-at-risk scenarios estimate the potential change to December 31, 2019 compared to December 31, 2018
a net interest income baseline, over the following 12 reflected updates to the Firm’s baseline for lower short-
months, utilizing multiple assumptions. These scenarios term and long-term rates as well as the impact of changes
include a parallel shift involving changes to both short-term in the Firm’s balance sheet. The Firm’s sensitivity to short-
and long-term rates by an equal amount; a steeper yield term rates reflected updates to the Firm’s baseline for lower
curve involving holding short-term rates constant and rates but changes in the Firm’s balance sheet more than
increasing long-term rates or decreasing short-term rates offset the impacts of the lower rates. The Firm’s sensitivity
and holding long-term rates constant; and a flatter yield to long-term rates increased as a result of updates to the
curve involving increasing short-term rates and holding Firm’s baseline to reflect lower rates in addition to changes
long-term rates constant or holding short-term rates in the Firm’s balance sheet. The increased sensitivity to
constant and decreasing long-term rates. These scenarios long-term rates is more impactful to the downward scenario
consider many different factors, including: due to the Firm’s sensitivity to mortgage prepayments.
• The impact on exposures as a result of instantaneous The Firm’s non-U.S. dollar sensitivities are presented in the
changes in interest rates from baseline rates. table below.
• Forecasted balance sheet, as well as modeled
December 31,
prepayment and reinvestment behavior, but do not (in billions) 2019 2018
include assumptions about actions that could be taken by Parallel shift:
the Firm in response to any such instantaneous rate +100 bps shift in rates $ 0.5 $ 0.5
changes. Mortgage prepayment assumptions are based
Flatter yield curve:
on the interest rates used in the scenarios compared with
+100 bps shift in short-term rates 0.5 0.5
underlying contractual rates, the time since origination,
and other factors which are updated periodically based The results of the non-U.S. dollar interest rate scenario
on historical experience. involving a steeper yield curve with long-term rates rising
• The pricing sensitivity of deposits, using normalized by 100 basis points and short-term rates staying at current
deposit betas which represent the amount by which levels were not material to the Firm’s earnings-at-risk at
deposit rates paid could change upon a given change in December 31, 2019 and 2018.
market interest rates over the cycle. The deposit rates
paid in these scenarios differ from actual deposit rates
paid, particularly for retail deposits, due to repricing lags
and other factors.
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. 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 the
2020 Outlook on page 45 for additional information).

Non-U.S. dollar foreign exchange risk
Non-U.S. dollar FX risk is the risk that changes in foreign portfolio and non-U.S. dollar-denominated debt issuance.
exchange rates affect the value of the Firm’s assets or Treasury and CIO, working in partnership with the LOBs,
liabilities or future results. The Firm has structural non-U.S. primarily manage these risks on behalf of the
dollar FX exposures arising from capital investments, Firm. Treasury and CIO may hedge certain of these risks
forecasted expense and revenue, the investment securities using derivatives.
Other sensitivity-based measures
The Firm quantifies the market risk of certain investment and funding activities by assessing the potential impact on net
revenue and other comprehensive income (“OCI”) due to changes in relevant market variables. Refer to the table Predominant
business activities that give rise to market risk on page 120 for additional information on the positions captured in other
sensitivity-based measures.
The table below represents the potential impact to net revenue or OCI for market risk sensitive instruments that are not
included in VaR or earnings-at-risk. Where appropriate, instruments used for hedging purposes are reported along with 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 December 31, 2019 and 2018, 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)
Activity Description Sensitivity measure 2019 2018
Investment activities(a)
Investment management activities Consists of seed capital and related hedges; 10% decline in market $ (68) $ (102)
and fund co-investments value
Other investments Consists of privately held equity and other 10% decline in market (192) (218)
investments held at fair value value
Funding activities
Non-USD LTD cross-currency basis Represents the basis risk on derivatives 1 basis point parallel (17) (13)
used to hedge the foreign exchange risk on tightening of cross currency
the non-USD LTD(b) basis
Non-USD LTD hedges foreign currency Primarily represents the foreign exchange 10% depreciation of 15 17
(“FX”) exposure revaluation on the fair value of the currency
derivative hedges(b)
Derivatives – funding spread risk Impact of changes in the spread related to 1 basis point parallel (5) (4)
derivatives FVA increase in spread
Fair value option elected liabilities – Impact of changes in the spread related to 1 basis point parallel 29 30
funding spread risk fair value option elected liabilities DVA(b) increase in spread
Fair value option elected liabilities – Interest rate sensitivity on fair value option 1 basis point parallel (2) 1
interest rate sensitivity liabilities resulting from a change in the increase in spread
Firm’s own credit spread(b)
(a) Excludes equity securities without readily determinable fair values that are measured under the measurement alternative. Refer to Note 2 for additional
information.
(b) Impact recognized through OCI.

COUNTRY RISK MANAGEMENT
The Firm, through its LOBs and Corporate, may be exposed Under the Firm’s internal country risk measurement
to country risk resulting from financial, economic, political framework:
or other significant developments which adversely affect • Lending exposures are measured at the total committed
the value of the Firm’s exposures related to a particular amount (funded and unfunded), net of the allowance for
country or set of countries. The Country Risk Management credit losses and eligible cash and marketable securities
group actively monitors the various portfolios which may be collateral received
impacted by these developments and measures the extent • Deposits are measured as the cash balances placed with
to which the Firm’s exposures are diversified given the central and commercial banks
Firm’s strategy and risk tolerance relative to a country.
• Securities financing exposures are measured at their
Organization and management receivable balance, net of eligible collateral received
Country Risk Management is an independent risk • Debt and equity securities are measured at the fair value
management function that assesses, manages and monitors of all positions, including both long and short positions
country risk originated across the Firm. • Counterparty exposure on derivative receivables is
The Firm’s country risk management function includes the measured at the derivative’s fair value, net of the fair
following activities: value of the eligible collateral received
• Establishing policies, procedures and standards • Credit derivatives protection purchased and sold is
consistent with a comprehensive country risk framework reported based on the underlying reference entity and is
measured at the notional amount of protection
• Assigning sovereign ratings, assessing country risks and purchased or sold, net of the fair value of the recognized
establishing risk tolerance relative to a country derivative receivable or payable. Credit derivatives
• Measuring and monitoring country risk exposure and protection purchased and sold in the Firm’s market-
stress across the Firm making activities is measured on a net basis, as such
• Managing and approving country limits and reporting activities often result in selling and purchasing
protection related to the same underlying reference
trends and limit breaches to senior management
entity; this reflects the manner in which the Firm
• Developing surveillance tools, such as signaling models manages these exposures
and ratings indicators, for early identification of
potential country risk concerns Some activities may create contingent or indirect exposure
related to a country (for example, providing clearing
• Providing country risk scenario analysis services or secondary exposure to collateral on securities
Sources and measurement financing receivables). These exposures are managed in the
The Firm is exposed to country risk through its lending and normal course of business through the Firm’s credit,
deposits, investing, and market-making activities, whether market, and operational risk governance, rather than
cross-border or locally funded. Country exposure includes through Country Risk Management.
activity with both government and private-sector entities in The Firm’s internal country risk reporting differs from the
a country. Under the Firm’s internal country risk reporting provided under the FFIEC bank regulatory
management approach, attribution of exposure to a specific requirements. Refer to Cross-border outstandings on page
country is based on the country where the largest 306 of the 2019 Form 10-K for further information on the
proportion of the assets of the counterparty, issuer, obligor FFIEC’s reporting methodology.
or guarantor are located or where the largest proportion of
its revenue is derived, which may be different than the
domicile (i.e. legal residence) or country of incorporation of
the counterparty, issuer, obligor or guarantor. Country
exposures are generally measured by considering the Firm’s
risk to an immediate default of the counterparty, issuer,
obligor or guarantor, with zero recovery. Assumptions are
sometimes required in determining the measurement and
allocation of country exposure, particularly in the case of
certain non-linear or index exposures. The use of different
measurement approaches or assumptions could affect the
amount of reported country exposure.

Stress testing Top 20 country exposures (excluding the U.S.)(a)

Stress testing is an important component of the Firm’s
country risk management framework, which aims to December 31,
(in billions) 2019 2018(e)
estimate and limit losses arising from a country crisis by
measuring the impact of adverse asset price movements to Lending
a country based on market shocks combined with and Trading and Total Total
deposits(b) investing(c) Other(d) exposure exposure
counterparty specific assumptions. Country Risk
Germany $ 45.8 $ 5.4 $ 0.4 $ 51.6 $ 62.1
Management periodically designs and runs tailored stress
scenarios to test vulnerabilities to individual countries or Japan 35.5 8.0 0.3 43.8 29.1
sets of countries in response to specific or potential market United Kingdom 31.0 9.9 1.5 42.4 40.7
events, sector performance concerns, sovereign actions and China 11.3 6.5 1.4 19.2 19.3
geopolitical risks. These tailored stress results are used to Switzerland 10.9 0.8 6.6 18.3 12.8
inform potential risk reduction across the Firm, as France 10.7 6.5 0.9 18.1 17.9
necessary.
Canada 12.0 1.1 0.1 13.2 14.3
Risk reporting Luxembourg 12.1 0.8 — 12.9 11.0
Country exposure and stress are measured and reported Australia 6.9 4.8 — 11.7 13.0
regularly, and used by Country Risk Management to identify
India 4.6 3.6 3.1 11.3 11.8
trends, and monitor high usages and breaches against
limits. Netherlands 4.4 0.8 3.8 9.0 5.8
Brazil 4.8 2.4 — 7.2 7.3
For country risk management purposes, the Firm may
report exposure to jurisdictions that are not fully Singapore 4.3 1.6 0.9 6.8 6.8
autonomous, including Special Administrative Regions Italy 2.4 4.2 0.2 6.8 6.4
(“SAR”) and dependent territories, separately from the South Korea 4.5 1.8 0.1 6.4 7.6
independent sovereign states with which they are Spain 3.2 2.6 — 5.8 5.1
associated.
Saudi Arabia 4.7 0.5 — 5.2 5.3
The following table presents the Firm’s top 20 exposures by Hong Kong SAR 2.6 1.7 0.8 5.1 5.4
country (excluding the U.S.) as of December 31, 2019, and Mexico 3.9 0.8 — 4.7 5.5
their comparative exposures as of December 31, 2018. The
Malaysia 1.8 0.8 0.8 3.4 4.3
selection of countries represents the Firm’s largest total
exposures by country, based on the Firm’s internal country (a) Top 20 country exposures reflect approximately 88% and 87% of
total Firmwide non-U.S. exposure, where exposure is attributed to a
risk management approach, and does not represent the specific country, at December 31, 2019 and 2018, respectively.
Firm’s view of any actual or potentially adverse credit (b) Lending and deposits includes loans and accrued interest receivable
conditions. (net of eligible collateral and the allowance for loan losses), deposits
with banks (including central banks), acceptances, other monetary
Country exposures may fluctuate from period to period due assets, issued letters of credit net of participations, and unused
to client activity and market flows. The increase in exposure commitments to extend credit. Excludes intra-day and operating
in Japan is largely due to increased cash balances placed exposures, such as those from settlement and clearing activities.
(c) Includes market-making inventory, AFS securities, and counterparty
with the central bank of Japan, driven by client activity. exposure on derivative and securities financings net of eligible
collateral 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.
(d) Predominantly includes physical commodity inventory.
(e) The country rankings presented in the table as of December 31, 2018,
are based on the country rankings of the corresponding exposures at
December 31, 2019, not actual rankings of such exposures at
December 31, 2018.

OPERATIONAL RISK MANAGEMENT
Operational risk is the risk associated with an adverse provides oversight of these activities and may also perform
outcome resulting from inadequate or failed internal independent assessments of significant operational risk
processes or systems; human factors; or external events events and areas of concentrated or emerging risk.
impacting the Firm’s processes or systems; it includes
Operational Risk Measurement
compliance, conduct, legal, and estimations and model risk.
CCOR Management performs independent risk assessments
Operational risk is inherent in the Firm’s activities and can
of the Firm’s operational risks, which includes assessing the
manifest itself in various ways, including fraudulent acts,
effectiveness of the control environment and reporting the
business interruptions, cybersecurity attacks, inappropriate
results to senior management.
employee behavior, failure to comply with applicable laws
and regulations or failure of vendors to perform in In addition, operational risk measurement includes
accordance with their agreements. Operational Risk operational risk-based capital and operational risk loss
Management attempts to manage operational risk at projections under both baseline and stressed conditions.
appropriate levels in light of the Firm’s financial position,
The primary component of the operational risk capital
the characteristics of its businesses, and the markets and
estimate is the Loss Distribution Approach (“LDA”)
regulatory environments in which it operates.
statistical model, which simulates the frequency and
Operational Risk Management Framework severity of future operational risk loss projections based on
The Firm’s Compliance, Conduct, and Operational Risk historical data. The LDA model is used to estimate an
(“CCOR”) Management Framework is designed to enable the aggregate operational risk loss over a one-year time
Firm to govern, identify, measure, monitor and test, horizon, at a 99.9% confidence level. The LDA model
manage and report on the Firm’s operational risk. incorporates actual internal operational risk losses in the
quarter following the period in which those losses were
Operational Risk Governance
realized, and the calculation generally continues to reflect
The LOBs and Corporate hold ownership, responsibility and
such losses even after the issues or business activities
accountability for the management of operational risk. The
giving rise to the losses have been remediated or reduced.
Control Management Organization, which consists of control
managers within each LOB and Corporate, is responsible for As required under the Basel III capital framework, the Firm’s
the day-to-day execution of the CCOR Framework and the operational risk-based capital methodology, which uses the
evaluation of the effectiveness of their control Advanced Measurement Approach (“AMA”), incorporates
environments to determine where targeted remediation internal and external losses as well as management’s view
efforts may be required. of tail risk captured through operational risk scenario
analysis, and evaluation of key business environment and
LOBs and Corporate control committees are responsible for
internal control metrics. The Firm does not reflect the
reviewing data that indicates the quality and stability of
impact of insurance in its AMA estimate of operational risk
processes, addressing key operational risk issues, focusing
capital.
on processes with control concerns, and overseeing control
remediation. The Firm considers the impact of stressed economic
conditions on operational risk losses and develops a
The Firm’s Global Chief Compliance Officer (“CCO”) and FRE
forward looking view of material operational risk events
for Operational Risk is responsible for defining the CCOR
that may occur in a stressed environment. The Firm’s
Management Framework and establishing minimum
operational risk stress testing framework is utilized in
standards for its execution. Operational Risk Officers
calculating results for the Firm’s CCAR and other stress
(“OROs”) report to both the LOB CROs and to the FRE for
testing processes.
Operational Risk, and are independent of the respective
businesses or functions they oversee. Refer to Capital Risk Management section, on pages 85–92
for information related to operational risk RWA, and CCAR.
The Firm’s CCOR Management policy establishes the CCOR
Management Framework for the Firm. The CCOR Operational Risk Monitoring and testing
Management Framework is articulated in the Risk The results of risk assessments performed by CCOR
Governance and Oversight Policy which is reviewed and Management are leveraged as one of the key criteria in the
approved by the Board Risk Committee periodically. independent monitoring and testing of the LOBs and
Corporate’s compliance with laws and regulation. Through
Operational Risk identification
monitoring and testing, CCOR Management independently
The Firm utilizes a structured risk and control self-
identifies areas of operational risk and tests the
assessment process that is executed by the LOBs and
effectiveness of controls within the LOBs and Corporate.
Corporate. As part of this process, the LOBs and Corporate
evaluate the effectiveness of their control environment to
assess where controls have failed, and to determine where
remediation efforts may be required. CCOR Management

Management of Operational Risk risk to the Firm. Third party cybersecurity incidents such as
The operational risk areas or issues identified through system breakdowns or failures, misconduct by the
monitoring and testing are escalated to the LOBs and employees of such parties, or cyberattacks could affect
Corporate to be remediated through action plans, as their ability to deliver a product or service to the Firm or
needed, to mitigate operational risk. CCOR Management result in lost or compromised information of the Firm or its
may advise the LOBs and Corporate in the development and clients. Clients are also sources of cybersecurity risk to the
implementation of action plans. Firm, particularly when their activities and systems are
beyond the Firm’s own security and control systems. As a
Operational Risk Reporting
result, the Firm engages in regular and ongoing discussions
Escalation of risks is a fundamental expectation for
with certain vendors and clients regarding cybersecurity
employees at the Firm. Risks identified by CCOR
risks and opportunities to improve security. However, where
Management are escalated to the appropriate LOB and
cybersecurity incidents occur as a result of client failures to
Corporate Control Committees, as needed. CCOR
maintain the security of their own systems and processes,
Management has established standards to ensure that
clients are responsible for losses incurred.
consistent operational risk reporting and operational risk
reports are produced on a Firmwide basis as well as by To protect the confidentiality, integrity and availability of
LOBs and Corporate. Reporting includes the evaluation of the Firm’s infrastructure, resources and information, the
key risk indicators and key performance indicators against Firm maintains a cybersecurity program designed to
established thresholds as well as the assessment of prevent, detect, and respond to cyberattacks. The Audit
different types of operational risk against stated risk Committee is updated periodically on the Firm’s Information
appetite. The standards reinforce escalation protocols to Security Program, recommended changes, cybersecurity
senior management and to the Board of Directors. policies and practices, ongoing efforts to improve security,
as well as its efforts regarding significant cybersecurity
Subcategories and examples of operational risks
events. In addition, the Firm has a cybersecurity incident
Operational risk can manifest itself in various ways.
response plan (“IRP”) designed to enable the Firm to
Operational risk subcategories such as Compliance risk,
respond to attempted cybersecurity incidents, coordinate
Conduct risk, Legal risk, and Estimations and Model risk as
such responses with law enforcement and other
well as other operational risks, can lead to losses which are
government agencies, and notify clients and customers, as
captured through the Firm’s operational risk measurement
applicable. Among other key focus areas, the IRP is
processes. Refer to pages 132, 133, and 134, respectively
designed to mitigate the risk of insider trading connected to
for more information on Compliance, Conduct, Legal, and
a cybersecurity incident, and includes various escalation
Estimations and Model risk. Details on other select
points.
examples of operational risks are provided below.
The Cybersecurity and Technology Control functions are
Cybersecurity risk
responsible for governance and oversight of the Firm’s
Cybersecurity risk is an important, continuous and evolving
Information Security Program. In partnership with the
focus for the Firm. The Firm devotes significant resources to
Firm’s LOBs and Corporate, the Cybersecurity and
protecting and continuing to improve the security of its
Technology Control organization identifies information
computer systems, software, networks and other
security risk issues and oversees programs for the
technology assets. The Firm’s security efforts are designed
technological protection of the Firm’s information resources
to protect against, among other things, cybersecurity
including applications, infrastructure as well as confidential
attacks by unauthorized parties attempting to obtain access
and personal information related to the Firm’s customers.
to confidential information, destroy data, disrupt or
The Cybersecurity and Technology organization is
degrade service, sabotage systems or cause other damage.
comprised of business aligned information security
The Firm continues to make significant investments in
managers that are supported within the organization by the
enhancing its cyberdefense capabilities and to strengthen
following products that execute the Information Security
its partnerships with the appropriate government and law
Program for the Firm:
enforcement agencies and other businesses in order to
understand the full spectrum of cybersecurity risks in the • Cyber Defense & Fraud
operating environment, enhance defenses and improve • Data Management, Protection & Privacy
resiliency against cybersecurity threats. The Firm actively • Identity & Access Management
participates in discussions of cybersecurity risks with law
• Governance & Controls
enforcement, government officials, peer and industry
groups, and has significantly increased efforts to educate • Production Management & Resiliency
employees and certain clients on the topic. • Software & Platform Enablement
Third parties with which the Firm does business or that The Global Cybersecurity and Technology Control
facilitate the Firm’s business activities (e.g., vendors, governance structure is designed to identify, escalate, and
exchanges, clearing houses, central depositories, and mitigate information security risks. This structure uses key
financial intermediaries) are also sources of cybersecurity governance forums to disseminate information and monitor

technology efforts. These forums are established at evaluated and enhanced in an effort to detect and mitigate
multiple levels throughout the Firm and include new strategies implemented by fraud perpetrators.
representatives from each LOB and Corporate. Reports
Third-party outsourcing risk
containing overviews of key technology risks and efforts to
The Firm‘s Third-Party Oversight (“TPO”) and Inter-affiliates
enhance related controls are produced for these forums,
Oversight (“IAO”) framework assist the LOBs and Corporate
and are reviewed by management at multiple levels. The
in selecting, documenting, onboarding, monitoring and
forums are used to escalate information security risks or
managing their supplier relationships including services
other matters as appropriate.
provided by affiliates. The objectives of the TPO framework
The IRM function provides oversight of the activities is to hold suppliers to a high level of operational
designed to identify, assess, measure, and mitigate performance and to mitigate key risks including data loss
cybersecurity risk. and business disruption. The Corporate Third-Party
Oversight group is responsible for Firmwide training,
The Firm’s Security Awareness Program includes training
monitoring, reporting and standards.
that reinforces the Firm's Information Technology Risk and
Security Management policies, standards and practices, as Insurance
well as the expectation that employees comply with these One of the ways in which operational risk may be mitigated
policies. The Security Awareness Program engages is through insurance maintained by the Firm. The Firm
personnel through training on how to identify potential purchases insurance from commercial insurers and
cybersecurity risks and protect the Firm’s resources and maintains a wholly-owned captive insurer, Park Assurance
information. This training is mandatory for all employees Company. Insurance may also be required by third parties
globally on a periodic basis, and it is supplemented by with whom the Firm does business.
Firmwide testing initiatives, including periodic phishing
tests. Finally, the Firm’s Global Privacy Program requires all
employees to take periodic awareness training on data
privacy. This privacy-focused training includes information
about confidentiality and security, as well as responding to
unauthorized access to or use of information.
Business and technology resiliency risk
Business disruptions can occur due to forces beyond the
Firm’s control such as severe weather, power or
telecommunications loss, accidents, failure of a third party
to provide expected services, cyberattack, flooding, transit
strikes, terrorism, health emergencies, the spread of
infectious diseases or pandemics. The safety of the Firm’s
employees and customers is of the highest priority. The
Firmwide resiliency program is intended to enable the Firm
to recover its critical business functions and supporting
assets (i.e., staff, technology and facilities) in the event of a
business interruption. The program includes governance,
awareness training, and testing of recovery strategies, as
well as strategic and tactical initiatives to identify, assess,
and manage business interruption and public safety risks.
The strength and proficiency of the Firmwide resiliency
program has played an integral role in maintaining the
Firm’s business operations during and after various events.
Payment fraud risk

Payment fraud risk is the risk of external and internal
parties unlawfully obtaining personal monetary benefit
through misdirected or otherwise improper payment. The
risk of payment fraud remains at a heightened level across
the industry. The complexities of these incidents and the
strategies used by perpetrators continue to evolve. Under
the Payments Control Program, methods are developed for
managing the risk, implementing controls, and providing
employee and client education and awareness trainings. The
Firm’s monitoring of customer behavior is periodically

COMPLIANCE RISK MANAGEMENT

Compliance risk, a subcategory of operational risk, is the Governance and oversight
risk of failing to comply with laws, rules, regulations or Compliance is led by the Firm’s Global CCO and FRE for
codes of conduct and standards of self-regulatory Operational Risk.
organizations. The Firm maintains oversight and coordination of its
Overview compliance risk through the implementation of the CCOR
Each LOB and Corporate hold primary ownership of and Risk Management Framework. The Firm’s CCO also provides
accountability for managing compliance risk. The Firm’s regular updates to the Audit Committee and the Board Risk
Compliance Organization (“Compliance”), which is Committee. In addition, certain Special Purpose Committees
independent of the LOBs, provides independent review, of the Board have previously been established to oversee
monitoring and oversight of business operations with a the Firm’s compliance with regulatory Consent Orders.
focus on compliance with the legal and regulatory
obligations applicable to the delivery of the Firm’s products Code of Conduct
and services to clients and customers. The Firm has a Code of Conduct (the “Code”) that sets forth
the Firm’s expectation that employees will conduct
These compliance risks relate to a wide variety of legal and
themselves with integrity at all times and provides the
regulatory obligations, depending on the LOB and the
principles that govern employee conduct with clients,
jurisdiction, and include risks related to financial products
customers, shareholders and one another, as well as with
and services, relationships and interactions with clients and
the markets and communities in which the Firm does
customers, and employee activities. For example,
business. The Code requires employees to promptly report
compliance risks include those associated with anti-money
any known or suspected violation of the Code, any internal
laundering compliance, trading activities, market conduct,
Firm policy, or any law or regulation applicable to the Firm’s
and complying with the rules and regulations related to the
business. It also requires employees to report any illegal
offering of products and services across jurisdictional
conduct, or conduct that violates the underlying principles
borders. Compliance risk is also inherent in the Firm’s
of the Code, by any of the Firm’s employees, clients,
fiduciary activities, including the failure to exercise the
customers, suppliers, contract workers, business partners,
applicable standard of care (such as the duties of loyalty or
or agents. All newly hired employees are assigned Code
care), to act in the best interest of clients and customers or
training and current employees are periodically assigned
to treat clients and customers fairly.
Code training on an ongoing basis. Employees are required
Other functions provide oversight of significant regulatory to affirm their compliance with the Code periodically.
obligations that are specific to their respective areas of
Employees can report any potential or actual violations of
responsibility.
the Code through the Code Reporting Hotline by phone or
CCOR Management implements policies and standards the internet. The Hotline is anonymous, except in certain
designed to govern, identify, measure, monitor and test, non-U.S. jurisdictions where laws prohibit anonymous
manage, and report compliance risk. reporting, and is available at all times globally, with
translation services. It is administered by an outside service
provider. The Code prohibits retaliation against anyone who
raises an issue or concern in good faith. Periodically, the
Audit Committee receives reports on the Code of Conduct
program.

CONDUCT RISK MANAGEMENT
Conduct risk, a subcategory of operational risk, is the risk The Conduct Risk Steering Committee (CRSC) provides
that any action or inaction by an employee or employees oversight of the Firm’s conduct initiatives to develop a more
could lead to unfair client or customer outcomes, impact holistic view of conduct risks and to connect key programs
the integrity of the markets in which the Firm operates, or across the Firm in order to identify opportunities and
compromise the Firm’s reputation. emerging areas of focus.
Overview Each committee of the Board oversees conduct risks within
Each LOB and Corporate is accountable for identifying and its scope of responsibilities, and the CRSC may escalate to
managing its conduct risk to provide appropriate such committees as appropriate.
engagement, ownership and sustainability of a culture Conduct risk management encompasses various aspects of
consistent with the Firm’s How We Do Business Principles people management practices throughout the employee life
(the “Principles”). The Principles serve as a guide for how cycle, including recruiting, onboarding, training and
employees are expected to conduct themselves. With the development, performance management, promotion and
Principles serving as a guide, the Firm’s Code sets out the compensation processes. Each LOB, Treasury and CIO, and
Firm’s expectations for each employee and provides designated corporate functions completes an assessment of
information and resources to help employees conduct conduct risk periodically, reviews metrics and issues which
business ethically and in compliance with the laws may involve conduct risk, and provides business conduct
everywhere the Firm operates. Refer to Compliance Risk training as appropriate.
Management on page 132 for further discussion of the
Code.
The Conduct Risk Program is governed by the CCOR
Management policy, which establishes the framework for
governance, identification, measurement, monitoring and
testing, management and reporting conduct risk in the
Firm.

LEGAL RISK MANAGEMENT

Legal risk, a subcategory of operational risk, is the risk of • providing legal advice to the LOBs and Corporate, in
loss primarily caused by the actual or alleged failure to alignment with the lines of defense described under
meet legal obligations that arise from the rule of law in Firmwide Risk Management on pages 79–83.
jurisdictions in which the Firm operates, agreements with Legal selects, engages and manages outside counsel for the
clients and customers, and products and services offered by Firm on all matters in which outside counsel is engaged. In
the Firm. addition, Legal advises the Firm’s Conflicts Office which
Overview reviews the Firm’s wholesale transactions that may have the
The global Legal function (“Legal”) provides legal services potential to create conflicts of interest for the Firm.
and advice to the Firm. Legal is responsible for managing Governance and oversight
the Firm’s exposure to legal risk by: The Firm’s General Counsel reports to the CEO and is a
• managing actual and potential litigation and member of the Operating Committee, the Firmwide Risk
enforcement matters, including internal reviews and Committee and the Firmwide Control Committee. The Firm’s
investigations related to such matters General Counsel and other members of Legal report on
• advising on products and services, including contract significant legal matters to the Firm’s Board of Directors
negotiation and documentation and periodically to the Audit Committee.
• advising on offering and marketing documents and new Legal serves on and advises various committees (including
business initiatives new business initiative and reputation risk committees) and
advises the Firm’s LOBs and Corporate on potential
• managing dispute resolution
reputation risk issues.
• interpreting existing laws, rules and regulations, and
advising on changes thereto
• advising on advocacy in connection with contemplated
and proposed laws, rules and regulations, and

ESTIMATIONS AND MODEL RISK MANAGEMENT
Estimations and Model risk, a subcategory of operational Models are tiered based on an internal standard according
risk, is the potential for adverse consequences from to their complexity, the exposure associated with the model
decisions based on incorrect or misused estimation outputs. and the Firm’s reliance on the model. This tiering is subject
to the approval of the Model Risk function. In its review of a
The Firm uses models and other analytical and judgment-
model, the Model Risk function considers whether the
based estimations across various businesses and functions.
model is suitable for the specific purposes for which it will
The estimation methods are of varying levels of
be used. When reviewing a model, the Model Risk function
sophistication and are used for many purposes, such as the
analyzes and challenges the model methodology and the
valuation of positions and measurement of risk, assessing
reasonableness of model assumptions, and may perform or
regulatory capital requirements, conducting stress testing,
require additional testing, including back-testing of model
and making business decisions. A dedicated independent
outcomes. Model reviews are approved by the appropriate
function, Model Risk Governance and Review (“MRGR”),
level of management within the Model Risk function based
defines and governs the Firm’s policies relating to the
on the relevant model tier.
management of model risk and risks associated with certain
analytical and judgment-based estimations, such as those Under the Firm’s Estimations and Model Risk Management
used in risk management, budget forecasting and capital Policy, the Model Risk function reviews and approves new
planning and analysis. models, as well as material changes to existing models,
prior to implementation in the operating environment. In
The governance of analytical and judgment-based
certain circumstances exceptions may be granted to the
estimations within MRGR’s scope follows a consistent
Firm’s policy to allow a model to be used prior to review or
approach to the approach used for models, which is
approval. The Model Risk function may also require the user
described in detail below.
to take appropriate actions to mitigate the model risk if it is
Model risks are owned by the users of the models within the to be used in the interim. These actions will depend on the
Firm based on the specific purposes of such models. Users model and may include, for example, limitation of trading
and developers of models are responsible for developing, activity.
implementing and testing their models, as well as referring
Refer to Critical Accounting Estimates Used by the Firm on
models to the Model Risk function for review and approval.
pages 136–138 and Note 2 for a summary of model-based
Once models have been approved, model users and
valuations and other valuation techniques.
developers are responsible for maintaining a robust
operating environment, and must monitor and evaluate the
performance of the models on an ongoing basis. Model
users and developers may seek to enhance models in
response to changes in the portfolios and in product and
market developments, as well as to capture improvements
in available modeling techniques and systems capabilities.

CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM

JPMorgan Chase’s accounting policies and use of estimates • A combined 5% decline in housing prices and a 100
are integral to understanding its reported results. The basis point increase in unemployment rates from
Firm’s most complex accounting estimates require expectations could imply:
management’s judgment to ascertain the appropriate
an increase to modeled credit loss estimates of
carrying value of assets and liabilities. The Firm has
approximately $250 million for PCI loans.
established policies and control procedures intended to
ensure that estimation methods, including any judgments an increase to modeled annual credit loss estimates
made as part of such methods, are well-controlled, of approximately $50 million for residential real
independently reviewed and applied consistently from estate loans, excluding PCI loans.
period to period. The methods used and judgments made • For credit card loans, a 100 basis point increase in
reflect, among other factors, the nature of the assets or unemployment rates from expectations could imply an
liabilities and the related business and risk management increase to modeled annual credit loss estimates of
strategies, which may vary across the Firm’s businesses and approximately $850 million.
portfolios. In addition, the policies and procedures are • An increase in probability of default (“PD”) factors
intended to ensure that the process for changing consistent with a one-notch downgrade in the Firm’s
methodologies occurs in an appropriate manner. The Firm internal risk ratings for its entire wholesale loan
believes its estimates for determining the carrying value of portfolio could imply an increase in the Firm’s modeled
its assets and liabilities are appropriate. The following is a credit loss estimates of approximately $1.6 billion.
brief description of the Firm’s critical accounting estimates
involving significant judgments. • A 100 basis point increase in estimated loss given
default (“LGD”) for the Firm’s entire wholesale loan
Allowance for credit losses portfolio could imply an increase in the Firm’s modeled
The Firm’s allowance for credit losses covers the retained credit loss estimates of approximately $200 million.
consumer and wholesale loan portfolios, as well as the
Firm’s wholesale and certain consumer lending-related The purpose of these sensitivity analyses is to provide an
commitments. The allowance for loan losses is intended to indication of the isolated impacts of hypothetical
adjust the carrying value of the Firm’s loans to reflect alternative assumptions on modeled loss estimates. The
probable credit losses inherent in the loan portfolio as of changes in the inputs presented above are not intended to
the balance sheet date. Similarly, the allowance for lending- imply management’s expectation of future deterioration of
related commitments is established to cover probable credit those risk factors. In addition, these analyses are not
losses inherent in the lending-related commitments intended to estimate changes in the overall allowance for
portfolio as of the balance sheet date. loan losses, which would also be influenced by the judgment
management applies to the modeled loss estimates to
The allowance for credit losses includes a formula-based reflect the uncertainty and imprecision of these modeled
component, an asset-specific component, and a component loss estimates based on then-current circumstances and
related to PCI loans. The determination of each of these conditions.
components involves significant judgment on a number of
matters. Refer to Allowance for credit losses on pages 116– It is difficult to estimate how potential changes in specific
117 and Note 13 for further information on these factors might affect the overall allowance for credit losses
components, areas of judgment and methodologies used in because management considers a variety of factors and
establishing the Firm’s allowance for credit losses. inputs in estimating the allowance for credit losses.
Changes in these factors and inputs may not occur at the
Allowance for credit losses sensitivity same rate and may not be consistent across all geographies
The Firm’s allowance for credit losses is sensitive to or product types, and changes in factors may be
numerous factors, which may differ depending on the directionally inconsistent, such that improvement in one
portfolio. Changes in economic conditions or in the Firm’s factor may offset deterioration in other factors. In addition,
assumptions and estimates could affect its estimate of it is difficult to predict how changes in specific economic
probable credit losses inherent in the portfolio at the conditions or assumptions could affect borrower behavior
balance sheet date. The Firm uses its best judgment to or other factors considered by management in estimating
assess these economic conditions and loss data in the allowance for credit losses. Given the process the Firm
estimating the allowance for credit losses and these follows and the judgments made in evaluating the risk
estimates are subject to periodic refinement based on factors related to its loss estimates, management believes
changes to underlying external or Firm-specific historical that its current estimate of the allowance for credit losses is
data. Refer to Note 13 for further discussion. appropriate.
To illustrate the potential magnitude of certain alternate Fair value
judgments, the Firm estimates that changes in the following JPMorgan Chase carries a portion of its assets and liabilities
inputs would have the following effects on the Firm’s at fair value. The majority of such assets and liabilities are
modeled credit loss estimates as of December 31, 2019, measured at fair value on a recurring basis, including,
without consideration of any offsetting or correlated effects derivatives and structured note products. Certain assets
of other inputs in the Firm’s allowance for loan losses: 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 Firm’s creditworthiness, market funding rates, liquidity
the underlying collateral. considerations, unobservable parameters, and for
Assets measured at fair value portfolios that meet specified criteria, the size of the net
The following table includes the Firm’s assets measured at open risk position. The judgments made are typically
fair value and the portion of such assets that are classified affected by the type of product and its specific contractual
within level 3 of the valuation hierarchy. Refer to Note 2 for terms, and the level of liquidity for the product or within the
further information. market as a whole. Refer to Note 2 for a further discussion
of valuation adjustments applied by the Firm.
December 31, 2019 Total assets at Total level Imprecision in estimating unobservable market inputs or
(in billions, except ratios) fair value 3 assets
Trading debt and equity instruments $ 361.3 $ 3.4
other factors can affect the amount of gain or loss recorded
for a particular position. Furthermore, while the Firm
Derivative receivables(a) 49.7 4.7
believes its valuation methods are appropriate and
Trading assets 411.0 8.1
consistent with those of other market participants, the
AFS securities 350.7 —
methods and assumptions used reflect management
Loans 7.1 —
judgment and may vary across the Firm’s businesses and
MSRs 4.7 4.7
portfolios.
Other 29.3 0.7
Total assets measured at fair value on
The Firm uses various methodologies and assumptions in
a recurring basis 802.8 13.5 the determination of fair value. The use of methodologies
Total assets measured at fair value on a or assumptions different than those used by the Firm could
nonrecurring basis 4.8 1.3
result in a different estimate of fair value at the reporting
Total assets measured at fair value $ 807.6 $ 14.8 date. Refer to Note 2 for a detailed discussion of the Firm’s
Total Firm assets $ 2,687.4 valuation process and hierarchy, and its determination of
Level 3 assets as a percentage of total fair value for individual financial instruments.
Firm assets(a) 0.6%
Level 3 assets as a percentage of total Goodwill impairment
Firm assets at fair value(a) 1.8% Under U.S. GAAP, goodwill must be allocated to reporting
(a) For purposes of the table above, the derivative receivables total reflects the impact units and tested for impairment at least annually. The Firm’s
of netting adjustments; however, the $4.7 billion of derivative receivables classified process and methodology used to conduct goodwill
as level 3 does not reflect the netting adjustment as such netting is not relevant to impairment testing is described in Note 15.
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 Management applies significant judgment when testing
benefit associated with cash collateral. goodwill for impairment. The goodwill associated with each
Valuation business combination is allocated to the related reporting
Details of the Firm’s processes for determining fair value units for goodwill impairment testing.
are set out in Note 2. Estimating fair value requires the For the year ended December 31, 2019, the Firm reviewed
application of judgment. The type and level of judgment current economic conditions, estimated market cost of equity,
required is largely dependent on the amount of observable as well as actual and projections of business performance for
market information available to the Firm. For instruments all its businesses. Based upon such reviews, the Firm
valued using internally developed valuation models and concluded that the goodwill allocated to its reporting units
other valuation techniques that use significant was not impaired as of December 31, 2019. The fair values of
unobservable inputs and are therefore classified within these reporting units exceeded their carrying values by
level 3 of the valuation hierarchy, judgments used to approximately 15% or higher and did not indicate a
estimate fair value are more significant than those required significant risk of goodwill impairment based on current
when estimating the fair value of instruments classified projections and valuations.
within levels 1 and 2. The projections for all of the Firm’s reporting units are
In arriving at an estimate of fair value for an instrument consistent with management’s current short-term business
within level 3, management must first determine the outlook assumptions, and in the longer term, incorporate a
appropriate valuation technique to use. Second, the lack of set of macroeconomic assumptions and the Firm’s best
observability of certain significant inputs requires estimates of long-term growth and returns on equity of its
management to assess all relevant empirical data in businesses. Where possible, the Firm uses third-party and
deriving valuation inputs including, for example, transaction peer data to benchmark its assumptions and estimates.
details, yield curves, interest rates, prepayment rates, Refer to Note 15 for additional information on goodwill,
default rates, volatilities, correlations, equity or debt prices, including the goodwill impairment assessment as of
valuations of comparable instruments, foreign exchange December 31, 2019.
rates and credit curves. Refer to Note 2 for a further Credit card rewards liability
discussion of the valuation of level 3 instruments, including JPMorgan Chase offers credit cards with various rewards
unobservable inputs used. programs which allow cardholders to earn rewards points
For instruments classified in levels 2 and 3, management based on their account activity and the terms and
judgment must be applied to assess the appropriate level of conditions of the rewards program. Generally, there are no
valuation adjustments to reflect counterparty credit quality, limits on the points that an eligible cardholder can earn, nor

do the points expire, and the points can be redeemed for a that a deferred tax asset is not realizable, a valuation
variety of rewards, including cash (predominantly in the allowance is established. The valuation allowance may be
form of account credits), gift cards and travel. The Firm reversed in a subsequent reporting period if the Firm
maintains a rewards liability which represents the estimated determines that, based on revised estimates of future
cost of rewards points earned and expected to be redeemed taxable income or changes in tax planning strategies, it is
by cardholders. The rewards liability is sensitive to various more likely than not that all or part of the deferred tax
assumptions, including cost per point and redemption rates asset will become realizable. As of December 31, 2019,
for each of the various rewards programs, which are management has determined it is more likely than not that
evaluated periodically. The liability is accrued as the the Firm will realize its deferred tax assets, net of the
cardholder earns the benefit and is reduced when the existing valuation allowance.
cardholder redeems points. This liability was $6.4 billion The Firm adjusts its unrecognized tax benefits as necessary
and $5.8 billion at December 31, 2019 and 2018, when additional information becomes available. Uncertain
respectively, and is recorded in accounts payable and other tax positions that meet the more-likely-than-not recognition
liabilities on the Consolidated balance sheets. threshold are measured to determine the amount of benefit
to recognize. An uncertain tax position is measured at the
Income taxes
largest amount of benefit that management believes is
JPMorgan Chase is subject to the income tax laws of the
more likely than not to be realized upon settlement. It is
various jurisdictions in which it operates, including U.S.
possible that the reassessment of JPMorgan Chase’s
federal, state and local, and non-U.S. jurisdictions. These
unrecognized tax benefits may have a material impact on its
laws are often complex and may be subject to different
effective income tax rate in the period in which the
interpretations. To determine the financial statement
reassessment occurs.
impact of accounting for income taxes, including the
provision for income tax expense and unrecognized tax Refer to Note 25 for additional information on income
benefits, JPMorgan Chase must make assumptions and taxes.
judgments about how to interpret and apply these complex Litigation reserves
tax laws to numerous transactions and business events, as Refer to Note 30 for a description of the significant
well as make judgments regarding the timing of when estimates and judgments associated with establishing
certain items may affect taxable income in the U.S. and litigation reserves.
non-U.S. tax jurisdictions.
JPMorgan Chase’s interpretations of tax laws around the
world are subject to review and examination by the various
taxing authorities in the jurisdictions where the Firm
operates, and disputes may occur regarding its view on a
tax position. These disputes over interpretations with the
various taxing authorities may be settled by audit,
administrative appeals or adjudication in the court systems
of the tax jurisdictions in which the Firm operates.
JPMorgan Chase regularly reviews whether it may be
assessed additional income taxes as a result of the
resolution of these matters, and the Firm records additional
reserves as appropriate. In addition, the Firm may revise its
estimate of income taxes due to changes in income tax
laws, legal interpretations, and business strategies. It is
possible that revisions in the Firm’s estimate of income
taxes may materially affect the Firm’s results of operations
in any reporting period.
The Firm’s provision for income taxes is composed of
current and deferred taxes. Deferred taxes arise from
differences between assets and liabilities measured for
financial reporting versus income tax return purposes.
Deferred tax assets are recognized if, in management’s
judgment, their realizability is determined to be more likely
than not. The Firm has also recognized deferred tax assets
in connection with certain tax attributes, including net
operating loss (“NOL”) carryforwards and foreign tax credit
(“FTC”) carryforwards. The Firm performs regular reviews
to ascertain whether its deferred tax assets are realizable.
These reviews include management’s estimates and
assumptions regarding future taxable income, which also
incorporates various tax planning strategies, including
strategies that may be available to utilize NOLs before they
expire. In connection with these reviews, if it is determined

ACCOUNTING AND REPORTING DEVELOPMENTS
Financial Accounting Standards Board (“FASB”) Standards Adopted during 2019
Standard Summary of guidance Effects on financial statements

Leases • Requires lessees to recognize all leases longer • Adopted January 1, 2019.
than twelve months on the Consolidated balance
Issued February sheets as a lease liability with a corresponding • The Firm elected the available practical expedient to not
2016 right-of-use asset. reassess whether existing contracts contain a lease or
• Requires lessees and lessors to classify most whether classification or unamortized initial lease costs
leases using principles similar to existing lease would be different under the new lease guidance. The Firm
accounting, but eliminates the “bright line” elected the modified retrospective transition method, through
classification tests. a cumulative-effect adjustment to retained earnings without
revising prior periods.
• Expands qualitative and quantitative leasing
disclosures. • Refer to Note 18 for further information.

FASB Standards Issued but not adopted as of December 31, 2019
Standard Summary of guidance Effects on financial statements

Financial • Establishes a single allowance framework for all • Adopted January 1, 2020.
Instruments – financial assets carried at amortized cost and
Credit Losses • The adoption of this guidance resulted in a net increase to the
certain off-balance sheet credit exposures. This allowance for credit losses of $4.3 billion and a decrease to
(“CECL”)
framework requires that management’s estimate retained earnings of $2.7 billion, primarily driven by Card.
Issued June 2016 reflects credit losses over the full remaining Under the CECL framework, the Firm estimates losses over a
expected life and considers expected future two-year forecast period using the weighted-average of a
changes in macroeconomic conditions. range of macroeconomic scenarios (established on a
• Eliminates existing guidance for PCI loans, and Firmwide basis), and then reverts to longer term historical
requires recognition of the nonaccretable loss experience to estimate losses over more extended
difference as an increase to the allowance for periods.
expected credit losses on financial assets • The Firm elected to phase-in the impact to retained earnings
purchased with more than insignificant credit of $2.7 billion to regulatory capital, at 25 percent per year in
deterioration since origination, with a each of 2020 to 2023 (“CECL transitional period”). Based on
corresponding increase in the recorded the Firm’s capital as of December 31, 2019, the estimated
investment of the related loans. impact to the Standardized CET1 capital ratio will be a
• Requires inclusion of expected recoveries, reduction of approximately 4 bps for each transitional year.
limited to the cumulative amount of prior write- • As permitted by the guidance, the Firm elected the fair value
offs, when estimating the allowance for credit option for certain securities financing agreements. The
losses for in scope financial assets (including difference between their carrying amount and fair value was
collateral dependent assets). immaterial and was recorded as part of the Firm’s
• Amends existing impairment guidance for AFS cumulative-effect adjustment.
securities to incorporate an allowance, which will • Refer to Note 1 for further information.
allow for reversals of credit impairments in the
event that the credit of an issuer improves.
• Requires a cumulative-effect adjustment to
retained earnings as of the beginning of the
reporting period of adoption.
Goodwill • Requires recognition of an impairment loss when • Adopted January 1, 2020.

the estimated fair value of a reporting unit falls • No impact upon adoption as the guidance is to be applied
Issued January
below its carrying value. prospectively.
2017
• Eliminates the requirement that an impairment
loss be recognized only if the estimated implied
fair value of the goodwill is below its carrying
value.

FORWARD-LOOKING STATEMENTS
From time to time, the Firm has made and will make • Technology changes instituted by the Firm, its
forward-looking statements. These statements can be counterparties or competitors;
identified by the fact that they do not relate strictly to • The effectiveness of the Firm’s control agenda;
historical or current facts. Forward-looking statements often
• Ability of the Firm to develop or discontinue products and
use words such as “anticipate,” “target,” “expect,”
services, and the extent to which products or services
“estimate,” “intend,” “plan,” “goal,” “believe,” or other
previously sold by the Firm (including but not limited to
words of similar meaning. Forward-looking statements
mortgages and asset-backed securities) require the Firm
provide JPMorgan Chase’s current expectations or forecasts
to incur liabilities or absorb losses not contemplated at
of future events, circumstances, results or aspirations.
their initiation or origination;
JPMorgan Chase’s disclosures in this 2019 Form 10-K
contain forward-looking statements within the meaning of • Acceptance of the Firm’s new and existing products and
the Private Securities Litigation Reform Act of 1995. The services by the marketplace and the ability of the Firm to
Firm also may make forward-looking statements in its other innovate and to increase market share;
documents filed or furnished with the SEC. In addition, the • Ability of the Firm to attract and retain qualified
Firm’s senior management may make forward-looking employees;
statements orally to investors, analysts, representatives of • Ability of the Firm to control expenses;
the media and others.
• Competitive pressures;
All forward-looking statements are, by their nature, subject • Changes in the credit quality of the Firm’s clients,
to risks and uncertainties, many of which are beyond the customers and counterparties;
Firm’s control. JPMorgan Chase’s actual future results may
differ materially from those set forth in its forward-looking • Adequacy of the Firm’s risk management framework,
statements. While there is no assurance that any list of risks disclosure controls and procedures and internal control
and uncertainties or risk factors is complete, below are over financial reporting;
certain factors which could cause actual results to differ from • Adverse judicial or regulatory proceedings;
those in the forward-looking statements: • Changes in applicable accounting policies, including the
• Local, regional and global business, economic and introduction of new accounting standards;
political conditions and geopolitical events; • Ability of the Firm to determine accurate values of certain
• Changes in laws and regulatory requirements, including assets and liabilities;
capital and liquidity requirements affecting the Firm’s • Occurrence of natural or man-made disasters or
businesses, and the ability of the Firm to address those calamities, including health emergencies, the spread of
requirements; infectious diseases, pandemics or outbreaks of hostilities,
• Heightened regulatory and governmental oversight and or the effects of climate change, and the Firm’s ability to
scrutiny of JPMorgan Chase’s business practices, including deal effectively with disruptions caused by the foregoing;
dealings with retail customers; • Ability of the Firm to maintain the security of its financial,
• Changes in trade, monetary and fiscal policies and laws; accounting, technology, data processing and other
• Changes in income tax laws and regulations; operational systems and facilities;
• Securities and capital markets behavior, including • Ability of the Firm to withstand disruptions that may be
changes in market liquidity and volatility; caused by any failure of its operational systems or those
• Changes in investor sentiment or consumer spending or of third parties;
savings behavior; • Ability of the Firm to effectively defend itself against
• Ability of the Firm to manage effectively its capital and cyberattacks and other attempts by unauthorized parties
liquidity, including approval of its capital plans by banking to access information of the Firm or its customers or to
regulators; disrupt the Firm’s systems; and
• Changes in credit ratings assigned to the Firm or its • The other risks and uncertainties detailed in Part I, Item
subsidiaries; 1A: Risk Factors in the JPMorgan Chase’s 2019 Form 10-
• Damage to the Firm’s reputation; K.
• Ability of the Firm to appropriately address social, Any forward-looking statements made by or on behalf of the
environmental and sustainability concerns that may arise Firm speak only as of the date they are made, and JPMorgan
from its business activities; Chase does not undertake to update any forward-looking
• Ability of the Firm to deal effectively with an economic statements. The reader should, however, consult any further
slowdown or other economic or market disruption, disclosures of a forward-looking nature the Firm may make
including, but not limited to, in the interest rate in any subsequent Form 10-Ks, Quarterly Reports on Form
environment; 10-Qs, or Current Reports on Form 8-K.

Management’s report on internal control over financial reporting
Management of JPMorgan Chase & Co. (“JPMorgan Chase” Based upon the assessment performed, management
or the “Firm”) is responsible for establishing and concluded that as of December 31, 2019, JPMorgan Chase’s
maintaining adequate internal control over financial internal control over financial reporting was effective based
reporting. Internal control over financial reporting is a upon the COSO 2013 framework. Additionally, based upon
process designed by, or under the supervision of, the Firm’s management’s assessment, the Firm determined that there
principal executive and principal financial officers, or were no material weaknesses in its internal control over
persons performing similar functions, and effected by financial reporting as of December 31, 2019.
JPMorgan Chase’s Board of Directors, management and
The effectiveness of the Firm’s internal control over
other personnel, to provide reasonable assurance regarding
financial reporting as of December 31, 2019, has been
the reliability of financial reporting and the preparation of
audited by PricewaterhouseCoopers LLP, an independent
financial statements for external purposes in accordance
registered public accounting firm, as stated in their report
with accounting principles generally accepted in the United
which appears herein.
States of America (“U.S. GAAP”).
JPMorgan Chase’s internal control over financial reporting
includes those policies and procedures that (1) pertain to
the maintenance of records, that, in reasonable detail,
accurately and fairly reflect the transactions and
dispositions of the Firm’s assets; (2) provide reasonable
assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance
with U.S. GAAP, and that receipts and expenditures of the
Firm are being made only in accordance with authorizations
of JPMorgan Chase’s management and directors; and (3)
provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use or
disposition of the Firm’s assets that could have a material James Dimon
effect on the financial statements. Chairman and Chief Executive Officer
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in
conditions, or that the degree of compliance with the
policies or procedures may deteriorate. Management has
completed an assessment of the effectiveness of the Firm’s
internal control over financial reporting as of December 31,
2019. In making the assessment, management used the
“Internal Control — Integrated Framework” (“COSO 2013”)
promulgated by the Committee of Sponsoring Organizations
of the Treadway Commission (“COSO”). Jennifer Piepszak
Executive Vice President and Chief Financial Officer
February 25, 2020

Report of Independent Registered Public Accounting Firm
Our audits of the consolidated financial statements included

performing procedures to assess the risks of material
misstatement of the consolidated financial statements,
whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included
To the Board of Directors and Shareholders of JPMorgan examining, on a test basis, evidence regarding the amounts
Chase & Co.: and disclosures in the consolidated financial statements. Our
Opinions on the Financial Statements and Internal Control audits also included evaluating the accounting principles used
over Financial Reporting and significant estimates made by management, as well as
evaluating the overall presentation of the consolidated
We have audited the accompanying consolidated balance
financial statements. Our audit of internal control over
sheets of JPMorgan Chase & Co. and its subsidiaries (the
financial reporting included obtaining an understanding of
“Firm”) as of December 31, 2019 and 2018, and the related
internal control over financial reporting, assessing the risk
consolidated statements of income, comprehensive income,
that a material weakness exists, and testing and evaluating
changes in stockholders’ equity and cash flows for each of the
the design and operating effectiveness of internal control
three years in the period ended December 31, 2019,
based on the assessed risk. Our audits also included
including the related notes (collectively referred to as the
performing such other procedures as we considered
“consolidated financial statements”). We also have audited
necessary in the circumstances. We believe that our audits
the Firm’s internal control over financial reporting as of
provide a reasonable basis for our opinions.
December 31, 2019, based on criteria established in Internal
Control - Integrated Framework (2013) issued by the Definition and Limitations of Internal Control over Financial
Committee of Sponsoring Organizations of the Treadway Reporting
Commission (COSO). A company’s internal control over financial reporting is a
In our opinion, the consolidated financial statements referred process designed to provide reasonable assurance regarding
to above present fairly, in all material respects, the financial the reliability of financial reporting and the preparation of
position of the Firm as of December 31, 2019 and 2018, and financial statements for external purposes in accordance with
the results of its operations and its cash flows for each of the generally accepted accounting principles. A company’s
three years in the period ended December 31, 2019 in internal control over financial reporting includes those
conformity with accounting principles generally accepted in policies and procedures that (i) pertain to the maintenance of
the United States of America. Also in our opinion, the Firm records that, in reasonable detail, accurately and fairly reflect
maintained, in all material respects, effective internal control the transactions and dispositions of the assets of the
over financial reporting as of December 31, 2019, based on company; (ii) provide reasonable assurance that transactions
criteria established in Internal Control – Integrated Framework are recorded as necessary to permit preparation of financial
(2013) issued by the COSO. statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the
Basis for Opinions company are being made only in accordance with
The Firm’s management is responsible for these consolidated authorizations of management and directors of the company;
financial statements, for maintaining effective internal and (iii) provide reasonable assurance regarding prevention
control over financial reporting, and for its assessment of the or timely detection of unauthorized acquisition, use, or
effectiveness of internal control over financial reporting, disposition of the company’s assets that could have a
included in the accompanying Management’s report on material effect on the financial statements.
internal control over financial reporting. Our responsibility is
Because of its inherent limitations, internal control over
to express opinions on the Firm’s consolidated financial
financial reporting may not prevent or detect misstatements.
statements and on the Firm’s internal control over financial
Also, projections of any evaluation of effectiveness to future
reporting based on our audits. We are a public accounting
periods are subject to the risk that controls may become
firm registered with the Public Company Accounting
inadequate because of changes in conditions, or that the
Oversight Board (United States) (PCAOB) and are required to
degree of compliance with the policies or procedures may
be independent with respect to the Firm in accordance with
deteriorate.
the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and
the PCAOB.
We conducted our audits in accordance with the standards of
the PCAOB. Those standards require that we plan and
perform the audits to obtain reasonable assurance about
whether the consolidated financial statements are free of
material misstatement, whether due to error or fraud, and
whether effective internal control over financial reporting
was maintained in all material respects.
PricewaterhouseCoopers LLP 300 Madison Avenue New York, NY 10017

Critical Audit Matters Fair Value of Mortgage Servicing Rights Assets

The critical audit matters communicated below are matters As described in Note 15 to the consolidated financial
arising from the current period audit of the consolidated statements, the Firm has elected to account for the Firm’s
financial statements that were communicated or required to mortgage servicing rights assets at fair value, with balances
be communicated to the audit committee and that (i) relate of $4.7 billion as of December 31, 2019. Management
to accounts or disclosures that are material to the estimates the fair value of mortgage servicing rights using an
consolidated financial statements and (ii) involved our option-adjusted spread model, which projects cash flows over
especially challenging, subjective, or complex judgments. The multiple interest rate scenarios in conjunction with the Firm’s
communication of critical audit matters does not alter in any prepayment model, and then discounts these cash flows at
way our opinion on the consolidated financial statements, risk-adjusted rates. The key economic assumptions used to
taken as a whole, and we are not, by communicating the determine the fair value of mortgage servicing rights are
critical audit matters below, providing separate opinions on prepayment speeds and option adjusted spread.
the critical audit matters or on the accounts or disclosures to The principal considerations for our determination that
which they relate. performing procedures relating to the fair value of mortgage
Fair Value of Certain Level 3 Financial Instruments servicing rights assets is a critical audit matter are (i) there
As described in Notes 2 and 3 to the consolidated financial was significant judgment and estimation by management in
statements, the Firm carries $802.8 billion of its assets and determining the fair value of mortgage servicing rights,
$233.8 billion of its liabilities at fair value on a recurring which in turn led to a high degree of auditor judgment,
basis. Included in these balances are $8.1 billion of trading subjectivity and effort in performing procedures and in
assets and $37.7 billion of liabilities measured at fair value evaluating the audit evidence obtained related to the
on a recurring basis, collectively financial instruments, which prepayment speed and option adjusted spread assumptions,
are classified as level 3 as they contain one or more inputs to and (ii) the audit effort involved professionals with
valuation which are unobservable and significant to their fair specialized skill and knowledge to assist in evaluating the
value measurement. The Firm utilized internally developed audit evidence obtained from these procedures.
valuation models and unobservable inputs to estimate fair Addressing the matter involved performing procedures and
value of the level 3 financial instruments. The unobservable evaluating audit evidence in connection with forming our
inputs used by management to estimate the fair value of overall opinion on the consolidated financial statements.
certain of these financial instruments include volatility These procedures included testing the effectiveness of
relating to interest rates and correlation relating to interest controls relating to the valuation of mortgage servicing
rates, equity prices and foreign exchange rates. rights, including controls over the Firm’s models,
The principal considerations for our determination that assumptions, and data. These procedures also included,
performing procedures relating to the fair value of certain among others, the involvement of professionals with
level 3 financial instruments is a critical audit matter are (i) specialized skill and knowledge to assist in testing
there was significant judgment and estimation by management’s process including testing and evaluating the
management in determining the inputs to estimate fair value, reasonableness of prepayment speed and option adjusted
which in turn led to a high degree of auditor judgment, spread assumptions used in the model.
subjectivity, and effort in performing procedures related to Allowance for Loan Losses - Wholesale Loan, Credit Card Loan
the fair value of these financial instruments, and (ii) the audit and Consumer Loan Portfolios
effort involved professionals with specialized skill and As described in Note 13 to the consolidated financial
knowledge to assist in evaluating the audit evidence obtained statements, the Firm’s allowance for loan losses represents
from these procedures. management’s estimate of probable credit losses inherent in
Addressing the matter involved performing procedures and the Firm’s retained loan portfolios, which primarily consists
evaluating audit evidence in connection with forming our of wholesale loans, credit card loans and consumer loans. As
overall opinion on the consolidated financial statements. of December 31, 2019, the allowance for loan losses was
These procedures included testing the effectiveness of $13.1 billion on total retained loans of $945.6 billion. The
controls relating to the Firm’s processes for determining fair Firm’s allowance for loan losses is determined for each of the
value which include controls over models, inputs, and data. retained loan portfolios utilizing a statistical credit loss
These procedures also included, among others, the estimate. These statistical credit loss estimates are calculated
involvement of professionals with specialized skill and using statistical credit loss factors, specifically the probability
knowledge to assist in developing an independent estimate of of default and loss severity for the credit card and consumer
fair value for a sample of these financial instruments. loans and the probability of default and loss given default for
Developing the independent estimate involved testing the the wholesale loans. Management then applies judgment to
completeness and accuracy of data provided by management, adjust these statistical loss estimates to take into
developing independent inputs and, as appropriate, consideration model imprecision, external factors and
evaluating and utilizing management’s aforementioned economic events that have occurred but are not yet reflected
unobservable inputs; and comparing management’s estimate in the loss factors.
to the independently developed estimate of fair value. The principal considerations for our determination that
performing procedures relating to the allowance for loan
losses for the wholesale loan, credit card loan, and consumer
loan portfolios is a critical audit matter are (i) there was

significant judgment and estimation by management in estimates. This included, as relevant, evaluating the
determining the modeling techniques utilized in their reasonableness of probabilities of default, loss severities and
statistical credit loss estimates, which in turn led to a high loss given default. Evaluating management’s adjustment to
degree of auditor judgment, subjectivity and effort in the statistical credit loss estimate included evaluating the
performing procedures and in evaluating audit evidence reasonableness of the impacts of model imprecision and
obtained relating to the statistical credit loss estimates and external factors and economic events which have occurred
the appropriateness of the adjustments to the statistical loss but are not yet otherwise reflected in the statistical credit
estimates, and (ii) the audit effort involved professionals with loss estimate. The procedures included the use of
specialized skill and knowledge to assist in evaluating the professionals with specialized skill and knowledge to assist in
audit evidence. evaluating the appropriateness of certain models,
Addressing the matter involved performing procedures and methodologies and inputs into the statistical credit loss
evaluating audit evidence in connection with forming our estimates.
overall opinion on the consolidated financial statements.
These procedures included testing the effectiveness of
controls relating to the Firm’s allowance for loan losses
estimation processes. These procedures also included, among
others, testing management’s process for estimating the
allowance for loan losses, which included evaluating the
appropriateness of the models and methodologies used in the February 25, 2020
statistical credit loss estimates for the wholesale, credit card
and consumer loan portfolios; testing the completeness and
We have served as the Firm’s auditor since 1965.
accuracy of data; and evaluating the reasonableness of
assumptions and judgments used in the statistical credit loss
estimate and the adjustments to the statistical credit loss

Consolidated statements of income
Year ended December 31, (in millions, except per share data) 2019 2018 2017
Revenue
Investment banking fees $ 7,501 $ 7,550 $ 7,412
Principal transactions 14,018 12,059 11,347
Lending- and deposit-related fees 6,369 6,052 5,933
Asset management, administration and commissions 17,165 17,118 16,287
Investment securities gains/(losses) 258 (395) (66)
Mortgage fees and related income 2,036 1,254 1,616
Card income 5,304 4,989 4,433
Other income 5,731 5,343 3,646
Interest income(a) 84,040 76,100 63,971
Interest expense(a) 26,795 21,041 13,874
Total net revenue 115,627 109,029 100,705
Noninterest expense
Occupancy expense 4,322 3,952 3,723
Technology, communications and equipment expense 9,821 8,802 7,715
Professional and outside services 8,533 8,502 7,890
Marketing 3,579 3,290 2,900
Other expense 5,087 5,731 6,079
Net income $ 36,431 $ 32,474 $ 24,441
Net income applicable to common stockholders $ 34,642 $ 30,709 $ 22,567
Net income per common share data
Basic earnings per share $ 10.75 $ 9.04 $ 6.35
Diluted earnings per share 10.72 9.00 6.31
Weighted-average basic shares 3,221.5 3,396.4 3,551.6

Weighted-average diluted shares 3,230.4 3,414.0 3,576.8
(a) In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect
on net interest income. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current
presentation. Refer to Note 7 for additional information.
The Notes to Consolidated Financial Statements are an integral part of these statements.

Consolidated statements of comprehensive income

Net income $ 36,431 $ 32,474 $ 24,441
Other comprehensive income/(loss), after–tax
Unrealized gains/(losses) on investment securities 2,855 (1,858) 640
Translation adjustments, net of hedges 20 20 (306)
Fair value hedges 30 (107) NA
Cash flow hedges 172 (201) 176
Defined benefit pension and OPEB plans 964 (373) 738
DVA on fair value option elected liabilities (965) 1,043 (192)
Total other comprehensive income/(loss), after–tax 3,076 (1,476) 1,056
Comprehensive income $ 39,507 $ 30,998 $ 25,497

Consolidated balance sheets
December 31, (in millions, except share data) 2019 2018

Assets
Cash and due from banks $ 21,704 $ 22,324
Deposits with banks 241,927 256,469
Federal funds sold and securities purchased under resale agreements (included $14,561 and $13,235 at fair value) 249,157 321,588
Securities borrowed (included $6,237 and $5,105 at fair value) 139,758 111,995
Trading assets (included assets pledged of $111,522 and $89,073) 411,103 413,714
Investment securities (included $350,699 and $230,394 at fair value and assets pledged of $10,325 and $11,432) 398,239 261,828
Loans (included $7,104 and $3,151 at fair value) 959,769 984,554
Allowance for loan losses (13,123) (13,445)
Loans, net of allowance for loan losses 946,646 971,109
Accrued interest and accounts receivable 72,861 73,200
Premises and equipment 25,813 14,934
Goodwill, MSRs and other intangible assets 53,341 54,349
Other assets (included $9,111 and $9,630 at fair value and assets pledged of $3,349 and $3,457) 126,830 121,022
Total assets(a) $ 2,687,379 $ 2,622,532
Liabilities
Deposits (included $28,589 and $23,217 at fair value) $ 1,562,431 $ 1,470,666
Federal funds purchased and securities loaned or sold under repurchase agreements (included $549 and $935 at fair
value) 183,675 182,320
Short-term borrowings (included $5,920 and $7,130 at fair value) 40,920 69,276
Trading liabilities 119,277 144,773
Accounts payable and other liabilities (included $3,728 and $3,269 at fair value) 210,407 196,710
Beneficial interests issued by consolidated VIEs (included $36 and $28 at fair value) 17,841 20,241
Long-term debt (included $75,745 and $54,886 at fair value) 291,498 282,031
Total liabilities(a) 2,426,049 2,366,017
Commitments and contingencies (refer to Notes 28, 29 and 30)
Stockholders’ equity
Preferred stock ($1 par value; authorized 200,000,000 shares: issued 2,699,250 and 2,606,750 shares) 26,993 26,068
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 88,522 89,162
Retained earnings 223,211 199,202
Accumulated other comprehensive income/loss 1,569 (1,507)
Shares held in restricted stock units (“RSU”) trust, at cost (472,953 shares) (21) (21)
Treasury stock, at cost (1,020,912,567 and 829,167,674 shares) (83,049) (60,494)
Total stockholders’ equity 261,330 256,515
Total liabilities and stockholders’ equity $ 2,687,379 $ 2,622,532
(a) The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2019 and 2018. The
assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests 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 14 for a further discussion.

Assets
Trading assets $ 2,633 $ 1,966
Loans 42,931 59,456
All other assets 881 1,013
Total assets $ 46,445 $ 62,435
Liabilities
Beneficial interests issued by consolidated VIEs $ 17,841 $ 20,241
All other liabilities 447 312
Total liabilities $ 18,288 $ 20,553

Consolidated statements of changes in stockholders’ equity
Year ended December 31, (in millions, except per share data) 2019 2018 2017
Preferred stock
Balance at January 1 $ 26,068 $ 26,068 $ 26,068
Issuance 5,000 1,696 1,258
Redemption (4,075) (1,696) (1,258)
Balance at December 31 26,993 26,068 26,068
Common stock
Balance at January 1 and December 31 4,105 4,105 4,105
Additional paid-in capital
Balance at January 1 89,162 90,579 91,627
Shares issued and commitments to issue common stock for employee share-based compensation awards, and
related tax effects (591) (738) (734)
Other (49) (679) (314)
Retained earnings
Balance at January 1 199,202 177,676 162,440
Cumulative effect of change in accounting principles 62 (183) —
Net income 36,431 32,474 24,441
Dividends declared:
Preferred stock (1,587) (1,551) (1,663)
Common stock ($3.40, $2.72 and $2.12 per share for 2019, 2018 and 2017, respectively) (10,897) (9,214) (7,542)
Accumulated other comprehensive income
Balance at January 1 (1,507) (119) (1,175)
Cumulative effect of change in accounting principles — 88 —
Other comprehensive income/(loss), after-tax 3,076 (1,476) 1,056
Balance at December 31 1,569 (1,507) (119)
Shares held in RSU Trust, at cost
Balance at January 1 and December 31 (21) (21) (21)
Treasury stock, at cost
Balance at January 1 (60,494) (42,595) (28,854)
Repurchase (24,121) (19,983) (15,410)
Reissuance 1,566 2,084 1,669
Balance at December 31 (83,049) (60,494) (42,595)
Total stockholders’ equity $ 261,330 $ 256,515 $ 255,693

Consolidated statements of cash flows

Net income $ 36,431 $ 32,474 $ 24,441
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization 8,368 7,791 6,179
Deferred tax expense 949 1,721 2,312
Other 1,996 2,717 2,136
Originations and purchases of loans held-for-sale (70,980) (102,141) (94,628)
Proceeds from sales, securitizations and paydowns of loans held-for-sale 79,182 93,453 93,270
Net change in:
Trading assets (652) (38,371) 5,673
Securities borrowed (27,631) (6,861) (8,653)
Accrued interest and accounts receivable (78) (5,849) (15,868)
Other assets (17,949) (8,833) 3,982
Trading liabilities (14,516) 18,290 (26,256)
Accounts payable and other liabilities (352) 14,630 (16,508)
Other operating adjustments 5,693 295 7,803
Net cash provided by/(used in) operating activities 6,046 14,187 (10,827)
Investing activities
Net change in:
Federal funds sold and securities purchased under resale agreements 72,396 (123,201) 31,448
Held-to-maturity securities:
Proceeds from paydowns and maturities 3,423 2,945 4,563
Purchases (13,427) (9,368) (2,349)
Available-for-sale securities:
Proceeds from paydowns and maturities 52,200 37,401 56,117
Proceeds from sales 70,181 46,067 90,201
Purchases (242,149) (95,091) (105,309)
Proceeds from sales and securitizations of loans held-for-investment 62,095 29,826 15,791
Other changes in loans, net (53,697) (81,586) (61,650)
All other investing activities, net (5,035) (4,986) (563)
Net cash provided by/(used in) investing activities (54,013) (197,993) 28,249
Financing activities
Net change in:
Deposits 101,002 26,728 57,022
Federal funds purchased and securities loaned or sold under repurchase agreements 1,347 23,415 (6,739)
Short-term borrowings (28,561) 18,476 16,540
Beneficial interests issued by consolidated VIEs 4,289 1,712 (1,377)
Proceeds from long-term borrowings 61,085 71,662 56,271
Payments of long-term borrowings (69,610) (76,313) (83,079)
Proceeds from issuance of preferred stock 5,000 1,696 1,258
Redemption of preferred stock (4,075) (1,696) (1,258)
Treasury stock repurchased (24,001) (19,983) (15,410)
Dividends paid (12,343) (10,109) (8,993)
All other financing activities, net (1,146) (1,430) 407
Net cash provided by financing activities 32,987 34,158 14,642
Effect of exchange rate changes on cash and due from banks and deposits with banks (182) (2,863) 8,086
Net increase/(decrease) in cash and due from banks and deposits with banks (15,162) (152,511) 40,150
Cash and due from banks and deposits with banks at the beginning of the period 278,793 431,304 391,154
Cash and due from banks and deposits with banks at the end of the period $ 263,631 $ 278,793 $ 431,304
Cash interest paid $ 29,918 $ 21,152 $ 14,153
Cash income taxes paid, net 5,624 3,542 4,325

Notes to consolidated financial statements
Note 1 – Basis of presentation

JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”), a the general partner or managing member without cause
financial holding company incorporated under Delaware law (i.e., kick-out rights), based on a simple majority vote, or
in 1968, is a leading global financial services firm and one the non-affiliated partners or members have rights to
of the largest banking institutions in the U.S. with participate in important decisions. Accordingly, the Firm
operations worldwide. The Firm is a leader in investment does not consolidate these voting interest entities. However,
banking, financial services for consumers and small in the limited cases where the non-managing partners or
business, commercial banking, financial transaction members do not have substantive kick-out or participating
processing and asset management. Refer to Note 32 for a rights, the Firm evaluates the funds as VIEs and
discussion of the Firm’s business segments. consolidates the funds if the Firm is the general partner or
managing member and has a potentially significant interest.
The accounting and financial reporting policies of JPMorgan
Chase and its subsidiaries conform to U.S. GAAP. The Firm’s investment companies and asset management
Additionally, where applicable, the policies conform to the funds have investments in both publicly-held and privately-
accounting and reporting guidelines prescribed by held entities, including investments in buyouts, growth
regulatory authorities. equity and venture opportunities. These investments are
accounted for under investment company guidelines and,
Certain amounts reported in prior periods have been
accordingly, irrespective of the percentage of equity
reclassified to conform with the current presentation.
ownership interests held, are carried on the Consolidated
Consolidation balance sheets at fair value, and are recorded in other
The Consolidated Financial Statements include the accounts assets, with income or loss included in noninterest revenue.
of JPMorgan Chase and other entities in which the Firm has If consolidated, the Firm retains such specialized investment
a controlling financial interest. All material intercompany company guidelines.
balances and transactions have been eliminated.
Variable interest entities
Assets held for clients in an agency or fiduciary capacity by VIEs are entities that, by design, either (1) lack sufficient
the Firm are not assets of JPMorgan Chase and are not equity to permit the entity to finance its activities without
included on the Consolidated balance sheets. additional subordinated financial support from other
parties, or (2) have equity investors that do not have the
The Firm determines whether it has a controlling financial
ability to make significant decisions relating to the entity’s
interest in an entity by first evaluating whether the entity is
operations through voting rights, or do not have the
a voting interest entity or a variable interest entity.
obligation to absorb the expected losses, or do not have the
Voting interest entities right to receive the residual returns of the entity.
Voting interest entities are entities that have sufficient
The most common type of VIE is an SPE. SPEs are commonly
equity and provide the equity investors voting rights that
used in securitization transactions in order to isolate certain
enable them to make significant decisions relating to the
assets and distribute the cash flows from those assets to
entity’s operations. For these types of entities, the Firm’s
investors. The basic SPE structure involves a company
determination of whether it has a controlling interest is
selling assets to the SPE; the SPE funds the purchase of
primarily based on the amount of voting equity interests
those assets by issuing securities to investors. The legal
held. Entities in which the Firm has a controlling financial
documents that govern the transaction specify how the cash
interest, through ownership of the majority of the entities’
earned on the assets must be allocated to the SPE’s
voting equity interests, or through other contractual rights
investors and other parties that have rights to those cash
that give the Firm control, are consolidated by the Firm.
flows. SPEs are generally structured to insulate investors
Investments in companies in which the Firm has significant from claims on the SPE’s assets by creditors of other
influence over operating and financing decisions (but does entities, including the creditors of the seller of the assets.
not own a majority of the voting equity interests) are
The primary beneficiary of a VIE (i.e., the party that has a
accounted for (i) in accordance with the equity method of
controlling financial interest) is required to consolidate the
accounting (which requires the Firm to recognize its
assets and liabilities of the VIE. The primary beneficiary is
proportionate share of the entity’s net earnings), or (ii) at
the party that has both (1) the power to direct the activities
fair value if the fair value option was elected. These
of the VIE that most significantly impact the VIE’s economic
investments are generally included in other assets, with
performance; and (2) through its interests in the VIE, the
income or loss included in noninterest revenue.
obligation to absorb losses or the right to receive benefits
Certain Firm-sponsored asset management funds are from the VIE that could potentially be significant to the VIE.
structured as limited partnerships or limited liability
To assess whether the Firm has the power to direct the
companies. For many of these entities, the Firm is the
activities of a VIE that most significantly impact the VIE’s
general partner or managing member, but the non-affiliated
economic performance, the Firm considers all the facts and
partners or members have the ability to remove the Firm as

circumstances, including its role in establishing the VIE and Use of estimates in the preparation of consolidated
its ongoing rights and responsibilities. This assessment financial statements
includes, first, identifying the activities that most The preparation of the Consolidated Financial Statements
significantly impact the VIE’s economic performance; and requires management to make estimates and assumptions
second, identifying which party, if any, has power over those that affect the reported amounts of assets and liabilities,
activities. In general, the parties that make the most revenue and expense, and disclosures of contingent assets
significant decisions affecting the VIE (such as asset and liabilities. Actual results could be different from these
managers, collateral managers, servicers, or owners of call estimates.
options or liquidation rights over the VIE’s assets) or have
Foreign currency translation
the right to unilaterally remove those decision-makers are
JPMorgan Chase revalues assets, liabilities, revenue and
deemed to have the power to direct the activities of a VIE.
expense denominated in non-U.S. currencies into U.S.
To assess whether the Firm has the obligation to absorb dollars using applicable exchange rates.
losses of the VIE or the right to receive benefits from the
Gains and losses relating to translating functional currency
VIE that could potentially be significant to the VIE, the Firm
financial statements for U.S. reporting are included in the
considers all of its economic interests, including debt and
Consolidated statements of comprehensive income. Gains
equity investments, servicing fees, and derivatives or other
and losses relating to nonfunctional currency transactions,
arrangements deemed to be variable interests in the VIE.
including non-U.S. operations where the functional currency
This assessment requires that the Firm apply judgment in
is the U.S. dollar, are reported in the Consolidated
determining whether these interests, in the aggregate, are
statements of income.
considered potentially significant to the VIE. Factors
considered in assessing significance include: the design of Offsetting assets and liabilities
the VIE, including its capitalization structure; subordination U.S. GAAP permits entities to present derivative receivables
of interests; payment priority; relative share of interests and derivative payables with the same counterparty and the
held across various classes within the VIE’s capital related cash collateral receivables and payables on a net
structure; and the reasons why the interests are held by the basis on the Consolidated balance sheets when a legally
Firm. enforceable master netting agreement exists. U.S. GAAP
also permits securities sold and purchased under
The Firm performs on-going reassessments of: (1) whether
repurchase agreements and securities borrowed or loaned
entities previously evaluated under the majority voting-
under securities loan agreements to be presented net when
interest framework have become VIEs, based on certain
specified conditions are met, including the existence of a
events, and are therefore subject to the VIE consolidation
legally enforceable master netting agreement. The Firm has
framework; and (2) whether changes in the facts and
elected to net such balances when the specified conditions
circumstances regarding the Firm’s involvement with a VIE
are met.
cause the Firm’s consolidation conclusion to change.
The Firm uses master netting agreements to mitigate
Refer to Note 14 for further discussion of the Firm’s VIEs.
counterparty credit risk in certain transactions, including
Revenue recognition derivative contracts, resale, repurchase, securities
Interest income borrowed and securities loaned agreements. A master
The Firm recognizes interest income on loans, debt netting agreement is a single agreement with a
securities, and other debt instruments, generally on a level- counterparty that permits multiple transactions governed
yield basis, based on the underlying contractual rate. Refer by that agreement to be terminated or accelerated and
to Note 7 for further discussion of interest income. settled through a single payment in a single currency in the
event of a default (e.g., bankruptcy, failure to make a
Revenue from contracts with customers
required payment or securities transfer or deliver collateral
JPMorgan Chase recognizes noninterest revenue from
or margin when due). Upon the exercise of derivatives
certain contracts with customers, in investment banking
termination rights by the non-defaulting party (i) all
fees, deposit-related fees, asset management
transactions are terminated, (ii) all transactions are valued
administration and commissions, and components of card
and the positive values of “in the money” transactions are
income, when the Firm’s related performance obligations
netted against the negative values of “out of the money”
are satisfied. Refer to Note 6 for further discussion of the
transactions and (iii) the only remaining payment obligation
Firm’s revenue from contracts with customers.
is of one of the parties to pay the netted termination
Principal transactions revenue amount. Upon exercise of default rights under repurchase
JPMorgan Chase carries a portion of its assets and liabilities agreements and securities loan agreements in general (i) all
at fair value. Changes in fair value are reported primarily in transactions are terminated and accelerated, (ii) all values
principal transactions revenue. Refer to Notes 2 and 3 for of securities or cash held or to be delivered are calculated,
further discussion of fair value measurement. Refer to Note and all such sums are netted against each other and (iii) the
6 for further discussion of principal transactions revenue. only remaining payment obligation is of one of the parties
to pay the netted termination amount.

Typical master netting agreements for these types of Accounting standards adopted January 1, 2018
transactions also often contain a collateral/margin Effective January 1, 2018, the Firm adopted several
agreement that provides for a security interest in, or title accounting standards resulting in a net decrease of $183
transfer of, securities or cash collateral/margin to the party million to retained earnings and a net increase of $88
that has the right to demand margin (the “demanding million to AOCI. Certain of these standards were adopted
party”). The collateral/margin agreement typically requires retrospectively and, accordingly, prior period amounts were
a party to transfer collateral/margin to the demanding revised. The adoption of the recognition and measurement
party with a value equal to the amount of the margin deficit guidance resulted in $505 million of fair value gains in the
on a net basis across all transactions governed by the first quarter of 2018, recorded in total net revenue, on
master netting agreement, less any threshold. The certain equity investments that were previously held at
collateral/margin agreement grants to the demanding cost.
party, upon default by the counterparty, the right to set-off
Significant accounting policies
any amounts payable by the counterparty against any
The following table identifies JPMorgan Chase’s other
posted collateral or the cash equivalent of any posted
significant accounting policies and the Note and page where
collateral/margin. It also grants to the demanding party the
a detailed description of each policy can be found.
right to liquidate collateral/margin and to apply the
proceeds to an amount payable by the counterparty. Fair value measurement Note 2 page 154
Refer to Note 5 for further discussion of the Firm’s Fair value option Note 3 page 175
derivative instruments. Refer to Note 11 for further Derivative instruments Note 5 page 180
discussion of the Firm’s securities financing agreements.
Noninterest revenue and noninterest
Statements of cash flows expense Note 6 page 195
For JPMorgan Chase’s Consolidated statements of cash Interest income and Interest expense Note 7 page 198
flows, cash is defined as those amounts included in cash Pension and other postretirement
and due from banks and deposits with banks. employee benefit plans Note 8 page 199
Accounting standard adopted January 1, 2020 Employee share-based incentives Note 9 page 206
Financial Instruments – Credit Losses (“CECL”) Investment securities Note 10 page 208
The adoption of this guidance established a single Securities financing activities Note 11 page 214
allowance framework for all financial assets carried at Loans Note 12 page 217
amortized cost and certain off-balance sheet credit Allowance for credit losses Note 13 page 237
exposures. This framework requires that management’s
Variable interest entities Note 14 page 242
estimate reflects credit losses over the full remaining
expected life and considers expected future changes in Goodwill and Mortgage servicing rights Note 15 page 250
macroeconomic conditions. Premises and equipment Note 16 page 254
The following table presents the impacts to the allowance Leases Note 18 page 254
for credit losses and retained earnings upon adoption of Long-term debt Note 20 page 257
this guidance on January 1, 2020: Income taxes Note 25 page 265
CECL
Off–balance sheet lending-related
December adoption January 1, financial instruments, guarantees and
(in billions) 31, 2019 impact 2020 other commitments Note 28 page 272
Allowance for credit losses Litigation Note 30 page 279
Consumer, excluding credit card $ 3.2 $ 0.2 $ 3.4
Credit card 5.7 5.5 11.2
Wholesale 5.4 (1.4) 4.0
Firmwide $ 14.3 $ 4.3 $ 18.6
Retained earnings
Firmwide allowance increase $ 4.3
Balance sheet reclassification(a) (0.8)
Total pre-tax impact 3.5
Tax effect (0.8)
Decrease to retained earnings $ 2.7
(a) Represents the recognition of the nonaccretable difference on

purchased credit deteriorated assets and the Firm's election to
recognize the reserve for uncollectible accrued interest on credit card
loans in the allowance, both of which resulted in a corresponding
increase to loans.

Note 2 – Fair value measurement Price verification process

JPMorgan Chase carries a portion of its assets and liabilities The VCG verifies fair value estimates provided by the risk-
at fair value. These assets and liabilities are predominantly taking functions by leveraging independently derived prices,
carried at fair value on a recurring basis (i.e., assets and valuation inputs and other market data, where available.
liabilities that are measured and reported at fair value on Where independent prices or inputs are not available, the
the Firm’s Consolidated balance sheets). Certain assets, VCG performs additional review to ensure the
liabilities and unfunded lending-related commitments are reasonableness of the estimates. The additional review may
measured at fair value on a nonrecurring basis; that is, they include evaluating the limited market activity including
are not measured at fair value on an ongoing basis but are client unwinds, benchmarking valuation inputs to those
subject to fair value adjustments only in certain used for similar instruments, decomposing the valuation of
circumstances (for example, when there is evidence of structured instruments into individual components,
impairment). comparing expected to actual cash flows, reviewing profit
and loss trends, and reviewing trends in collateral valuation.
Fair value is defined as the price that would be received to There are also additional levels of management review for
sell an asset or paid to transfer a liability in an orderly more significant or complex positions.
transaction between market participants at the
measurement date. Fair value is based on quoted market The VCG determines any valuation adjustments that may be
prices or inputs, where available. If prices or quotes are not required to the estimates provided by the risk-taking
available, fair value is based on valuation models and other functions. No adjustments to quoted prices are applied for
valuation techniques that consider relevant transaction instruments classified within level 1 of the fair value
characteristics (such as maturity) and use, as inputs, hierarchy (refer to the discussion below for further
observable or unobservable market parameters, including information on the fair value hierarchy). For other
yield curves, interest rates, volatilities, prices (such as positions, judgment is required to assess the need for
commodity, equity or debt prices), correlations, foreign valuation adjustments to appropriately reflect liquidity
exchange rates and credit curves. Valuation adjustments considerations, unobservable parameters, and, for certain
may be made to ensure that financial instruments are portfolios that meet specified criteria, the size of the net
recorded at fair value, as described below. open risk position. The determination of such adjustments
follows a consistent framework across the Firm:
The level of precision in estimating unobservable market
inputs or other factors can affect the amount of gain or loss • Liquidity valuation adjustments are considered where an
recorded for a particular position. Furthermore, while the observable external price or valuation parameter exists
Firm believes its valuation methods are appropriate and but is of lower reliability, potentially due to lower market
consistent with those of other market participants, the activity. Liquidity valuation adjustments are made based
methods and assumptions used reflect management on current market conditions. Factors that may be
judgment and may vary across the Firm’s businesses and considered in determining the liquidity adjustment
portfolios. include analysis of: (1) the estimated bid-offer spread
for the instrument being traded; (2) alternative pricing
The Firm uses various methodologies and assumptions in points for similar instruments in active markets; and (3)
the determination of fair value. The use of different the range of reasonable values that the price or
methodologies or assumptions by other market participants parameter could take.
compared with those used by the Firm could result in the
Firm deriving a different estimate of fair value at the • The Firm manages certain portfolios of financial
reporting date. instruments on the basis of net open risk exposure and,
as permitted by U.S. GAAP, has elected to estimate the
Valuation process fair value of such portfolios on the basis of a transfer of
Risk-taking functions are responsible for providing fair value the entire net open risk position in an orderly
estimates for assets and liabilities carried on the transaction. Where this is the case, valuation
Consolidated balance sheets at fair value. The Firm’s VCG, adjustments may be necessary to reflect the cost of
which is part of the Firm’s Finance function and exiting a larger-than-normal market-size net open risk
independent of the risk-taking functions, is responsible for position. Where applied, such adjustments are based on
verifying these estimates and determining any fair value factors that a relevant market participant would
adjustments that may be required to ensure that the Firm’s consider in the transfer of the net open risk position,
positions are recorded at fair value. The VGF is composed of including the size of the adverse market move that is
senior finance and risk executives and is responsible for likely to occur during the period required to reduce the
overseeing the management of risks arising from valuation net open risk position to a normal market-size.
activities conducted across the Firm. The Firmwide VGF is
chaired by the Firmwide head of the VCG (under the • Uncertainty adjustments related to unobservable
direction of the Firm’s Controller), and includes sub-forums parameters may be made when positions are valued
covering the CIB, CCB, CB, AWM and certain corporate using prices or input parameters to valuation models
functions including Treasury and CIO. that are unobservable due to a lack of market activity or
because they cannot be implied from observable market
data. Such prices or parameters must be estimated and
are, therefore, subject to management judgment.

Adjustments are made to reflect the uncertainty
inherent in the resulting valuation estimate.
• Where appropriate, the Firm also applies adjustments to
its estimates of fair value in order to appropriately
reflect counterparty credit quality (CVA), the Firm’s own
creditworthiness (DVA) and the impact of funding (FVA),
using a consistent framework across the Firm. Refer to
Credit and funding adjustments on page 171 of this Note
for more information on such adjustments.
Valuation model review and approval
If prices or quotes are not available for an instrument or a
similar instrument, fair value is generally determined using
valuation models that consider relevant transaction terms
such as maturity and use as inputs market-based or
independently sourced parameters. Where this is the case
the price verification process described above is applied to
the inputs in those models.
Under the Firm’s Estimations and Model Risk Management
Policy, the Model Risk function reviews and approves new
models, as well as material changes to existing models,
prior to implementation in the operating environment. In
certain circumstances exceptions may be granted to the
Firm’s policy to allow a model to be used prior to review or
approval. The Model Risk function may also require the user
to take appropriate actions to mitigate the model risk if it is
to be used in the interim. These actions will depend on the
model and may include, for example, limitation of trading
activity.
Valuation hierarchy
A three-level valuation hierarchy has been established
under U.S. GAAP for disclosure of fair value measurements.
The valuation hierarchy is based on the observability of
inputs to the valuation of an asset or liability as of the
measurement date. The three levels are defined as follows.
• Level 1 – inputs to the valuation methodology are
quoted prices (unadjusted) for identical assets or
liabilities in active markets.
• Level 2 – inputs to the valuation methodology include
quoted prices for similar assets and liabilities in active
markets, and inputs that are observable for the asset or
liability, either directly or indirectly, for substantially the
full term of the financial instrument.
• Level 3 – one or more inputs to the valuation
methodology are unobservable and significant to the fair
value measurement.
A financial instrument’s categorization within the valuation
hierarchy is based on the lowest level of input that is
significant to the fair value measurement.

The following table describes the valuation methodologies generally used by the Firm to measure its significant products/
instruments at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.
Classifications in the valuation

Product/instrument Valuation methodology hierarchy
Securities financing agreements Valuations are based on discounted cash flows, which consider: Predominantly level 2
• Derivative features: refer to the discussion of derivatives below
for further information.
• Market rates for the respective maturity
• Collateral characteristics
Loans and lending-related commitments — wholesale
Loans carried at fair value Where observable market data is available, valuations are based on: Level 2 or 3
(e.g., trading loans and non-
trading loans) and associated • Observed market prices (circumstances are infrequent)
lending-related commitments • Relevant broker quotes
• Observed market prices for similar instruments
Where observable market data is unavailable or limited, valuations
are based on discounted cash flows, which consider the following:
• Credit spreads derived from the cost of CDS; or benchmark credit
curves developed by the Firm, by industry and credit rating
• Prepayment speed
Loans — consumer
Trading loans — conforming Fair value is based on observable prices for mortgage-backed Predominantly level 2
residential mortgage loans securities with similar collateral and incorporates adjustments to
expected to be sold these prices to account for differences between the securities and the
value of the underlying loans, which include credit characteristics,
portfolio composition, and liquidity.
Investment and trading Quoted market prices Level 1
securities
In the absence of quoted market prices, securities are valued based Level 2 or 3
on:
• Observable market prices for similar securities
• Relevant broker quotes
• Discounted cash flows
In addition, the following inputs to discounted cash flows are used for
the following products:
Mortgage- and asset-backed securities specific inputs:
• Deal-specific payment and loss allocations
• Current market assumptions related to yield, prepayment speed,
conditional default rates and loss severity
Collateralized loan obligations (“CLOs”) specific inputs:
• Deal-specific payment and loss allocations
• Expected prepayment speed, conditional default rates, loss
severity
• Credit spreads
• Credit rating data
Physical commodities Valued using observable market prices or data. Level 1 or 2

Classifications in the valuation
Derivatives Exchange-traded derivatives that are actively traded and valued using Level 1
the exchange price.
Derivatives that are valued using models such as the Black-Scholes Level 2 or 3
option pricing model, simulation models, or a combination of models
that may use observable or unobservable valuation inputs as well as
considering the contractual terms.
The key valuation inputs used will depend on the type of derivative and
the nature of the underlying instruments and may include equity prices,
commodity prices, interest rate yield curves, foreign exchange rates,
volatilities, correlations, CDS spreads and recovery rates. Additionally,
the credit quality of the counterparty and of the Firm as well as market
funding levels may also be considered.
In addition, specific inputs used for derivatives that are valued based on
models with significant unobservable inputs are as follows:
Structured credit derivatives specific inputs include:
• CDS spreads and recovery rates
• Credit correlation between the underlying debt instruments
Equity option specific inputs include:
• Forward equity price
• Equity volatility
• Equity correlation
• Equity-FX correlation
• Equity-IR correlation
Interest rate and FX exotic options specific inputs include:
• Interest rate volatility
• Interest rate spread volatility
• Interest rate correlation
• Foreign exchange correlation
• Interest rate-FX correlation
Commodity derivatives specific inputs include:
• Commodity volatility
• Forward commodity price
Additionally, adjustments are made to reflect counterparty credit quality
(CVA) and the impact of funding (FVA). Refer to page 171 of this Note.
Mortgage servicing rights Refer to Mortgage servicing rights in Note 15. Level 3
Private equity direct Fair value is estimated using all available information; the range of Level 2 or 3
investments potential inputs include:
• Transaction prices
• Trading multiples of comparable public companies
• Operating performance of the underlying portfolio company
• Adjustments as required, since comparable public companies are not
identical to the company being valued, and for company-specific
issues and lack of liquidity.
• Additional available inputs relevant to the investment.
Fund investments (e.g., Net asset value
mutual/collective investment • NAV is supported by the ability to redeem and purchase at the NAV Level 1
funds, private equity funds, level.
hedge funds, and real estate
funds) • Adjustments to the NAV as required, for restrictions on redemption Level 2 or 3(a)
(e.g., lock-up periods or withdrawal limitations) or where observable
activity is limited.
Beneficial interests issued by Valued using observable market information, where available. Level 2 or 3
consolidated VIEs In the absence of observable market information, valuations are based
on the fair value of the underlying assets held by the VIE.
(a) Excludes certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient.

Classification in the valuation

Structured notes (included in • Valuations are based on discounted cash flow analyses that consider Level 2 or 3
deposits, short-term the embedded derivative and the terms and payment structure of
borrowings and long-term the note.
debt)
• The embedded derivative features are considered using models such
as the Black-Scholes option pricing model, simulation models, or a
combination of models that may use observable or unobservable
valuation inputs, depending on the embedded derivative. The
specific inputs used vary according to the nature of the embedded
derivative features, as described in the discussion above regarding
derivatives valuation. Adjustments are then made to this base
valuation to reflect the Firm’s own credit risk (DVA). Refer to page
171 of this Note.

The following table presents the assets and liabilities reported at fair value as of December 31, 2019 and 2018, by major
product category and fair value hierarchy.
Assets and liabilities measured at fair value on a recurring basis

Fair value hierarchy
Derivative
netting
December 31, 2019 (in millions) Level 1 Level 2 Level 3 adjustments(f) Total fair value
Federal funds sold and securities purchased under resale agreements $ — $ 14,561 $ — $ — $ 14,561
Securities borrowed — 6,237 — — 6,237
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies(a) — 44,510 797 — 45,307
Residential – nonagency — 1,977 23 — 2,000
Commercial – nonagency — 1,486 4 — 1,490
Total mortgage-backed securities — 47,973 824 — 48,797
U.S. Treasury, GSEs and government agencies(a) 78,289 10,295 — — 88,584
Obligations of U.S. states and municipalities — 6,468 10 — 6,478
Certificates of deposit, bankers’ acceptances and commercial paper — 252 — — 252
Non-U.S. government debt securities 26,600 27,169 155 — 53,924
Corporate debt securities — 17,956 558 — 18,514
Loans(b) — 47,047 1,382 — 48,429
Asset-backed securities — 2,593 37 — 2,630
Total debt instruments 104,889 159,753 2,966 — 267,608
Equity securities 71,890 244 196 — 72,330
Physical commodities(c) 3,638 3,579 — — 7,217
Other — 13,896 232 — 14,128
Total debt and equity instruments(d) 180,417 177,472 3,394 — 361,283
Derivative receivables:
Interest rate 721 311,173 1,400 (285,873) 27,421
Credit — 14,252 624 (14,175) 701
Foreign exchange 117 137,938 432 (129,482) 9,005
Equity — 43,642 2,085 (39,250) 6,477
Commodity — 17,058 184 (11,080) 6,162
Total derivative receivables 838 524,063 4,725 (479,860) 49,766
Total trading assets(e) 181,255 701,535 8,119 (479,860) 411,049
U.S. GSEs and government agencies(a) — 110,117 — — 110,117
Commercial – nonagency — 5,188 — — 5,188
U.S. Treasury and government agencies 139,436 — — — 139,436
Obligations of U.S. states and municipalities — 29,810 — — 29,810
Certificates of deposit — 77 — — 77
Non-U.S. government debt securities 12,966 8,821 — — 21,787
Corporate debt securities — 845 — — 845
Asset-backed securities:
Collateralized loan obligations — 24,991 — — 24,991
Other — 5,458 — — 5,458
Total available-for-sale securities 152,402 198,296 1 — 350,699
Loans — 7,104 — — 7,104
Mortgage servicing rights — — 4,699 — 4,699
Other assets(e) 7,305 452 724 — 8,481
Total assets measured at fair value on a recurring basis $ 340,962 $ 928,185 $ 13,543 $ (479,860) $ 802,830
Deposits $ — $ 25,229 $ 3,360 $ — $ 28,589
Federal funds purchased and securities loaned or sold under repurchase agreements — 549 — — 549
Short-term borrowings — 4,246 1,674 — 5,920
Trading liabilities:
Debt and equity instruments(d) 59,047 16,481 41 — 75,569
Derivative payables:
Interest rate 795 276,746 1,732 (270,670) 8,603
Credit — 14,358 763 (13,469) 1,652
Foreign exchange 109 143,960 1,039 (131,950) 13,158
Equity — 47,261 5,480 (40,204) 12,537
Commodity — 19,685 200 (12,127) 7,758
Total derivative payables 904 502,010 9,214 (468,420) 43,708
Total trading liabilities 59,951 518,491 9,255 (468,420) 119,277
Accounts payable and other liabilities 3,231 452 45 — 3,728
Beneficial interests issued by consolidated VIEs — 36 — — 36
Long-term debt — 52,406 23,339 — 75,745
Total liabilities measured at fair value on a recurring basis $ 63,182 $ 601,409 $ 37,673 $ (468,420) $ 233,844


Derivative
netting
December 31, 2018 (in millions) Level 1 Level 2 Level 3 adjustments(f) Total fair value
Federal funds sold and securities purchased under resale agreements $ — $ 13,235 $ — $ — $ 13,235
Securities borrowed — 5,105 — — 5,105
Trading assets:
Debt instruments:
U.S. GSEs and government agencies(a) — 76,249 549 — 76,798
Commercial – nonagency — 1,501 11 — 1,512
U.S. Treasury, GSEs and government agencies(a) 51,477 7,702 — — 59,179
Obligations of U.S. states and municipalities — 7,121 689 — 7,810
Certificates of deposit, bankers’ acceptances and commercial paper — 1,214 — — 1,214
Non-U.S. government debt securities 27,878 27,056 155 — 55,089
Corporate debt securities — 18,655 334 — 18,989
Loans(b) — 40,047 1,706 — 41,753
Asset-backed securities — 2,756 127 — 2,883
Total debt instruments 79,355 184,099 3,635 — 267,089
Equity securities 71,119 482 232 — 71,833
Physical commodities(c) 5,182 1,855 — — 7,037
Other — 13,192 301 — 13,493
Total debt and equity instruments(d) 155,656 199,628 4,168 — 359,452
Derivative receivables:
Interest rate 682 266,380 1,642 (245,490) 23,214
Credit — 19,235 860 (19,483) 612
Equity — 46,777 2,508 (39,339) 9,946
Commodity — 20,339 131 (13,479) 6,991
Total derivative receivables 1,453 518,969 5,817 (472,026) 54,213
Total trading assets(e) 157,109 718,597 9,985 (472,026) 413,665
U.S. GSEs and government agencies(a) — 68,646 — — 68,646
Commercial – nonagency — 6,654 — — 6,654
U.S. Treasury and government agencies 56,059 — — — 56,059
Obligations of U.S. states and municipalities — 37,723 — — 37,723
Certificates of deposit — 75 — — 75
Non-U.S. government debt securities 15,313 8,789 — — 24,102
Corporate debt securities — 1,918 — — 1,918
Asset-backed securities: — — — — —
Collateralized loan obligations — 19,437 — — 19,437
Other — 7,260 — — 7,260
Total available-for-sale securities 71,372 159,021 1 — 230,394
Loans — 3,029 122 — 3,151
Mortgage servicing rights — — 6,130 — 6,130
Other assets(e) 7,810 195 927 — 8,932
Total assets measured at fair value on a recurring basis $ 236,291 $ 899,182 $ 17,165 $ (472,026) $ 680,612
Deposits $ — $ 19,048 $ 4,169 $ — $ 23,217
Federal funds purchased and securities loaned or sold under repurchase agreements — 935 — — 935
Short-term borrowings — 5,607 1,523 — 7,130
Trading liabilities:
Debt and equity instruments(d) 80,199 22,755 50 — 103,004
Derivative payables:
Interest rate 1,526 239,576 1,680 (234,998) 7,784
Credit — 19,309 967 (18,609) 1,667
Equity — 46,462 4,733 (41,034) 10,161
Commodity — 21,158 1,260 (13,046) 9,372
Total derivative payables 2,221 490,054 9,613 (460,119) 41,769
Total trading liabilities 82,420 512,809 9,663 (460,119) 144,773
Accounts payable and other liabilities 3,063 196 10 — 3,269
Beneficial interests issued by consolidated VIEs — 27 1 — 28
Long-term debt — 35,468 19,418 — 54,886
Total liabilities measured at fair value on a recurring basis $ 85,483 $ 574,090 $ 34,784 $ (460,119) $ 234,238
(a) At December 31, 2019 and 2018, included total U.S. GSE obligations of $104.5 billion and $92.3 billion, respectively, which were mortgage-related.
(b) At December 31, 2019 and 2018, included within trading loans were $19.8 billion and $13.2 billion, respectively, of residential first-lien mortgages, and
$3.4 billion and $2.3 billion, respectively, of commercial first-lien mortgages. Residential mortgage loans include conforming mortgage loans originated
with the intent to sell to U.S. GSEs and government agencies of $13.6 billion and $7.6 billion, respectively.
(c) 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 5 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.
(d) Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions).
(e) 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 December 31, 2019 and 2018, the fair values of these investments, which include certain hedge funds, private
equity funds, real estate and other funds, were $684 million and $747 million, respectively. Included in these balances at December 31, 2019 and 2018,
were trading assets of $54 million and $49 million, respectively, and other assets of $630 million and $698 million, 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
The Firm has established well-structured processes for In the Firm’s view, the input range and the weighted average
determining fair value, including for instruments where fair value do not reflect the degree of input uncertainty or an
value is estimated using significant unobservable inputs assessment of the reasonableness of the Firm’s estimates and
(level 3). Refer to pages 154–158 of this Note for further assumptions. Rather, they reflect the characteristics of the
information on the Firm’s valuation process and a detailed various instruments held by the Firm and the relative
discussion of the determination of fair value for individual distribution of instruments within the range of
financial instruments. characteristics. For example, two option contracts may have
similar levels of market risk exposure and valuation
Estimating fair value requires the application of judgment.
uncertainty, but may have significantly different implied
The type and level of judgment required is largely dependent
volatility levels because the option contracts have different
on the amount of observable market information available to
underlyings, tenors, or strike prices. The input range and
the Firm. For instruments valued using internally developed
weighted average values will therefore vary from period-to-
valuation models and other valuation techniques that use
period and parameter-to-parameter based on the
significant unobservable inputs and are therefore classified
characteristics of the instruments held by the Firm at each
within level 3 of the fair value hierarchy, judgments used to
balance sheet date.
estimate fair value are more significant than those required
when estimating the fair value of instruments classified For the Firm’s derivatives and structured notes positions
within levels 1 and 2. classified within level 3 at December 31, 2019, interest rate
correlation inputs used in estimating fair value were
In arriving at an estimate of fair value for an instrument
distributed across the range; equity correlation, equity-FX
within level 3, management must first determine the
and equity-IR correlation inputs were concentrated in the
appropriate valuation model or other valuation technique to
middle of the range; commodity correlation inputs were
use. Second, due to the lack of observability of significant
concentrated in the middle of the range; credit correlation
inputs, management must assess relevant empirical data in
inputs were concentrated towards the lower end of the range;
deriving valuation inputs including transaction details, yield
and forward equity prices and the interest rate-foreign
curves, interest rates, prepayment speed, default rates,
exchange (“IR-FX”) correlation inputs were distributed across
volatilities, correlations, prices (such as commodity, equity or
the range. In addition, the interest rate volatility and interest
debt prices), valuations of comparable instruments, foreign
rate spread volatility inputs used in estimating fair value were
exchange rates and credit curves.
distributed across the range; equity volatilities and
The following table presents the Firm’s primary level 3 commodity volatilities were concentrated towards the lower
financial instruments, the valuation techniques used to end of the range; and forward commodity prices used in
measure the fair value of those financial instruments, the estimating the fair value of commodity derivatives were
significant unobservable inputs, the range of values for those concentrated in the middle of the range. Prepayment speed
inputs and, for certain instruments, the weighted averages of inputs used in estimating the fair value of interest rate
such inputs. While the determination to classify an derivatives were concentrated towards the lower end of the
instrument within level 3 is based on the significance of the range. Recovery rate inputs used in estimating the fair value
unobservable inputs to the overall fair value measurement, of credit derivatives were distributed across the range; credit
level 3 financial instruments typically include observable spreads were concentrated towards the lower end of the
components (that is, components that are actively quoted range; conditional default rates and loss severity inputs were
and can be validated to external sources) in addition to the concentrated towards the upper end of the range and price
unobservable components. The level 1 and/or level 2 inputs inputs were concentrated towards the lower end of the range.
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.

Level 3 inputs(a)
December 31, 2019
Fair value Principal valuation Weighted
Product/Instrument (in millions) technique Unobservable inputs(g) Range of input values average
Residential mortgage-backed securities and $ 976 Discounted cash flows Yield 2% – 18% 6%
loans(b)
Prepayment speed 0% – 26% 13%
Conditional default rate 0% – 5% 0%
Loss severity 0% – 100% 5%
Commercial mortgage-backed securities and
loans(c) 99 Market comparables Price $0 – $100 $79
Obligations of U.S. states and municipalities
10 Market comparables Price $71 – $100 $95
Corporate debt securities 558 Market comparables Price $4 – $112 $72
Loans(d) 193 Discounted cash flows Yield 5% – 28% 8%
Asset-backed securities 37 Market comparables Price $1 – $102 $71
Net interest rate derivatives (395) Option pricing Interest rate volatility 6% – 44%
Interest rate spread volatility 20bps – 30bps
Interest rate correlation (65)% – 94%
IR-FX correlation (58)% – 40%
63 Discounted cash flows Prepayment speed 4% – 30%
Net credit derivatives (174) Discounted cash flows Credit correlation 31% – 59%
Credit spread 3bps – 1,308bps
Recovery rate 15% – 70%
Conditional default rate 2% – 18%
Loss severity 100%
35 Market comparables Price $1 – $115
Net foreign exchange derivatives (469) Option pricing IR-FX correlation (58)% – 65%
(138) Discounted cash flows Prepayment speed 9%
Net equity derivatives (3,395) Option pricing Forward equity price(h) 92% – 105%
Equity volatility 9% – 93%
Equity correlation 10% – 97%
Equity-FX correlation (81)% – 60%
Equity-IR correlation 25% – 35%
Net commodity derivatives (16) Option pricing Forward commodity price $39 – $ 76 per barrel
Commodity volatility 5% – 105%
Commodity correlation (48)% – 95%
MSRs 4,699 Discounted cash flows Refer to Note 15
Other assets 222 Discounted cash flows Credit spread 45bps 45bps
Yield 12% 12%
Long-term debt, short-term borrowings, and 28,373 Option pricing Interest rate volatility 6% – 44%
deposits(e)
Interest rate correlation (65)% – 94%
IR-FX correlation (58)% – 40%
Equity correlation 10% – 97%
Equity-FX correlation (81)% – 60%
Equity-IR correlation 25% – 35%
Other level 3 assets and liabilities, net(f) 265
(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. GSEs and government agency securities of $797 million, nonagency securities of $24 million and trading loans of $155 million.
(c) Comprises nonagency securities of $4 million and trading loans of $95 million.
(d) Comprises trading loans.
(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 level 3 assets and liabilities that 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.

Changes in and ranges of unobservable inputs underlying borrower, and the remaining tenor of the
The following discussion provides a description of the impact obligation as well as the level and type (e.g., fixed or floating)
on a fair value measurement of a change in each of interest rate being paid by the borrower. Typically
unobservable input in isolation, and the interrelationship collateral pools with higher borrower credit quality have a
between unobservable inputs, where relevant and significant. higher prepayment rate than those with lower borrower
The impact of changes in inputs may not be independent, as a credit quality, all other factors being equal.
change in one unobservable input may give rise to a change
Conditional default rate – The conditional default rate is a
in another unobservable input. Where relationships do exist
measure of the reduction in the outstanding collateral
between two unobservable inputs, those relationships are
balance underlying a collateralized obligation as a result of
discussed below. Relationships may also exist between
defaults. While there is typically no direct relationship
observable and unobservable inputs (for example, as
between conditional default rates and prepayment speeds,
observable interest rates rise, unobservable prepayment
collateralized obligations for which the underlying collateral
rates decline); such relationships have not been included in
has high prepayment speeds will tend to have lower
the discussion below. In addition, for each of the individual
conditional default rates. An increase in conditional default
relationships described below, the inverse relationship would
rates would generally be accompanied by an increase in loss
also generally apply.
severity and an increase in credit spreads. An increase in the
The following discussion also provides a description of conditional default rate, in isolation, would result in a
attributes of the underlying instruments and external market decrease in a fair value measurement. Conditional default
factors that affect the range of inputs used in the valuation of rates reflect the quality of the collateral underlying a
the Firm’s positions. securitization and the structure of the securitization itself.
Based on the types of securities owned in the Firm’s market-
Yield – The yield of an asset is the interest rate used to
making portfolios, conditional default rates are most typically
discount future cash flows in a discounted cash flow
at the lower end of the range presented.
calculation. An increase in the yield, in isolation, would result
in a decrease in a fair value measurement. Loss severity – The loss severity (the inverse concept is the
recovery rate) is the expected amount of future realized
Credit spread – The credit spread is the amount of additional
losses resulting from the ultimate liquidation of a particular
annualized return over the market interest rate that a market
loan, expressed as the net amount of loss relative to the
participant would demand for taking exposure to the credit
outstanding loan balance. An increase in loss severity is
risk of an instrument. The credit spread for an instrument
generally accompanied by an increase in conditional default
forms part of the discount rate used in a discounted cash flow
rates. An increase in the loss severity, in isolation, would
calculation. Generally, an increase in the credit spread would
result in a decrease in a fair value measurement.
result in a decrease in a fair value measurement.
The loss severity applied in valuing a mortgage-backed
The yield and the credit spread of a particular mortgage-
security investment depends on factors relating to the
backed security primarily reflect the risk inherent in the
underlying mortgages, including the LTV ratio, the nature of
instrument. The yield is also impacted by the absolute level of
the lender’s lien on the property and other instrument-
the coupon paid by the instrument (which may not
specific factors.
correspond directly to the level of inherent risk). Therefore,
the range of yield and credit spreads reflects the range of risk
inherent in various instruments owned by the Firm. The risk
inherent in mortgage-backed securities is driven by the
subordination of the security being valued and the
characteristics of the underlying mortgages within the
collateralized pool, including borrower FICO scores, LTV ratios
for residential mortgages and the nature of the property and/
or any tenants for commercial mortgages. For corporate debt
securities, obligations of U.S. states and municipalities and
other similar instruments, credit spreads reflect the credit
quality of the obligor and the tenor of the obligation.
Prepayment speed – The prepayment speed is a measure of

the voluntary unscheduled principal repayments of a
prepayable obligation in a collateralized pool. Prepayment
speeds generally decline as borrower delinquencies rise. An
increase in prepayment speeds, in isolation, would result in a
decrease in a fair value measurement of assets valued at a
premium to par and an increase in a fair value measurement
of assets valued at a discount to par.
Prepayment speeds may vary from collateral pool to
collateral pool, and are driven by the type and location of the

Correlation – Correlation is a measure of the relationship Forward price - Forward price is the price at which the buyer
between the movements of two variables. Correlation is a agrees to purchase the asset underlying a forward contract
pricing input for a derivative product where the payoff is on the predetermined future delivery date, and is such that
driven by one or more underlying risks. Correlation inputs are the value of the contract is zero at inception.
related to the type of derivative (e.g., interest rate, credit,
The forward price is used as an input in the valuation of
equity, foreign exchange and commodity) due to the nature
certain derivatives and depends on a number of factors
of the underlying risks. When parameters are positively
including interest rates, the current price of the underlying
correlated, an increase in one parameter will result in an
asset, and the expected income to be received and costs to be
increase in the other parameter. When parameters are
incurred by the seller as a result of holding that asset until
negatively correlated, an increase in one parameter will
the delivery date. An increase in the forward can result in an
result in a decrease in the other parameter. An increase in
increase or a decrease in a fair value measurement.
correlation can result in an increase or a decrease in a fair
value measurement. Given a short correlation position, an Changes in level 3 recurring fair value measurements
increase in correlation, in isolation, would generally result in The following tables include a rollforward of the Consolidated
a decrease in a fair value measurement. balance sheets amounts (including changes in fair value) for
financial instruments classified by the Firm within level 3 of
The level of correlation used in the valuation of derivatives
the fair value hierarchy for the years ended December 31,
with multiple underlying risks depends on a number of
2019, 2018 and 2017. When a determination is made to
factors including the nature of those risks. For example, the
classify a financial instrument within level 3, the
correlation between two credit risk exposures would be
determination is based on the significance of the
different than that between two interest rate risk exposures.
unobservable inputs to the overall fair value measurement.
Similarly, the tenor of the transaction may also impact the
However, level 3 financial instruments typically include, in
correlation input, as the relationship between the underlying
addition to the unobservable or level 3 components,
risks may be different over different time periods.
observable components (that is, components that are actively
Furthermore, correlation levels are very much dependent on
quoted and can be validated to external sources);
market conditions and could have a relatively wide range of
accordingly, the gains and losses in the table below include
levels within or across asset classes over time, particularly in
changes in fair value due in part to observable factors that
volatile market conditions.
are part of the valuation methodology. Also, the Firm risk-
Volatility – Volatility is a measure of the variability in possible manages the observable components of level 3 financial
returns for an instrument, parameter or market index given instruments using securities and derivative positions that are
how much the particular instrument, parameter or index classified within level 1 or 2 of the fair value hierarchy; as
changes in value over time. Volatility is a pricing input for these level 1 and level 2 risk management instruments are
options, including equity options, commodity options, and not included below, the gains or losses in the following tables
interest rate options. Generally, the higher the volatility of do not reflect the effect of the Firm’s risk management
the underlying, the riskier the instrument. Given a long activities related to such level 3 instruments.
position in an option, an increase in volatility, in isolation,
would generally result in an increase in a fair value
measurement.
The level of volatility used in the valuation of a particular
option-based derivative depends on a number of factors,
including the nature of the risk underlying the option (e.g.,
the volatility of a particular equity security may be
significantly different from that of a particular commodity
index), the tenor of the derivative as well as the strike price
of the option.

Fair value measurements using significant unobservable inputs

Change in
unrealized
gains/(losses)
Total related to
Fair realized/ Fair financial
Year ended value at unrealized Transfers Transfers value at instruments held
December 31, 2019 January gains/ into (out of) Dec. 31, at Dec. 31,
(in millions) 1, 2019 (losses) Purchases(f) Sales Settlements(g) level 3(h) level 3(h) 2019 2019
Assets: (a)
Trading assets:
Debt instruments:
U.S. GSEs and government
agencies $ 549 $ (62) $ 773 $ (310) $ (134) $ 1 $ (20) $ 797 $ (58)
Residential – nonagency 64 25 83 (86) (20) 15 (58) 23 2
Commercial – nonagency 11 2 20 (26) (14) 15 (4) 4 1
Total mortgage-backed
securities 624 (35) 876 (422) (168) 31 (82) 824 (55)
U.S. Treasury, GSEs and
government agencies — — — — — — — — —
Obligations of U.S. states and
municipalities 689 13 85 (159) (8) — (610) 10 13
Non-U.S. government debt
securities 155 1 290 (287) — 14 (18) 155 4
Corporate debt securities 334 47 437 (247) (52) 112 (73) 558 40
Loans 1,706 132 727 (708) (562) 625 (538) 1,382 51
Asset-backed securities 127 — 37 (93) (40) 28 (22) 37 (3)
Total debt instruments 3,635 158 2,452 (1,916) (830) 810 (1,343) 2,966 50
Equity securities 232 (41) 58 (103) (22) 181 (109) 196 (18)
Other 301 (36) 50 (26) (54) 2 (5) 232 91
Total trading assets – debt and
equity instruments 4,168 81 (c) 2,560 (2,045) (906) 993 (1,457) 3,394 123 (c)
Net derivative receivables:(b)

Interest rate (38) (394) 109 (125) 5 (7) 118 (332) (599)
Credit (107) (36) 20 (9) 8 29 (44) (139) (127)
Foreign exchange (297) (551) 17 (67) 312 (22) 1 (607) (380)
Equity (2,225) (310) 397 (573) (503) (405) 224 (3,395) (1,608)
Commodity (1,129) 497 36 (348) 89 (6) 845 (16) 130
Total net derivative receivables (3,796) (794) (c) 579 (1,122) (89) (411) 1,144 (4,489) (2,584) (c)
Mortgage-backed securities 1 — — — — — — 1 —
Asset-backed securities — — — — — — — — —
Total available-for-sale securities 1 — — — — — — 1 —
Loans 122 4 (c) — — (125) — (1) — —
Mortgage servicing rights 6,130 (1,180) (d)
1,489 (789) (951) — — 4,699 (1,180) (d)
Other assets 927 (198) (c) 194 (165) (33) 6 (7) 724 (180) (c)

Change in
unrealized
gains/(losses)
Total related to
December 31, 2019 January (gains)/ into (out of) Dec. 31, at Dec. 31,
(in millions) 1, 2019 losses Purchases Sales Issuances Settlements(g) level 3(h) level 3(h) 2019 2019
Liabilities: (a)
Deposits $ 4,169 $ 278 (c)(e) $ — $ — $ 916 $ (806) $ 12 $ (1,209) $ 3,360 $ 307 (c)(e)
Short-term borrowings 1,523 229 (c)(e) — — 3,441 (3,356) 85 (248) 1,674 155 (c)(e)
Trading liabilities – debt and equity

instruments 50 2 (c) (22) 41 — 1 16 (47) 41 3 (c)
Accounts payable and other

liabilities 10 (2) (c) (84) 115 — — 6 — 45 29 (c)
Beneficial interests issued by

consolidated VIEs 1 (1) (c) — — — — — — — —
Long-term debt 19,418 2,815 (c)(e) — — 10,441 (8,538) 651 (1,448) 23,339 2,822 (c)(e)

Change in
unrealized
gains/(losses)
Total related to
Assets:(a)
Trading assets:
Debt instruments:
agencies $ 307 $ (23) $ 478 $ (164) $ (73) $ 94 $ (70) $ 549 $ (21)
Residential – nonagency 60 (2) 78 (50) (7) 59 (74) 64 1
Commercial – nonagency 11 2 18 (18) (17) 36 (21) 11 (2)
securities 378 (23) 574 (232) (97) 189 (165) 624 (22)
government agencies 1 — — — — — (1) — —
municipalities 744 (17) 112 (70) (80) — — 689 (17)
securities 78 (22) 459 (277) (12) 23 (94) 155 (9)
Corporate debt securities 312 (18) 364 (309) (48) 262 (229) 334 (1)
Loans 2,719 26 1,364 (1,793) (658) 813 (765) 1,706 (1)
Asset-backed securities 153 28 98 (41) (55) 45 (101) 127 22
Total debt instruments 4,385 (26) 2,971 (2,722) (950) 1,332 (1,355) 3,635 (28)
Equity securities 295 (40) 118 (120) (1) 107 (127) 232 9
Other 690 (285) 55 (40) (118) 3 (4) 301 (301)
equity instruments 5,370 (351) (c) 3,144 (2,882) (1,069) 1,442 (1,486) 4,168 (320) (c)

Interest rate 264 150 107 (133) (430) (15) 19 (38) 187
Credit (35) (40) 5 (7) (57) 4 23 (107) (28)
Foreign exchange (396) 103 52 (20) 30 (108) 42 (297) (63)
Equity (3,409) 198 1,676 (2,208) 1,805 (617) 330 (2,225) 561
Commodity (674) (73) 1 (72) (301) 7 (17) (1,129) 146
Total net derivative receivables (4,250) 338 (c) 1,841 (2,440) 1,047 (729) 397 (3,796) 803 (c)
Asset-backed securities 276 1 — — (277) — — — —
Total available-for-sale securities 277 1 (i)
— — (277) — — 1 —
Loans 276 (7) (c) 123 — (196) — (74) 122 (7) (c)
Mortgage servicing rights 6,030 230 (d)

1,246 (636) (740) — — 6,130 230 (d)
Other assets 1,265 (328) (c) 61 (37) (37) 4 (1) 927 (340) (c)

Change in
unrealized
(gains)/losses
Total related to
Liabilities:(a)
Deposits $ 4,142 $ (136) (c)(e) $ — $ — $ 1,437 $ (736) $ 2 $ (540) $ 4,169 $ (204) (c)(e)
Short-term borrowings 1,665 (329) (c)(e) — — 3,455 (3,388) 272 (152) 1,523 (131) (c)(e)

instruments 39 19 (c) (99) 114 — (1) 14 (36) 50 16 (c)
Accounts payable and other 13 — (12) 5 — — 4 — 10 —

liabilities
consolidated VIEs 39 — — 1 — (39) — — 1 —
Long-term debt 16,125 (1,169) (c)(e) — — 11,919 (7,769) 1,143 (831) 19,418 (1,385) (c)(e)

Change in
unrealized
gains/(losses)
Total related to
Assets:(a)
Trading assets:
Debt instruments:
agencies $ 392 $ (11) $ 161 $ (171) $ (70) $ 49 $ (43) $ 307 $ (20)
Residential – nonagency 83 19 53 (30) (64) 132 (133) 60 11
Commercial – nonagency 17 9 27 (44) (13) 64 (49) 11 1
securities 492 17 241 (245) (147) 245 (225) 378 (8)
government agencies — — — — — 1 — 1 —
municipalities 649 18 152 (70) (5) — — 744 15
securities 46 — 559 (518) — 62 (71) 78 —
Corporate debt securities 576 11 872 (612) (497) 157 (195) 312 18
Loans 4,837 333 2,389 (2,832) (1,323) 806 (1,491) 2,719 43
Asset-backed securities 302 32 354 (356) (56) 75 (198) 153 —
Total debt instruments 6,902 411 4,567 (4,633) (2,028) 1,346 (2,180) 4,385 68
Equity securities 231 39 176 (148) (4) 59 (58) 295 21
Other 761 100 30 (46) (162) 17 (10) 690 39
equity instruments 7,894 550 (c) 4,773 (4,827) (2,194) 1,422 (2,248) 5,370 128 (c)

Interest rate 1,263 72 60 (82) (1,040) (8) (1) 264 (473)
Credit 98 (164) 1 (6) — 77 (41) (35) 32
Foreign exchange (1,384) 43 13 (10) 854 (61) 149 (396) 42
Equity (2,252) (417) 1,116 (551) (245) (1,482) 422 (3,409) (161)
Commodity (85) (149) — — (433) (6) (1) (674) (718)
Total net derivative receivables (2,360) (615) (c) 1,190 (649) (864) (1,480) 528 (4,250) (1,278) (c)
Asset-backed securities 663 15 — (50) (352) — — 276 14
Total available-for-sale securities 664 15 (i)

— (50) (352) — — 277 14 (i)
Loans 570 35 (c) — (26) (303) — — 276 3 (c)
Mortgage servicing rights 6,096 (232) (d)

1,103 (140) (797) — — 6,030 (232) (d)
Other assets 2,223 244 (c) 66 (177) (870) — (221) 1,265 74 (c)

Change in
unrealized
(gains)/losses
Total related to
Liabilities:(a)
Deposits $ 2,117 $ 152 (c)(e) $ — $ — $ 3,027 $ (291) $ 11 $ (874) $ 4,142 $ 198 (c)(e)
Short-term borrowings 1,134 42 (c)(e) — — 3,289 (2,748) 150 (202) 1,665 7 (c)(e)

instruments 43 (3) (c) (46) 48 — 3 3 (9) 39 —
liabilities 13 (2) (c) (1) — — 3 — — 13 (2) (c)

consolidated VIEs 48 2 (c) (122) 39 — (6) 78 — 39 —
Long-term debt 12,850 1,067 (c)(e) — — 12,458 (10,985) 1,660 (925) 16,125 552 (c)(e)

(a) Level 3 assets as a percentage of total Firm assets accounted for at fair value (including assets measured at fair value on a nonrecurring basis) were 2%, 3% and 3% at December 31,
2019, 2018 and 2017, respectively. Level 3 liabilities as a percentage of total Firm liabilities accounted for at fair value (including liabilities measured at fair value on a nonrecurring basis)
were 16%, 15% and 15% at December 31, 2019, 2018 and 2017, respectively.
(b) All level 3 derivatives are presented on a net basis, irrespective of 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) Changes in fair value for MSRs are reported in mortgage fees and related income.
(e) Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue, and they were not material for the years ended December
31, 2019, 2018 and 2017, respectively. Unrealized (gains)/losses are reported in OCI, and they were $319 million, $(277) million and $(48) million for the years ended December
31, 2019, 2018 and 2017, respectively.
(f) Loan originations are included in purchases.
(g) Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications, deconsolidation associated with beneficial interests in VIEs and
other items.
(h) All transfers into and/or out of level 3 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.
(i) Realized gains/(losses) on AFS securities, as well as other-than-temporary impairment (“OTTI”) losses that are recorded in earnings, are reported in investment securities gains/
(losses). Unrealized gains/(losses) are reported in OCI. There were no realized gains/(losses) and foreign exchange hedge accounting adjustments recorded in income on AFS
securities for the years ended December 31, 2019 and 2017, respectively and $1 million recorded for the year ended December 31, 2018. There were no unrealized gains/(losses)
recorded on AFS securities in OCI for the years ended December 31, 2019 and 2018, respectively and $15 million recorded for the year ended December 31, 2017.
Level 3 analysis
Consolidated balance sheets changes • $1.4 billion of long-term debt as a result of an increase in
Level 3 assets (including assets measured at fair value on a observability and a decrease in the significance of
nonrecurring basis) were 0.6% of total Firm assets at unobservable inputs.
December 31, 2019. The following describes significant During the year ended December 31, 2018, significant
changes to level 3 assets since December 31, 2018, for those transfers from level 2 into level 3 included the following:
items measured at fair value on a recurring basis. Refer to
• $1.4 billion of total debt and equity instruments, the
Assets and liabilities measured at fair value on a
majority of which were trading loans, driven by a decrease
nonrecurring basis on page 172 for further information on
in observability.
changes impacting items measured at fair value on a
nonrecurring basis. • $1.0 billion of gross equity derivative receivables and
$1.6 billion of gross equity derivative payables as a result
For the year ended December 31, 2019
of a decrease in observability and an increase in the
Level 3 assets were $13.5 billion at December 31, 2019,
significance of unobservable inputs.
reflecting a decrease of $3.6 billion from December 31,
2018, partially due to a $1.4 billion decrease in MSRs. Refer • $1.1 billion of long-term debt driven by a decrease in
to the Gains and losses section below for additional observability and an increase in the significance of
information. unobservable inputs for certain structured notes.
Transfers between levels for instruments carried at During the year ended December 31, 2018, significant
fair value on a recurring basis transfers from level 3 into level 2 included the following:
During the year ended December 31, 2019, significant • $1.5 billion of total debt and equity instruments, the
transfers from level 2 into level 3 included the following: majority of which were trading loans, driven by an
increase in observability.
• $993 million of total debt and equity instruments, the
majority of which were trading loans, driven by a decrease • $1.2 billion of gross equity derivative receivables and
in observability. $1.5 billion of gross equity derivative payables as a result
of an increase in observability and a decrease in the
• $904 million of gross equity derivative payables as a significance of unobservable inputs.
result of a decrease in observability and an increase in the
significance of unobservable inputs. During the year ended December 31, 2017, significant
transfers from level 2 into level 3 included the following:
During the year ended December 31, 2019, significant
transfers from level 3 into level 2 included the following: • $1.0 billion of gross equity derivative receivables and
• $1.5 billion of total debt and equity instruments, the of a decrease in observability and an increase in the
majority of which were obligations of U.S. states and significance of unobservable inputs.
municipalities and trading loans, driven by an increase in
observability. • $1.7 billion of long-term debt driven by a decrease in
observability and an increase in the significance of
• $1.1 billion of gross equity derivative receivables and unobservable inputs for certain structured notes.
of an increase in observability and a decrease in the During the year ended December 31, 2017, significant
significance of unobservable inputs. transfers from level 3 into level 2 included the following:
• $962 million of gross commodities derivative payables as • $1.5 billion of trading loans driven by an increase in
a result of an increase in observability. observability.
• $1.2 billion of deposits as a result of an increase in • $1.2 billion of gross equity derivative payables as a result
observability and a decrease in the significance of of an increase in observability and a decrease in the
unobservable inputs. 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.
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 years ended
December 31, 2019, 2018 and 2017. 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 165–169 for further information on these instruments.
2019
• $2.1 billion of net losses on assets largely due to MSRs
reflecting faster prepayment speeds on lower rates. Refer
to Note 15 for additional information on MSRs.
• $3.3 billion of net losses on liabilities predominantly
driven by market movements in long-term debt.
2018
• $1.6 billion of net gains on liabilities largely driven by
market movements in long-term debt.
2017
• $1.3 billion of net losses on liabilities predominantly
driven by market movements in long-term debt.

Credit and funding adjustments – derivatives
Derivatives are generally valued using models that use as each counterparty and collateral arrangements; and (ii) the
their basis observable market parameters. These market estimated market funding cost in the principal market
parameters generally do not consider factors such as which, for derivative liabilities, considers the Firm’s credit
counterparty nonperformance risk, the Firm’s own credit risk (DVA). For collateralized derivatives, the fair value is
quality, and funding costs. Therefore, it is generally estimated by discounting expected future cash flows at the
necessary to make adjustments to the base estimate of fair relevant overnight indexed swap rate given the underlying
value to reflect these factors. collateral agreement with the counterparty, and therefore a
CVA represents the adjustment, relative to the relevant separate FVA is not necessary.
benchmark interest rate, necessary to reflect counterparty The following table provides the impact of credit and
nonperformance risk. The Firm estimates CVA using a funding adjustments on principal transactions revenue in
scenario analysis to estimate the expected positive credit the respective periods, excluding the effect of any
exposure across all of the Firm’s existing positions with each associated hedging activities. The FVA presented below
counterparty, and then estimates losses based on the includes the impact of the Firm’s own credit quality on the
probability of default and estimated recovery rate as a inception value of liabilities as well as the impact of changes
result of a counterparty credit event considering in the Firm’s own credit quality over time.
contractual factors designed to mitigate the Firm’s credit
exposure, such as collateral and legal rights of offset. The (in millions) 2019 2018 2017
key inputs to this methodology are (i) the probability of a Credit and funding adjustments:
default event occurring for each counterparty, as derived
Derivatives CVA $ 241 $ 193 $ 802
from observed or estimated CDS spreads; and (ii) estimated
Derivatives FVA 199 (74) (295)
recovery rates implied by CDS spreads, adjusted to consider
the differences in recovery rates as a derivative creditor Valuation adjustments on fair value option elected
relative to those reflected in CDS spreads, which generally liabilities
reflect senior unsecured creditor risk. The valuation of the Firm’s liabilities for which the fair value
FVA represents the adjustment to reflect the impact of option has been elected requires consideration of the Firm’s
funding and is recognized where there is evidence that a own credit risk. DVA on fair value option elected liabilities
market participant in the principal market would reflects changes (subsequent to the issuance of the liability)
incorporate it in a transfer of the instrument. The Firm’s in the Firm’s probability of default and LGD, which are
FVA framework, applied to uncollateralized (including estimated based on changes in the Firm’s credit spread
partially collateralized) over-the-counter (“OTC”) observed in the bond market. Realized (gains)/losses due to
derivatives incorporates key inputs such as: (i) the expected DVA for fair value option elected liabilities are reported in
funding requirements arising from the Firm’s positions with principal transactions revenue. Unrealized (gains)/losses
are reported in OCI. Refer to page 169 in this Note and Note
24 for further information.

Assets and liabilities measured at fair value on a nonrecurring basis
The following tables present the assets held as of December 31, 2019 and 2018, respectively, for which a nonrecurring fair
value adjustment was recorded during the years ended December 31, 2019 and 2018, respectively, by major product category
and fair value hierarchy.
Total fair
December 31, 2019 (in millions) Level 1 Level 2 Level 3 value
Loans $ — $ 3,462 (b)
$ 269 (c) $ 3,731
Other assets(a) — 14 1,029 1,043
Total assets measured at fair value on a nonrecurring basis $ — $ 3,476 $ 1,298 $ 4,774

Total fair
December 31, 2018 (in millions) Level 1 Level 2 Level 3 value
Loans $ — $ 273 $ 264 $ 537
Other assets — 8 815 823
Total assets measured at fair value on a nonrecurring basis $ — $ 281 $ 1,079 $ 1,360
(a) Primarily includes 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 $1.0 billion in level 3 assets measured at fair value on a
nonrecurring basis as of December 31, 2019, $787 million related to such equity securities. These equity securities are classified as level 3 due to the
infrequency of the observable prices and/or the restrictions on the shares.
(b) Primarily includes certain mortgage loans that were reclassified to held-for-sale.
(c) Of the $269 million in level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2019, $248 million related to residential real
estate loans carried at the net realizable value of the underlying collateral (e.g., collateral-dependent loans and other loans charged off in accordance with
regulatory guidance). These amounts are classified as level 3 as they are valued using information from broker’s price opinions, appraisals and automated
valuation models and discounted based upon the Firm’s experience with actual liquidation values. These discounts ranged from 14% to 49% with a
weighted average of 28%.
There were no liabilities measured at fair value on a nonrecurring basis at December 31, 2019 and 2018.
Nonrecurring fair value changes
The following table presents the total change in value of
assets and liabilities for which a fair value adjustment has
been recognized for the years ended December 31, 2019,
2018 and 2017, related to assets and liabilities held at
those dates.
Loans $ (274) (a)
$ (68) $ (159)
Other assets 168 (b)
132 (b)
(148)
liabilities — — (1)
Total nonrecurring fair value
gains/(losses) $ (106) $ 64 $ (308)
(a)Primarily includes the impact of certain mortgage loans that were
reclassified to held-for-sale.
(b)Included $187 million and $149 million for the years ended December
31, 2019 and 2018, respectively, of net gains as a result of the
measurement alternative.
Refer to Note 12 for further information about the

measurement of impaired collateral-dependent loans, and
other loans where the carrying value is based on the fair
value of the underlying collateral (e.g., residential mortgage
loans charged off in accordance with regulatory guidance).

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, 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
December 31, 2019 and 2018, 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.

Other assets
Carrying value $ 2,441 $ 1,510
Upward carrying value changes (a)
229 309
Downward carrying value changes/impairment(b) (42) (160)
(a) The cumulative upward carrying value changes between January 1, 2018 and December 31, 2019 were $528 million.
(b) The cumulative downward carrying value changes/impairment between January 1, 2018 and December 31, 2019 were $(200) million.
Included in other assets above is the Firm’s interest in approximately 40 million Visa Class B shares, recorded at a nominal
carrying value. These shares are subject to certain transfer restrictions currently and will be convertible into Visa Class A
shares upon final resolution of certain litigation matters involving Visa. The conversion rate of Visa Class B shares into Visa
Class A shares is 1.6228 at December 31, 2019, and may be adjusted by Visa depending on developments related to the
litigation matters.
Additional disclosures about the fair value of financial

Financial instruments for which carrying value approximates
instruments that are not carried on the Consolidated
fair value
balance sheets at fair value
Certain financial instruments that are not carried at fair
U.S. GAAP requires disclosure of the estimated fair value of
value on the Consolidated balance sheets are carried at
certain financial instruments, which are included in the
amounts that approximate fair value, due to their short-
following table. However, this table does not include other
term nature and generally negligible credit risk. These
items, such as nonfinancial assets, intangible assets, certain
instruments include cash and due from banks, deposits with
financial instruments, and customer relationships. In the
banks, federal funds sold, securities purchased under resale
opinion of management, these items, in the aggregate, add
agreements and securities borrowed, short-term
significant value to JPMorgan Chase, but their fair value is
receivables and accrued interest receivable, short-term
not disclosed in this table.
borrowings, federal funds purchased, securities loaned and
sold under repurchase agreements, accounts payable, and
accrued liabilities. In addition, U.S. GAAP requires that the
fair value of deposit liabilities with no stated maturity (i.e.,
demand, savings and certain money market deposits) be
equal to their carrying value; recognition of the inherent
funding value of these instruments is not permitted.

The following table presents by fair value hierarchy classification the carrying values and estimated fair values at
December 31, 2019 and 2018, 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.
Estimated fair value hierarchy Estimated fair value hierarchy
Total Total
Carrying estimated Carrying estimated
(in billions) value Level 1 Level 2 Level 3 fair value value Level 1 Level 2 Level 3 fair value
Financial assets
Cash and due from banks $ 21.7 $ 21.7 $ — $ — $ 21.7 $ 22.3 $ 22.3 $ — $ — $ 22.3
Deposits with banks 241.9 241.9 — — 241.9 256.5 256.5 — — 256.5
Accrued interest and accounts
receivable 71.3 — 71.2 0.1 71.3 72.0 — 71.9 0.1 72.0
Federal funds sold and
securities purchased under
resale agreements 234.6 — 234.6 — 234.6 308.4 — 308.4 — 308.4
Securities borrowed 133.5 — 133.5 — 133.5 106.9 — 106.9 — 106.9
Investment securities, held-to-
maturity 47.5 0.1 48.8 — 48.9 31.4 — 31.5 — 31.5
Loans, net of allowance for
loan losses(a) 939.5 — 214.1 734.9 949.0 968.0 — 241.5 728.5 970.0
Other 61.3 — 60.6 0.8 61.4 60.5 — 59.6 1.0 60.6
Financial liabilities
Deposits $ 1,533.8 $ — $ 1,534.1 $ — $ 1,534.1 $ 1,447.4 $ — $ 1,447.5 $ — $ 1,447.5
Federal funds purchased and
securities loaned or sold
under repurchase agreements 183.1 — 183.1 — 183.1 181.4 — 181.4 — 181.4
Short-term borrowings 35.0 — 35.0 — 35.0 62.1 — 62.1 — 62.1
liabilities 164.0 0.1 160.0 3.5 163.6 160.6 0.2 157.0 3.0 160.2
consolidated VIEs 17.8 — 17.9 — 17.9 20.2 — 20.2 — 20.2
Long-term debt and junior
subordinated deferrable
interest debentures 215.5 — 218.3 3.5 221.8 227.1 — 224.6 3.3 227.9
(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. The
difference between the estimated fair value and carrying value of a financial asset or liability is the result of the different methodologies used to
determine fair value as compared with carrying value. For example, credit losses are estimated for a financial asset’s remaining life in a fair value
calculation but are estimated for a loss emergence period in the allowance for loan losses calculation; future loan income (interest and fees) is
incorporated in a fair value calculation but is generally not considered in the allowance for loan losses.
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 of the wholesale allowance for lending-related commitments and the estimated fair value of
these wholesale lending-related commitments were as follows for the periods indicated.
Estimated fair value hierarchy Estimated fair value hierarchy
Total Total
Carrying estimated Carrying estimated
(in billions) value(a) Level 1 Level 2 Level 3 fair value value(a) Level 1 Level 2 Level 3 fair value(b)
Wholesale lending-
related commitments $ 1.2 $ — $ — $ 1.9 $ 1.9 $ 1.0 $ — $ — $ 2.2 $ 2.2
(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) The prior period amounts have been revised to conform with the current period presentation.
The Firm does not estimate the fair value of consumer 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 156 of this Note for a further discussion of the valuation of lending-related commitments.

Note 3 – Fair value option
The fair value option provides an option to elect fair value The Firm’s election of fair value includes the following
as an alternative measurement for selected financial assets, instruments:
financial liabilities, unrecognized firm commitments, and • Loans purchased or originated as part of securitization
written loan commitments. warehousing activity, subject to bifurcation accounting,
The Firm has elected to measure certain instruments at fair or managed on a fair value basis, including lending-
value for several reasons including to mitigate income related commitments
statement volatility caused by the differences between the • Certain securities financing agreements, such as those
measurement basis of elected instruments (e.g., certain with an embedded derivative and/or a maturity of
instruments that otherwise would be accounted for on an greater than one year
accrual basis) and the associated risk management
• Owned beneficial interests in securitized financial assets
arrangements that are accounted for on a fair value basis,
that contain embedded credit derivatives, which would
as well as to better reflect those instruments that are
otherwise be required to be separately accounted for as
managed on a fair value basis.
a derivative instrument
• Structured notes, which are predominantly financial
instruments that contain embedded derivatives, that are
issued 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 years ended
December 31, 2019, 2018 and 2017, 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.
2019 2018 2017
Total Total Total

changes in changes in changes in
Principal All other fair value Principal All other fair value Principal All other fair value
December 31, (in millions) transactions income recorded(e) transactions income recorded(e) transactions income recorded(e)
Federal funds sold and securities
purchased under resale
agreements $ (36) $ — $ (36) $ (35) $ — $ (35) $ (97) $ — $ (97)
Securities borrowed 133 — 133 22 — 22 50 — 50
Trading assets:
Debt and equity instruments,
excluding loans 2,482 (1) (c) 2,481 (1,680) 1 (c) (1,679) 1,943 2 (c) 1,945
Loans reported as trading
assets:
Changes in instrument-
specific credit risk 763 2 (c) 765 414 1 (c) 415 330 14 (c) 344
Other changes in fair value 254 1,224 (c) 1,478 160 185 (c) 345 217 747 (c) 964
Loans:
Changes in instrument-specific
credit risk (26) — (26) (1) — (1) (1) — (1)
Other changes in fair value 1 — 1 (1) — (1) (12) 3 (c) (9)
(d) (d) (d)
Other assets 5 6 11 5 (45) (40) 11 (55) (44)
Deposits(a) (1,730) — (1,730) 181 — 181 (533) — (533)
securities loaned or sold under
repurchase agreements (8) — (8) 11 — 11 11 — 11
Short-term borrowings (a)
(693) — (693) 862 — 862 (747) — (747)
Trading liabilities 6 — 6 1 — 1 (1) — (1)
Other liabilities (16) — (16) — — — — — —
Long-term debt(a)(b) (6,173) 1 (c) (6,172) 2,695 — 2,695 (2,022) — (2,022)
(a) Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected is 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 for the years ended December 31, 2019, 2018 and 2017.
(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.
(c) Reported in mortgage fees and related income.
(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 hybrid financial
instruments. Refer to Note 7 for further information regarding interest income and interest expense.
Determination of instrument-specific credit risk for items • Long-term debt: Changes in value attributable to
for which a fair value election was made instrument-specific credit risk were derived principally
The following describes how the gains and losses that are from observable changes in the Firm’s credit spread as
attributable to changes in instrument-specific credit risk, observed in the bond market.
were determined. • Securities financing agreements: Generally, for these
• Loans and lending-related commitments: For floating- types of agreements, there is a requirement that
rate instruments, all changes in value are attributed to collateral be maintained with a market value equal to or
instrument-specific credit risk. For fixed-rate in excess of the principal amount loaned; as a result,
instruments, an allocation of the changes in value for the there would be no adjustment or an immaterial
period is made between those changes in value that are adjustment for instrument-specific credit risk related to
interest rate-related and changes in value that are these agreements.
credit-related. Allocations are generally based on an
analysis of borrower-specific credit spread and recovery
information, where available, or benchmarking to similar
entities or industries.

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 December 31, 2019 and 2018, for loans, long-term debt and long-term beneficial interests for
which the fair value option has been elected.
2019 2018
Fair value Fair value
over/ over/
(under) (under)
Contractual contractual Contractual contractual
principal principal principal principal
December 31, (in millions) outstanding Fair value outstanding outstanding Fair value outstanding
Loans (a)
Nonaccrual loans
Loans reported as trading assets $ 3,717 $ 1,111 $ (2,606) $ 4,240 $ 1,350 $ (2,890)
Loans 178 139 (39) 39 — (39)
Subtotal 3,895 1,250 (2,645) 4,279 1,350 (2,929)
All other performing loans
Loans reported as trading assets 48,570 47,318 (1,252) 42,215 40,403 (1,812)
Loans 7,046 6,965 (81) 3,186 3,151 (35)
Total loans $ 59,511 $ 55,533 $ (3,978) $ 49,680 $ 44,904 $ (4,776)
Long-term debt
Principal-protected debt $ 40,124 (c) $ 39,246 $ (878) $ 32,674 (c) $ 28,718 $ (3,956)
Nonprincipal-protected debt(b) NA 36,499 NA NA 26,168 NA
Total long-term debt NA $ 75,745 NA NA $ 54,886 NA
Long-term beneficial interests
Nonprincipal-protected debt(b) NA $ 36 NA NA $ 28 NA
Total long-term beneficial interests NA $ 36 NA NA $ 28 NA
(a) There were no performing loans that were ninety days or more past due as of December 31, 2019 and 2018.
(b) 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.
(c) 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 December 31, 2019 and 2018, the contractual amount of lending-related commitments for which the fair value option was
elected was $4.6 billion and $6.9 billion, respectively, with a corresponding fair value of $(94) million and $(92) million,
respectively. Refer to Note 28 for further information regarding off-balance sheet lending-related financial instruments.
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.
Long-term Short-term Long-term Short-term

(in millions) debt borrowings Deposits Total debt borrowings Deposits Total
Risk exposure
Interest rate $ 35,470 $ 34 $ 16,692 $ 52,196 $ 24,137 $ 62 $ 12,372 $ 36,571
Credit 5,715 875 — 6,590 4,009 995 — 5,004
Foreign exchange 3,862 48 5 3,915 3,169 157 38 3,364
Equity 29,294 4,852 8,177 42,323 21,382 5,422 7,368 34,172
Commodity 472 32 1,454 1,958 372 34 1,207 1,613
Total structured notes $ 74,813 $ 5,841 $ 26,328 $ 106,982 $ 53,069 $ 6,670 $ 20,985 $ 80,724

Note 4 – Credit risk concentrations

Concentrations of credit risk arise when a number of clients, In the Firm’s consumer portfolio, concentrations are
counterparties or customers are engaged in similar managed primarily by product and by U.S. geographic
business activities or activities in the same geographic region, with a key focus on trends and concentrations at the
region, or when they have similar economic features that portfolio level, where potential credit risk concentrations
would cause their ability to meet contractual obligations to can be remedied through changes in underwriting policies
be similarly affected by changes in economic conditions. and portfolio guidelines. Refer to Note 12 for additional
information on the geographic composition of the Firm’s
JPMorgan Chase regularly monitors various segments of its
consumer loan portfolios. In the wholesale portfolio, credit
credit portfolios to assess potential credit risk
risk concentrations are evaluated primarily by industry and
concentrations and to obtain additional collateral when
monitored regularly on both an aggregate portfolio level
deemed necessary and permitted under the Firm’s
and on an individual client or counterparty basis.
agreements. Senior management is significantly involved in
the credit approval and review process, and risk levels are The Firm’s wholesale exposure is managed through loan
adjusted as needed to reflect the Firm’s risk appetite. syndications and participations, loan sales, securitizations,
credit derivatives, master netting agreements, collateral
and other risk-reduction techniques. Refer to Note 12 for
additional information on loans.
The Firm does not believe that its exposure to any
particular loan product or industry segment (e.g., real
estate), or its exposure to residential real estate loans with
high LTV ratios, results in a significant concentration of
credit risk.
Terms of loan products and collateral coverage are included
in the Firm’s assessment when extending credit and
establishing its allowance for loan losses.

The table below presents both on–balance sheet and off–balance sheet consumer and wholesale-related credit exposure by the
Firm’s three credit portfolio segments as of December 31, 2019 and 2018.
2019 2018
On-balance sheet On-balance sheet
Credit Off-balance Credit Off-balance
December 31, (in millions) exposure(g) Loans Derivatives sheet(h) exposure(g) Loans Derivatives sheet(h)
Consumer, excluding credit card $ 386,452 $ 335,040 $ — $ 51,412 $ 419,798 $ 373,732 $ — $ 46,066
Receivables from customers — — — — 154 — — —
Total Consumer, excluding credit card 386,452 335,040 — 51,412 419,952 373,732 — 46,066
Credit card 819,644 168,924 — 650,720 762,011 156,632 — 605,379
Total consumer-related 1,206,096 503,964 — 702,132 1,181,963 530,364 — 651,445
Wholesale-related(a)
Real Estate 149,267 116,244 619 32,404 143,316 115,737 164 27,415
Individuals and Individual Entities(b)
102,292 91,980 694 9,618 97,077 86,586 1,017 9,474
Consumer & Retail 99,331 30,879 1,424 67,028 94,815 36,921 1,093 56,801
Technology, Media & Telecommunications 59,021 14,680 2,766 41,575 72,646 16,980 2,667 52,999
Industrials 58,250 19,096 878 38,276 58,528 19,126 958 38,444
Asset Managers 51,775 23,939 7,160 20,676 42,807 16,806 9,033 16,968
Banks & Finance Cos 50,091 30,639 5,165 14,287 49,920 28,825 5,903 15,192
Healthcare 46,638 13,951 2,078 30,609 48,142 16,347 1,874 29,921
Oil & Gas 41,570 13,064 852 27,654 42,600 13,008 559 29,033
Utilities 34,753 5,085 2,573 27,095 28,172 5,591 1,740 20,841
State & Municipal Govt(c) 26,697 9,924 2,000 14,773 27,351 10,319 2,000 15,032
Automotive 17,317 5,408 368 11,541 17,339 5,170 399 11,770
Chemicals & Plastics 17,276 4,710 459 12,107 16,035 4,902 181 10,952
Metals & Mining 15,337 5,202 402 9,733 15,359 5,370 488 9,501
Central Govt 14,843 2,818 10,477 1,548 18,456 3,867 12,869 1,720
Transportation 13,917 4,804 715 8,398 15,660 6,391 1,102 8,167
Insurance 12,202 1,269 2,282 8,651 12,639 1,356 2,569 8,714
Securities Firms 7,335 752 4,507 2,076 4,558 645 2,029 1,884
Financial Markets Infrastructure 4,116 9 2,482 1,625 7,484 18 5,941 1,525
All other(d) 76,492 50,186 1,865 24,441 68,284 45,197 1,627 21,460
Subtotal 898,520 444,639 49,766 404,115 881,188 439,162 54,213 387,813
Loans held-for-sale and loans at fair value 11,166 11,166 — — 15,028 15,028 — —
Receivables from customers and other(e) 33,706 — — — 30,063 — — —
Total wholesale-related 943,392 455,805 49,766 404,115 926,279 454,190 54,213 387,813
Total exposure(f)(g) $2,149,488 $ 959,769 $ 49,766 $1,106,247 $2,108,242 $ 984,554 $ 54,213 $1,039,258
(a) The industry rankings presented in the table as of December 31, 2018, are based on the industry rankings of the corresponding exposures at December 31,
2019, not actual rankings of such exposures at December 31, 2018.
(b) Individuals and Individual Entities predominantly consists of Wealth Management clients within AWM 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 December 31, 2019 and 2018, noted above, the Firm
held: $6.5 billion and $7.8 billion, respectively, of trading assets; $29.8 billion and $37.7 billion, respectively, of AFS securities; and $4.8 billion at both
periods of held-to-maturity (“HTM”) securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 10 for further information.
(d) All other includes: SPEs and Private education and civic organizations, representing approximately 92% and 8%, respectively, at both December 31, 2019
and 2018. Refer to Note 14 for more information on exposures to SPEs.
(e) Receivables from customers primarily represent held-for-investment margin loans to brokerage clients in CIB and AWM that are collateralized by assets
maintained in the clients’ brokerage accounts (e.g., cash on deposit, liquid and readily marketable debt or equity securities), as such no allowance is held
against these receivables. 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. These receivables are reported within accrued
interest and accounts receivable on the Firm’s Consolidated balance sheets.
(f) Excludes cash placed with banks of $254.0 billion and $268.1 billion, at December 31, 2019 and 2018, respectively, which is predominantly placed with
various central banks, primarily Federal Reserve Banks.
(g) Credit exposure is net of risk participations and excludes the benefit of credit derivatives used in credit portfolio management activities held against derivative
receivables or loans and liquid securities and other cash collateral held against derivative receivables.
(h) Represents lending-related financial instruments.

Note 5 – Derivative instruments

Derivative contracts derive their value from underlying Commodities derivatives are used to manage the price risk
asset prices, indices, reference rates, other inputs or a of certain commodities inventories. Gains or losses on these
combination of these factors and may expose derivative instruments are expected to substantially offset
counterparties to risks and rewards of an underlying asset the depreciation or appreciation of the related inventory.
or liability without having to initially invest in, own or
Credit derivatives are used to manage the counterparty
exchange the asset or liability. JPMorgan Chase makes
credit risk associated with loans and lending-related
markets in derivatives for clients and also uses derivatives
commitments. Credit derivatives compensate the purchaser
to hedge or manage its own risk exposures. Predominantly
when the entity referenced in the contract experiences a
all of the Firm’s derivatives are entered into for market-
credit event, such as bankruptcy or a failure to pay an
making or risk management purposes.
obligation when due. Credit derivatives primarily consist of
Market-making derivatives CDS. Refer to the discussion in the Credit derivatives section
The majority of the Firm’s derivatives are entered into for on pages 191–194 of this Note for a further discussion of
market-making purposes. Clients use derivatives to mitigate credit derivatives.
or modify interest rate, credit, foreign exchange, equity and
Refer to the risk management derivatives gains and losses
commodity risks. The Firm actively manages the risks from
table on page 191 of this Note, and the hedge accounting
its exposure to these derivatives by entering into other
gains and losses tables on pages 188–191 of this Note for
derivative contracts or by purchasing or selling other
more information about risk management derivatives.
financial instruments that partially or fully offset the
exposure from client derivatives. Derivative counterparties and settlement types
The Firm enters into OTC derivatives, which are negotiated
Risk management derivatives
and settled bilaterally with the derivative counterparty. The
The Firm manages certain market and credit risk exposures
Firm also enters into, as principal, certain ETD such as
using derivative instruments, including derivatives in hedge
futures and options, and OTC-cleared derivative contracts
accounting relationships and other derivatives that are used
with CCPs. ETD contracts are generally standardized
to manage risks associated with specified assets and
contracts traded on an exchange and cleared by the CCP,
liabilities.
which is the Firm’s counterparty from the inception of the
The Firm generally uses interest rate derivatives to manage transactions. OTC-cleared derivatives are traded on a
the risk associated with changes in interest rates. Fixed-rate bilateral basis and then novated to the CCP for clearing.
assets and liabilities appreciate or depreciate in market
Derivative clearing services
value as interest rates change. Similarly, interest income
The Firm provides clearing services for clients in which the
and expense increase or decrease as a result of variable-
Firm acts as a clearing member at certain derivative
rate assets and liabilities resetting to current market rates,
exchanges and clearing houses. The Firm does not reflect
and as a result of the repayment and subsequent
the clients’ derivative contracts in its Consolidated Financial
origination or issuance of fixed-rate assets and liabilities at
Statements. Refer to Note 28 for further information on the
current market rates. Gains and losses on the derivative
Firm’s clearing services.
instruments related to these assets and liabilities are
expected to substantially offset this variability. Accounting for derivatives
All free-standing derivatives that the Firm executes for its
Foreign currency derivatives are used to manage the
own account are required to be recorded on the
foreign exchange risk associated with certain foreign
Consolidated balance sheets at fair value.
currency–denominated (i.e., non-U.S. dollar) assets and
liabilities and forecasted transactions, as well as the Firm’s As permitted under U.S. GAAP, the Firm nets derivative
net investments in certain non-U.S. subsidiaries or branches assets and liabilities, and the related cash collateral
whose functional currencies are not the U.S. dollar. As a receivables and payables, when a legally enforceable
result of fluctuations in foreign currencies, the U.S. dollar– master netting agreement exists between the Firm and the
equivalent values of the foreign currency–denominated derivative counterparty. Refer to Note 1 for further
assets and liabilities or the forecasted revenues or expenses discussion of the offsetting of assets and liabilities. The
increase or decrease. Gains or losses on the derivative accounting for changes in value of a derivative depends on
instruments related to these foreign currency–denominated whether or not the transaction has been designated and
assets or liabilities, or forecasted transactions, are expected qualifies for hedge accounting. Derivatives that are not
to substantially offset this variability. designated as hedges are reported and measured at fair
value through earnings. The tabular disclosures on pages
184–191 of this Note provide additional information on the
amount of, and reporting for, derivative assets, liabilities,
gains and losses. Refer to Notes 2 and 3 for further
discussion of derivatives embedded in structured notes.

Derivatives designated as hedges There are three types of hedge accounting designations: fair
The Firm applies hedge accounting to certain derivatives value hedges, cash flow hedges and net investment hedges.
executed for risk management purposes – generally interest JPMorgan Chase uses fair value hedges primarily to hedge
rate, foreign exchange and commodity derivatives. fixed-rate long-term debt, AFS securities and certain
However, JPMorgan Chase does not seek to apply hedge commodities inventories. For qualifying fair value hedges,
accounting to all of the derivatives involved in the Firm’s the changes in the fair value of the derivative, and in the
risk management activities. For example, the Firm does not value of the hedged item for the risk being hedged, are
apply hedge accounting to purchased CDS used to manage recognized in earnings. Certain amounts excluded from the
the credit risk of loans and lending-related commitments, assessment of effectiveness are recorded in OCI and
because of the difficulties in qualifying such contracts as recognized in earnings over the life of the derivative. If the
hedges. For the same reason, the Firm does not apply hedge relationship is terminated, then the adjustment to
hedge accounting to certain interest rate, foreign exchange, the hedged item continues to be reported as part of the
and commodity derivatives used for risk management basis of the hedged item, and for benchmark interest rate
purposes. hedges, is amortized to earnings as a yield adjustment.
Derivative amounts affecting earnings are recognized
To qualify for hedge accounting, a derivative must be highly
consistent with the classification of the hedged item –
effective at reducing the risk associated with the exposure
primarily net interest income and principal transactions
being hedged. In addition, for a derivative to be designated
revenue.
as a hedge, the risk management objective and strategy
must be documented. Hedge documentation must identify JPMorgan Chase uses cash flow hedges primarily to hedge
the derivative hedging instrument, the asset or liability or the exposure to variability in forecasted cash flows from
forecasted transaction and type of risk to be hedged, and floating-rate assets and liabilities and foreign currency–
how the effectiveness of the derivative is assessed denominated revenue and expense. For qualifying cash flow
prospectively and retrospectively. To assess effectiveness, hedges, changes in the fair value of the derivative are
the Firm uses statistical methods such as regression recorded in OCI and recognized in earnings as the hedged
analysis, nonstatistical methods such as dollar-value item affects earnings. Derivative amounts affecting
comparisons of the change in the fair value of the derivative earnings are recognized consistent with the classification of
to the change in the fair value or cash flows of the hedged the hedged item – primarily noninterest revenue, net
item, and qualitative comparisons of critical terms and the interest income and compensation expense. If the hedge
evaluation of any changes in those terms. The extent to relationship is terminated, then the change in value of the
which a derivative has been, and is expected to continue to derivative recorded in AOCI is recognized in earnings when
be, highly effective at offsetting changes in the fair value or the cash flows that were hedged affect earnings. For hedge
cash flows of the hedged item must be assessed and relationships that are discontinued because a forecasted
documented at least quarterly. If it is determined that a transaction is not expected to occur according to the
derivative is not highly effective at hedging the designated original hedge forecast, any related derivative values
exposure, hedge accounting is discontinued. recorded in AOCI are immediately recognized in earnings.
JPMorgan Chase uses net investment hedges to protect the
value of the Firm’s net investments in certain non-U.S.
subsidiaries or branches whose functional currencies are
not the U.S. dollar. For qualifying net investment hedges,
changes in the fair value of the derivatives due to changes
in spot foreign exchange rates are recorded in OCI as
translation adjustments. Amounts excluded from the
assessment of effectiveness are recorded directly in
earnings.

The following table outlines the Firm’s primary uses of derivatives and the related hedge accounting designation or disclosure
category.
Affected Page
Type of Derivative Use of Derivative Designation and disclosure segment or unit reference
Manage specifically identified risk exposures in qualifying hedge accounting relationships:
• Interest rate Hedge fixed rate assets and liabilities Fair value hedge Corporate 188
• Interest rate Hedge floating-rate assets and liabilities Cash flow hedge Corporate 190
• Foreign exchange Hedge foreign currency-denominated assets and liabilities Fair value hedge Corporate 188
• Foreign exchange Hedge foreign currency-denominated forecasted revenue and Cash flow hedge Corporate 190
expense
• Foreign exchange Hedge the value of the Firm’s investments in non-U.S. dollar Net investment hedge Corporate 191
functional currency entities
• Commodity Hedge commodity inventory Fair value hedge CIB 188
Manage specifically identified risk exposures not designated in qualifying hedge accounting
relationships:
• Interest rate Manage the risk associated with mortgage commitments, warehouse Specified risk management CCB 191
loans and MSRs
• Credit Manage the credit risk associated with wholesale lending exposures Specified risk management CIB 191
• Interest rate and Manage the risk associated with certain other specified assets and Specified risk management Corporate 191
foreign exchange liabilities
Market-making derivatives and other activities:
• Various Market-making and related risk management Market-making and other CIB 191
• Various Other derivatives Market-making and other CIB, AWM, 191
Corporate

Notional amount of derivative contracts
The following table summarizes the notional amount of
derivative contracts outstanding as of December 31, 2019
and 2018.
Notional amounts(b)
December 31, (in billions) 2019 2018
Interest rate contracts
Swaps $ 21,228 $ 21,763
Futures and forwards 3,152 3,562
Written options 3,938 3,997
Purchased options 4,361 4,322
Total interest rate contracts 32,679 33,644
Credit derivatives(a) 1,242 1,501
Foreign exchange contracts
Cross-currency swaps 3,604 3,548
Spot, futures and forwards 5,577 5,871
Written options 700 835
Purchased options 718 830
Total foreign exchange contracts 10,599 11,084
Equity contracts
Swaps 406 346
Futures and forwards 142 101
Total equity contracts 1,805 1,465
Commodity contracts
Swaps 147 134
Spot, futures and forwards 211 156
Total commodity contracts 617 545
Total derivative notional amounts $ 46,942 $ 48,239
(a) Refer to the Credit derivatives discussion on pages 191–194 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.

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 December 31, 2019 and 2018, 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
Not Total Net Not Total Net
December 31, 2019 designated Designated as derivative derivative designated Designated derivative derivative
(in millions) as hedges hedges receivables receivables(b) as hedges as hedges payables payables(b)
Trading assets and
liabilities
Interest rate $ 312,451 $ 843 $ 313,294 $ 27,421 $ 279,272 $ 1 $ 279,273 $ 8,603
Credit 14,876 — 14,876 701 15,121 — 15,121 1,652
Foreign exchange 138,179 308 138,487 9,005 144,125 983 145,108 13,158
Equity 45,727 — 45,727 6,477 52,741 — 52,741 12,537
Commodity 16,914 328 17,242 6,162 19,736 149 19,885 7,758
Total fair value of trading
assets and liabilities $ 528,147 $ 1,479 $ 529,626 $ 49,766 $ 510,995 $ 1,133 $ 512,128 $ 43,708
Gross derivative receivables Gross derivative payables

Not Total Net Not Total Net
December 31, 2018 designated Designated as derivative derivative designated Designated derivative derivative
(in millions) as hedges hedges receivables receivables(b) as hedges as hedges payables payables(b)
Trading assets and
liabilities
Interest rate $ 267,871 $ 833 $ 268,704 $ 23,214 $ 242,782 $ — $ 242,782 $ 7,784
Credit 20,095 — 20,095 612 20,276 — 20,276 1,667
Foreign exchange 167,057 628 167,685 13,450 164,392 825 165,217 12,785
Equity 49,285 — 49,285 9,946 51,195 — 51,195 10,161
Commodity 20,223 247 20,470 6,991 22,297 121 22,418 9,372
Total fair value of trading
assets and liabilities $ 524,531 $ 1,708 $ 526,239 $ 54,213 $ 500,942 $ 946 $ 501,888 $ 41,769
(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.

Derivatives netting
The following tables present, as of December 31, 2019 and 2018, 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 non-cash financial instruments (generally U.S. government and agency securities and other G7
government securities) and 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;
• 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.
2019 2018
Amounts Amounts
Gross netted on the Net Gross netted on the Net
derivative Consolidated derivative derivative Consolidated derivative
December 31, (in millions) receivables balance sheets receivables receivables balance sheets receivables
U.S. GAAP nettable derivative receivables
Interest rate contracts:
OTC $ 299,205 $ (276,255) $ 22,950 $ 258,227 $ (239,498) $ 18,729
OTC–cleared 9,442 (9,360) 82 6,404 (5,856) 548
Exchange-traded(a) 347 (258) 89 322 (136) 186
Total interest rate contracts 308,994 (285,873) 23,121 264,953 (245,490) 19,463
Credit contracts:
OTC 10,743 (10,317) 426 12,648 (12,261) 387
OTC–cleared 3,864 (3,858) 6 7,267 (7,222) 45
Total credit contracts 14,607 (14,175) 432 19,915 (19,483) 432
Foreign exchange contracts:
OTC 136,252 (129,324) 6,928 163,862 (153,988) 9,874
OTC–cleared 185 (152) 33 235 (226) 9
Total foreign exchange contracts 136,447 (129,482) 6,965 164,129 (154,235) 9,894
Equity contracts:
OTC 23,106 (20,820) 2,286 26,178 (23,879) 2,299
Exchange-traded(a) 19,654 (18,430) 1,224 18,876 (15,460) 3,416
Total equity contracts 42,760 (39,250) 3,510 45,054 (39,339) 5,715
Commodity contracts:
OTC 7,093 (5,149) 1,944 7,448 (5,261) 2,187
OTC–cleared 28 (28) — — — —
Exchange-traded (a)
6,154 (5,903) 251 8,815 (8,218) 597
Total commodity contracts 13,275 (11,080) 2,195 16,263 (13,479) 2,784
Derivative receivables with appropriate legal opinion 516,083 (479,860) 36,223 (d)
510,314 (472,026) 38,288 (d)
Derivative receivables where an appropriate legal

opinion has not been either sought or obtained 13,543 13,543 15,925 15,925
Total derivative receivables recognized on the
Consolidated balance sheets $ 529,626 $ 49,766 $ 526,239 $ 54,213
Collateral not nettable on the Consolidated balance
sheets(b)(c) (14,226) (13,046)
Net amounts $ 35,540 $ 41,167

2019 2018
Amounts Amounts
Gross netted on the Net Gross netted on the Net
derivative Consolidated derivative derivative Consolidated derivative
December 31, (in millions) payables balance sheets payables payables balance sheets payables
U.S. GAAP nettable derivative payables
Interest rate contracts:
OTC $ 267,311 $ (260,229) $ 7,082 $ 233,404 $ (228,369) $ 5,035
OTC–cleared 10,217 (10,138) 79 7,163 (6,494) 669
Exchange-traded (a)
365 (303) 62 210 (135) 75
Total interest rate contracts 277,893 (270,670) 7,223 240,777 (234,998) 5,779
Credit contracts:
OTC 11,570 (10,080) 1,490 13,412 (11,895) 1,517
OTC–cleared 3,390 (3,389) 1 6,716 (6,714) 2
Total credit contracts 14,960 (13,469) 1,491 20,128 (18,609) 1,519
Foreign exchange contracts:
OTC 142,360 (131,792) 10,568 160,930 (152,161) 8,769
OTC–cleared 186 (152) 34 274 (268) 6
Total foreign exchange contracts 142,558 (131,950) 10,608 161,220 (152,432) 8,788
Equity contracts:
OTC 27,594 (21,778) 5,816 29,437 (25,544) 3,893
Exchange-traded(a) 20,216 (18,426) 1,790 16,285 (15,490) 795
Total equity contracts 47,810 (40,204) 7,606 45,722 (41,034) 4,688
Commodity contracts:
OTC 8,714 (6,235) 2,479 8,930 (4,838) 4,092
OTC–cleared 30 (30) — — — —
Exchange-traded(a) 6,012 (5,862) 150 8,259 (8,208) 51
Total commodity contracts 14,756 (12,127) 2,629 17,189 (13,046) 4,143
Derivative payables with appropriate legal opinion 497,977 (468,420) 29,557 (d)
485,036 (460,119) 24,917 (d)
Derivative payables where an appropriate legal

opinion has not been either sought or obtained 14,151 14,151 16,852 16,852
Total derivative payables recognized on the
Consolidated balance sheets $ 512,128 $ 43,708 $ 501,888 $ 41,769
Collateral not nettable on the Consolidated balance
sheets(b)(c) (7,896) (4,449)
Net amounts $ 35,812 $ 37,320
(a) Exchange-traded derivative balances that relate to futures contracts are settled daily.
(b) Represents liquid security collateral as well as 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.
(c) Derivative collateral relates only to OTC and OTC-cleared derivative instruments.
(d) Net derivatives receivable included cash collateral netted of $65.9 billion and $55.2 billion at December 31, 2019 and 2018, respectively. Net derivatives
payable included cash collateral netted of $54.4 billion and $43.3 billion at December 31, 2019 and 2018, respectively. Derivative cash collateral relates
to OTC and OTC-cleared derivative instruments.

Liquidity risk and credit-related contingent features
In addition to the specific market risks introduced by each derivative contract type, derivatives expose JPMorgan Chase to
credit risk — the risk that derivative counterparties may fail to meet their payment obligations under the derivative contracts
and the collateral, if any, held by the Firm proves to be of insufficient value to cover the payment obligation. It is the policy of
JPMorgan Chase to actively pursue, where possible, the use of legally enforceable master netting arrangements and collateral
agreements to mitigate derivative counterparty credit risk inherent in derivative receivables.
While derivative receivables expose the Firm to credit risk, derivative payables expose the Firm to liquidity risk, as the
derivative contracts typically require the Firm to post cash or securities collateral with counterparties as the fair value of the
contracts moves in the counterparties’ favor or upon specified downgrades in the Firm’s and its subsidiaries’ respective credit
ratings. Certain derivative contracts also provide for termination of the contract, generally upon a downgrade of either the
Firm or the counterparty, at the fair value of the 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 December 31, 2019 and 2018.
OTC and OTC-cleared derivative payables containing downgrade triggers

Aggregate fair value of net derivative payables $ 14,819 $ 9,396
Collateral posted 13,329 8,907
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 December 31, 2019 and 2018, 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 threshold rating 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
payments 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

2019 2018
Single-notch Two-notch Single-notch Two-notch
December 31, (in millions) downgrade downgrade downgrade downgrade
Amount of additional collateral to be posted upon downgrade(a) $ 189 $ 1,467 $ 76 $ 947
Amount required to settle contracts with termination triggers upon downgrade (b)
104 1,398 172 764
(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 11, 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 both December 31, 2019 and
2018.

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 years ended December 31, 2019,
2018 and 2017, 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.
Income statement impact of
Gains/(losses) recorded in income excluded components(f) OCI impact
Income Derivatives -
Year ended December 31, 2019 statement Amortization Changes in fair Gains/(losses)
(in millions) Derivatives Hedged items impact approach value recorded in OCI(g)
Contract type
Interest rate(a)(b) $ 3,204 $ (2,373) $ 831 $ — $ 828 $ —
Foreign exchange(c) 154 328 482 (866) 482 39
Commodity(d) (77) 148 71 — 63 —
Total $ 3,281 $ (1,897) $ 1,384 $ (866) $ 1,373 $ 39
Income statement impact of

Gains/(losses) recorded in income excluded components(f) OCI impact
Income Derivatives -
Year ended December 31, 2018 statement Amortization Changes in fair Gains/(losses)
(in millions) Derivatives Hedged items impact approach value recorded in OCI(g)
Contract type
Interest rate(a)(b) $ (1,145) $ 1,782 $ 637 $ — $ 623 $ —
Foreign exchange(c) 1,092 (616) 476 (566) 476 (140)
Commodity(d) 789 (754) 35 — 26 —
Total $ 736 $ 412 $ 1,148 $ (566) $ 1,125 $ (140)
Gains/(losses) recorded in income Income statement impact due to:

Income
Year ended December 31, 2017 statement Hedge Excluded
(in millions) Derivatives Hedged items impact ineffectiveness(e) components(f)
Contract type
Interest rate(a)(b) $ (481) $ 1,359 $ 878 $ (18) $ 896
Foreign exchange(c) (3,509) 3,507 (2) — (2)
Commodity(d) (1,275) 1,348 73 29 44
Total $ (5,265) $ 6,214 $ 949 $ 11 $ 938
(a) Primarily consists of hedges of the benchmark (e.g., London Interbank Offered Rate (“LIBOR”)) interest rate risk of fixed-rate long-term debt and AFS
securities. Gains and losses were recorded in net interest income.
(b) Excludes the amortization expense associated with the inception hedge accounting adjustment applied to the hedged item. This expense is recorded in net
interest income and substantially offsets the income statement impact of the excluded components. Also 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) Hedge ineffectiveness is the amount by which the gain or loss on the designated derivative instrument does not exactly offset the gain or loss on the
hedged item attributable to the hedged risk.
(f) 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.
(g) 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.

As of December 31, 2019, 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.
Cumulative amount of fair value hedging adjustments
included in the carrying amount of hedged items:
Carrying amount Discontinued
December 31, 2019 of the hedged Active hedging hedging
(in millions) items(a)(b) relationships relationships(d) Total
Assets
Investment securities - AFS $ 125,860 (c) $ 2,110 $ 278 $ 2,388
Liabilities
Long-term debt $ 157,545 $ 6,719 $ 161 $ 6,880
Beneficial interests issued by consolidated VIEs 2,365 — (8) (8)
Cumulative amount of fair value hedging adjustments

included in the carrying amount of hedged items:
Carrying amount Discontinued
December 31, 2018 of the hedged Active hedging hedging
(in millions) items(a)(b) relationships relationships(d) Total
Assets
Investment securities - AFS $ 55,313 (c) $ (1,105) $ 381 $ (724)
Liabilities
Long-term debt $ 139,915 $ 141 $ 8 $ 149
Beneficial interests issued by consolidated VIEs 6,987 — (33) (33)
(a) Excludes physical commodities with a carrying value of $6.5 billion and $6.8 billion at December 31, 2019 and 2018, 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 December 31, 2019 and 2018, the carrying amount excluded for available-for-sale securities
is $14.9 billion and $14.6 billion, respectively, and for long-term debt is $2.8 billion and $7.3 billion, respectively.
(c) Carrying amount represents the amortized cost.
(d) Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance
sheet date.

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 years ended December 31, 2019, 2018 and 2017,
respectively. The Firm includes the gain/(loss) 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)
Amounts Total change
Year ended December 31, 2019 reclassified from Amounts recorded in OCI
(in millions) AOCI to income in OCI for period
Contract type
Interest rate(a) $ (28) $ (3) $ 25
Foreign exchange(b) (75) 125 200
Total $ (103) $ 122 $ 225

(in millions) AOCI to income in OCI for period
Contract type
Interest rate(a) $ 44 $ (44) $ (88)
Foreign exchange (b)
(26) (201) (175)
Total $ 18 $ (245) $ (263)

(in millions) AOCI to income in OCI(c) for period
Contract type
Interest rate(a) $ (17) $ 12 $ 29
Foreign exchange (b)
(117) 135 252
Total $ (134) $ 147 $ 281
(a) Primarily consists of hedges of LIBOR-indexed floating-rate assets and floating-rate liabilities. 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.
(c) Represents the effective portion of changes in value of the related hedging derivative. Hedge ineffectiveness is the amount by which the cumulative gain or
loss on the designated derivative instrument exceeds the present value of the cumulative expected change in cash flows on the hedged item attributable to
the hedged risk. The Firm did not recognize any ineffectiveness on cash flow hedges during 2017.
The Firm did not experience any forecasted transactions that failed to occur for the years ended 2019, 2018 and 2017.
Over the next 12 months, the Firm expects that approximately $(8) million (after-tax) of net losses recorded in AOCI at
December 31, 2019, 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 five 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.

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 years ended December 31, 2019, 2018 and
2017.
2019 2018 2017
Amounts Amounts Amounts Amounts Amounts Amounts
Year ended December 31, recorded in recorded in recorded in recorded in recorded in recorded in
(in millions) income(a)(b) OCI income(a)(b) OCI income(a)(b) OCI(c)
Foreign exchange derivatives $72 $64 $11 $1,219 $(152) $(1,244)
(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 on the sale or liquidation of hedged entities. The Firm reclassified net pre-tax gains/(losses) of $18
million to other income, $(17) million and $50 million to other expense related to the liquidation of certain legal entities during the years ended
December 31, 2019, 2018 and 2017, respectively. Refer to Note 24 for further information.
(c) Represents the effective portion of changes in value of the related hedging derivative. The Firm did not recognize any ineffectiveness on net investment
hedges directly in income during 2017.
Gains and losses on derivatives used for specified risk

Gains and losses on derivatives related to market-making
management purposes
activities and other derivatives
The following table presents pre-tax gains/(losses) recorded
The Firm makes markets in derivatives in order to meet the
on a limited number of derivatives, not designated in hedge
needs of customers and uses derivatives to manage certain
accounting relationships, that are used to manage risks
risks associated with net open risk positions from its
associated with certain specified assets and liabilities,
market-making activities, including the counterparty credit
including certain risks arising from mortgage commitments,
risk arising from derivative receivables. All derivatives not
warehouse loans, MSRs, wholesale lending exposures, and
included in the hedge accounting or specified risk
foreign currency denominated assets and liabilities.
management categories above are included in this category.
Derivatives gains/(losses) Gains and losses on these derivatives are primarily recorded
recorded in income in principal transactions revenue. Refer to Note 6 for
Year ended December 31, information on principal transactions revenue.
(in millions) 2019 2018 2017
Contract type Credit derivatives
Interest rate(a) $ 1,491 $ 79 $ 331 Credit derivatives are financial instruments whose value is
Credit(b) (30) (21) (74) derived from the credit risk associated with the debt of a
Foreign exchange(c) (5) 117 (107) third-party issuer (the reference entity) and which allow
Total $ 1,456 $ 175 $ 150 one party (the protection purchaser) to transfer that risk to
(a) Primarily represents interest rate derivatives used to hedge the another party (the protection seller). Credit derivatives
interest rate risk inherent in mortgage commitments, warehouse loans expose the protection purchaser to the creditworthiness of
and MSRs, as well as written commitments to originate warehouse the protection seller, as the protection seller is required to
loans. Gains and losses were recorded predominantly in mortgage fees
make payments under the contract when the reference
and related income.
(b) Relates to credit derivatives used to mitigate credit risk associated entity experiences a credit event, such as a bankruptcy, a
with lending exposures in the Firm’s wholesale businesses. These failure to pay its obligation or a restructuring. The seller of
derivatives do not include credit derivatives used to mitigate credit protection receives a premium for providing
counterparty credit risk arising from derivative receivables, which is
protection but has the risk that the underlying instrument
included in gains and losses on derivatives related to market-making
activities and other derivatives. Gains and losses were recorded in referenced in the contract will be subject to a credit event.
principal transactions revenue.
(c) Primarily relates to derivatives used to mitigate foreign exchange risk The Firm is both a purchaser and seller of protection in the
of specified foreign currency-denominated assets and liabilities. Gains credit derivatives market and uses these derivatives for two
and losses were recorded in principal transactions revenue. primary purposes. First, in its capacity as a market-maker,
the Firm actively manages a portfolio of credit derivatives
by purchasing and selling credit protection, predominantly
on corporate debt obligations, to meet the needs of
customers. Second, as an end-user, the Firm uses credit
derivatives to manage credit risk associated with lending
exposures (loans and unfunded commitments) and
derivatives counterparty exposures in the Firm’s wholesale
businesses, and to manage the credit risk arising from
certain financial instruments in the Firm’s market-making
businesses. Following is a summary of various types of
credit derivatives.

Credit default swaps Credit-related notes

Credit derivatives may reference the credit of either a single A credit-related note is a funded credit derivative where the
reference entity (“single-name”) or a broad-based index. issuer of the credit-related note purchases from the note
The Firm purchases and sells protection on both single- investor credit protection on a reference entity or an index.
name and index-reference obligations. Single-name CDS and Under the contract, the investor pays the issuer the par
index CDS contracts are either OTC or OTC-cleared value of the note at the inception of the transaction, and in
derivative contracts. Single-name CDS are used to manage return, the issuer pays periodic payments to the investor,
the default risk of a single reference entity, while index CDS based on the credit risk of the referenced entity. The issuer
contracts are used to manage the credit risk associated with also repays the investor the par value of the note at
the broader credit markets or credit market segments. Like maturity unless the reference entity (or one of the entities
the S&P 500 and other market indices, a CDS index consists that makes up a reference index) experiences a specified
of a portfolio of CDS across many reference entities. New credit event. If a credit event occurs, the issuer is not
series of CDS indices are periodically established with a new obligated to repay the par value of the note, but rather, the
underlying portfolio of reference entities to reflect changes issuer pays the investor the difference between the par
in the credit markets. If one of the reference entities in the value of the note and the fair value of the defaulted
index experiences a credit event, then the reference entity reference obligation at the time of settlement. Neither party
that defaulted is removed from the index. CDS can also be to the credit-related note has recourse to the defaulting
referenced against specific portfolios of reference names or reference entity.
against customized exposure levels based on specific client
The following tables present a summary of the notional
demands: for example, to provide protection against the
amounts of credit derivatives and credit-related notes the
first $1 million of realized credit losses in a $10 million
Firm sold and purchased as of December 31, 2019 and
portfolio of exposure. Such structures are commonly known
2018. Upon a credit event, the Firm as a seller of protection
as tranche CDS.
would typically pay out only a percentage of the full
For both single-name CDS contracts and index CDS notional amount of net protection sold, as the amount
contracts, upon the occurrence of a credit event, under the actually required to be paid on the contracts takes into
terms of a CDS contract neither party to the CDS contract account the recovery value of the reference obligation at
has recourse to the reference entity. The protection the time of settlement. The Firm manages the credit risk on
purchaser has recourse to the protection seller for the contracts to sell protection by purchasing protection with
difference between the face value of the CDS contract and identical or similar underlying reference entities. Other
the fair value of the reference obligation at settlement of purchased protection referenced in the following tables
the credit derivative contract, also known as the recovery includes credit derivatives bought on related, but not
value. The protection purchaser does not need to hold the identical, reference positions (including indices, portfolio
debt instrument of the underlying reference entity in order coverage and other reference points) as well as protection
to receive amounts due under the CDS contract when a purchased through credit-related notes.
credit event occurs.

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
Protection purchased Net protection Other
Protection with identical (sold)/ protection
December 31, 2019 (in millions) sold underlyings(b) purchased(c) purchased(d)
Credit derivatives
Credit default swaps $ (562,338) $ 571,892 $ 9,554 $ 3,936
Other credit derivatives (a)
(44,929) 52,007 7,078 7,364
Total credit derivatives (607,267) 623,899 16,632 11,300
Credit-related notes — — — 9,606
Total $ (607,267) $ 623,899 $ 16,632 $ 20,906
Maximum payout/Notional amount

Protection purchased Net protection Other
Protection with identical (sold)/ protection
December 31, 2018 (in millions) sold underlyings(b) purchased(c) purchased(d)
Credit derivatives
Credit default swaps $ (697,220) $ 707,282 $ 10,062 $ 4,053
Other credit derivatives(a) (41,244) 42,484 1,240 8,488
Total credit derivatives (738,464) 749,766 11,302 12,541
Credit-related notes — — — 8,425
Total $ (738,464) $ 749,766 $ 11,302 $ 20,966
(a) Other credit derivatives predominantly consist of credit swap options and total return swaps.
(b) 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.
(c) 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.
(d) 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.

The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit derivatives
and credit-related notes as of December 31, 2019 and 2018, 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 and credit-related notes where JPMorgan Chase is the purchaser of protection are comparable to the profile
reflected below.
Protection sold – credit derivatives and credit-related notes ratings(a)/maturity profile

December 31, 2019 Total notional Fair value of Fair value of Net fair
(in millions) <1 year 1–5 years >5 years amount receivables(b) payables(b) value
Risk rating of reference entity
Investment-grade $ (114,460) $ (311,407) $ (42,129) $ (467,996) $ 6,153 $ (911) $ 5,242
Noninvestment-grade (41,661) (87,769) (9,841) (139,271) 4,281 (2,882) 1,399
Total $ (156,121) $ (399,176) $ (51,970) $ (607,267) $ 10,434 $ (3,793) $ 6,641
December 31, 2018 Total notional Fair value of Fair value of Net fair
(in millions) <1 year 1–5 years >5 years amount receivables(b) payables(b) value
Risk rating of reference entity
Investment-grade $ (115,443) $ (402,325) $ (43,611) $ (561,379) $ 5,720 $ (2,791) $ 2,929
Noninvestment-grade (45,897) (119,348) (11,840) (177,085) 4,719 (5,660) (941)
Total $ (161,340) $ (521,673) $ (55,451) $ (738,464) $ 10,439 $ (8,451) $ 1,988
(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 and cash collateral received by the Firm.

Note 6 – Noninterest revenue and noninterest expense
Noninterest revenue Principal transactions
The Firm records noninterest revenue from certain Principal transactions revenue is driven by many factors,
contracts with customers in investment banking fees, including:
deposit-related fees, asset management, administration, • the bid-offer spread, which is the difference between the
and commissions, and components of card income. The price at which a market participant is willing and able to
related contracts are often terminable on demand and the sell an instrument to the Firm and the price at which
Firm has no remaining obligation to deliver future services. another market participant is willing and able to buy it
For arrangements with a fixed term, the Firm may commit from the Firm, and vice versa; and
to deliver services in the future. Revenue associated with • realized and unrealized gains and losses on financial
these remaining performance obligations typically depends instruments and commodities transactions, including
on the occurrence of future events or underlying asset those accounted for under the fair value option, primarily
values, and is not recognized until the outcome of those used in client-driven market-making activities, and on
events or values are known. private equity investments.
– Realized gains and losses result from the sale of
Investment banking fees instruments, closing out or termination of transactions,
This revenue category includes debt and equity
or interim cash payments.
underwriting and advisory fees. As an underwriter, the Firm
– Unrealized gains and losses result from changes in
helps clients raise capital via public offering and private
valuation.
placement of various types of debt and equity instruments.
In connection with its client-driven market-making
Underwriting fees are primarily based on the issuance price
activities, the Firm transacts in debt and equity
and quantity of the underlying instruments, and are
instruments, derivatives and commodities, including
recognized as revenue typically upon execution of the
physical commodities inventories and financial instruments
client’s transaction. The Firm also manages and syndicates
that reference commodities.
loan arrangements. Credit arrangement and syndication
fees, included within debt underwriting fees, are recorded Principal transactions revenue also includes realized and
as revenue after satisfying certain retention, timing and unrealized gains and losses related to:
yield criteria. • derivatives designated in qualifying hedge accounting
relationships, primarily fair value hedges of commodity
The Firm also provides advisory services, by assisting its
and foreign exchange risk;
clients with mergers and acquisitions, divestitures,
• derivatives used for specific risk management purposes,
restructuring and other complex transactions. Advisory fees
primarily to mitigate credit risk and foreign exchange
are recognized as revenue typically upon execution of the
risk.
client’s transaction.
Refer to Note 5 for further information on the income
The following table presents the components of investment statement classification of gains and losses from derivatives
banking fees. activities.
Year ended December 31, In the financial commodity markets, the Firm transacts in
(in millions) 2019 2018 2017 OTC derivatives (e.g., swaps, forwards, options) and ETD
Underwriting that reference a wide range of underlying commodities. In
Equity $ 1,648 $ 1,684 $ 1,466 the physical commodity markets, the Firm primarily
Debt 3,513 3,347 3,802 purchases and sells precious and base metals and may hold
other commodities inventories under financing and other
Total underwriting 5,161 5,031 5,268
arrangements with clients.
Advisory 2,340 2,519 2,144
The following table presents all realized and unrealized
Total investment banking fees $ 7,501 $ 7,550 $ 7,412
gains and losses recorded in principal transactions revenue.
Investment banking fees are earned primarily by CIB. Refer This table excludes interest income and interest expense on
to Note 32 for segment results. 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 cash deployment activities in
Treasury and CIO. Refer to Note 7 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.

Year ended December 31, The following table presents the components of Firmwide
(in millions) 2019 2018 2017 asset management, administration and commissions.
Trading revenue by instrument
type Year ended December 31,
(in millions) 2019 2018 2017
Interest rate $ 2,552 $ 1,961 $ 2,479
Asset management fees
Credit 1,611 1,395 1,329
Investment management fees(a) $ 10,865 $ 10,768 $ 10,434
Foreign exchange 3,171 3,222 2,746
All other asset management fees(b) 315 270 296
Equity 5,812 4,924 3,873
Total asset management fees 11,180 11,038 10,730
Commodity 1,122 906 661
Total trading revenue 14,268 12,408 11,088 Total administration fees (c)
2,197 2,179 2,029
Private equity gains/(losses) (250) (349) 259 Commissions and other fees
Brokerage commissions(d) 2,439 2,505 2,239
Principal transactions $ 14,018 $ 12,059 $ 11,347
All other commissions and fees 1,349 1,396 1,289
Principal transactions revenue is earned primarily by CIB. Total commissions and fees 3,788 3,901 3,528
Refer to Note 32 for segment results. Total asset management,
administration and
Lending- and deposit-related fees commissions $ 17,165 $ 17,118 $ 16,287
Lending-related fees include fees earned from loan (a) Represents fees earned from managing assets on behalf of the Firm’s
commitments, standby letters of credit, financial clients, including investors in Firm-sponsored funds and owners of
guarantees, and other loan-servicing activities. Deposit- separately managed investment accounts.
related fees include fees earned in lieu of compensating (b) Represents fees for services that are ancillary to investment
balances, and fees earned from performing cash management services, such as commissions earned on the sales or
distribution of mutual funds to clients. These fees are recorded as
management activities and other deposit account services. revenue at the time the service is rendered or, in the case of certain
Lending- and deposit-related fees in this revenue category distribution fees based on the underlying fund’s asset value and/or
are recognized over the period in which the related service investor redemption, recorded over time as the investor remains in the
is provided. fund or upon investor redemption.
(c) Predominantly includes fees for custody, securities lending, funds
The following table presents the components of lending- services and securities clearance. These fees are recorded as revenue
and deposit-related fees. over the period in which the related service is provided.
(d) Represents commissions earned when the Firm acts as a broker, by
Year ended December 31, (in millions) 2019 2018 2017 facilitating its clients’ purchases and sales of securities and other
financial instruments. Brokerage commissions are collected and
Lending-related fees $ 1,184 $ 1,117 $ 1,110
recognized as revenue upon occurrence of the client transaction. The
Deposit-related fees 5,185 4,935 4,823 Firm reports certain costs paid to third-party clearing houses and
Total lending- and deposit-related fees $ 6,369 $ 6,052 $ 5,933 exchanges net against commission revenue.
Asset management, administration and commissions are

Lending- and deposit-related fees are earned by CCB, CIB,
CB, and AWM. Refer to Note 32 for segment results. earned primarily by AWM, CIB, CCB, and CB. Refer to Note
32 for segment results.
Asset management, administration and commissions
This revenue category includes fees from investment Mortgage fees and related income
management and related services, custody, brokerage This revenue category primarily reflects CCB’s Home
Lending net production and net mortgage servicing
services and other products. The Firm manages assets on
revenue.
behalf of its clients, including investors in Firm-sponsored
funds and owners of separately managed investment Net production revenue includes fees and income
accounts. Management fees are typically based on the value recognized as earned on mortgage loans originated with the
of assets under management and are collected and intent to sell, and the impact of risk management activities
recognized at the end of each period over which the associated with the mortgage pipeline and warehouse
loans. Net production revenue also includes gains and
management services are provided and the value of the
losses on sales and lower of cost or fair value adjustments
managed assets is known. The Firm also receives
on mortgage loans held-for-sale (excluding certain
performance-based management fees, which are earned
repurchased loans insured by U.S. government agencies),
based on exceeding certain benchmarks or other and changes in the fair value of financial instruments
performance targets and are accrued and recognized when measured under the fair value option.
the probability of reversal is remote, typically at the end of
the related billing period. The Firm has contractual
arrangements with third parties to provide distribution and
other services in connection with its asset management
activities. Amounts paid to these third-party service
providers are generally recorded in professional and outside
services expense.

Net mortgage servicing revenue includes operating revenue The Firm typically makes payments to the co-brand credit
earned from servicing third-party mortgage loans, which is card partners based on the cost of partners’ marketing
recognized over the period in which the service is provided; activities and loyalty program rewards provided to credit
changes in the fair value of MSRs; the impact of risk cardholders, new account originations and sales volumes.
management activities associated with MSRs; and gains and Payments to partners based on marketing efforts
losses on securitization of excess mortgage servicing. Net undertaken by the partners are expensed by the Firm as
mortgage servicing revenue also includes gains and losses incurred and reported as marketing expense. Payments for
on sales and lower of cost or fair value adjustments of partner loyalty program rewards are reported as a
certain repurchased loans insured by U.S. government reduction of card income when incurred. Payments to
agencies. partners based on new credit card account originations are
Refer to Note 15 for further information on risk accounted for as direct loan origination costs and are
management activities and MSRs. deferred and recognized as a reduction of card income on a
straight-line basis over a 12-month period. Payments to
Net interest income from mortgage loans is recorded in
partners based on sales volumes are reported as a
interest income.
reduction of card income when the related interchange
Card income income is earned.
This revenue category includes interchange and other
The following table presents the components of card income:
income from credit and debit card transactions, and fees
earned from processing card transactions for merchants,
both of which are recognized when purchases are made by (in millions) 2019 2018 2017
a cardholder and presented net of certain transaction- Interchange and merchant
related costs. Card income also includes account origination processing income $ 20,370 $ 18,808 $ 17,080
costs and annual fees, which are deferred and recognized Reward costs and partner
payments (14,312) (13,074) (b)
(10,820)
on a straight-line basis over a 12-month period.
Other card income(a) (754) (745) (1,827)
Certain Chase credit card products offer the cardholder the Total card income $ 5,304 $ 4,989 $ 4,433
ability to earn points based on account activity, which the (a) Predominantly represents account origination costs and annual fees,
cardholder can choose to redeem for cash and non-cash which are deferred and recognized on a straight-line basis over a 12-
rewards. The cost to the Firm related to these proprietary month period.
rewards programs varies based on multiple factors (b) Includes an adjustment to the credit card rewards liability of
approximately $330 million, recorded in the second quarter of 2018.
including the terms and conditions of the rewards
programs, cardholder activity, cardholder reward Card income is earned primarily by CCB and CB. Refer to
redemption rates and cardholder reward selections. The Note 32 for segment results.
Firm maintains a liability for its obligations under its Refer to Note 18 for information on operating lease income
rewards programs and reports the current-period cost as a included within other income.
reduction of card income.
Noninterest expense
Credit card revenue sharing agreements
The Firm has contractual agreements with numerous co- Other expense
brand partners that grant the Firm exclusive rights to issue Other expense on the Firm’s Consolidated statements of
co-branded credit card products and market them to the income included the following:
customers of such partners. These partners endorse the co-
brand credit card programs and provide their customer or Year ended December 31,
(in millions) 2019 2018 2017
member lists to the Firm. The partners may also conduct
Legal expense/(benefit) $ 239 $ 72 $ (35)
marketing activities and provide rewards redeemable under
their own loyalty programs that the Firm will grant to co- FDIC-related expense 457 1,239 1,492
brand credit cardholders based on account activity. The
terms of these agreements generally range from five to ten
years.

Note 7 – Interest income and Interest expense

Interest income and interest expense are recorded in the Interest income and interest expense includes the current-
Consolidated statements of income and classified based on period interest accruals for financial instruments measured
the nature of the underlying asset or liability. at fair value, except for derivatives and financial
instruments containing embedded derivatives that would be
The following table presents the components of interest separately accounted for in accordance with U.S. GAAP,
income and interest expense: absent the fair value option election; for those instruments,
Year ended December 31, all changes in fair value including any interest elements, are
(in millions) 2019 2018 2017 reported in principal transactions revenue. For financial
Interest income instruments that are not measured at fair value, the related
Loans(a) $ 50,375 $ 47,620 $ 41,008 interest is included within interest income or interest
Taxable securities 7,962 5,653 5,534
expense, as applicable. Refer to Notes 12, 10, 11 and 20,
for further information on accounting for interest income
Non-taxable securities(b) 1,329 1,595 1,848
and interest expense related to loans, investment securities,
Total investment securities(a) 9,291 7,248 7,382 securities financing activities (i.e., securities purchased or
Trading assets - debt instruments 10,800 8,703 7,610 sold under resale or repurchase agreements; securities
Federal funds sold and securities borrowed; and securities loaned) and long-term debt,
purchased under resale
agreements 6,146 3,819 2,327 respectively.
Securities borrowed(c) 1,574 913 94
Deposits with banks 3,887 5,907 4,238
All other interest-earning assets(c)(d) 1,967 1,890 1,312
Total interest income (c)
$ 84,040 $ 76,100 $ 63,971
Interest expense
Interest bearing deposits $ 8,957 $ 5,973 $ 2,857
securities loaned or sold under
repurchase agreements 4,630 3,066 1,611
Short-term borrowings (e)
1,248 1,144 481
Trading liabilities - debt and all

other interest-bearing liabilities(c)(f) 2,585 2,387 1,669
Long-term debt 8,807 7,978 6,753
Beneficial interest issued by
consolidated VIEs 568 493 503
Total interest expense(c) $ 26,795 $ 21,041 $ 13,874
Net interest income $ 57,245 $ 55,059 $ 50,097
Net interest income after provision
for credit losses $ 51,660 $ 50,188 $ 44,807
(a) Includes the amortization/accretion of unearned income (e.g.,

purchase premiums/discounts, net deferred fees/costs, etc.).
(b) Represents securities that are tax-exempt for U.S. federal income tax
purposes.
(c) In the second quarter of 2019, the Firm implemented certain
presentation changes that impacted interest income and interest
expense, but had no effect on net interest income. These changes were
made to align the accounting treatment between the balance sheet
and the related interest income or expense, primarily by offsetting
interest income and expense for certain prime brokerage-related held-
for-investment customer receivables and payables that are currently
presented as a single margin account on the balance sheet. These
changes were applied retrospectively and, accordingly, prior period
amounts were revised to conform with the current presentation.
(d) Includes interest earned on prime 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.
(e) Includes commercial paper.
(f) Other interest-bearing liabilities includes interest expense on prime
brokerage-related customer payables.

Note 8 – Pension and other postretirement
employee benefit plans The Firm offers postretirement medical and life insurance
The Firm has various defined benefit pension plans and benefits to certain U.S. retirees and postretirement medical
OPEB plans that provide benefits to its employees in the benefits to certain qualifying U.S. and U.K. employees.
U.S. and certain non-U.S. locations. The Firm also provides a The Firm partially defrays the cost of its U.S. OPEB
qualified defined contribution plan in the U.S. and maintains obligation through corporate-owned life insurance (“COLI”)
other similar arrangements in certain non-U.S. locations. purchased on the lives of eligible employees and retirees.
The principal defined benefit pension plan in the U.S. is a While the Firm owns the COLI policies, certain COLI
qualified noncontributory plan that provides benefits to proceeds (death benefits, withdrawals and other
substantially all U.S. employees. In connection with changes distributions) may be used only to reimburse the Firm for
to the U.S. Retirement Savings Program during the fourth its net postretirement benefit claim payments and related
quarter of 2018, the Firm announced that it will freeze the administrative expense. The Firm has prefunded its U.S.
U.S. defined benefit pension plan (the “Plan Freeze”). postretirement benefit obligations. The U.K. OPEB plan is
Commencing on January 1, 2020 (and January 1, 2019 for unfunded.
new hires), new pay credits are directed to the U.S. defined Pension and OPEB accounting guidance generally requires
contribution plan. Interest credits on the U.S. defined that the difference between plan assets at fair value and the
benefit pension plan will continue to accrue. As a result, a benefit obligation be measured and recorded on the
curtailment was triggered and a remeasurement of the U.S. balance sheet. Plans that are overfunded (excess of plan
defined benefit pension obligation and plan assets occurred assets over benefit obligation) are recorded in other assets
as of November 30, 2018. The plan design change did not and plans that are underfunded (excess benefit obligation
have a material impact on the U.S. defined benefit pension over plan assets) are recorded in other liabilities. Gains or
plan or the Firm’s Consolidated Financial Statements. losses resulting from changes in the benefit obligation and
The Firm also has defined benefit pension plans that are the value of plan assets are recorded in OCI and recognized
offered in certain non-U.S. locations based on factors such as part of the net periodic benefit cost over subsequent
as eligible compensation, age and/or years of service. It is periods as discussed in the Gains and losses section of this
the Firm’s policy to fund the pension plans in amounts Note. Additionally, benefits earned during the year are
sufficient to meet the requirements under applicable laws. reported in compensation expense; all other components of
The Firm does not anticipate at this time making any net periodic defined benefit costs are reported in other
contribution to the U.S. defined benefit pension plan in expense in the Consolidated statements of income.
2020. The 2020 contributions to the non-U.S. defined
benefit pension plans are expected to be $49 million, of
which $34 million are contractually required.
The Firm also has a number of nonqualified
noncontributory defined benefit pension plans that are
unfunded. These plans provide supplemental defined
pension benefits to certain employees.

The following table presents the changes in benefit obligations, plan assets, the net funded status, and the pretax pension and
OPEB amounts recorded in AOCI on the Consolidated balance sheets for the Firm’s defined benefit pension and OPEB plans, and
the weighted-average actuarial annualized assumptions for the projected and accumulated postretirement benefit obligations.
Defined benefit
As of or for the year ended December 31, pension plans OPEB plans
(in millions) 2019 2018 2019 2018
Change in benefit obligation
Benefit obligation, beginning of year $ (15,512) $ (16,700) $ (612) $ (684)
Benefits earned during the year (356) (354) — —
Interest cost on benefit obligations (596) (556) (24) (24)
Plan amendments (5) (29) — —
Plan curtailment — 123 — —
Employee contributions (8) (7) (14) (15)
Net gain/(loss) (1,296) (g) 938 (g) (51) 40
Benefits paid 820 873 67 69
Plan settlements — 15 — —
Foreign exchange impact and other (116) 185 (2) 2
Benefit obligation, end of year (a)
$ (17,069) $ (15,512) $ (636) $ (612)
Change in plan assets
Fair value of plan assets, beginning of year $ 18,052 $ 19,603 $ 2,633 $ 2,757
Actual return on plan assets 2,932 (548) 454 (28)
Firm contributions 80 75 2 2
Employee contributions 8 7 14 15
Benefits paid (820) (873) (110) (113)
Plan settlements — (15) — —
Foreign exchange impact and other 121 (197) — —
Fair value of plan assets, end of year (a)(b) $ 20,373 $ 18,052 $ 2,993 $ 2,633
Net funded status (c)(d) $ 3,304 $ 2,540 $ 2,357 $ 2,021
Accumulated benefit obligation, end of year $ (17,047) $ (15,494) NA NA
Pretax pension and OPEB amounts recorded in AOCI
Net gain/(loss) $ (2,260) $ (3,134) $ 470 $ 184
Prior service credit/(cost) (26) (23) — —
Accumulated other comprehensive income/(loss), pretax, end of year $ (2,286) $ (3,157) $ 470 $ 184
Weighted-average actuarial assumptions used to determine benefit obligations
Discount rate (e) 0.20 - 3.30% 0.60 - 4.30 % 3.20% 4.20%
Rate of compensation increase (e) 2.25 - 3.00 2.25 – 3.00 NA NA
Interest crediting rate(e) 1.78 - 4.65% 1.81 - 4.90% NA NA
Health care cost trend rate(f)
Assumed for next year NA NA 5.00 5.00
Ultimate NA NA 5.00 5.00
Year when rate will reach ultimate NA NA 2020 2019
(a) At December 31, 2019 and 2018, included non-U.S. benefit obligations of $(3.8) billion and $(3.3) billion, and plan assets of $4.0 billion and $3.5 billion,
respectively, predominantly in the U.K.
(b) At December 31, 2019 and 2018, defined benefit pension plan amounts that were not measured at fair value included $1.3 billion and $340 million, respectively, of
accrued receivables, and $1.7 billion and $503 million, respectively, of accrued liabilities.
(c) Represents plans with an aggregate overfunded balance of $6.3 billion and $5.1 billion at December 31, 2019 and 2018, respectively, and plans with an aggregate
underfunded balance of $618 million and $547 million at December 31, 2019 and 2018, respectively.
(d) For pension plans with a projected benefit obligation exceeding plan assets, the projected benefit obligation and fair value of plan assets was $1.5 billion and $885
million at December 31, 2019, respectively and $1.3 billion and $762 million at December 31, 2018, respectively. For pension plans with an accumulated benefit
obligation exceeding plan assets, the accumulated benefit obligation and fair value of plan assets was $1.4 billion and $885 million at December 31, 2019,
respectively, and $1.3 billion and $762 million at December 31, 2018, respectively. For OPEB plans with a projected benefit obligation exceeding plan assets, the
projected benefit obligation was $43 million and $26 million at December 31, 2019 and 2018, respectively, and they had no plan assets.
(e) For the U.S. defined benefit pension plans, the discount rate assumption was 3.30% and 4.30%, and the interest crediting rate was 4.65% and 4.90%, for 2019
and 2018, respectively. The rate of compensation increase was not applicable to the U.S. plan in 2019 due to the Plan Freeze, and was 2.30% in 2018. The rate of
compensation increase presented in the table for 2019 applies to the non-U.S. plans.
(f) Excludes participants whose benefits under the plan are capped.
(g) At December 31, 2019 and 2018, the gain/(loss) was primarily attributable to the change in the discount rate.

Gains and losses
For the Firm’s defined benefit pension plans, fair value is
used to determine the expected return on plan assets.
Amortization of net gains and losses is included in annual
net periodic benefit cost if, as of the beginning of the year,
the net gain or loss exceeds 10% of the greater of the
projected benefit obligation or the fair value of the plan
assets. Any excess is amortized over the average future
service period of defined benefit pension plan participants,
which for the U.S. defined benefit pension plan is currently
eight years and for the non-U.S. defined benefit pension
plans is the period appropriate for the affected plan. As a
result of the Plan Freeze, beginning in 2020, any excess for
the U.S. defined benefit pension plan will be amortized over
the average expected lifetime of plan participants which is
currently 38 years. In addition, prior service costs are
amortized over the average remaining service period of
active employees expected to receive benefits under the
plan when the prior service cost is first recognized.
For the Firm’s OPEB plans, a calculated value that
recognizes changes in fair value over a five-year period is
used to determine the expected return on plan assets. This
value is referred to as the market-related value of assets.
Amortization of net gains and losses, adjusted for gains and
losses not yet recognized, is included in annual net periodic
benefit cost if, as of the beginning of the year, the net gain
or loss exceeds 10% of the greater of the accumulated
postretirement benefit obligation or the market-related
value of assets. Any excess is amortized over the average
expected lifetime of retired participants, which is currently
eleven years.

The following table presents the components of net periodic benefit costs reported in the Consolidated statements of income
for the Firm’s U.S. and non-U.S. defined benefit pension, defined contribution and OPEB plans, and in other comprehensive
income for the defined benefit pension and OPEB plans, and the weighted-average annualized actuarial assumptions for the
net periodic benefit cost.
Pension plans OPEB plans
Year ended December 31, (in millions) 2019 2018 2017 2019 2018 2017
Components of net periodic benefit cost
Benefits earned during the year $ 356 $ 354 $ 330 $ — $ — $ —
Interest cost on benefit obligations 596 556 598 24 24 28
Expected return on plan assets (915) (981) (968) (112) (103) (97)
Amortization:
Net (gain)/loss 167 103 250 — — —
Prior service (credit)/cost 3 (23) (36) — — —
Curtailment (gain)/loss — 21 — — — —
Settlement (gain)/loss — 2 2 — — —
Net periodic defined benefit cost(a) $ 207 $ 32 $ 176 $ (88) $ (79) $ (69)
Other defined benefit pension plans(b) 25 20 24 NA NA NA
Total defined benefit plans $ 232 $ 52 $ 200 $ (88) $ (79) $ (69)
Total defined contribution plans 952 872 814 NA NA NA
Total pension and OPEB cost included in noninterest expense $ 1,184 $ 924 $ 1,014 $ (88) $ (79) $ (69)
Changes in plan assets and benefit obligations recognized in other comprehensive income
Prior service (credit)/cost arising during the year 5 29 — — — —
Net (gain)/loss arising during the year (719) 467 (669) (286) 91 (133)
Amortization of net loss (167) (103) (250) — — —
Amortization of prior service (cost)/credit (3) 23 36 — — —
Curtailment gain/(loss) — (21) — — — —
Settlement gain/(loss) — (2) (2) — — —
Foreign exchange impact and other 13 (30) 54 — (4) —
Total recognized in other comprehensive income $ (871) $ 363 $ (831) $ (286) $ 87 $ (133)
Total recognized in net periodic benefit cost and other
comprehensive income $ (664) $ 395 $ (655) $ (374) $ 8 $ (202)
Weighted-average assumptions used to determine net periodic benefit costs
Discount rate(c) 0.60 - 4.30% 0.60 - 4.50 % 0.60 - 4.30 % 4.20% 3.70% 4.20%
Expected long-term rate of return on plan assets (c) 0.00 - 5.50 0.70 - 5.50 0.70 - 6.00 4.30 4.00 5.00
Rate of compensation increase (c) 2.25 - 3.00 2.25 - 3.00 2.25 - 3.00 NA NA NA
Interest crediting rate(c) 1.81 - 4.90% 1.81- 4.90% 1.81- 4.90% NA NA NA
Health care cost trend rate(d)
Assumed for next year NA NA NA 5.00 5.00 5.00
Ultimate NA NA NA 5.00 5.00 5.00
Year when rate will reach ultimate NA NA NA 2019 2018 2017
(a) Benefits earned during the year are reported in compensation expense; all other components of net periodic defined benefit costs are reported within
other expense in the Consolidated statements of income.
(b) Includes various defined benefit pension plans which are individually immaterial.
(c) The rate assumptions for the U.S. defined benefit pension plans are at the upper end of the range, except for the rate of compensation increase, which was
2.30% for 2019, 2018 and 2017, respectively.
(d) Excludes participants whose benefits under the plan are capped.
Plan assumptions
The discount rate used in determining the benefit obligation
The Firm’s expected long-term rate of return for defined
under the U.S. defined benefit pension and OPEB plans was
benefit pension and OPEB plan assets is a blended weighted
provided by the Firm’s actuaries. This rate was selected by
average, by asset allocation of the projected long-term
reference to the yields on portfolios of bonds with maturity
returns for the various asset classes, taking into
dates and coupons that closely match each of the plan’s
consideration local market conditions and the specific
projected cash flows. The discount rate for the U.K. defined
allocation of plan assets. Returns on asset classes are
benefit pension plan represents a rate of appropriate
developed using a forward-looking approach and are not
duration from the analysis of yield curves provided by the
strictly based on historical returns. Consideration is also
Firm’s actuaries.
given to current market conditions and the short-term
portfolio mix of each plan. At December 31, 2019, the Firm decreased the discount
rates used to determine its benefit obligations for the U.S.

defined benefit pension and OPEB plans in light of current Investment strategy and asset allocation
market interest rates, which is expected to decrease The assets of the Firm’s defined benefit pension plans are
expense by approximately $69 million in 2020. The 2020 held in various trusts and are invested in well-diversified
expected long-term rate of return on U.S. defined benefit portfolios of equity and fixed income securities, cash and
pension plan assets and U.S. OPEB plan assets are 4.00% cash equivalents, and alternative investments. The trust-
and 4.11%, respectively. owned assets of the Firm’s U.S. OPEB plan are invested
primarily in fixed income securities. COLI policies used to
The following table represents the effect of a 25-basis point
partially defray the cost of the Firm’s U.S. OPEB plan are
decline in the two listed rates below on estimated 2020
invested in separate accounts of an insurance company and
defined benefit pension and OPEB plan expense, as well as
are allocated to investments intended to replicate equity
the effect on the postretirement benefit obligations.
and fixed income indices.
Defined benefit The investment policies for the assets of the Firm’s defined
pension and OPEB Benefit
(in millions) plan expense obligation benefit pension plans are to optimize the risk-return
Expected long-term rate of return $ 57 NA relationship as appropriate to the needs and goals of each
Discount rate $ 6 $ 544 plan using a global portfolio of various asset classes
diversified by market segment, economic sector, and issuer.
Assets are managed by a combination of internal and
external investment managers. The Firm regularly reviews
the asset allocations and asset managers, as well as other
factors that impact the portfolios, which are rebalanced
when deemed necessary.
Investments held by the plans include financial instruments
which are exposed to various risks such as interest rate,
market and credit risks. Exposure to a concentration of
credit risk is mitigated by the broad diversification of both
U.S. and non-U.S. investments. Additionally, the investments
in each of the collective investment funds and/or registered
investment companies are further diversified into various
financial instruments. As of December 31, 2019, assets
held by the Firm’s defined benefit pension and OPEB plans
do not include securities issued by JPMorgan Chase or its
affiliates, except through indirect exposures through
investments in ETFs, mutual funds and collective investment
funds managed by third-parties. The plans hold investments
that are sponsored or managed by affiliates of JPMorgan
Chase in the amount of $3.1 billion and $3.7 billion, as of
December 31, 2019 and 2018, respectively.

The following table presents the weighted-average asset allocation of the fair values of total plan assets at December 31 for
the years indicated, as well as the respective approved asset allocation ranges by asset class.
Defined benefit pension plans(a) OPEB plan(d)
Asset % of plan assets Asset % of plan assets
December 31, Allocation 2019 2018 Allocation 2019 2018
Asset class
Debt securities(b) 42-100% 74% 48% 30-70% 60% 61%
Equity securities 0-40 16 37 30-70 40 39
Real estate 0-6 1 2 — — —
Alternatives (c) 0-24 9 13 — — —
Total 100% 100% 100% 100% 100% 100%
(a) Represents the U.S. defined benefit pension plan only, as that is the most significant plan.
(b) Debt securities primarily includes cash and cash equivalents, corporate debt, U.S. federal, state, local and non-U.S. government, asset-backed and
mortgage-backed securities.
(c) Alternatives primarily include limited partnerships.
(d) Represents the U.S. OPEB plan only, as the U.K. OPEB plan is unfunded.
Fair value measurement of the plans’ assets and liabilities

Refer to Note 2 for information on fair value measurements, including descriptions of level 1, 2, and 3 of the fair value
hierarchy and the valuation methods employed by the Firm.
Pension and OPEB plan assets and liabilities measured at fair value
Defined benefit pension plans
2019 2018
December 31, Total fair Total fair
(in millions) Level 1 Level 2 Level 3 value Level 1 Level 2 Level 3 value
Cash and cash equivalents $ 157 $ 1 $ — $ 158 $ 343 $ 1 $ — $ 344
Equity securities 3,240 184 2 3,426 5,342 162 2 5,506
Collective investment funds(a) 265 — — 265 161 — — 161
Limited partnerships (b)
187 — — 187 40 — — 40
Corporate debt securities(c) — 7,090 2 7,092 — 3,540 3 3,543
U.S. federal, state, local and non-U.S.
government debt securities 1,790 1,054 — 2,844 1,191 743 — 1,934
Mortgage-backed securities 314 701 4 1,019 82 272 3 357
Derivative receivables — 337 — 337 — 143 — 143
Other(d) 785 132 250 1,167 885 80 302 1,267
Total assets measured at fair value(e) $ 6,738 $ 9,499 $ 258 $ 16,495 $ 8,044 $ 4,941 $ 310 $ 13,295
Derivative payables $ — $ (118) $ — $ (118) $ — $ (96) $ — $ (96)
Total liabilities measured at fair value(e) $ — $ (118) $ — $ (118) $ — $ (96) $ — $ (96)
(a) At December 31, 2019 and 2018, collective investment funds primarily included a mix of short-term investment funds, U.S. and non-U.S. equity
investments (including index) and real estate funds.
(b) Unfunded commitments to purchase limited partnership investments for the plans were $451 million and $521 million for 2019 and 2018,
respectively.
(c) Corporate debt securities include debt securities of U.S. and non-U.S. corporations.
(d) Other consists primarily of mutual funds, money market funds and participating annuity contracts. Mutual funds and money market funds are
primarily classified within level 1 of the fair value hierarchy given they are valued using market observable prices. Participating annuity contracts
are classified within level 3 of the fair value hierarchy due to a lack of market mechanisms for transferring each policy and surrender restrictions.
(e) At December 31, 2019 and 2018, excludes $4.4 billion and $5.0 billion of certain investments that are measured at fair value using the net asset
value per share (or its equivalent) as a practical expedient, which are not required to be classified in the fair value hierarchy, $1.3 billion and $340
million of defined benefit pension plan receivables for investments sold and dividends and interest receivables, $1.7 billion and $479 million of
defined benefit pension plan payables for investments purchased, and $25 million and $24 million of other liabilities, respectively.
At December 31, 2019 and 2018, the assets of the U.S. OPEB plan consisted of $562 million and $561 million,
respectively, in cash and cash equivalents, corporate debt securities, U.S. federal, state, local and non-U.S. government
debt securities and other assets classified in level 1 and level 2 of the valuation hierarchy and $2.4 billion and $2.1
billion, respectively, of COLI policies classified in level 3 of the valuation hierarchy.

Changes in level 3 fair value measurements using significant unobservable inputs
Actual return on plan assets
Fair value, Purchases, sales Transfers in Fair value,
Beginning Realized Unrealized and settlements, and/or out Ending
(in millions) balance gains/(losses) gains/(losses)(b) net(b) of level 3 balance
U.S. defined benefit pension plan
Annuity contracts and other (a) $ 310 $ — $ 31 $ (85) $ 2 $ 258
U.S. OPEB plan
COLI policies $ 2,072 $ — $ 401 $ (42) $ — $ 2,431
U.S. defined benefit pension plan
Annuity contracts and other (a) $ 310 $ — $ — $ (1) $ 1 $ 310
U.S. OPEB plan
COLI policies $ 2,157 $ — $ (42) $ (43) $ — $ 2,072
(a) Substantially all are participating annuity contracts.

Estimated future benefit payments

The following table presents benefit payments expected to
be paid, which include the effect of expected future service,
for the years indicated. The OPEB medical and life insurance
payments are net of expected retiree contributions.
OPEB
Defined before
benefit Medicare Medicare
Year ended December 31, pension Part D Part D
(in millions) plans subsidy subsidy
2020 $ 1,030 $ 59 $ 1
2021 1,020 57 1
2022 1,020 54 —
2023 980 52 —
2024 970 50 —
Years 2025–2029 4,613 211 1

Note 9 – Employee share-based incentives

Employee share-based awards Once the PSUs and dividend equivalent share units have
In 2019, 2018 and 2017, JPMorgan Chase granted long- vested, the shares of common stock that are delivered, after
term share-based awards to certain employees under its applicable tax withholding, must be held for an additional
LTIP, as amended and restated effective May 15, 2018. two-year period, for a total combined vesting and holding
Under the terms of the LTIP, as of December 31, 2019, 75 period of approximately five to eight years from the grant
million shares of common stock were available for issuance date depending on regulations in certain countries.
through May 2022. The LTIP is the only active plan under Under the LTI Plans, stock appreciation rights (“SARs”) and
which the Firm is currently granting share-based incentive stock options have generally been granted with an exercise
awards. In the following discussion, the LTIP, plus prior Firm price equal to the fair value of JPMorgan Chase’s common
plans and plans assumed as the result of acquisitions, are stock on the grant date. SARs and stock options generally
referred to collectively as the “LTI Plans,” and such plans expire ten years after the grant date. There were no
constitute the Firm’s share-based incentive plans. material grants of employee SARs or stock options in 2019,
RSUs are awarded at no cost to the recipient upon their 2018 and 2017.
grant. Generally, RSUs are granted annually and vest at a The Firm separately recognizes compensation expense for
rate of 50% after two years and 50% after three years and each tranche of each award, net of estimated forfeitures, as
are converted into shares of common stock as of the vesting if it were a separate award with its own vesting date.
date. In addition, RSUs typically include full-career eligibility Generally, for each tranche granted, compensation expense
provisions, which allow employees to continue to vest upon is recognized on a straight-line basis from the grant date
voluntary termination based on age or service-related until the vesting date of the respective tranche, provided
requirements, subject to post-employment and other that the employees will not become full-career eligible
restrictions. All RSU awards are subject to forfeiture until during the vesting period. For awards with full-career
vested and contain clawback provisions that may result in eligibility provisions and awards granted with no future
cancellation under certain specified circumstances. substantive service requirement, the Firm accrues the
Predominantly all RSUs entitle the recipient to receive cash estimated value of awards expected to be awarded to
payments equivalent to any dividends paid on the employees as of the grant date without giving consideration
underlying common stock during the period the RSUs are to the impact of post-employment restrictions. For each
outstanding. tranche granted to employees who will become full-career
Performance share units (“PSUs”) are granted annually, and eligible during the vesting period, compensation expense is
approved by the Firm’s Board of Directors, to members of recognized on a straight-line basis from the grant date until
the Firm’s Operating Committee under the variable the earlier of the employee’s full-career eligibility date or
compensation program. PSUs are subject to the Firm’s the vesting date of the respective tranche.
achievement of specified performance criteria over a three- The Firm’s policy for issuing shares upon settlement of
year period. The number of awards that vest can range from employee share-based incentive awards is to issue either
zero to 150% of the grant amount. In addition, dividends
new shares of common stock or treasury shares. During
that accrue during the vesting period are reinvested in
2019, 2018 and 2017, the Firm settled all of its employee
dividend equivalent share units. PSUs and the related
share-based awards by issuing treasury shares.
dividend equivalent share units are converted into shares of
common stock after vesting. Refer to Note 23 for further information on the
classification of share-based awards for purposes of
calculating earnings per share.

RSUs, PSUs, employee SARs and stock options activity
Generally, compensation expense for RSUs and PSUs is measured based on the number of units granted multiplied by the stock
price at the grant date, and for employee SARs and stock options, is measured at the grant date using the Black-Scholes
valuation model. Compensation expense for these awards is recognized in net income as described previously. The following
table summarizes JPMorgan Chase’s RSUs, PSUs, employee SARs and stock options activity for 2019.
RSUs/PSUs SARs/Options
Year ended December 31, 2019 Weighted- Weighted-average
Weighted- average remaining Aggregate
(in thousands, except weighted-average data, and Number of average grant Number of exercise contractual life intrinsic
where otherwise stated) units date fair value awards price (in years) value
Outstanding, January 1 58,809 $ 85.04 12,463 $ 41.46
Granted 23,811 99.79 18 111.01
Exercised or vested (28,754) 69.98 (6,923) 41.50
Forfeited (1,627) 98.58 — —
Canceled NA NA (31) 89.71
Outstanding, December 31 52,239 $ 99.62 5,527 $ 41.36 1.9 $ 539,071
Exercisable, December 31 NA NA 5,522 41.29 1.9 538,971
The total fair value of RSUs that vested during the years ended December 31, 2019, 2018 and 2017, was $2.9 billion, $3.6
billion and $2.9 billion, respectively. The total intrinsic value of options exercised during the years ended December 31, 2019,
2018 and 2017, was $503 million, $370 million and $651 million, respectively.
Compensation expense Tax benefits

The Firm recognized the following noncash compensation Excess tax benefits (including tax benefits from dividends or
expense related to its various employee share-based dividend equivalents) on share-based payment awards are
incentive plans in its Consolidated statements of income. recognized within income tax expense in the Consolidated
statements of income. Income tax benefits related to share-
Year ended December 31, (in millions) 2019 2018 2017 based incentive arrangements recognized in the Firm’s
Cost of prior grants of RSUs, PSUs, SARs Consolidated statements of income for the years ended
and employee stock options that are
amortized over their applicable December 31, 2019, 2018 and 2017, were $895 million,
vesting periods $ 1,141 $ 1,241 $ 1,125 $1.1 billion and $1.0 billion, respectively.
Accrual of estimated costs of share-
based awards to be granted in future
periods including those to full-career
eligible employees 1,115 1,081 945
Total noncash compensation expense

related to employee share-based
incentive plans $ 2,256 $ 2,322 $ 2,070
At December 31, 2019, approximately $693 million

(pretax) of compensation expense related to unvested
awards had not yet been charged to net income. That cost is
expected to be amortized into compensation expense over a
weighted-average period of 1.6 years. The Firm does not
capitalize any compensation expense related to share-based
compensation awards to employees.

Note 10 – Investment securities

Investment securities consist of debt securities that are net increases or decreases to AOCI. The specific
classified as AFS or HTM. Debt securities classified as identification method is used to determine realized gains
trading assets are discussed in Note 2. Predominantly all of and losses on AFS securities, which are included in securities
the Firm’s AFS and HTM securities are held by Treasury and gains/(losses) on the Consolidated statements of income.
CIO in connection with its asset-liability management HTM debt securities, which the Firm has the intent and
activities. At December 31, 2019, the investment securities ability to hold until maturity, are carried at amortized cost
portfolio consisted of debt securities with an average credit on the Consolidated balance sheets.
rating of AA+ (based upon external ratings where available,
For both AFS and HTM debt securities, purchase discounts or
and where not available, based primarily upon internal
premiums are generally amortized into interest income on a
ratings). The Firm’s internal risk ratings generally align with
level-yield basis over the contractual life of the security.
the qualitative characteristics (e.g., borrower capacity to
However, premiums on certain callable debt securities are
meet financial commitments and vulnerability to changes in
amortized to the earliest call date.
the economic environment) defined by S&P and Moody’s,
however the quantitative characteristics (e.g., PDs and During the fourth quarter of 2019, the Firm transferred
LGDs) may differ as they reflect internal historical $6.2 billion of collateralized loan obligations from AFS to
experiences and assumptions. HTM for capital management purposes. These securities
were transferred at fair value in a non-cash transaction.
AFS securities are carried at fair value on the Consolidated
balance sheets. Unrealized gains and losses, after any
applicable hedge accounting adjustments, are reported as

The amortized costs and estimated fair values of the investment securities portfolio were as follows for the dates indicated.
2019 2018
Gross Gross Gross Gross
Amortized unrealized unrealized Fair Amortized unrealized unrealized Fair
December 31, (in millions) cost gains losses value cost gains losses value
Available-for-sale securities
U.S. GSEs and government agencies(a) $ 107,811 $ 2,395 $ 89 $ 110,117 $ 69,026 $ 594 $ 974 $ 68,646
Residential:
U.S 10,223 233 6 10,450 5,877 79 31 5,925
Non-U.S. 2,477 64 1 2,540 2,529 72 6 2,595
Commercial 5,137 64 13 5,188 6,758 43 147 6,654
Total mortgage-backed securities 125,648 2,756 109 128,295 84,190 788 1,158 83,820
U.S. Treasury and government agencies 139,162 449 175 139,436 55,771 366 78 56,059
Obligations of U.S. states and municipalities 27,693 2,118 1 29,810 36,221 1,582 80 37,723
Certificates of deposit 77 — — 77 75 — — 75
Non-U.S. government debt securities 21,427 377 17 21,787 23,771 351 20 24,102
Corporate debt securities 823 22 — 845 1,904 23 9 1,918
Collateralized loan obligations 25,038 9 56 24,991 19,612 1 176 19,437
Other 5,438 40 20 5,458 7,225 57 22 7,260
Total available-for-sale securities 345,306 5,771 378 350,699 228,769 3,168 1,543 230,394
Held-to-maturity securities
U.S. GSEs and government agencies(a) 36,523 1,165 62 37,626 26,610 134 200 26,544
Total mortgage-backed securities 36,523 1,165 62 37,626 26,610 134 200 26,544
U.S. Treasury and government agencies 51 — 1 50 — — — —
Obligations of U.S. states and municipalities 4,797 299 — 5,096 4,824 105 15 4,914
Collateralized loan obligations 6,169 — — 6,169 — — — —
Total held-to-maturity securities 47,540 1,464 63 48,941 31,434 239 215 31,458
Total investment securities $ 392,846 $ 7,235 $ 441 $ 399,640 $ 260,203 $ 3,407 $ 1,758 $ 261,852
(a) Includes AFS U.S. GSE obligations with fair values of $78.5 billion and $50.7 billion, and HTM U.S. GSE obligations with amortized cost of $31.6 billion and
$20.9 billion, at December 31, 2019 and 2018, respectively. As of December 31, 2019, mortgage-backed securities issued by Fannie Mae and Freddie
Mac each exceeded 10% of JPMorgan Chase’s total stockholders’ equity; the amortized cost and fair value of such securities were $69.4 billion and $71.4
billion, and $38.7 billion and $39.6 billion, respectively.

Investment securities impairment

The following tables present the fair value and gross unrealized losses for investment securities by aging category at
Investment securities with gross unrealized losses
Less than 12 months 12 months or more
Gross unrealized Gross unrealized Total fair Total gross
December 31, 2019 (in millions) Fair value losses Fair value losses value unrealized losses
U.S. GSEs and government agencies $ 16,966 $ 53 $ 3,058 $ 36 $ 20,024 $ 89
Residential:
U.S 1,072 3 423 3 1,495 6
Non-U.S. 13 — 420 1 433 1
Commercial 1,287 12 199 1 1,486 13
Total mortgage-backed securities 19,338 68 4,100 41 23,438 109
U.S. Treasury and government agencies 23,003 145 5,695 30 28,698 175
Obligations of U.S. states and municipalities 186 1 — — 186 1
Certificates of deposit 77 — — — 77 —
Non-U.S. government debt securities 3,970 13 1,406 4 5,376 17
Corporate debt securities — — — — — —
Collateralized loan obligations 10,364 11 7,756 45 18,120 56
Other 1,639 9 753 11 2,392 20
Total available-for-sale securities 58,577 247 19,710 131 78,287 378
U.S. GSEs and government agencies 5,186 62 81 — 5,267 62
Total mortgage-backed securities 5,186 62 81 — 5,267 62
U.S. Treasury and government agencies 50 1 — — 50 1
Obligations of U.S. states and municipalities — — — — — —
Collateralized loan obligations 3,421 — 1,375 — 4,796 —
Total held-to-maturity securities 8,657 63 1,456 — 10,113 63
Total investment securities with gross
unrealized losses $ 67,234 $ 310 $ 21,166 $ 131 $ 88,400 $ 441

Investment securities with gross unrealized losses
Less than 12 months 12 months or more
Gross unrealized Gross unrealized Total fair Total gross
December 31, 2018 (in millions) Fair value losses Fair value losses value unrealized losses
U.S. GSEs and government agencies 17,656 318 22,728 656 40,384 974
Residential:
U.S. 623 4 1,445 27 2,068 31
Non-U.S. 907 5 165 1 1,072 6
Commercial 974 6 3,172 141 4,146 147
Total mortgage-backed securities 20,160 333 27,510 825 47,670 1,158
U.S. Treasury and government agencies 4,792 7 2,391 71 7,183 78
Obligations of U.S. states and municipalities 1,808 15 2,477 65 4,285 80
Certificates of deposit 75 — — — 75 —
Non-U.S. government debt securities 3,123 5 1,937 15 5,060 20
Corporate debt securities 478 8 37 1 515 9
Collateralized loan obligations 18,681 176 — — 18,681 176
Other 1,208 6 2,354 16 3,562 22
Total available-for-sale securities 50,325 550 36,706 993 87,031 1,543
U.S. GSEs and government agencies 4,385 23 7,082 177 11,467 200
Total mortgage-backed securities 4,385 23 7,082 177 11,467 200
Obligations of U.S. states and municipalities 12 — 1,114 15 1,126 15
Total held-to-maturity securities 4,397 23 8,196 192 12,593 215
Total investment securities with gross
unrealized losses 54,722 573 44,902 1,185 99,624 1,758
Other-than-temporary impairment
AFS and HTM debt securities in unrealized loss positions are agency; the volatility of the fair value changes; and the
analyzed as part of the Firm’s ongoing assessment of OTTI. Firm’s intent and ability to hold the security until recovery.
The Firm considers a decline in fair value to be other-than-
The Firm’s cash flow evaluations take into account the
temporary when the Firm does not expect to recover the
factors noted above and expectations of relevant market
entire amortized cost basis of the security.
and economic data as of the end of the reporting period.
For AFS debt securities, the Firm recognizes OTTI losses in When assessing securities issued in a securitization for OTTI,
earnings if the Firm has the intent to sell the debt security, the Firm estimates cash flows considering underlying loan-
or if it is more likely than not that the Firm will be required level data and structural features of the securitization, such
to sell the debt security before recovery of its amortized as subordination, excess spread, overcollateralization or
cost basis. In these circumstances the impairment loss is other forms of credit enhancement, and compares the
equal to the full difference between the amortized cost losses projected for the underlying collateral (“pool losses”)
basis and the fair value of the securities. against the level of credit enhancement in the securitization
structure to determine whether these features are sufficient
For debt securities in an unrealized loss position that the
to absorb the pool losses, or whether a credit loss exists.
Firm has the intent and ability to hold, the securities are
The Firm also performs other analyses to support its cash
evaluated to determine if a credit loss exists. In the event of
flow projections, such as first-loss analyses or stress
a credit loss, only the amount of impairment associated
scenarios.
with the credit loss is recognized in income. Amounts
relating to factors other than credit losses are recorded in For beneficial interests in securitizations that are rated
OCI. below “AA” at their acquisition, or that can be contractually
prepaid or otherwise settled in such a way that the Firm
Factors considered in evaluating potential OTTI include
would not recover substantially all of its recorded
adverse conditions specifically related to the industry,
investment, the Firm considers an impairment to be other-
geographic area or financial condition of the issuer or
than-temporary when there is an adverse change in
underlying collateral of a security; payment structure of the
expected cash flows.
security; changes to the rating of the security by a rating

The Firm recognizes unrealized losses on investment Investment securities gains and losses
securities that it intends to sell as OTTI. The Firm does not The following table presents realized gains and losses and
intend to sell any of the remaining investment securities OTTI from AFS securities that were recognized in income.
with an unrealized loss in AOCI as of December 31, 2019,
and it is not likely that the Firm will be required to sell these (in millions) 2019 2018 2017
securities before recovery of their amortized cost basis. Realized gains $ 650 $ 211 $ 1,013
Further, the Firm did not recognize any credit-related OTTI Realized losses (392) (606) (1,072)
losses during the year ended December 31, 2019. Based on OTTI losses(a) — — (7)
its assessment, the Firm believes that the investment Net investment securities gains/
securities with an unrealized loss in AOCI as of December (losses) 258 (395) (66)
31, 2019, are not other-than-temporarily impaired. (a) Represents OTTI losses recognized in income on investment securities
the Firm intends to sell. Excludes realized losses on securities sold of
$22 million and $6 million for the years ended December 31, 2018
and 2017, respectively, that had been previously reported as an OTTI
loss due to the intention to sell the securities.
Changes in the credit loss component of credit-impaired

debt securities
The cumulative credit loss component, including any
changes therein, of OTTI losses that have been recognized in
income related to AFS securities was not material as of and
during the years ended December 31, 2019, 2018 and
2017.

Contractual maturities and yields
The following table presents the amortized cost and estimated fair value at December 31, 2019, of JPMorgan Chase’s investment
securities portfolio by contractual maturity.
By remaining maturity Due in one Due after one year Due after five years Due after
December 31, 2019 (in millions) year or less through five years through 10 years 10 years(b) Total
Mortgage-backed securities
Amortized cost $ 1 $ 58 $ 11,073 $ 114,516 $ 125,648
Fair value 1 58 11,251 116,985 128,295
Average yield(a) 1.99% 2.78% 2.76% 3.40% 3.34%
U.S. Treasury and government agencies
Amortized cost $ 10,687 $ 92,805 $ 26,353 $ 9,317 $ 139,162
Fair value 10,700 93,039 26,446 9,251 139,436
Average yield(a) 1.82% 1.84% 1.90% 1.98% 1.86%
Amortized cost $ 123 $ 193 $ 825 $ 26,552 $ 27,693
Fair value 124 202 883 28,601 29,810
Average yield(a) 4.13% 4.68% 5.28% 4.86% 4.87%
Certificates of deposit
Amortized cost $ 77 $ — $ — $ — $ 77
Fair value 77 — — — 77
Average yield(a) 0.50% —% —% —% 0.50%
Non-U.S. government debt securities
Amortized cost $ 6,672 $ 11,544 $ 2,898 $ 313 $ 21,427
Fair value 6,682 11,791 3,001 313 21,787
Average yield(a) 2.17% 1.84% 1.29% 1.67% 1.87%
Corporate debt securities
Amortized cost $ 205 $ 206 $ 412 $ — $ 823
Fair value 207 212 426 — 845
Average yield(a) 4.49% 4.14% 3.50% —% 3.91%
Asset-backed securities
Amortized cost $ 17 $ 2,352 $ 7,184 $ 20,923 $ 30,476
Fair value 17 2,353 7,177 20,902 30,449
Average yield(a) 0.62% 2.78% 2.86% 2.77% 2.79%
Total available-for-sale securities
Amortized cost $ 17,782 $ 107,158 $ 48,745 $ 171,621 $ 345,306
Fair value 17,808 107,655 49,184 176,052 350,699
Average yield(a) 1.99% 1.87% 2.27% 3.47% 2.73%
Mortgage-backed securities
Amortized Cost $ — $ — $ 5,850 $ 30,673 $ 36,523
Fair value — — 6,114 31,512 37,626
Average yield(a) —% —% 3.06% 3.10% 3.10%
U.S. Treasury and government agencies
Amortized cost $ — $ 51 $ — $ — $ 51
Fair value — 50 — — 50
Average yield(a) —% 1.47% —% —% 1.47%
Amortized cost $ — $ — $ 99 $ 4,698 $ 4,797
Fair value — — 106 4,990 5,096
Average yield(a) —% —% 3.91% 4.04% 4.04%
Asset-backed securities
Amortized cost $ — $ — $ 5,296 $ 873 $ 6,169
Fair value — — 5,296 873 6,169
Average yield(a) —% —% 3.19% 3.11% 3.18%
Total held-to-maturity securities
Amortized cost $ — $ 51 $ 11,245 $ 36,244 $ 47,540
Fair value — 50 11,516 37,375 48,941
Average yield(a) —% 1.47% 3.13% 3.23% 3.20%
(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. 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.
(b) 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 6 years for agency residential MBS, 3 years for agency residential collateralized
mortgage obligations and 3 years for nonagency residential collateralized mortgage obligations.

Note 11 – Securities financing activities

JPMorgan Chase enters into resale, repurchase, securities Securities financing agreements expose the Firm primarily
borrowed and securities loaned agreements (collectively, to credit and liquidity risk. To manage these risks, the Firm
“securities financing agreements”) primarily to finance the monitors the value of the underlying securities
Firm’s inventory positions, acquire securities to cover short (predominantly high-quality securities collateral, including
sales, accommodate customers’ financing needs, settle government-issued debt and U.S. GSEs and government
other securities obligations and to deploy the Firm’s excess agencies MBS) that it has received from or provided to its
cash. counterparties compared to the value of cash proceeds and
exchanged collateral, and either requests additional
Securities financing agreements are treated as collateral or returns securities or collateral when
collateralized financings on the Firm’s Consolidated balance appropriate. Margin levels are initially established based
sheets. Resale and repurchase agreements are generally upon the counterparty, the type of underlying securities,
carried at the amounts at which the securities will be and the permissible collateral, and are monitored on an
subsequently sold or repurchased. Securities borrowed and ongoing basis.
securities loaned agreements are generally carried at the In resale and securities borrowed agreements, the Firm is
amount of cash collateral advanced or received. Where exposed to credit risk to the extent that the value of the
appropriate under applicable accounting guidance, securities received is less than initial cash principal
securities financing agreements with the same counterparty advanced and any collateral amounts exchanged. In
are reported on a net basis. Refer to Note 1 for further repurchase and securities loaned agreements, credit risk
discussion of the offsetting of assets and liabilities. Fees exposure arises to the extent that the value of underlying
received and paid in connection with securities financing securities advanced exceeds the value of the initial cash
agreements are recorded over the life of the agreement in principal received, and any collateral amounts exchanged.
interest income and interest expense on the Consolidated Additionally, the Firm typically enters into master netting
statements of income. agreements and other similar arrangements with its
The Firm has elected the fair value option for certain counterparties, which provide for the right to liquidate the
securities financing agreements. Refer to Note 3 for further underlying securities and any collateral amounts exchanged
in the event of a counterparty default. It is also the Firm’s
information regarding the fair value option. The securities
policy to take possession, where possible, of the securities
financing agreements for which the fair value option has
underlying resale and securities borrowed agreements.
been elected are reported within securities purchased
Refer to Note 29 for further information regarding assets
under resale agreements, securities loaned or sold under pledged and collateral received in securities financing
repurchase agreements, and securities borrowed on the agreements.
Consolidated balance sheets. Generally, for agreements
carried at fair value, current-period interest accruals are As a result of the Firm’s credit risk mitigation practices with
recorded within interest income and interest expense, with respect to resale and securities borrowed agreements as
described above, the Firm did not hold any reserves for
changes in fair value reported in principal transactions
credit impairment with respect to these agreements as of
revenue. However, for financial instruments containing
embedded derivatives that would be separately accounted
for in accordance with accounting guidance for hybrid
instruments, all changes in fair value, including any interest
elements, are reported in principal transactions revenue.

The table below summarizes the gross and net amounts of the Firm’s securities financing agreements, as of December 31,
2019 and 2018. 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.
2019
Amounts netted Amounts Amounts not
on the presented on the nettable on the
Consolidated Consolidated Consolidated
December 31, (in millions) Gross amounts balance sheets balance sheets balance sheets(b) Net amounts(c)
Assets
Securities purchased under resale agreements $ 628,609 $ (379,463) $ 249,146 $ (233,818) $ 15,328
Securities borrowed 166,718 (26,960) 139,758 (104,990) 34,768
Liabilities
Securities sold under repurchase agreements $ 555,172 $ (379,463) $ 175,709 $ (151,566) $ 24,143
Securities loaned and other(a) 36,649 (26,960) 9,689 (9,654) 35
2018
Amounts netted Amounts Amounts not
on the presented on the nettable on the
Consolidated Consolidated Consolidated
December 31, (in millions) Gross amounts balance sheets balance sheets balance sheets(b) Net amounts(c)
Assets
Securities purchased under resale agreements $ 691,116 $ (369,612) $ 321,504 $ (308,854) $ 12,650
Securities borrowed 132,955 (20,960) 111,995 (79,747) 32,248
Liabilities
Securities sold under repurchase agreements $ 541,587 $ (369,612) $ 171,975 $ (149,125) $ 22,850
Securities loaned and other (a)
33,700 (20,960) 12,740 (12,358) 382
(a) Includes securities-for-securities lending agreements of $3.7 billion and $3.3 billion at December 31, 2019 and 2018, respectively, accounted for at fair
value, where the Firm is acting as lender. In the Consolidated balance sheets, 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.
(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 December 31, 2019 and 2018, included $11.0 billion and $7.9 billion, respectively, of securities
purchased under resale agreements; $31.9 billion and $30.3 billion, respectively, of securities borrowed; $22.7 billion and $21.5 billion, respectively, of
securities sold under repurchase agreements; and $7 million and $25 million, respectively, of securities loaned and other.

The tables below present as of December 31, 2019 and 2018 the types of financial assets pledged in securities financing
agreements and the remaining contractual maturity of the securities financing agreements.
Gross liability balance
2019 2018
Securities sold Securities sold
under repurchase Securities loaned under repurchase Securities loaned
December 31, (in millions) agreements and other agreements and other
U.S. GSEs and government agencies $ 34,119 $ — $ 34,311 (a)
$ —
Residential - nonagency 1,239 — 2,165 —
Commercial - nonagency 1,612 — 1,390 —
U.S. Treasury, GSEs and government agencies 334,398 29 317,578 (a)
69
Obligations of U.S. states and municipalities 1,181 — 1,150 —
Non-U.S. government debt 145,548 1,528 154,900 4,313
Corporate debt securities 13,826 1,580 13,898 428
Asset-backed securities 1,794 — 3,867 —
Equity securities 21,455 33,512 12,328 28,890
Total $ 555,172 $ 36,649 $ 541,587 $ 33,700
(a) The prior period amounts have been revised to conform with the current period presentation.
Remaining contractual maturity of the agreements
Overnight and Greater than

2019 (in millions) continuous Up to 30 days 30 – 90 days 90 days Total
Total securities sold under repurchase agreements $ 225,134 $ 199,870 $ 57,305 $ 72,863 $ 555,172
Total securities loaned and other 32,028 1,706 937 1,978 36,649
Remaining contractual maturity of the agreements
Overnight and Greater than

2018 (in millions) continuous Up to 30 days 30 – 90 days 90 days Total
Total securities sold under repurchase agreements $ 247,579 $ 174,971 $ 71,637 $ 47,400 $ 541,587
Total securities loaned and other 28,402 997 2,132 2,169 33,700
Transfers not qualifying for sale accounting

At December 31, 2019 and 2018, the Firm held $743 million and $2.1 billion, 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 predominantly in short-term borrowings on the Consolidated
balance sheets. The prior period amount has been revised to conform with the current period presentation.

Note 12 – Loans
Loan accounting framework carrying value of the loan (the cost recovery method). For
The accounting for a loan depends on management’s consumer loans, application of this policy typically results in
strategy for the loan, and on whether the loan was credit- the Firm recognizing interest income on nonaccrual
impaired at the date of acquisition. The Firm accounts for consumer loans on a cash basis.
loans based on the following categories:
A loan may be returned to accrual status when repayment is
• Originated or purchased loans held-for-investment (i.e., reasonably assured and there has been demonstrated
“retained”), other than PCI loans performance under the terms of the loan or, if applicable,
• Loans held-for-sale the terms of the restructured loan.
• Loans at fair value As permitted by regulatory guidance, credit card loans are
• PCI loans held-for-investment generally exempt from being placed on nonaccrual status;
accordingly, interest and fees related to credit card loans
The following provides a detailed accounting discussion of
continue to accrue until the loan is charged off or paid in
these loan categories:
full. The Firm separately establishes an allowance, which
Loans held-for-investment (other than PCI loans) reduces loans and is charged to interest income, for the
Originated or purchased loans held-for-investment, other estimated uncollectible portion of accrued and billed
than PCI loans, are recorded at the principal amount interest and fee income on credit card loans.
outstanding, net of the following: charge-offs; interest
applied to principal (for loans accounted for on the cost
The allowance for loan losses represents the estimated
recovery method); unamortized discounts and premiums;
probable credit losses inherent in the held-for-investment
and net deferred loan fees or costs. Credit card loans also
loan portfolio at the balance sheet date and is recognized
include billed finance charges and fees net of an allowance
on the balance sheet as a contra asset, which brings the
for uncollectible amounts.
recorded investment to the net carrying value. Changes in
Interest income the allowance for loan losses are recorded in the provision
Interest income on performing loans held-for-investment, for credit losses on the Firm’s Consolidated statements of
other than PCI loans, is accrued and recognized as interest income. Refer to Note 13 for further information on the
income at the contractual rate of interest. Purchase price Firm’s accounting policies for the allowance for loan losses.
discounts or premiums, as well as net deferred loan fees or
Charge-offs
costs, are amortized into interest income over the
Consumer loans, other than risk-rated business banking and
contractual life of the loan as an adjustment of yield.
auto loans, and PCI loans, are generally charged off or
Nonaccrual loans charged down to the net realizable value of the underlying
Nonaccrual loans are those on which the accrual of interest collateral (i.e., fair value less costs to sell), with an offset to
has been suspended. Loans (other than credit card loans the allowance for loan losses, upon reaching specified
and certain consumer loans insured by U.S. government stages of delinquency in accordance with standards
agencies) are placed on nonaccrual status and considered established by the FFIEC. Residential real estate loans and
nonperforming when full payment of principal and interest non-modified credit card loans are generally charged off no
is not expected, regardless of delinquency status, or when later than 180 days past due. Scored auto and modified
principal and interest has been in default for a period of 90 credit card loans are charged off no later than 120 days
days or more, unless the loan is both well-secured and in past due.
the process of collection. A loan is determined to be past
Certain consumer loans will be charged off or charged down
due when the minimum payment is not received from the
to their net realizable value earlier than the FFIEC charge-
borrower by the contractually specified due date or for
off standards in certain circumstances as follows:
certain loans (e.g., residential real estate loans), when a
monthly payment is due and unpaid for 30 days or more. • Loans modified in a TDR that are determined to be
Finally, collateral-dependent loans are typically maintained collateral-dependent.
on nonaccrual status. • Loans to borrowers who have experienced an event that
suggests a loss is either known or highly certain are
On the date a loan is placed on nonaccrual status, all
subject to accelerated charge-off standards (e.g.,
interest accrued but not collected is reversed against
residential real estate and auto loans are charged off
interest income. In addition, the amortization of deferred
within 60 days of receiving notification of a bankruptcy
amounts is suspended. Interest income on nonaccrual loans
filing).
may be recognized as cash interest payments are received
(i.e., on a cash basis) if the recorded loan balance is • Auto loans upon repossession of the automobile.
deemed fully collectible; however, if there is doubt Other than in certain limited circumstances, the Firm
regarding the ultimate collectibility of the recorded loan typically does not recognize charge-offs on government-
balance, all interest cash receipts are applied to reduce the guaranteed loans.

Wholesale loans, risk-rated business banking loans and risk- Loans held-for-sale
rated auto loans are charged off when it is highly certain Loans held-for-sale are measured at the lower of cost or fair
that a loss has been realized, including situations where a value, with valuation changes recorded in noninterest
loan is determined to be both impaired and collateral- revenue. For consumer loans, the valuation is performed on
dependent. The determination of whether to recognize a a portfolio basis. For wholesale loans, the valuation is
charge-off includes many factors, including the performed on an individual loan basis.
prioritization of the Firm’s claim in bankruptcy, expectations
Interest income on loans held-for-sale is accrued and
of the workout/restructuring of the loan and valuation of
recognized based on the contractual rate of interest.
the borrower’s equity or the loan collateral.
Loan origination fees or costs and purchase price discounts
When a loan is charged down to the estimated net realizable
or premiums are deferred in a contra loan account until the
value, the determination of the fair value of the collateral
related loan is sold. The deferred fees or costs and
depends on the type of collateral (e.g., securities, real
discounts or premiums are an adjustment to the basis of the
estate). In cases where the collateral is in the form of liquid
loan and therefore are included in the periodic
securities, the fair value is based on quoted market prices
determination of the lower of cost or fair value adjustments
or broker quotes. For illiquid securities or other financial
and/or the gain or loss recognized at the time of sale.
assets, the fair value of the collateral is generally estimated
using a discounted cash flow model. Because these loans are recognized at the lower of cost or
fair value, the Firm’s allowance for loan losses and charge-
For residential real estate loans, collateral values are based
off policies do not apply to these loans. However, loans
upon external valuation sources. When it becomes likely
held-for-sale are subject to the nonaccrual policies
that a borrower is either unable or unwilling to pay, the
described above.
Firm utilizes a broker’s price opinion, appraisal and/or an
automated valuation model of the home based on an Loans at fair value
exterior-only valuation (“exterior opinions”), which is then Loans used in a market-making strategy or risk managed on
updated at least every twelve months, or more frequently a fair value basis are measured at fair value, with changes
depending on various market factors. As soon as practicable in fair value recorded in noninterest revenue.
after the Firm receives the property in satisfaction of a debt
Interest income on these loans is accrued and recognized
(e.g., by taking legal title or physical possession), the Firm
based on the contractual rate of interest. Changes in fair
generally obtains an appraisal based on an inspection that
value are recognized in noninterest revenue. Loan
includes the interior of the home (“interior appraisals”).
origination fees are recognized upfront in noninterest
Exterior opinions and interior appraisals are discounted
revenue. Loan origination costs are recognized in the
based upon the Firm’s experience with actual liquidation
associated expense category as incurred.
values as compared with the estimated values provided by
exterior opinions and interior appraisals, considering state- Because these loans are recognized at fair value, the Firm’s
specific factors. allowance for loan losses and charge-off policies do not
apply to these loans. However, loans at fair value are
For commercial real estate loans, collateral values are
subject to the nonaccrual policies described above.
generally based on appraisals from internal and external
valuation sources. Collateral values are typically updated Refer to Note 3 for further information on the Firm’s
every six to twelve months, either by obtaining a new elections of fair value accounting under the fair value
appraisal or by performing an internal analysis, in option. Refer to Note 2 and Note 3 for further information
accordance with the Firm’s policies. The Firm also considers on loans carried at fair value and classified as trading
both borrower- and market-specific factors, which may assets.
result in obtaining appraisal updates or broker price
PCI loans
opinions at more frequent intervals.
PCI loans held-for-investment are initially measured at fair
value. PCI loans have evidence of credit deterioration since
the loan’s origination date and therefore it is probable, at
acquisition, that all contractually required payments will not
be collected. Because PCI loans are initially measured at fair
value, which includes an estimate of future credit losses, no
allowance for loan losses related to PCI loans is recorded at
the acquisition date. Refer to page 229 of this Note for
information on accounting for PCI loans subsequent to their
acquisition.

Loan classification changes Loans, except for credit card loans, modified in a TDR are
Loans in the held-for-investment portfolio that management generally placed on nonaccrual status, although in many
decides to sell are transferred to the held-for-sale portfolio cases such loans were already on nonaccrual status prior to
at the lower of cost or fair value on the date of transfer. modification. These loans may be returned to performing
Credit-related losses are charged against the allowance for status (the accrual of interest is resumed) if the following
loan losses; non-credit related losses such as those due to criteria are met: (i) the borrower has performed under the
changes in interest rates or foreign currency exchange rates modified terms for a minimum of six months and/or six
are recognized in noninterest revenue. payments, and (ii) the Firm has an expectation that
repayment of the modified loan is reasonably assured based
In the event that management decides to retain a loan in
on, for example, the borrower’s debt capacity and level of
the held-for-sale portfolio, the loan is transferred to the
future earnings, collateral values, LTV ratios, and other
held-for-investment portfolio at the lower of cost or fair
current market considerations. In certain limited and well-
value on the date of transfer. These loans are subsequently
defined circumstances in which the loan is current at the
assessed for impairment based on the Firm’s allowance
modification date, such loans are not placed on nonaccrual
methodology. Refer to Note 13 for a further discussion of
status at the time of modification.
the methodologies used in establishing the Firm’s allowance
for loan losses. Because loans modified in TDRs are considered to be
impaired, these loans are measured for impairment using
Loan modifications
the Firm’s established asset-specific allowance
The Firm seeks to modify certain loans in conjunction with
methodology, which considers the expected re-default rates
its loss-mitigation activities. Through the modification,
for the modified loans. A loan modified in a TDR generally
JPMorgan Chase grants one or more concessions to a
remains subject to the asset-specific allowance
borrower who is experiencing financial difficulty in order to
methodology throughout its remaining life, regardless of
minimize the Firm’s economic loss and avoid foreclosure or
whether the loan is performing and has been returned to
repossession of the collateral, and to ultimately maximize
accrual status and/or the loan has been removed from the
payments received by the Firm from the borrower. The
impaired loans disclosures (i.e., loans restructured at
concessions granted vary by program and by borrower-
market rates). Refer to Note 13 for further discussion of the
specific characteristics, and may include interest rate
methodology used to estimate the Firm’s asset-specific
reductions, term extensions, payment deferrals, principal
allowance.
forgiveness, or the acceptance of equity or other assets in
lieu of payments. Foreclosed property
The Firm acquires property from borrowers through loan
Such modifications are accounted for and reported as TDRs.
restructurings, workouts, and foreclosures. Property
A loan that has been modified in a TDR is generally
acquired may include real property (e.g., residential real
considered to be impaired until it matures, is repaid, or is
estate, land, and buildings) and commercial and personal
otherwise liquidated, regardless of whether the borrower
property (e.g., automobiles, aircraft, railcars, and ships).
performs under the modified terms. In certain limited
cases, the effective interest rate applicable to the modified The Firm recognizes foreclosed property upon receiving
loan is at or above the current market rate at the time of assets in satisfaction of a loan (e.g., by taking legal title or
the restructuring. In such circumstances, and assuming that physical possession). For loans collateralized by real
the loan subsequently performs under its modified terms property, the Firm generally recognizes the asset received
and the Firm expects to collect all contractual principal and at foreclosure sale or upon the execution of a deed in lieu of
interest cash flows, the loan is disclosed as impaired and as foreclosure transaction with the borrower. Foreclosed
a TDR only during the year of the modification; in assets are reported in other assets on the Consolidated
subsequent years, the loan is not disclosed as an impaired balance sheets and initially recognized at fair value less
loan or as a TDR so long as repayment of the restructured costs to sell. Each quarter the fair value of the acquired
loan under its modified terms is reasonably assured. property is reviewed and adjusted, if necessary, to the lower
of cost or fair value. Subsequent adjustments to fair value
are charged/credited to noninterest revenue. Operating
expense, such as real estate taxes and maintenance, are
charged to other expense.

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 Wholesale(f)

credit card(a)
Residential real estate – excluding PCI • Credit card loans • Commercial and industrial
• Residential mortgage(b) • Real estate
• Home equity(c) • Financial institutions
Other consumer loans(d) • Governments & Agencies
• Auto • Other(g)
• Consumer & Business Banking(e)
Residential real estate – PCI
• Home equity
• Prime mortgage
• Subprime mortgage
• Option ARMs
(a) Includes loans held in CCB, scored prime mortgage and scored home equity loans held in AWM and scored prime mortgage loans held in Corporate.
(b) Predominantly includes prime loans (including option ARMs).
(c) Includes senior and junior lien home equity loans.
(d) Includes certain business banking and auto dealer risk-rated loans for which the wholesale methodology is applied for determining the allowance for loan
losses; these loans are managed by CCB, and therefore, for consistency in presentation, are included with the other consumer loan classes.
(e) Predominantly includes Business Banking loans.
(f) Includes loans held in CIB, CB, AWM and Corporate. Excludes scored prime mortgage and scored home equity loans held in AWM and scored prime
mortgage loans held in Corporate. Classes are internally defined and may not align with regulatory definitions.
(g) Includes loans to: individuals and individual entities (predominantly consists of Wealth Management clients within AWM and includes loans to personal
investment companies and personal and testamentary trusts), SPEs and Private education and civic organizations. Refer to Note 14 for more information
on SPEs.
The following tables summarize the Firm’s loan balances by portfolio segment.
December 31, 2019
Consumer, excluding
(in millions) credit card Credit card(a) Wholesale Total
Retained $ 332,038 $ 168,924 $ 444,639 $ 945,601 (b)
Held-for-sale 3,002 — 4,062 7,064

At fair value — — 7,104 7,104
Total $ 335,040 $ 168,924 $ 455,805 $ 959,769
December 31, 2018

Consumer, excluding
(in millions) credit card Credit card(a) Wholesale Total
Retained $ 373,637 $ 156,616 $ 439,162 $ 969,415 (b)
Held-for-sale 95 16 11,877 11,988

At fair value — — 3,151 3,151
Total $ 373,732 $ 156,632 $ 454,190 $ 984,554
(a) Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income.
(b) Loans (other than PCI loans and 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 December 31, 2019 and 2018.

The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-
for-sale during the periods indicated. Reclassifications of loans to held-for sale are non-cash transactions. The Firm manages its
exposure to credit risk on an ongoing basis. Selling loans is one way that the Firm reduces its credit exposures. Loans that were
reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of this table.
2019
Year ended December 31, Consumer, excluding
(in millions) credit card Credit card Wholesale Total
Purchases $ 1,282 (a)(b)
$ — $ 1,291 $ 2,573
Sales 30,484 — 23,435 53,919
Retained loans reclassified to held-for-sale 9,188 — 2,371 11,559
2018
$ — $ 2,354 $ 4,897
Sales 9,984 — 16,741 26,725
Retained loans reclassified to held-for-sale 36 — 2,276 2,312
2017
$ — $ 1,799 $ 5,260
Sales 3,405 — 11,063 14,468
(c)
Retained loans reclassified to held-for-sale 6,340 — 1,229 7,569
(a) Purchases predominantly represent the Firm’s voluntary repurchase of certain delinquent loans from loan pools as permitted by Government National
Mortgage Association (“Ginnie Mae”) guidelines. 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.
(b) Excludes purchases of retained loans sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards.
Such purchases were $16.6 billion, $18.6 billion and $23.5 billion for the years ended December 31, 2019, 2018 and 2017, respectively.
(c) Includes the Firm’s student loan portfolio which was sold in 2017.
Gains and losses on sales of loans

Net gains on sales of loans (including adjustments to record loans held-for-sale at the lower of cost or fair value) recognized in
noninterest revenue was $394 million for the year ended December 31, 2019. Gains and losses on sales of loans were not
material for the years ended December 31, 2018 and 2017. 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.

Consumer, excluding credit card, loan portfolio

Consumer loans, excluding credit card loans, consist Delinquency rates are a primary credit quality indicator for
primarily of residential mortgages, home equity loans and consumer loans. Loans that are more than 30 days past due
lines of credit, auto loans and consumer and business provide an early warning of borrowers who may be
banking loans, with a focus on serving the prime consumer experiencing financial difficulties and/or who may be
credit market. The portfolio also includes home equity loans unable or unwilling to repay the loan. As the loan continues
secured by junior liens, prime mortgage loans with an to age, it becomes more clear whether the borrower is
interest-only payment period, and certain payment-option likely either unable or unwilling to pay. In the case of
loans that may result in negative amortization. residential real estate loans, late-stage delinquencies
(greater than 150 days past due) are a strong indicator of
The following table provides information about retained
loans that will ultimately result in a foreclosure or similar
consumer loans, excluding credit card, by class.
liquidation transaction. In addition to delinquency rates,
December 31, (in millions) 2019 2018 other credit quality indicators for consumer loans vary
Residential real estate – excluding PCI based on the class of loan, as follows:
Residential mortgage $ 199,037 $ 231,078 • For residential real estate loans, including both non-PCI
Home equity 23,917 28,340 and PCI portfolios, the current estimated LTV ratio, or
Other consumer loans the combined LTV ratio in the case of junior lien loans, is
Auto 61,522 63,573 an indicator of the potential loss severity in the event of
Consumer & Business Banking 27,199 26,612
default. Additionally, LTV or combined LTV ratios can
provide insight into a borrower’s continued willingness
Residential real estate – PCI
to pay, as the delinquency rate of high-LTV loans tends
Home equity 7,377 8,963
to be greater than that for loans where the borrower has
Prime mortgage 3,965 4,690
equity in the collateral. The geographic distribution of
Subprime mortgage 1,740 1,945 the loan collateral also provides insight as to the credit
Option ARMs 7,281 8,436 quality of the portfolio, as factors such as the regional
Total retained loans $ 332,038 $ 373,637 economy, home price changes and specific events such
as natural disasters, will affect credit quality. The
borrower’s current or “refreshed” FICO score is a
secondary credit quality indicator for certain loans, as
FICO scores are an indication of the borrower’s credit
payment history. Thus, a loan to a borrower with a low
FICO score (less than 660 ) is considered to be of higher
risk than a loan to a borrower with a higher FICO score.
Further, a loan to a borrower with a high LTV ratio and a
low FICO score is at greater risk of default than a loan to
a borrower that has both a high LTV ratio and a high
FICO score.
• For scored auto and scored business banking loans,
geographic distribution is an indicator of the credit
performance of the portfolio. Similar to residential real
estate loans, geographic distribution provides insights
into the portfolio performance based on regional
economic activity and events.
• Risk-rated business banking and auto loans are similar
to wholesale loans in that the primary credit quality
indicators are the internal risk ratings that are assigned
to the loan and whether the loans are considered to be
criticized and/or nonaccrual. Risk ratings are reviewed
on a regular and ongoing basis by Credit Risk
Management and are adjusted as necessary for updated
information about borrowers’ ability to fulfill their
obligations. Refer to page 234 of this Note for further
information about risk-rated wholesale loan credit
quality indicators.

Residential real estate — excluding PCI loans
The following table provides information by class for retained residential real estate — excluding PCI loans.
Residential real estate – excluding PCI loans

Total residential real
Residential mortgage Home equity estate – excluding PCI
December 31,
(in millions, except ratios) 2019 2018 2019 2018 2019 2018
Loan delinquency(a)
Current $ 198,024 $ 225,899 $ 23,385 $ 27,611 $ 221,409 $ 253,510
30–149 days past due 604 2,763 336 453 940 3,216
150 or more days past due 409 2,416 196 276 605 2,692
Total retained loans $ 199,037 $ 231,078 $ 23,917 $ 28,340 $ 222,954 $ 259,418
% of 30+ days past due to total retained loans(b) 0.49% 0.48% 2.22% 2.57% 0.67% 0.71%
90 or more days past due and government guaranteed(c) $ 38 $ 2,541 — — $ 38 $ 2,541
Nonaccrual loans 1,618 1,765 1,162 1,323 2,780 3,088
Current estimated LTV ratios(d)(e)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660 $ 18 $ 25 $ 4 $ 6 $ 22 $ 31
Less than 660 8 13 1 1 9 14
101% to 125% and refreshed FICO scores:
Equal to or greater than 660 31 37 56 111 87 148
Less than 660 35 53 19 38 54 91
Equal to or greater than 660 5,013 3,977 606 986 5,619 4,963
Less than 660 207 281 191 326 398 607
Less than 80% and refreshed FICO scores:
Equal to or greater than 660 186,972 212,505 19,597 22,632 206,569 235,137
Less than 660 6,001 6,457 2,776 3,355 8,777 9,812
No FICO/LTV available 689 813 667 885 1,356 1,698
U.S. government-guaranteed 63 6,917 — — 63 6,917
Geographic region(f)
California $ 66,278 $ 74,759 $ 4,831 $ 5,695 $ 71,109 $ 80,454
New York 25,706 28,847 4,885 5,769 30,591 34,616
Illinois 13,204 15,249 1,788 2,131 14,992 17,380
Texas 12,601 13,769 1,599 1,819 14,200 15,588
Florida 10,454 10,704 1,325 1,575 11,779 12,279
Washington 7,708 8,304 720 869 8,428 9,173
Colorado 7,777 8,140 444 521 8,221 8,661
New Jersey 5,792 7,302 1,394 1,642 7,186 8,944
Massachusetts 5,596 6,574 202 236 5,798 6,810
Arizona 3,929 4,434 932 1,158 4,861 5,592
All other(g) 39,992 52,996 5,797 6,925 45,789 59,921
(a) Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $17 million and $2.8 billion; 30–149
days past due included $20 million and $2.1 billion; and 150 or more days past due included $26 million and $2.0 billion at December 31, 2019 and 2018,
respectively.
(b) At December 31, 2019 and 2018, residential mortgage loans excluded mortgage loans insured by U.S. government agencies of $46 million and $4.1 billion,
respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
(c) These balances are excluded from nonaccrual loans as the loans are guaranteed by U.S government agencies. Typically the principal balance of the loans is insured
and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. At December 31, 2019 and 2018, these balances
included $34 million and $999 million, respectively, of loans that are no longer accruing interest based on the agreed-upon servicing guidelines. For the remaining
balance, interest is being accrued at the guaranteed reimbursement rate. There were no loans that were not guaranteed by U.S. government agencies that are 90 or
more days past due and still accruing interest at December 31, 2019 and 2018.
(d) 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. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios
are necessarily imprecise and should be viewed as estimates. Current estimated combined LTV for junior lien home equity loans considers all available lien positions,
as well as unused lines, related to the property.
(e) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
(f) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2019.
(g) At December 31, 2019 and 2018, included mortgage loans insured by U.S. government agencies of $63 million and $6.9 billion, respectively. These amounts have
been excluded from the geographic regions presented based upon the government guarantee.

Approximately 37% of the home equity portfolio are senior lien loans; the remaining balance are junior lien HELOANs or
HELOCs. The following table provides the Firm’s delinquency statistics for junior lien home equity loans and lines as of
Total loans Total 30+ day delinquency rate

December 31, (in millions except ratios) 2019 2018 2019 2018
HELOCs:(a)
Within the revolving period(b) $ 5,488 $ 5,608 0.35% 0.25%
Beyond the revolving period 8,724 11,286 2.48 2.80
HELOANs 754 1,030 2.52 2.82
Total $ 14,966 $ 17,924 1.70% 2.00%
(a) These HELOCs are predominantly revolving loans for a 10-year period, after which time the HELOC converts to a loan with a 20-year amortization period,
but also include HELOCs that allow interest-only payments beyond the revolving period.
(b) 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 experiencing financial difficulty.
HELOCs beyond the revolving period and HELOANs have higher delinquency rates than HELOCs 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 HELOCs within the revolving period. The higher delinquency rates associated with
amortizing HELOCs and HELOANs are factored into the Firm’s allowance for loan losses.
Impaired loans
The table below provides information about the Firm’s residential real estate impaired loans, excluding PCI loans. These loans
are considered to be impaired as they have been modified in a TDR. All impaired loans are evaluated for an asset-specific
allowance as described in Note 13.
Total residential real estate
Residential mortgage Home equity – excluding PCI
December 31,
(in millions) 2019 2018 2019 2018 2019 2018
Impaired loans
With an allowance $ 2,851 $ 3,381 $ 1,042 $ 1,151 $ 3,893 $ 4,532
Without an allowance(a) 1,154 1,184 879 907 2,033 2,091
Total impaired loans(b)(c) $ 4,005 $ 4,565 $ 1,921 $ 2,058 $ 5,926 $ 6,623
Allowance for loan losses related to impaired loans $ 52 $ 88 $ 13 $ 45 $ 65 $ 133
Unpaid principal balance of impaired loans(d) 5,438 6,207 3,301 3,531 8,739 9,738
Impaired loans on nonaccrual status(e) 1,367 1,459 965 963 2,332 2,422
(a) Represents collateral-dependent residential real estate loans that are charged off 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 TDRs, regardless of their delinquency status. At December 31, 2019, Chapter 7
residential real estate loans included approximately 9% of residential mortgages and approximately 7% of home equity that were 30 days or more past
due.
(b) At December 31, 2019 and 2018, $14 million and $4.1 billion, respectively, of loans modified subsequent to repurchase from Ginnie Mae in accordance
with the standards of the appropriate government agency (i.e., FHA, VA, RHS) are not included in the table above. When such loans perform subsequent to
modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform
become subject to foreclosure.
(c) Predominantly all impaired loans in the table above are in the U.S.
(d) Represents the contractual amount of principal owed at December 31, 2019 and 2018. The unpaid principal balance differs from the impaired loan
balances due to various factors including charge-offs, net deferred loan fees or costs, and unamortized discounts or premiums on purchased loans.
(e) As of December 31, 2019 and 2018, nonaccrual loans included $1.9 billion and $2.0 billion, respectively, of TDRs for which the borrowers were less than
90 days past due. Refer to the Loan accounting framework on pages 217–219 of this Note for additional information about loans modified in a TDR that
are on nonaccrual status.

The following table presents average impaired loans and the related interest income reported by the Firm.
Interest income on Interest income on impaired

Average impaired loans impaired loans(a) loans on a cash basis(a)
(in millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017
Residential mortgage $ 4,307 $ 5,082 $ 5,797 $ 224 $ 257 $ 287 $ 68 $ 75 $ 75
Home equity 2,007 2,123 2,222 132 131 127 83 84 80
Total residential real estate – excluding PCI $ 6,314 $ 7,205 $ 8,019 $ 356 $ 388 $ 414 $ 151 $ 159 $ 155
(a) Generally, interest income on loans modified in TDRs is recognized on a cash basis until the borrower has made a minimum of six payments under the new
terms, unless the loan is deemed to be collateral-dependent.
Loan modifications
Modifications of residential real estate loans, excluding PCI The following table presents new TDRs reported by the
loans, are generally accounted for and reported as TDRs. Firm.
There were no additional commitments to lend to
borrowers whose residential real estate loans, excluding PCI (in millions) 2019 2018 2017
loans, have been modified in TDRs. Residential mortgage $ 234 $ 401 $ 373
Home equity 256 335 383
Total residential real estate – excluding PCI $ 490 $ 736 $ 756
Nature and extent of modifications

The Firm’s proprietary modification programs as well as government programs, including U.S. GSEs, generally provide various
concessions to financially troubled borrowers including, but not limited to, interest rate reductions, term or payment
extensions and deferral of principal and/or interest payments that would otherwise have been required under the terms of the
original agreement.
The following table provides information about how residential real estate loans, excluding PCI loans, were modified under the
Firm’s loss mitigation programs described above during the periods presented. This table excludes Chapter 7 loans where the
sole concession granted is the discharge of debt.
Total residential real estate
Residential mortgage Home equity – excluding PCI
Year ended December 31, 2019 2018 2017 2019 2018 2017 2019 2018 2017
Number of loans approved for a trial
modification 2,105 2,570 1,283 3,767 4,605 (c) 5,765 (c) 5,872 7,175 (c) 7,048 (c)
Number of loans permanently modified 1,448 2,907 2,628 3,470 4,946 5,624 4,918 7,853 8,252
Concession granted:(a)
Interest rate reduction 66% 40% 63% 81% 62% 59% 77% 54% 60%
Term or payment extension 90 55 72 64 66 69 71 62 70
Principal and/or interest deferred 26 44 15 7 20 10 13 29 12
Principal forgiveness 6 8 16 5 7 13 5 7 14
Other(b) 45 38 33 70 58 31 63 51 32
(a) Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages
exceeds 100% because predominantly all of the modifications include more than one type of concession. Concessions offered on trial modifications are
generally consistent with those granted on permanent modifications.
(b) Includes variable interest rate to fixed interest rate modifications for the years ended December 31, 2019, 2018 and 2017. Also includes forbearances
that meet the definition of a TDR for the years ended December 31, 2019 and 2018. Forbearances suspend or reduce monthly payments for a specific
period of time to address a temporary hardship.
(c) The prior period amounts have been revised to conform with the current period presentation. This revision also impacted home equity impaired loans and
new TDRs in this note, as well as loans by impairment methodology in Note 13.

Financial effects of modifications and redefaults

The following table provides information about the financial effects of the various concessions granted in modifications of
residential real estate loans, excluding PCI, under the loss mitigation programs described above and about redefaults of
certain loans modified in TDRs for the periods presented. The following table presents only the financial effects of permanent
modifications and does not include temporary concessions offered through trial modifications. This table also excludes Chapter
7 loans where the sole concession granted is the discharge of debt.
Total residential real estate –

Year ended Residential mortgage Home equity excluding PCI
December 31,
(in millions, except weighted-average data) 2019 2018 2017 2019 2018 2017 2019 2018 2017
Weighted-average interest rate of loans with
interest rate reductions – before TDR 5.88% 5.65% 5.15% 5.53% 5.39% 4.94% 5.68% 5.50% 5.06%
Weighted-average interest rate of loans with
interest rate reductions – after TDR 4.21 3.80 2.99 3.53 3.46 2.64 3.81 3.60 2.83
Weighted-average remaining contractual term
(in years) of loans with term or payment
extensions – before TDR 21 24 24 19 19 21 20 21 23
Weighted-average remaining contractual term
(in years) of loans with term or payment
extensions – after TDR 39 38 38 40 39 39 39 38 38
Charge-offs recognized upon permanent
modification $ 1 $ 1 $ 2 $ — $ 1 $ 1 $ 1 $ 2 $ 3
Principal deferred 15 21 12 4 9 10 19 30 22
Principal forgiven 4 10 20 3 7 13 7 17 33
Balance of loans that redefaulted within one
year of permanent modification(a) $ 107 $ 97 $ 124 $ 59 $ 64 $ 56 $ 166 $ 161 $ 180
(a) Represents loans permanently modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred
within one year of the modification. The dollar amounts presented represent the balance of such loans at the end of the reporting period in which such
loans defaulted. For residential real estate loans modified in TDRs, payment default is deemed to occur when the loan becomes two contractual payments
past due. In the event that a modified loan redefaults, it is probable that the loan will ultimately be liquidated through foreclosure or another similar type
of liquidation transaction. Redefaults of loans modified within the last 12 months may not be representative of ultimate redefault levels.
At December 31, 2019, the weighted-average estimated Active and suspended foreclosure
remaining lives of residential real estate loans, excluding At December 31, 2019 and 2018, the Firm had non-PCI
PCI loans, permanently modified in TDRs were 9 years for residential real estate loans, excluding those insured by U.S.
residential mortgage and 8 years for home equity. The government agencies, with a carrying value of $529 million
estimated remaining lives of these loans reflect estimated and $653 million, respectively, that were not included in
prepayments, both voluntary and involuntary (i.e., REO, but were in the process of active or suspended
foreclosures and other forced liquidations). foreclosure.

Other consumer loans
The table below provides information for other consumer retained loan classes, including auto and business banking loans.
Consumer &
Auto Business Banking Total other consumer
December 31,
Loan delinquency
Current $ 60,944 $ 62,984 $ 26,842 $ 26,249 $ 87,786 $ 89,233
30–119 days past due 578 589 240 252 818 841
120 or more days past due — — 117 111 117 111
% of 30+ days past due to total retained loans 0.94% 0.93% 1.31% 1.36% 1.05% 1.06%
Nonaccrual loans(a) 113 128 247 245 360 373
Geographic region(b)
California $ 8,081 $ 8,330 $ 5,902 $ 5,520 $ 13,983 $ 13,850
Texas 6,804 6,531 3,110 2,993 9,914 9,524
New York 3,639 3,863 4,432 4,381 8,071 8,244
Illinois 3,360 3,716 1,745 2,046 5,105 5,762
Florida 3,262 3,256 1,609 1,502 4,871 4,758
Arizona 2,024 2,084 1,276 1,491 3,300 3,575
Ohio 1,986 1,973 1,139 1,305 3,125 3,278
New Jersey 1,905 1,981 798 723 2,703 2,704
Michigan 1,215 1,357 1,253 1,329 2,468 2,686
Louisiana 1,617 1,587 741 860 2,358 2,447
All other 27,629 28,895 5,194 4,462 32,823 33,357
Loans by risk ratings(c)
Noncriticized $ 14,178 $ 15,749 $ 19,156 $ 18,743 $ 33,334 $ 34,492
Criticized performing 360 273 727 751 1,087 1,024
Criticized nonaccrual — — 198 191 198 191
(a) There were no loans that were 90 or more days past due and still accruing interest at December 31, 2019 and December 31, 2018.
(b) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2019.
(c) For risk-rated business banking and auto loans, the primary credit quality indicator is the internal risk rating of the loan, including whether the loans are
considered to be criticized and/or nonaccrual.

Other consumer impaired loans and loan modifications

The following table provides information about the Firm’s other consumer impaired loans, including risk-rated business
banking and auto loans that have been placed on nonaccrual status, and loans that have been modified in TDRs.
December 31, (in millions) 2019 2018 Loan modifications

Impaired loans Certain other consumer loan modifications are considered
With an allowance $ 227 $ 222 to be TDRs as they provide various concessions to
Without an allowance(a) 19 29 borrowers who are experiencing financial difficulty. All of
Total impaired loans(b)(c) $ 246 $ 251
these TDRs are reported as impaired loans. At
Allowance for loan losses related to impaired loans $ 71 $ 63
December 31, 2019 and 2018, other consumer loans
modified in TDRs were $76 million and $79 million,
Unpaid principal balance of impaired loans(d) 342 355
respectively. The impact of these modifications, as well as
Impaired loans on nonaccrual status 224 229
new TDRs, were not material to the Firm for the years
(a) When discounted cash flows, collateral value or market price equals or ended December 31, 2019, 2018 and 2017. Additional
exceeds the recorded investment in the loan, the loan does not require commitments to lend to borrowers whose loans have been
an allowance. This typically occurs when the impaired loans have been
partially charged off and/or there have been interest payments modified in TDRs as of December 31, 2019 and 2018 were
received and applied to the loan balance. not material. TDRs on nonaccrual status were $54 million
(b) Predominantly all other consumer impaired loans are in the U.S. and $57 million at December 31, 2019 and 2018,
(c) Other consumer average impaired loans were $246 million, $275 respectively.
million and $427 million for the years ended December 31, 2019,
2018 and 2017, respectively. The related interest income on impaired
loans, including those on a cash basis, was not material for the years
ended December 31, 2019, 2018 and 2017.
(d) Represents the contractual amount of principal owed at December 31,
2019 and 2018. The unpaid principal balance differs from the
impaired loan balances due to various factors, including charge-offs,
interest payments received and applied to the principal balance, net
deferred loan fees or costs and unamortized discounts or premiums on
purchased loans.

Purchased credit-impaired loans
PCI loans are initially recorded at fair value at acquisition. Since the timing and amounts of expected cash flows for the
PCI loans acquired in the same fiscal quarter may be Firm’s PCI consumer loan pools are reasonably estimable,
aggregated into one or more pools, provided that the loans interest is being accreted and the loan pools are being
have common risk characteristics. A pool is then accounted reported as performing loans. No interest would be
for as a single asset with a single composite interest rate accreted and the PCI loan pools would be reported as
and an aggregate expectation of cash flows. All of the Firm’s nonaccrual loans if the timing and/or amounts of expected
residential real estate PCI loans were acquired in the same cash flows on the loan pools were determined not to be
fiscal quarter and aggregated into pools of loans with reasonably estimable.
common risk characteristics. The liquidation of PCI loans, which may include sales of
On a quarterly basis, the Firm estimates the total cash flows loans, receipt of payment in full from the borrower, or
(both principal and interest) expected to be collected over foreclosure, results in removal of the loans from the
the remaining life of each pool. These estimates incorporate underlying PCI pool. When the amount of the liquidation
assumptions regarding default rates, loss severities, the proceeds (e.g., cash, real estate), if any, is less than the
amounts and timing of prepayments and other factors that unpaid principal balance of the loan, the difference is first
reflect then-current market conditions. Probable decreases applied against the PCI pool’s nonaccretable difference for
in expected cash flows (i.e., increased credit losses) trigger principal losses (i.e., the lifetime credit loss estimate
the recognition of impairment, which is then measured as established as a purchase accounting adjustment at the
the present value of the expected principal loss plus any acquisition date). When the nonaccretable difference for a
related forgone interest cash flows, discounted at the pool’s particular loan pool has been fully depleted, any excess of
effective interest rate. Impairments are recognized through the unpaid principal balance of the loan over the liquidation
the provision for credit losses and an increase in the proceeds is written off against the PCI pool’s allowance for
allowance for loan losses. Probable and significant loan losses. Write-offs of PCI loans also include other
increases in expected cash flows (e.g., decreased credit adjustments, primarily related to principal forgiveness
losses, the net benefit of modifications) would first reverse modifications. Because the Firm’s PCI loans are accounted
any previously recorded allowance for loan losses with any for at a pool level, the Firm does not recognize charge-offs
remaining increases recognized prospectively as a yield of PCI loans when they reach specified stages of
adjustment over the remaining estimated lives of the delinquency (i.e., unlike non-PCI consumer loans, these
underlying loans. The impacts of (i) prepayments, (ii) loans are not charged off based on FFIEC standards).
changes in variable interest rates, and (iii) any other The PCI portfolio affects the Firm’s results of operations
changes in the timing of expected cash flows are generally primarily through: (i) contribution to net interest margin;
recognized prospectively as adjustments to interest income. (ii) expense related to defaults and servicing resulting from
The Firm continues to modify certain PCI loans. The impact the liquidation of the loans; and (iii) any provision for loan
of these modifications is incorporated into the Firm’s losses.
quarterly assessment of whether a probable and significant
change in expected cash flows has occurred, and the loans
continue to be accounted for and reported as PCI loans. In
evaluating the effect of modifications on expected cash
flows, the Firm incorporates the effect of any forgone
interest and also considers the potential for redefault. The
Firm develops product-specific probability of default
estimates, which are used to compute expected credit
losses. In developing these probabilities of default, the Firm
considers the relationship between the credit quality
characteristics of the underlying loans and certain
assumptions about home prices and unemployment based
upon industry-wide data. The Firm also considers its own
historical loss experience to-date based on actual
redefaulted modified PCI loans.
The excess of cash flows expected to be collected over the
carrying value of the underlying loans is referred to as the
accretable yield. This amount is not reported on the Firm’s
Consolidated balance sheets but is accreted into interest
income at a level rate of return over the remaining
estimated lives of the underlying pools of loans.

Residential real estate – PCI loans

The table below provides information about the Firm’s consumer, excluding credit card, PCI loans.
Home equity Prime mortgage Subprime mortgage Option ARMs Total PCI
December 31,
(in millions, except ratios) 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
Carrying value(a) $ 7,377 $ 8,963 $ 3,965 $ 4,690 $ 1,740 $ 1,945 $ 7,281 $ 8,436 $ 20,363 $ 24,034
Loan delinquency (based on unpaid principal balance)
Current $ 7,203 $ 8,624 $ 3,593 $ 4,226 $ 1,864 $ 2,033 $ 6,606 $ 7,592 $ 19,266 $ 22,475
30–149 days past due 217 278 219 259 230 286 356 398 1,022 1,221
150 or more days past due 148 242 172 223 101 123 333 457 754 1,045
Total loans $ 7,568 $ 9,144 $ 3,984 $ 4,708 $ 2,195 $ 2,442 $ 7,295 $ 8,447 $ 21,042 $ 24,741
% of 30+ days past due to total loans 4.82% 5.69% 9.81% 10.24% 15.08% 16.75% 9.44% 10.12% 8.44% 9.16%
Current estimated LTV ratios (based on unpaid principal balance)(b)(c)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660 $ 12 $ 17 $ 2 $ 1 $ — $ — $ 1 $ 3 $ 15 $ 21
Less than 660 9 13 6 7 7 9 7 7 29 36
Equal to or greater than 660 86 135 3 6 6 4 14 17 109 162
Less than 660 39 65 17 22 20 35 18 33 94 155
Equal to or greater than 660 588 805 47 75 47 54 85 119 767 1,053
Less than 660 261 388 65 112 100 161 113 190 539 851
Lower than 80% and refreshed FICO scores:
Equal to or greater than 660 4,803 5,548 2,429 2,689 784 739 4,710 5,111 12,726 14,087
Less than 660 1,562 1,908 1,250 1,568 1,136 1,327 2,093 2,622 6,041 7,425
No FICO/LTV available 208 265 165 228 95 113 254 345 722 951
Total unpaid principal balance $ 7,568 $ 9,144 $ 3,984 $ 4,708 $ 2,195 $ 2,442 $ 7,295 $ 8,447 $ 21,042 $ 24,741
Geographic region (based on unpaid principal balance)(d)
California $ 4,475 $ 5,420 $ 2,166 $ 2,578 $ 531 $ 593 $ 4,189 $ 4,798 $ 11,361 $ 13,389
Florida 833 976 288 332 212 234 604 713 1,937 2,255
New York 451 525 324 365 245 268 441 502 1,461 1,660
Illinois 200 233 134 154 113 123 175 199 622 709
Washington 326 419 80 98 37 44 143 177 586 738
New Jersey 174 210 112 134 78 88 219 258 583 690
Massachusetts 53 65 97 113 67 73 206 240 423 491
Maryland 40 48 86 95 87 96 157 178 370 417
Virginia 44 54 77 91 33 37 180 211 334 393
Arizona 130 165 57 69 37 43 93 112 317 389
All other 842 1,029 563 679 755 843 888 1,059 3,048 3,610
Total unpaid principal balance $ 7,568 $ 9,144 $ 3,984 $ 4,708 $ 2,195 $ 2,442 $ 7,295 $ 8,447 $ 21,042 $ 24,741
(a) Carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition.
(b) 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. These property values do not represent actual appraised loan level collateral
values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates. Current estimated combined LTV for junior lien home
equity loans considers all available lien positions, as well as unused lines, related to the property.
(c) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
(d) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2019.

Approximately 27% of the PCI home equity portfolio are senior lien loans; the remaining balance are junior lien HELOANs or
HELOCs. The following table provides delinquency statistics for PCI junior lien home equity loans and lines of credit based on
the unpaid principal balance as of December 31, 2019 and 2018.
Total loans Total 30+ day delinquency rate
December 31,
(in millions, except ratios) 2019 2018 2019 2018
HELOCs:(a)(b) $ 5,337 $ 6,531 3.52% 4.00%
HELOANs 220 280 3.64 3.57
Total $ 5,557 $ 6,811 3.53% 3.98%
(a) In general, these HELOCs are revolving loans for a 10-year period, after which time the HELOC converts to an interest-only loan with a balloon payment at
the end of the loan’s term. Substantially all HELOCs are beyond the revolving period.
(b) Includes loans modified into fixed rate amortizing loans.
The table below presents the accretable yield activity for the Firm’s PCI consumer loans for the years ended December 31,
2019, 2018 and 2017, and represents the Firm’s estimate of gross interest income expected to be earned over the remaining
life of the PCI loan portfolios. The table excludes the cost to fund the PCI portfolios, and therefore the accretable yield does not
represent net interest income expected to be earned on these portfolios.
Total PCI
(in millions, except ratios) 2019 2018 2017
Accretion into interest income (1,093) (1,249) (1,396)
Changes in interest rates on variable-rate loans (575) (109) 503
Other changes in expected cash flows(a) (589) (1,379) 284
Balance at December 31 $ 6,165 $ 8,422 $ 11,159
Accretable yield percentage 5.28% 4.92% 4.53%
(a) Other changes in expected cash flows may vary from period to period as the Firm continues to refine its cash flow model, for example cash flows expected
to be collected due to the impact of modifications and changes in prepayment assumptions.
Active and suspended foreclosure

At December 31, 2019 and 2018, the Firm had PCI residential real estate loans with an unpaid principal balance of
$721 million and $964 million, respectively, that were not included in REO, but were in the process of active or suspended
foreclosure.

Credit card loan portfolio

The credit card portfolio segment includes credit card loans The table below provides information about the Firm’s
originated and purchased by the Firm. Delinquency rates credit card loans.
are the primary credit quality indicator for credit card loans
as they provide an early warning that borrowers may be As of or for the year ended December 31,
(in millions, except ratios) 2019 2018
experiencing difficulties (30 days past due); information on
Net charge-offs $ 4,848 $ 4,518
those borrowers that have been delinquent for a longer
period of time (90 days past due) is also considered. In Net charge-off rate 3.10% 3.10%
addition to delinquency rates, the geographic distribution of Loan delinquency
the loans provides insight as to the credit quality of the Current and less than 30 days past due
$ 165,767 $ 153,746
and still accruing
portfolio based on the regional economy.
30–89 days past due and still accruing 1,550 1,426
While the borrower’s credit score is another general 90 or more days past due and still accruing 1,607 1,444
indicator of credit quality, the Firm does not view credit Total retained loans $ 168,924 $ 156,616
scores as a primary indicator of credit quality because the Loan delinquency ratios
borrower’s credit score tends to be a lagging indicator. The % of 30+ days past due to total retained loans 1.87% 1.83%
distribution of such scores provides a general indicator of % of 90+ days past due to total retained loans 0.95 0.92
credit quality trends within the portfolio; however, the score
Geographic region (a)
does not capture all factors that would be predictive of
California $ 25,783 $ 23,757
future credit performance. Refreshed FICO score
Texas 16,728 15,085
information, which is obtained at least quarterly, for a
New York 14,544 13,601
statistically significant random sample of the credit card
Florida 10,830 9,770
portfolio is indicated in the following table. FICO is
Illinois 9,579 8,938
considered to be the industry benchmark for credit scores.
New Jersey 7,165 6,739
The Firm generally originates new card accounts to prime Ohio 5,406 5,094
consumer borrowers. However, certain cardholders’ FICO Pennsylvania 5,245 4,996
scores may decrease over time, depending on the Colorado 4,763 4,309
performance of the cardholder and changes in the credit Michigan 4,164 3,912
score calculation. All other 64,717 60,415
Total retained loans $ 168,924 $ 156,616
Percentage of portfolio based on carrying
value with estimated refreshed FICO scores
Equal to or greater than 660 84.0% 84.2%
Less than 660 15.4 15.0
No FICO available 0.6 0.8
(a) The geographic regions presented in the table are ordered based on
the magnitude of the corresponding loan balances at December 31,
2019.

Credit card impaired loans and loan modifications
The table below provides information about the Firm’s If the cardholder does not comply with the modified
impaired credit card loans. All of these loans are considered payment terms, then the credit card loan continues to age
to be impaired as they have been modified in TDRs. and will ultimately 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.
Impaired credit card loans with an
allowance(a)(b)(c) $ 1,452 $ 1,319 New enrollments in these loan modification programs for
Allowance for loan losses related to the years ended December 31, 2019, 2018 and 2017, were
impaired credit card loans 477 440 $961 million, $866 million and $756 million, respectively.
(a) The carrying value and the unpaid principal balance are the same for For all periods disclosed, new enrollments were less than
credit card impaired loans. 1% of total retained credit card loans.
(b) There were no impaired loans without an allowance.
(c) Predominantly all impaired credit card loans are in the U.S. Financial effects of modifications and redefaults
The following table presents average balances of impaired The following table provides information about the financial
credit card loans and interest income recognized on those effects of the concessions granted on credit card loans
loans. modified in TDRs and redefaults for the periods presented.
Year ended December 31, Year ended December 31,

(in millions) 2019 2018 2017 (in millions, except
weighted-average data) 2019 2018 2017
Average impaired credit card loans $ 1,389 $ 1,260 $ 1,214
Weighted-average interest rate
Interest income on of loans – before TDR 19.07% 17.98% 16.58%
impaired credit card loans 72 65 59
Weighted-average interest rate
of loans – after TDR 4.70 5.16 4.88
Loan modifications
Loans that redefaulted within
The Firm may offer one of a number of loan modification one year of modification(a) $ 148 $ 116 $ 93
programs to credit card borrowers who are experiencing
(a) Represents loans modified in TDRs that experienced a payment default
financial difficulty. Most of the credit card loans have been in the periods presented, and for which the payment default occurred
modified under long-term programs for borrowers who are within one year of the modification. The amounts presented represent
experiencing financial difficulties. These modifications the balance of such loans as of the end of the quarter in which they
involve placing the customer on a fixed payment plan, defaulted.
generally for 60 months, and typically include reducing the For credit card loans modified in TDRs, payment default is
interest rate on the credit card. Substantially all deemed to have occurred when the borrower misses two
modifications are considered to be TDRs. consecutive contractual payments. A substantial portion of
these loans are expected to be charged-off in accordance
with the Firm’s standard charge-off policy. Based on
historical experience, the estimated weighted-average
default rate for modified credit card loans was expected to
be 32.89%, 33.38% and 31.54% as of December 31,

Wholesale loan portfolio

Wholesale loans include loans made to a variety of clients, Risk ratings are reviewed on a regular and ongoing basis by
ranging from large corporate and institutional clients to Credit Risk Management and are adjusted as necessary for
high-net-worth individuals. updated information affecting the obligor’s ability to fulfill
its obligations.
The primary credit quality indicator for wholesale loans is
the internal risk rating assigned to each loan. Risk ratings As noted above, the risk rating of a loan considers the
are used to identify the credit quality of loans and industry in which the obligor conducts its operations. As
differentiate risk within the portfolio. Risk ratings on loans part of the overall credit risk management framework, the
consider the PD and the LGD. The PD is the likelihood that a Firm focuses on the management and diversification of its
loan will default. The LGD is the estimated loss on the loan industry and client exposures, with particular attention paid
that would be realized upon the default of the borrower and to industries with actual or potential credit concern. Refer
takes into consideration collateral and structural support to Note 4 for further detail on industry concentrations.
for each credit facility.
Management considers several factors to determine an
appropriate internal risk rating, including the obligor’s debt
capacity and financial flexibility, the level of the obligor’s
earnings, the amount and sources for repayment, the level
and nature of contingencies, management strength, and the
industry and geography in which the obligor operates. The
Firm’s internal risk ratings generally align with the
qualitative characteristics (e.g., borrower capacity to meet
financial commitments and vulnerability to changes in the
economic environment) defined by S&P and Moody’s,
however the quantitative characteristics (e.g., PDs and
LGDs) may differ as they reflect internal historical
experiences and assumptions. The Firm considers internal
ratings equivalent to BBB-/Baa3 or higher as investment
grade, and these ratings have a lower PD and/or lower LGD
than non-investment grade ratings.
Noninvestment-grade ratings are further classified as
noncriticized and criticized, and the criticized portion is
further subdivided into performing and nonaccrual loans,
representing management’s assessment of the collectibility
of principal and interest. Criticized loans have a higher PD
than noncriticized loans. The Firm’s definition of criticized
aligns with the U.S. banking regulatory definition of
criticized exposures, which consist of special mention,
substandard and doubtful categories.

The table below provides information by class of receivable for the retained loans in the Wholesale portfolio segment. Refer to
Note 4 for additional information on industry concentrations.
As of or for the Commercial Financial Governments & Total
year ended and industrial Real estate institutions Agencies Other(d) retained loans
December 31,
(in millions,
except ratios) 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
Loans by risk
ratings
Investment-
grade $ 60,700 $ 73,497 $ 101,354 $100,107 $ 40,263 $ 32,178 $ 12,616 $ 13,984 $129,266 $119,963 $ 344,199 $ 339,729
Noninvestment-
grade:
Noncriticized 51,356 51,720 13,841 14,876 15,768 15,316 126 201 12,411 11,478 93,502 93,591
Criticized
performing 4,071 3,738 1,001 620 574 150 — 2 449 182 6,095 4,692
Criticized
nonaccrual 752 851 48 134 3 4 — — 40 161 843 1,150
Total
noninvestment-
grade 56,179 56,309 14,890 15,630 16,345 15,470 126 203 12,900 11,821 100,440 99,433
Total retained
loans $116,879 $129,806 $ 116,244 $115,737 $ 56,608 $ 47,648 $ 12,742 $ 14,187 $142,166 $131,784 $ 444,639 $ 439,162
% of total
criticized to
total retained
loans 4.13% 3.54% 0.90% 0.65% 1.02% 0.32% —% 0.01% 0.34% 0.26% 1.56% 1.33%
% of criticized
nonaccrual to
total retained
loans 0.64 0.66 0.04 0.12 0.01 0.01 — — 0.03 0.12 0.19 0.26
Loans by
geographic
distribution(a)
Total non-U.S. $ 28,253 $ 29,572 $ 4,123 $ 2,967 $ 16,800 $ 18,524 $ 2,232 $ 3,150 $ 49,966 $ 48,433 $ 101,374 $ 102,646
Total U.S. 88,626 100,234 112,121 112,770 39,808 29,124 10,510 11,037 92,200 83,351 343,265 336,516
Total retained
loans $116,879 $129,806 $ 116,244 $115,737 $ 56,608 $ 47,648 $ 12,742 $ 14,187 $142,166 $131,784 $ 444,639 $ 439,162
Net charge-offs/
(recoveries) $ 329 $ 165 $ 12 $ (20) $ — $ — $ — $ — $ 28 $ 10 $ 369 $ 155
% of net
charge-offs/
(recoveries) to
end-of-period
retained loans 0.28% 0.13% 0.01% (0.02)% —% —% —% —% 0.02% 0.01% 0.08% 0.04%
Loan
delinquency(b)
Current and less
than 30 days
past due and
still accruing $115,753 $128,678 $ 116,098 $115,533 $ 56,583 $ 47,622 $ 12,713 $ 14,165 $141,739 $130,918 $ 442,886 $ 436,916
30–89 days past
due and still
accruing 339 109 94 67 20 12 28 18 387 702 868 908
90 or more days
past due and
still accruing(c) 35 168 4 3 2 10 1 4 — 3 42 188
Criticized
nonaccrual 752 851 48 134 3 4 — — 40 161 843 1,150
Total retained
loans $116,879 $129,806 $ 116,244 $115,737 $ 56,608 $ 47,648 $ 12,742 $ 14,187 $142,166 $131,784 $ 444,639 $ 439,162
(a) The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.
(b) The credit quality of wholesale loans is assessed primarily through ongoing review and monitoring of an obligor’s ability to meet contractual obligations
rather than relying on the past due status, which is generally a lagging indicator of credit quality.
(c) Represents loans that are considered well-collateralized and therefore still accruing interest.
(d) Other includes individuals and individual entities (predominantly consists of Wealth Management clients within AWM and includes loans to personal
investment companies and personal and testamentary trusts), SPEs and Private education and civic organizations. Refer to Note 14 for more information
on SPEs.

The following table presents additional information on the real estate class of loans within the Wholesale portfolio for the
periods indicated, which consists primarily of secured commercial loans, of which multifamily is the largest segment.
Multifamily lending finances acquisition, leasing and construction of apartment buildings, and includes loans to real estate
investment trusts (“REITs”). Other commercial lending largely includes financing for acquisition, leasing and construction,
largely for office, retail and industrial real estate, and includes loans to REITs. Included in real estate loans is $8.2 billion and
$10.5 billion as of December 31, 2019 and 2018, respectively, of construction and development loans originally purposed
for construction and development, general purpose loans for builders, as well as loans for land subdivision and pre-
development.
Multifamily Other Commercial Total real estate loans
December 31,
Real estate retained loans $ 79,402 $ 79,184 $ 36,842 $ 36,553 $ 116,244 $ 115,737
Criticized 407 388 642 366 1,049 754
% of total criticized to total real estate retained loans 0.51% 0.49% 1.74% 1.00% 0.90% 0.65%
Criticized nonaccrual $ 38 $ 57 $ 10 $ 77 $ 48 $ 134
% of criticized nonaccrual loans to total real estate retained loans 0.05% 0.07% 0.03% 0.21% 0.04% 0.12%
Wholesale impaired retained loans and loan modifications

Wholesale impaired retained loans consist of loans that have been placed on nonaccrual status and/or that have been modified
in a TDR. All impaired loans are evaluated for an asset-specific allowance as described in Note 13.
The table below sets forth information about the Firm’s wholesale impaired retained loans.
Commercial Financial Total
and industrial Real estate institutions Other retained loans
December 31,
(in millions) 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
Impaired loans
With an allowance $ 637 $ 807 $ 49 $ 107 $ 3 $ 4 $ 42 $ 152 $ 731 $ 1,070
Without an allowance(a) 177 140 — 27 — — 4 13 181 180
Total impaired loans $ 814 $ 947 $ 49 $ 134 $ 3 $ 4 $ 46 $ 165 $ 912 (c) $ 1,250 (c)
Allowance for loan losses related

to impaired loans $ 221 $ 252 $ 9 $ 25 $ 1 $ 1 $ 3 $ 19 $ 234 $ 297
Unpaid principal balance of
impaired loans(b) 974 1,043 72 203 4 4 54 473 1,104 1,723
(a) When the discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, the loan does not require an
allowance. This typically occurs when the impaired loans have been partially charged-off and/or there have been interest payments received and applied
to the loan balance.
(b) Represents the contractual amount of principal owed at December 31, 2019 and 2018. The unpaid principal balance differs from the impaired loan
balances due to various factors, including charge-offs; interest payments received and applied to the carrying value; net deferred loan fees or costs; and
unamortized discount or premiums on purchased loans.
(c) Based upon the domicile of the borrower, largely consists of loans in the U.S.
The following table presents the Firm’s average impaired Certain loan modifications are considered to be TDRs as
retained loans for the years ended 2019, 2018 and 2017. they provide various concessions to borrowers who are
experiencing financial difficulty. All TDRs are reported as
Year ended December 31, (in millions) 2019 2018 2017 impaired loans in the tables above. TDRs were $460 million
Commercial and industrial $ 1,086 $ 1,027 $ 1,256 and $576 million as of December 31, 2019 and 2018,
Real estate 94 133 165 respectively. The impact of these modifications, as well as
Financial institutions 11 57 48
new TDRs, were not material to the Firm for the years
Other 168 199 241
Total(a) $ 1,359 $ 1,416 $ 1,710
(a) The related interest income on accruing impaired loans and interest
income recognized on a cash basis were not material for the years

Note 13 – Allowance for credit losses
JPMorgan Chase’s allowance for loan losses represents potential modifications of residential real estate loans is not
management’s estimate of probable credit losses inherent included in the statistical calculation because of the
in the Firm’s retained loan portfolio, which consists of the uncertainty regarding the type and results of such
two consumer portfolio segments (primarily scored) and modifications.
the wholesale portfolio segment (risk-rated). The allowance
The statistical calculation is then adjusted to take into
for loan losses includes a formula-based component, an
consideration model imprecision, external factors and
asset-specific component, and a component related to PCI
current economic events that have occurred but that are not
loans, as described below. Management also estimates an
yet reflected in the factors used to derive the statistical
allowance for wholesale and certain consumer lending-
calculation; these adjustments are accomplished in part by
related commitments using methodologies similar to those
analyzing the historical loss experience for each major
used to estimate the allowance on the underlying loans.
product segment. However, it is difficult to predict whether
The Firm’s policies used to determine its allowance for historical loss experience is indicative of future loss levels.
credit losses are described in the following paragraphs. Management applies judgment in making this adjustment,
taking into account uncertainties associated with current
Determining the appropriateness of the allowance is
macroeconomic and political conditions, quality of
complex and requires judgment by management about the
underwriting standards, borrower behavior, and other
effect of matters that are inherently uncertain. Subsequent
relevant internal and external factors affecting the credit
evaluations of the loan portfolio, in light of the factors then
quality of the portfolio. In certain instances, the
prevailing, may result in significant changes in the
interrelationships between these factors create further
allowances for loan losses and lending-related
uncertainties. The application of different inputs into the
commitments in future periods. At least quarterly, the
statistical calculation, and the assumptions used by
allowance for credit losses is reviewed by the CRO, the CFO
management to adjust the statistical calculation, are subject
and the Controller of the Firm. As of December 31, 2019,
to management judgment, and emphasizing one input or
JPMorgan Chase deemed the allowance for credit losses to
assumption over another, or considering other inputs or
be appropriate and sufficient to absorb probable credit
assumptions, could affect the estimate of the allowance for
losses inherent in the portfolio.
credit losses for the consumer credit portfolio.
Formula-based component
Overall, the allowance for credit losses for consumer
The formula-based component is based on a statistical
portfolios is sensitive to changes in the economic
calculation to provide for incurred credit losses in all
environment (e.g., unemployment rates), delinquency rates,
consumer loans and performing risk-rated loans. All loans
the realizable value of collateral (e.g., housing prices), FICO
restructured in TDRs as well as any impaired risk-rated
scores, borrower behavior and other risk factors. While all
loans have an allowance assessed as part of the asset-
of these factors are important determinants of overall
specific component, while PCI loans have an allowance
allowance levels, changes in the various factors may not
assessed as part of the PCI component. Refer to Note 12 for
occur at the same time or at the same rate, or changes may
more information on TDRs, Impaired loans and PCI loans.
be directionally inconsistent such that improvement in one
Formula-based component - Consumer loans and certain factor may offset deterioration in another. In addition,
lending-related commitments changes in these factors would not necessarily be consistent
The formula-based allowance for credit losses for the across all geographies or product types. Finally, it is difficult
consumer portfolio segments is calculated by applying to predict the extent to which changes in these factors
statistical credit loss factors (estimated PD and loss would ultimately affect the frequency of losses, the severity
severities) to the recorded investment balances or loan- of losses or both.
equivalent amounts of pools of loan exposures with similar
risk characteristics over a loss emergence period to arrive
at an estimate of incurred credit losses. Estimated loss
emergence periods may vary by product and may change
over time; management applies judgment in estimating loss
emergence periods, using available credit information and
trends. In addition, management applies judgment to the
statistical loss estimates for each loan portfolio category,
using delinquency trends and other risk characteristics to
estimate the total incurred credit losses in the portfolio.
Management uses additional statistical methods and
considers actual portfolio performance, including actual
losses recognized on defaulted loans and collateral
valuation trends, to review the appropriateness of the
primary statistical loss estimate. The economic impact of

Formula-based component - Wholesale loans and lending- factors. Historical experience of both LGD and PD are
related commitments considered when estimating these adjustments. Factors
The Firm’s methodology for determining the allowance for related to concentrated and deteriorating industries also
loan losses and the allowance for lending-related are incorporated where relevant. These estimates are based
commitments involves the early identification of credits that on management’s view of uncertainties that relate to
are deteriorating. The formula-based component of the current macroeconomic conditions, quality of underwriting
allowance for wholesale loans and lending-related standards and other relevant internal and external factors
commitments is calculated by applying statistical credit loss affecting the credit quality of the current portfolio.
factors (estimated PD and LGD) to the recorded investment
Asset-specific component
balances or loan-equivalent over a loss emergence period to
The asset-specific component of the allowance relates to
arrive at an estimate of incurred credit losses in the
loans considered to be impaired, which includes loans that
portfolio. Estimated loss emergence periods may vary by
have been modified in TDRs as well as risk-rated loans that
the funded versus unfunded status of the instrument and
have been placed on nonaccrual status. To determine the
may change over time.
asset-specific component of the allowance, larger risk-rated
The Firm assesses the credit quality of a borrower or loans (primarily loans in the wholesale portfolio segment)
counterparty and assigns an internal risk rating. Risk are evaluated individually, while smaller loans (both risk-
ratings are assigned at origination or acquisition, and if rated and scored) are evaluated as pools using historical
necessary, adjusted for changes in credit quality over the loss experience for the respective class of assets.
life of the exposure. In assessing the risk rating of a
The Firm generally measures the asset-specific allowance as
particular loan or lending-related commitment, among the
the difference between the recorded investment in the loan
factors considered are the obligor’s debt capacity and
and the present value of the cash flows expected to be
financial flexibility, the level of the obligor’s earnings, the
collected, discounted at the loan’s original effective interest
amount and sources for repayment, the level and nature of
rate. Subsequent changes in impairment are reported as an
contingencies, management strength, and the industry and
adjustment to the allowance for loan losses. In certain
geography in which the obligor operates. These factors are
cases, the asset-specific allowance is determined using an
based on an evaluation of historical and current information
observable market price, and the allowance is measured as
and involve subjective assessment and interpretation.
the difference between the recorded investment in the loan
Determining risk ratings involves significant judgment;
and the loan’s fair value. Collateral-dependent loans are
emphasizing one factor over another or considering
charged down to the fair value of collateral less costs to
additional factors could affect the risk rating assigned by
sell. For any of these impaired loans, the amount of the
the Firm.
asset-specific allowance required to be recorded, if any, is
A PD estimate is determined based on the Firm’s history of dependent upon the recorded investment in the loan
defaults over more than one credit cycle. (including prior charge-offs), and either the expected cash
flows or fair value of collateral. Refer to Note 12 for more
LGD estimate is a judgment-based estimate assigned to
information about charge-offs and collateral-dependent
each loan or lending-related commitment. The estimate
loans.
represents the amount of economic loss if the obligor were
to default. The type of obligor, quality of collateral, and the The asset-specific component of the allowance for impaired
seniority of the Firm’s lending exposure in the obligor’s loans that have been modified in TDRs (including forgone
capital structure affect LGD. interest, principal forgiveness, as well as other concessions)
incorporates the effect of the modification on the loan’s
The Firm applies judgment in estimating PD, LGD, loss
expected cash flows, which considers the potential for
emergence period and loan-equivalent used in calculating
redefault. For residential real estate loans modified in TDRs,
the allowance for credit losses. Estimates of PD, LGD, loss
the Firm develops product-specific probability of default
emergence period and loan-equivalent used are subject to
estimates, which are applied at a loan level to compute
periodic refinement based on any changes to underlying
expected losses. In developing these probabilities of
external or Firm-specific historical data. Changes to the
default, the Firm considers the relationship between the
time period used for PD and LGD estimates could also affect
credit quality characteristics of the underlying loans and
the allowance for credit losses. The use of different inputs,
certain assumptions about home prices and unemployment,
estimates or methodologies could change the amount of the
based upon industry-wide data. The Firm also considers its
allowance for credit losses determined appropriate by the
own historical loss experience to-date based on actual
Firm.
redefaulted modified loans. For credit card loans modified
In addition to the statistical credit loss estimates applied to in TDRs, expected losses incorporate projected redefaults
the wholesale portfolio, management applies its judgment based on the Firm’s historical experience by type of
to adjust the statistical estimates for wholesale loans and modification program. For wholesale loans modified in
lending-related commitments, taking into consideration TDRs, expected losses incorporate management’s
model imprecision, external factors and economic events expectation of the borrower’s ability to repay under the
that have occurred but are not yet reflected in the loss modified terms.
Estimating the timing and amounts of future cash flows is PCI loans
highly judgmental as these cash flow projections rely upon In connection with the acquisition of certain PCI loans,
estimates such as loss severities, asset valuations, default which are accounted for as described in Note 12, the
rates (including redefault rates on modified loans), the allowance for loan losses for the PCI portfolio is based on
amounts and timing of interest or principal payments quarterly estimates of the amount of principal and interest
(including any expected prepayments) or other factors that cash flows expected to be collected over the estimated
are reflective of current and expected market conditions. remaining lives of the loans.
These estimates are, in turn, dependent on factors such as
These cash flow projections are based on estimates
the duration of current overall economic conditions,
regarding default rates (including redefault rates on
industry-, portfolio-, or borrower-specific factors, the
modified loans), loss severities, the amounts and timing of
expected outcome of insolvency proceedings as well as, in
prepayments and other factors that are reflective of current
certain circumstances, other economic factors, including
and expected future market conditions. These estimates are
the level of future home prices. All of these estimates and
dependent on assumptions regarding the level of future
assumptions require significant management judgment and
home prices, and the duration of current overall economic
certain assumptions are highly subjective.
conditions, among other factors. These estimates and
assumptions require significant management judgment and
certain assumptions are highly subjective.

Allowance for credit losses and related information

The table below summarizes information about the allowances for loan losses and lending-relating commitments, and includes
a breakdown of loans and lending-related commitments by impairment methodology.
(Table continued on next page)

2019
Consumer,
Year ended December 31, excluding
Beginning balance at January 1, $ 4,146 $ 5,184 $ 4,115 $ 13,445
Gross charge-offs 963 5,436 411 6,810
Gross recoveries (551) (588) (42) (1,181)
Net charge-offs 412 4,848 369 5,629
Write-offs of PCI loans(a) 151 — — 151
Provision for loan losses (383) 5,348 484 5,449
Other (1) (1) 11 9
Ending balance at December 31, $ 3,199 $ 5,683 $ 4,241 $ 13,123
Allowance for loan losses by impairment methodology

Asset-specific(b) $ 136 $ 477 (c) $ 234 $ 847
Formula-based 2,076 5,206 4,007 11,289
PCI 987 — — 987
Total allowance for loan losses $ 3,199 $ 5,683 $ 4,241 $ 13,123
Loans by impairment methodology

Asset-specific $ 6,172 $ 1,452 $ 912 $ 8,536
Formula-based 305,503 167,472 443,727 916,702
PCI 20,363 — — 20,363
Total retained loans $ 332,038 $ 168,924 $ 444,639 $ 945,601
Impaired collateral-dependent loans

Net charge-offs $ 57 $ — $ 25 $ 82
Loans measured at fair value of collateral less cost to sell 2,059 — 81 2,140
Allowance for lending-related commitments

Beginning balance at January 1, $ 33 $ — $ 1,022 $ 1,055
Provision for lending-related commitments — — 136 136
Other — — — —
Ending balance at December 31, $ 33 $ — $ 1,158 $ 1,191
Allowance for lending-related commitments by impairment methodology

Asset-specific $ — $ — $ 102 $ 102
Formula-based 33 — 1,056 1,089
Total allowance for lending-related commitments $ 33 $ — $ 1,158 $ 1,191
Lending-related commitments by impairment methodology

Asset-specific $ — $ — $ 474 $ 474
Formula-based 51,412 650,720 403,641 1,105,773
Total lending-related commitments $ 51,412 $ 650,720 $ 404,115 $ 1,106,247
(a) Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as
purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool.
(b) Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a TDR.
(c) The asset-specific credit card allowance for loan losses is related to loans that have been modified in a TDR; such allowance is calculated based on the
loans’ original contractual interest rates and does not consider any incremental penalty rates.

(table continued from previous page)
2018 2017
Consumer, Consumer,
excluding excluding
credit card Credit card Wholesale Total credit card Credit card Wholesale Total
$ 4,579 $ 4,884 $ 4,141 $ 13,604 $ 5,198 $ 4,034 $ 4,544 $ 13,776

1,025 5,011 313 6,349 1,779 4,521 212 6,512
(842) (493) (158) (1,493) (634) (398) (93) (1,125)
183 4,518 155 4,856 1,145 4,123 119 5,387
187 — — 187 86 — — 86
(63) 4,818 130 4,885 613 4,973 (286) 5,300
— — (1) (1) (1) — 2 1
$ 4,146 $ 5,184 $ 4,115 $ 13,445 $ 4,579 $ 4,884 $ 4,141 $ 13,604
$ 196 $ 440 (c) $ 297 $ 933 $ 246 $ 383 (c) $ 461 $ 1,090
2,162 4,744 3,818 10,724 2,108 4,501 3,680 10,289
1,788 — — 1,788 2,225 — — 2,225
$ 4,146 $ 5,184 $ 4,115 $ 13,445 $ 4,579 $ 4,884 $ 4,141 $ 13,604
$ 6,874 $ 1,319 $ 1,250 $ 9,443 $ 8,078 $ 1,215 $ 1,867 $ 11,160

342,729 155,297 437,909 935,935 333,899 148,172 401,028 883,099
24,034 — 3 24,037 30,576 — 3 30,579
$ 373,637 $ 156,616 $ 439,162 $ 969,415 $ 372,553 $ 149,387 $ 402,898 $ 924,838
$ 24 $ — $ 21 $ 45 $ 64 $ — $ 31 $ 95
2,080 — 202 2,282 2,133 — 233 2,366
$ 33 $ — $ 1,035 $ 1,068 $ 26 $ — $ 1,052 $ 1,078

— — (14) (14) 7 — (17) (10)
— — 1 1 — — — —
$ 33 $ — $ 1,022 $ 1,055 $ 33 $ — $ 1,035 $ 1,068
$ — $ — $ 99 $ 99 $ — $ — $ 187 $ 187
33 — 923 956 33 — 848 881
$ 33 $ — $ 1,022 $ 1,055 $ 33 $ — $ 1,035 $ 1,068
$ — $ — $ 469 $ 469 $ — $ — $ 731 $ 731

46,066 605,379 387,344 1,038,789 48,553 572,831 369,367 990,751
$ 46,066 $ 605,379 $ 387,813 $ 1,039,258 $ 48,553 $ 572,831 $ 370,098 $ 991,482

Note 14 – Variable interest entities

Refer to Note 1 on page 151 for a further description of JPMorgan Chase’s accounting policies regarding consolidation of VIEs.
The following table summarizes the most significant types of Firm-sponsored VIEs by business segment. The Firm considers a
“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.
2019 Form 10-K
Line of Business Transaction Type Activity page references
Credit card securitization trusts 242–243

Securitization of originated credit card receivables
CCB
Servicing and securitization of both originated and
Mortgage securitization trusts 243–245
purchased residential mortgages
Mortgage and other securitization trusts Securitization of both originated and purchased
residential and commercial mortgages, and other 243–245
consumer loans
CIB Multi-seller conduits Assist clients in accessing the financial markets in a
cost-efficient manner and structures transactions to 245
meet investor needs
Municipal bond vehicles Financing of municipal bond investments 245–246
The Firm’s other business segments are also involved with VIEs (both third-party and Firm-sponsored), but to a lesser extent,
as follows:
• Asset & Wealth Management: AWM sponsors and manages certain funds that are deemed VIEs. As asset manager of the
funds, AWM earns a fee based on assets managed; the fee varies with each fund’s investment objective and is competitively
priced. For fund entities that qualify as VIEs, AWM’s interests are, in certain cases, considered to be significant variable
interests that result in consolidation of the financial results of these entities.
• Commercial Banking: CB provides financing and lending-related services to a wide spectrum of clients, including certain
third-party-sponsored entities that may meet the definition of a VIE. CB does not control the activities of these entities and
does not consolidate these entities. CB’s maximum loss exposure, regardless of whether the entity is a VIE, is generally
limited to loans and lending-related commitments which are reported and disclosed in the same manner as any other third-
party transaction.
• Corporate: Corporate is involved with entities that may meet the definition of VIEs; however these entities are generally
subject to specialized investment company accounting, which does not require the consolidation of investments, including
VIEs. In addition, Treasury and CIO invest in securities generally issued by third parties which may meet the definition of
VIEs (e.g., issuers of asset-backed securities). In general, the Firm does not have the power to direct the significant
activities of these entities and therefore does not consolidate these entities. Refer to Note 10 for further information on the
Firm’s investment securities portfolio.
In addition, CIB also invests in and provides financing and other services to VIEs sponsored by third parties. Refer to page 247
of this Note for more information on the VIEs sponsored by third parties.
Significant Firm-sponsored variable interest entities
Credit card securitizations losses and gives the Firm the right to receive certain
CCB’s Card business may securitize originated credit card benefits from these VIEs that could potentially be
loans, primarily through the Chase Issuance Trust (the significant.
“Trust”). The Firm’s continuing involvement in credit card
The underlying securitized credit card receivables and other
securitizations includes servicing the receivables, retaining
assets of the securitization trusts are available only for
an undivided seller’s interest in the receivables, retaining
payment of the beneficial interests issued by the
certain senior and subordinated securities and maintaining
securitization trusts; they are not available to pay the Firm’s
escrow accounts.
other obligations or the claims of the Firm’s creditors.
The Firm is considered to be the primary beneficiary of
The agreements with the credit card securitization trusts
these Firm-sponsored credit card securitization trusts based
require the Firm to maintain a minimum undivided interest
on the Firm’s ability to direct the activities of these VIEs
in the credit card trusts (generally 5%). As of December 31,
through its servicing responsibilities and other duties,
2019 and 2018, the Firm held undivided interests in Firm-
including making decisions as to the receivables that are
sponsored credit card securitization trusts of $5.3 billion
transferred into those trusts and as to any related
and $15.1 billion, respectively. The Firm maintained an
modifications and workouts. Additionally, the nature and
average undivided interest in principal receivables owned
extent of the Firm’s other continuing involvement with the
by those trusts of approximately 50% and 37% for the
trusts, as indicated above, obligates the Firm to absorb
years ended December 31, 2019 and 2018. The Firm did

not retain any senior securities and retained $3.0 billion of Firm-sponsored mortgage and other securitization trusts
subordinated securities in certain of its credit card The Firm securitizes (or has securitized) originated and
securitization trusts as of both December 31, 2019 and purchased residential mortgages, commercial mortgages
2018, respectively. The Firm’s undivided interests in the and other consumer loans primarily in its CCB and CIB
credit card trusts and securities retained are eliminated in businesses. Depending on the particular transaction, as well
consolidation. 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.
The following table presents 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 Securitization activity on page 248 of this Note for further
information regarding the Firm’s cash flows associated with and interests retained in nonconsolidated VIEs, and pages 248–
249 of this Note for information on the Firm’s loan sales and securitization activity related to U.S. GSEs and government
agencies.
JPMorgan Chase interest in securitized assets in

Principal amount outstanding nonconsolidated VIEs(c)(d)(e)
Assets held in Total
Total assets Assets nonconsolidated interests
held in securitization
held by consolidated VIEs with Other held by
December 31, 2019 securitization securitization continuing Trading Investment financial JPMorgan
(in millions) VIEs VIEs involvement assets securities assets Chase
Securitization-related(a)
Residential mortgage:
Prime/Alt-A and option ARMs $ 60,348 $ 2,796 $ 48,734 $ 535 $ 625 $ — $ 1,160
Subprime 14,661 — 13,490 7 — — 7
Commercial and other (b)
111,903 — 80,878 785 773 241 1,799
Total $ 186,912 $ 2,796 $ 143,102 $ 1,327 $ 1,398 $ 241 $ 2,966
JPMorgan Chase interest in securitized assets in

Principal amount outstanding nonconsolidated VIEs(c)(d)(e)
Assets held in Total
Total assets Assets nonconsolidated interests
held in securitization
held by consolidated VIEs with Other held by
December 31, 2018 securitization securitization continuing Trading Investment financial JPMorgan
(in millions) VIEs VIEs involvement assets securities assets Chase
Securitization-related(a)
Prime/Alt-A and option ARMs $ 63,350 $ 3,237 $ 50,679 $ 623 $ 647 $ — $ 1,270
Subprime 16,729 32 15,434 53 — — 53
Commercial and other (b)
102,961 — 79,387 783 801 210 1,794
Total $ 183,040 $ 3,269 $ 145,500 $ 1,459 $ 1,448 $ 210 $ 3,117
(a) Excludes U.S. GSEs and government agency securitizations and re-securitizations, which are not Firm-sponsored. Refer to pages 248–249 of this Note for
information on the Firm’s loan sales and securitization activity related to U.S. GSEs and government agencies.
(b) Consists of securities backed by commercial real estate loans and non-mortgage-related consumer receivables purchased from third parties.
(c) Excludes the following: retained servicing (refer to Note 15 for a discussion of MSRs); 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 (refer to Note 5 for further information on derivatives); senior and subordinated securities of $106 million and $94 million,
respectively, at December 31, 2019, and $87 million and $28 million, respectively, at December 31, 2018, which the Firm purchased in connection with
CIB’s secondary market-making activities.
(d) Includes interests held in re-securitization transactions.
(e) As of December 31, 2019 and 2018, 63% and 60%, 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 $1.1 billion and $1.3 billion of investment-grade, and $72 million and $16 million of
noninvestment-grade at December 31, 2019 and 2018, respectively. The retained interests in commercial and other securitizations trusts consisted of
$1.2 billion of investment-grade for both periods, and $575 million and $623 million of noninvestment-grade retained interests at December 31, 2019
and 2018, respectively.

Residential mortgage Re-securitizations

The Firm securitizes residential mortgage loans originated The Firm engages in certain re-securitization transactions in
by CCB, as well as residential mortgage loans purchased which debt securities are transferred to a VIE in exchange
from third parties by either CCB or CIB. CCB generally for new beneficial interests. These transfers occur in
retains servicing for all residential mortgage loans it connection with both U.S. GSEs and government agency
originated or purchased, and for certain mortgage loans sponsored VIEs, which are backed by residential mortgages.
purchased by CIB. For securitizations of loans serviced by The Firm’s consolidation analysis is largely dependent on
CCB, the Firm has the power to direct the significant the Firm’s role and interest in the re-securitization trusts.
activities of the VIE because it is responsible for decisions
The following table presents the principal amount of
related to loan modifications and workouts. CCB may also
securities transferred to re-securitization VIEs.
retain an interest upon securitization.
In addition, CIB engages in underwriting and trading (in millions) 2019 2018 2017
activities involving securities issued by Firm-sponsored Transfers of securities to
securitization trusts. As a result, CIB at times retains senior VIEs
and/or subordinated interests (including residual interests U.S. GSEs and government
and amounts required to be held pursuant to credit risk agencies 25,852 15,532 12,617
retention rules) in residential mortgage securitizations at
Most re-securitizations with which the Firm is involved are
the time of securitization, and/or reacquires positions in the
client-driven transactions in which a specific client or group
secondary market in the normal course of business. In
of clients is seeking a specific return or risk profile. For
certain instances, as a result of the positions retained or
these transactions, the Firm has concluded that the
reacquired by CIB or held by CCB, when considered together
decision-making power of the entity is shared between the
with the servicing arrangements entered into by CCB, the
Firm and its clients, considering the joint effort and
Firm is deemed to be the primary beneficiary of certain
decisions in establishing the re-securitization trust and its
securitization trusts. Refer to the table on page 246 of this
assets, as well as the significant economic interest the client
Note for more information on consolidated residential
holds in the re-securitization trust; therefore the Firm does
mortgage securitizations.
not consolidate the re-securitization VIE.
The Firm does not consolidate residential mortgage
The Firm did not transfer any private label securities to re-
securitizations (Firm-sponsored or third-party-sponsored)
securitization VIEs during 2019, 2018 and 2017,
when it is not the servicer (and therefore does not have the
respectively, and retained interests in any such Firm-
power to direct the most significant activities of the trust)
sponsored VIEs as of December 31, 2019 and 2018 were
or does not hold a beneficial interest in the trust that could
immaterial.
potentially be significant to the trust. Refer to the table on
page 246 of this Note for more information on the Additionally, the Firm may invest in beneficial interests of
consolidated residential mortgage securitizations, and the third-party-sponsored re-securitizations and generally
table on the previous page of this Note for further purchases these interests in the secondary market. In these
information on interests held in nonconsolidated residential circumstances, the Firm does not have the unilateral ability
mortgage securitizations. to direct the most significant activities of the re-
securitization trust, either because it was not involved in the
Commercial mortgages and other consumer securitizations
initial design of the trust, or the Firm is involved with an
CIB originates and securitizes commercial mortgage loans,
independent third-party sponsor and demonstrates shared
and engages in underwriting and trading activities involving
power over the creation of the trust; therefore, the Firm
the securities issued by securitization trusts. CIB may retain
does not consolidate the re-securitization VIE.
unsold senior and/or subordinated interests (including
amounts required to be held pursuant to credit risk
retention rules) in commercial mortgage securitizations at
the time of securitization but, generally, the Firm does not
service commercial loan securitizations. For commercial
mortgage securitizations the power to direct the significant
activities of the VIE generally is held by the servicer or
investors in a specified class of securities (“controlling
class”). The Firm generally does not retain an interest in the
controlling class in its sponsored commercial mortgage
securitization transactions. Refer to the table on page 246
of this Note for more information on the consolidated
commercial mortgage securitizations, and the table on the
previous page of this Note for further information on
interests held in nonconsolidated securitizations.

The following table presents information on In the normal course of business, JPMorgan Chase makes
nonconsolidated re-securitization VIEs. markets in and invests in commercial paper issued by the
Firm-administered multi-seller conduits. The Firm held
Nonconsolidated $16.3 billion and $20.1 billion of the commercial paper
re-securitization VIEs
December 31,
issued by the Firm-administered multi-seller conduits at
(in millions) 2019 2018 December 31, 2019 and 2018, respectively, which have
U.S. GSEs and government agencies been eliminated in consolidation. The Firm’s investments
Interest in VIEs 2,928 3,058 reflect the Firm’s funding needs and capacity and were not
driven by market illiquidity. Other than the amounts
As of December 31, 2019 and 2018, the Firm did not required to be held pursuant to credit risk retention rules,
consolidate any U.S. GSE and government agency re- the Firm is not obligated under any agreement to purchase
securitization VIEs or any Firm-sponsored private-label re- the commercial paper issued by the Firm-administered
securitization VIEs. multi-seller conduits.
Multi-seller conduits Deal-specific liquidity facilities, program-wide liquidity and
Multi-seller conduit entities are separate bankruptcy credit enhancement provided by the Firm have been
remote entities that provide secured financing, eliminated in consolidation. The Firm or the Firm-
collateralized by pools of receivables and other financial administered multi-seller conduits provide lending-related
assets, to customers of the Firm. The conduits fund their commitments to certain clients of the Firm-administered
financing facilities through the issuance of highly rated multi-seller conduits. The unfunded commitments were
commercial paper. The primary source of repayment of the $8.9 billion and $8.0 billion at December 31, 2019 and
commercial paper is the cash flows from the pools of assets. 2018, respectively, and are reported as off-balance sheet
In most instances, the assets are structured with deal- lending-related commitments in other unfunded
specific credit enhancements provided to the conduits by commitments to extend credit. Refer to Note 28 for more
the customers (i.e., sellers) or other third parties. Deal- information on off-balance sheet lending-related
specific credit enhancements are generally structured to commitments.
cover a multiple of historical losses expected on the pool of
Municipal bond vehicles
assets, and are typically in the form of overcollateralization
Municipal bond vehicles or tender option bond (“TOB”)
provided by the seller. The deal-specific credit
trusts allow institutions to finance their municipal bond
enhancements mitigate the Firm’s potential losses on its
investments at short-term rates. In a typical TOB
agreements with the conduits.
transaction, the trust purchases highly rated municipal
To ensure timely repayment of the commercial paper, and bond(s) of a single issuer and funds the purchase by issuing
to provide the conduits with funding to provide financing to two types of securities: (1) puttable floating-rate
customers in the event that the conduits do not obtain certificates (“floaters”) and (2) inverse floating-rate
funding in the commercial paper market, each asset pool residual interests (“residuals”). The floaters are typically
financed by the conduits has a minimum 100% deal- purchased by money market funds or other short-term
specific liquidity facility associated with it provided by investors and may be tendered, with requisite notice, to the
JPMorgan Chase Bank, N.A. JPMorgan Chase Bank, N.A. also TOB trust. The residuals are retained by the investor seeking
provides the multi-seller conduit vehicles with uncommitted to finance its municipal bond investment. TOB transactions
program-wide liquidity facilities and program-wide credit where the residual is held by a third-party investor are
enhancement in the form of standby letters of credit. The typically known as customer TOB trusts, and non-customer
amount of program-wide credit enhancement required is TOB trusts are transactions where the Residual is retained
based upon commercial paper issuance and approximates by the Firm. Customer TOB trusts are sponsored by a third
10% of the outstanding balance of commercial paper. party; refer to page 247 of this Note for further
information. The Firm serves as sponsor for all non-
The Firm consolidates its Firm-administered multi-seller
customer TOB transactions. The Firm may provide various
conduits, as the Firm has both the power to direct the
services to a TOB trust, including remarketing agent,
significant activities of the conduits and a potentially
liquidity or tender option provider, and/or sponsor.
significant economic interest in the conduits. As
administrative agent and in its role in structuring J.P. Morgan Securities LLC may serve as a remarketing
transactions, the Firm makes decisions regarding asset agent on the floaters for TOB trusts. The remarketing agent
types and credit quality, and manages the commercial is responsible for establishing the periodic variable rate on
paper funding needs of the conduits. The Firm’s interests the floaters, conducting the initial placement and
that could potentially be significant to the VIEs include the remarketing tendered floaters. The remarketing agent may,
fees received as administrative agent and liquidity and but is not obligated to, make markets in floaters. Floaters
program-wide credit enhancement provider, as well as the held by the Firm were not material during 2019 and 2018.
potential exposure created by the liquidity and credit
JPMorgan Chase Bank, N.A. or J.P. Morgan Securities LLC
enhancement facilities provided to the conduits. Refer to
often serves as the sole liquidity or tender option provider
page 246 of this Note for further information on
consolidated VIE assets and liabilities. for the TOB trusts. The liquidity provider’s obligation to

perform is conditional and is limited by certain events Holders of the floaters may “put,” or tender, their floaters
(“Termination Events”), which include bankruptcy or failure to the TOB trust. If the remarketing agent cannot
to pay by the municipal bond issuer or credit enhancement successfully remarket the floaters to another investor, the
provider, an event of taxability on the municipal bonds or liquidity provider either provides a loan to the TOB trust for
the immediate downgrade of the municipal bond to below the TOB trust’s purchase of the floaters, or it directly
investment grade. In addition, the liquidity provider’s purchases the tendered floaters.
exposure is typically further limited by the high credit
TOB trusts are considered to be variable interest entities.
quality of the underlying municipal bonds, the excess
The Firm consolidates non-customer TOB trusts because as
collateralization in the vehicle, or, in certain transactions,
the Residual holder, the Firm has the right to make
the reimbursement agreements with the Residual holders.
decisions that significantly impact the economic
performance of the municipal bond vehicle, and it has the
right to receive benefits and bear losses that could
potentially be significant to the municipal bond vehicle.
Consolidated VIE assets and liabilities

The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of December 31,
2019 and 2018.
Assets Liabilities
Beneficial
December 31, 2019 Trading Total interests in Total
(in millions) assets Loans Other(b) assets(c) VIE assets(d) Other(e) liabilities
VIE program type
Firm-sponsored credit card trusts $ — $ 14,986 $ 266 $ 15,252 $ 6,461 $ 6 $ 6,467
Firm-administered multi-seller conduits 1 25,183 355 25,539 9,223 36 9,259
Municipal bond vehicles 1,903 — 4 1,907 1,881 3 1,884
Mortgage securitization entities(a) 66 2,762 64 2,892 276 130 406
Other 663 — 192 855 — 272 272
Total $ 2,633 $ 42,931 $ 881 $ 46,445 $ 17,841 $ 447 $ 18,288
Assets Liabilities
Beneficial
December 31, 2018 Trading Total interests in Total
(in millions) assets Loans Other(b) assets(c) VIE assets(d) Other(e) liabilities
VIE program type
Firm-sponsored credit card trusts $ — $ 31,760 $ 491 $ 32,251 $ 13,404 $ 12 $ 13,416
Firm-administered multi-seller conduits — 24,411 300 24,711 4,842 33 4,875
Municipal bond vehicles 1,779 — 4 1,783 1,685 3 1,688
Mortgage securitization entities(a) 53 3,285 40 3,378 308 161 469
Other 134 — 178 312 2 103 105
Total $ 1,966 $ 59,456 $ 1,013 $ 62,435 $ 20,241 $ 312 $ 20,553
(a) Includes residential and commercial mortgage securitizations.
(b) Includes assets classified as cash and other assets on the Consolidated balance sheets.
(c) 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.
(d) The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified in the line item on the Consolidated balance sheets titled,
“Beneficial interests issued by consolidated variable interest entities.” 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 $6.7 billion and $13.7 billion at
December 31, 2019 and 2018, respectively. Refer to Note 20 for additional information on interest-bearing long-term beneficial interests.
(e) Includes liabilities classified as accounts payable and other liabilities on the Consolidated balance sheets.

VIEs sponsored by third parties Loan securitizations
The Firm enters into transactions with VIEs structured by The Firm has securitized and sold a variety of loans,
other parties. These include, for example, acting as a including residential mortgage, credit card, and commercial
derivative counterparty, liquidity provider, investor, mortgage. The purposes of these securitization transactions
underwriter, placement agent, remarketing agent, trustee were to satisfy investor demand and to generate liquidity
or custodian. These transactions are conducted at arm’s- for the Firm.
length, and individual credit decisions are based on the
For loan securitizations in which the Firm is not required to
analysis of the specific VIE, taking into consideration the
consolidate the trust, the Firm records the transfer of the
quality of the underlying assets. Where the Firm does not
loan receivable to the trust as a sale when all of the
have the power to direct the activities of the VIE that most
following accounting criteria for a sale are met: (1) the
significantly impact the VIE’s economic performance, or a
transferred financial assets are legally isolated from the
variable interest that could potentially be significant, the
Firm’s creditors; (2) the transferee or beneficial interest
Firm generally does not consolidate the VIE, but it records
holder can pledge or exchange the transferred financial
and reports these positions on its Consolidated balance
assets; and (3) the Firm does not maintain effective control
sheets in the same manner it would record and report
over the transferred financial assets (e.g., the Firm cannot
positions in respect of any other third-party transaction.
repurchase the transferred assets before their maturity and
Tax credit vehicles it does not have the ability to unilaterally cause the holder
The Firm holds investments in unconsolidated tax credit to return the transferred assets).
vehicles, which are limited partnerships and similar entities
that own and operate affordable housing, energy, and other For loan securitizations accounted for as a sale, the Firm
projects. These entities are primarily considered VIEs. A recognizes a gain or loss based on the difference between
third party is typically the general partner or managing the value of proceeds received (including cash, beneficial
member and has control over the significant activities of the interests, or servicing assets received) and the carrying
tax credit vehicles, and accordingly the Firm does not value of the assets sold. Gains and losses on securitizations
consolidate tax credit vehicles. The Firm generally invests in are reported in noninterest revenue.
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 $19.1
billion and $16.5 billion, of which $5.5 billion and $4.0
billion was unfunded at December 31, 2019 and 2018,
respectively. In order to reduce the risk of loss, the Firm
assesses each project and withholds varying amounts of its
capital investment until the project qualifies for tax credits.
Refer to Note 25 for further information on affordable
housing tax credits. Refer to Note 28 for more information
on off-balance sheet lending-related commitments.
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 December 31, 2019 and 2018, was
$5.5 billion and $4.8 billion, respectively. The fair value of
assets held by such VIEs at December 31, 2019 and 2018
was $8.6 billion and $7.7 billion, respectively. Refer to Note
28 for more information on off-balance sheet lending-
related commitments.
Securitization activity
The following table provides information related to the Firm’s securitization activities for the years ended December 31, 2019,
2018 and 2017, 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.
2019 2018 2017
Year ended December 31, Residential Commercial Residential Commercial Residential Commercial
(in millions) mortgage(e) and other(f) mortgage(e) and other(f) mortgage(e) and other(f)
Principal securitized $ 9,957 $ 9,390 $ 6,431 $ 10,159 $ 5,532 $ 10,252
All cash flows during the period:(a)
Proceeds received from loan sales as financial
instruments(b)(c) $ 10,238 $ 9,544 $ 6,449 $ 10,218 $ 5,661 $ 10,340
Servicing fees collected(d) 287 2 319 2 338 3
Cash flows received on interests 507 237 411 301 463 918
(a) Excludes re-securitization transactions.
(b) Predominantly includes Level 2 assets.
(c) The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.
(d) The prior period amounts have been revised to conform with the current period presentation.
(e) Includes prime mortgages only. Excludes loan securitization activity related to U.S. GSEs and government agencies.
(f) Includes commercial mortgage and other consumer loans.
Key assumptions used to value retained interests originated Loans and excess MSRs sold to U.S. government-
during the year are shown in the table below. sponsored enterprises and loans in securitization
transactions pursuant to Ginnie Mae guidelines
Year ended December 31, 2019 2018 2017 In addition to the amounts reported in the securitization
Residential mortgage retained interest: activity tables above, the Firm, in the normal course of
Weighted-average life (in years) 4.8 7.6 4.8 business, sells originated and purchased mortgage loans
Weighted-average discount rate 7.4% 3.6% 2.9% and certain originated excess MSRs on a nonrecourse basis,
Commercial mortgage retained interest: predominantly to U.S. GSEs. These loans and excess MSRs
Weighted-average life (in years) 6.4 5.3 7.1 are sold primarily for the purpose of securitization by the
Weighted-average discount rate 4.1% 4.0% 4.4% 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 28 for additional
information about the Firm’s loan sales- and securitization-
related indemnifications. Refer to Note 15 for additional
information about the impact of the Firm’s sale of certain
excess MSRs.

The following table summarizes the activities related to pools as it continues to service them and/or manage the
loans sold to the U.S. GSEs, and loans in securitization foreclosure process in accordance with the applicable
transactions pursuant to Ginnie Mae guidelines. requirements, and such loans continue to be insured or
guaranteed. When the Firm’s repurchase option becomes
(in millions) 2019 2018 2017 exercisable, such loans must be reported on the
Consolidated balance sheets as a loan with a corresponding
Carrying value of loans sold $ 92,349 $ 44,609 $ 64,542
liability. Refer to Note 12 for additional information.
Proceeds received from loan
sales as cash $ 73 $ 9 $ 117 The following table presents loans the Firm repurchased or
Proceeds from loan sales as had an option to repurchase, real estate owned, and
securities(a)(b) 91,422 43,671 63,542
foreclosed government-guaranteed residential mortgage
Total proceeds received from loans recognized on the Firm’s Consolidated balance sheets
loan sales(c) $ 91,495 $ 43,680 $ 63,659
as of December 31, 2019 and 2018. Substantially all of
Gains/(losses) on loan sales (d)(e)
$ 499 $ (93) $ 163
these loans and real estate are insured or guaranteed by
(a) Includes securities from U.S. GSEs and Ginnie Mae that are generally U.S. government agencies.
sold shortly after receipt or retained as part of the Firm’s investment
securities portfolio. December 31,
(b) Included in level 2 assets. (in millions) 2019 2018
(c) Excludes the value of MSRs retained upon the sale of loans. Loans repurchased or option to repurchase(a) $ 2,941 $ 7,021
(d) Gains/(losses) on loan sales include the value of MSRs.
Real estate owned 41 75
(e) The carrying value of the loans accounted for at fair value
approximated the proceeds received upon loan sale. Foreclosed government-guaranteed residential
mortgage loans(b) 198 361
Options to repurchase delinquent loans
(a) Predominantly all of these amounts relate to loans that have been
In addition to the Firm’s obligation to repurchase certain repurchased from Ginnie Mae loan pools.
loans due to material breaches of representations and (b) Relates to voluntary repurchases of loans, which are included in
warranties as discussed in Note 28, the Firm also has the accrued interest and accounts receivable.
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
Loan delinquencies and liquidation losses

The table below includes information about components of nonconsolidated securitized financial assets held in Firm-sponsored
private-label securitization entities, in which the Firm has continuing involvement, and delinquencies as of December 31, 2019
and 2018.
Securitized assets 90 days past due Net liquidation losses(a)
As of or for the year ended December 31, (in millions) 2019 2018 2019 2018 2019 2018
Securitized loans
Prime/ Alt-A & option ARMs $ 48,734 $ 50,679 $ 2,449 $ 3,354 $ 579 $ 610
Subprime 13,490 15,434 1,813 2,478 532 (169)
Commercial and other 80,878 79,387 187 225 445 280
Total loans securitized $ 143,102 $ 145,500 $ 4,449 $ 6,057 $ 1,556 $ 721
(a) Includes liquidation gains as a result of private label mortgage settlement payments during the first quarter of 2018, which were reflected as asset recoveries by
trustees.

Note 15 – Goodwill and Mortgage servicing rights

Goodwill Goodwill impairment testing
Goodwill is recorded upon completion of a business The Firm’s goodwill was not impaired at December 31,
combination as the difference between the purchase price 2019, 2018, and 2017.
and the fair value of the net assets acquired. Subsequent to
The goodwill impairment test is performed in two steps. In
initial recognition, goodwill is not amortized but is tested
the first step, the current fair value of each reporting unit is
for impairment during the fourth quarter of each fiscal
compared with its carrying value. If the fair value is in
year, or more often if events or circumstances, such as
excess of the carrying value, then the reporting unit’s
adverse changes in the business climate, indicate there may
goodwill is considered not to be impaired. If the fair value is
be impairment.
less than the carrying value, then a second step is
The goodwill associated with each business combination is performed. In the second step, the implied current fair
allocated to the related reporting units, which are value of the reporting unit’s goodwill is determined by
determined based on how the Firm’s businesses are comparing the fair value of the reporting unit (as
managed and how they are reviewed by the Firm’s determined in step one) to the fair value of the net assets of
Operating Committee. The following table presents goodwill the reporting unit, as if the reporting unit were being
attributed to the business segments. acquired in a business combination. The resulting implied
current fair value of goodwill is then compared with the
carrying value of the reporting unit’s goodwill. If the
Consumer & Community Banking $ 31,041 $ 30,984 $ 31,013
carrying value of the goodwill exceeds its implied current
Corporate & Investment Bank 6,942 6,770 6,776
fair value, then an impairment charge is recognized for the
Commercial Banking 2,982 2,860 2,860
excess. If the carrying value of goodwill is less than its
Asset & Wealth Management 6,858 6,857 6,858
implied current fair value, then no goodwill impairment is
Total goodwill $ 47,823 $ 47,471 $ 47,507
recognized.
The following table presents changes in the carrying The Firm uses the reporting units’ allocated capital plus
amount of goodwill. goodwill and other intangible assets as a proxy for the
Year ended December 31, (in
carrying values of equity for the reporting units in the
millions) 2019 2018 2017 goodwill impairment testing. Reporting unit equity is
Balance at beginning of period $ 47,471 $ 47,507 $ 47,288 determined on a similar basis as the allocation of capital to
Changes during the period from: the LOBs which takes into consideration a variety of factors
Business combinations(a) 349 — 199 including capital levels of similarly rated peers and
Other(b) 3 (36) 20
applicable regulatory capital requirements. Proposed LOB
equity levels are incorporated into the Firm’s annual budget
Balance at December 31, $ 47,823 $ 47,471 $ 47,507
process, which is reviewed by the Firm’s Board of Directors.
(a) For 2019, represents goodwill associated with the acquisition of Allocated capital is further reviewed periodically and
InstaMed. This goodwill was allocated to CIB, CB and CCB. For 2017,
represents CCB goodwill in connection with an acquisition.
updated as needed.
(b) Primarily relates to foreign currency adjustments.

The primary method the Firm uses to estimate the fair Mortgage servicing rights
value of its reporting units is the income approach. This MSRs represent the fair value of expected future cash flows
approach projects cash flows for the forecast period and for performing servicing activities for others. The fair value
uses the perpetuity growth method to calculate terminal considers estimated future servicing fees and ancillary
values. These cash flows and terminal values are then revenue, offset by estimated costs to service the loans, and
discounted using an appropriate discount rate. Projections generally declines over time as net servicing cash flows are
of cash flows are based on the reporting units’ earnings received, effectively amortizing the MSR asset against
forecasts which are reviewed with senior management of contractual servicing and ancillary fee income. MSRs are
the Firm. The discount rate used for each reporting unit either purchased from third parties or recognized upon sale
represents an estimate of the cost of equity for that or securitization of mortgage loans if servicing is retained.
reporting unit and is determined considering the Firm’s
As permitted by U.S. GAAP, the Firm has elected to account
overall estimated cost of equity (estimated using the Capital
for its MSRs at fair value. The Firm treats its MSRs as a
Asset Pricing Model), as adjusted for the risk characteristics
single class of servicing assets based on the availability of
specific to each reporting unit (for example, for higher
market inputs used to measure the fair value of its MSR
levels of risk or uncertainty associated with the business or
asset and its treatment of MSRs as one aggregate pool for
management’s forecasts and assumptions). To assess the
risk management purposes. The Firm estimates the fair
reasonableness of the discount rates used for each
value of MSRs using an option-adjusted spread (“OAS”)
reporting unit management compares the discount rate to
model, which projects MSR cash flows over multiple interest
the estimated cost of equity for publicly traded institutions
rate scenarios in conjunction with the Firm’s prepayment
with similar businesses and risk characteristics. In addition,
model, and then discounts these cash flows at risk-adjusted
the weighted average cost of equity (aggregating the
rates. The model considers portfolio characteristics,
various reporting units) is compared with the Firm’s overall
contractually specified servicing fees, prepayment
estimated cost of equity to ensure reasonableness.
assumptions, delinquency rates, costs to service, late
The valuations derived from the discounted cash flow charges and other ancillary revenue, and other economic
analysis are then compared with market-based trading and factors. The Firm compares fair value estimates and
transaction multiples for relevant competitors. Trading and assumptions to observable market data where available,
transaction comparables are used as general indicators to and also considers recent market activity and actual
assess the general reasonableness of the estimated fair portfolio experience.
values, although precise conclusions generally cannot be
drawn due to the differences that naturally exist between
the Firm’s businesses and competitor institutions.
Management also takes into consideration a comparison
between the aggregate fair values of the Firm’s reporting
units and JPMorgan Chase’s market capitalization. In
evaluating this comparison, management considers several
factors, including (i) a control premium that would exist in a
market transaction, (ii) factors related to the level of
execution risk that would exist at the firmwide level that do
not exist at the reporting unit level and (iii) short-term
market volatility and other factors that do not directly
affect the value of individual reporting units.
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 or their associated goodwill 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.

The fair value of MSRs is sensitive to changes in interest those for which the Firm receives fixed-rate interest
rates, including their effect on prepayment speeds. MSRs payments) increase in value when interest rates decline.
typically decrease in value when interest rates decline JPMorgan Chase uses combinations of derivatives and
because declining interest rates tend to increase securities to manage the risk of changes in the fair value of
prepayments and therefore reduce the expected life of the MSRs. The intent is to offset any interest-rate related
net servicing cash flows that comprise the MSR asset. changes in the fair value of MSRs with changes in the fair
Conversely, securities (e.g., mortgage-backed securities), value of the related risk management instruments.
principal-only certificates and certain derivatives (i.e.,
The following table summarizes MSR activity for the years ended December 31, 2019, 2018 and 2017.
As of or for the year ended December 31, (in millions, except where otherwise noted) 2019 2018 2017
Fair value at beginning of period $ 6,130 $ 6,030 $ 6,096
MSR activity:
Originations of MSRs 1,384 931 1,103
Purchase of MSRs 105 315 —
Disposition of MSRs(a) (789) (636) (140)
Net additions 700 610 963
Changes due to collection/realization of expected cash flows (951) (740) (797)
Changes in valuation due to inputs and assumptions:

Changes due to market interest rates and other(b) (893) 300 (202)
Changes in valuation due to other inputs and assumptions:
Projected cash flows (e.g., cost to service) (333) (e) 15 (102)
Discount rates 153 24 (19)
Prepayment model changes and other(c) (107) (109) 91
Total changes in valuation due to other inputs and assumptions (287) (70) (30)
Total changes in valuation due to inputs and assumptions (1,180) 230 (232)
Fair value at December 31, $ 4,699 $ 6,130 $ 6,030
Change in unrealized gains/(losses) included in income related to MSRs held at December 31, $ (1,180) $ 230 $ (232)
Contractual service fees, late fees and other ancillary fees included in income 1,639 1,778 1,886
Third-party mortgage loans serviced at December 31, (in billions) 522.0 521.0 555.0
Servicer advances, net of an allowance for uncollectible amounts, at December 31, (in billions)(d) 2.0 3.0 4.0
(a) 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.
(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.
(c) Represents changes in prepayments other than those attributable to changes in market interest rates.
(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) The decrease in projected cash flows was largely related to default servicing assumption updates.

The following table presents the components of mortgage The table below outlines the key economic assumptions
fees and related income (including the impact of MSR risk used to determine the fair value of the Firm’s MSRs at
management activities) for the years ended December 31, December 31, 2019 and 2018, and outlines the
2019, 2018 and 2017. sensitivities of those fair values to immediate adverse
changes in those assumptions, as defined below.
(in millions) 2019 2018 2017 December 31,
CCB mortgage fees and related (in millions, except rates) 2019 2018
income Weighted-average prepayment speed
Net production revenue $ 1,618 $ 268 $ 636 assumption (constant prepayment rate) 11.67% 8.78%
Impact on fair value of 10% adverse change $ (200) $ (205)
Net mortgage servicing revenue:
Impact on fair value of 20% adverse change (384) (397)
Operating revenue:
Weighted-average option adjusted spread (a)(b)
7.93% 7.87%
Loan servicing revenue 1,533 1,835 2,014
Impact on fair value of 100 basis points
Changes in MSR asset fair value adverse change $ (169) $ (235)
due to collection/realization of
expected cash flows (951) (740) (795) Impact on fair value of 200 basis points
adverse change (326) (452)
Total operating revenue 582 1,095 1,219
Risk management: (a) Includes the impact of operational risk and regulatory capital.
(b) The prior period amount has been revised to conform with the current
Changes in MSR asset fair value
due to market interest rates period presentation.
and other(a) (893) 300 (202)
Changes in fair value based on variations in assumptions
Other changes in MSR asset fair generally cannot be easily extrapolated, because the
value due to other inputs and
assumptions in model(b) (287) (70) (30) relationship of the change in the assumptions to the change
Change in derivative fair value in fair value are often highly interrelated and may not be
and other 1,015 (341) (10) linear. In this table, the effect that a change in a particular
Total risk management (165) (111) (242) assumption may have on the fair value is calculated without
Total net mortgage servicing changing any other assumption. In reality, changes in one
revenue 417 984 977
factor may result in changes in another, which would either
Total CCB mortgage fees and magnify or counteract the impact of the initial change.
related income 2,035 1,252 1,613
All other 1 2 3
Mortgage fees and related income $ 2,036 $ 1,254 $ 1,616
(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).

Note 16 – Premises and equipment At December 31, 2019, the maturities of interest-bearing
Premises and equipment, including leasehold time deposits were as follows.
improvements, are carried at cost less accumulated
December 31, 2019
depreciation and amortization. JPMorgan Chase computes (in millions) U.S. Non-U.S. Total
depreciation using the straight-line method over the 2020 $ 60,614 $ 49,443 $ 110,057
estimated useful life of an asset. For leasehold 2021 3,700 123 3,823
improvements, the Firm uses the straight-line method 2022 709 89 798
computed over the lesser of the remaining term of the 2023 175 13 188
leased facility or the estimated useful life of the leased 2024 534 357 891
asset. After 5 years 301 39 340
JPMorgan Chase capitalizes certain costs associated with Total $ 66,033 $ 50,064 $ 116,097
the acquisition or development of internal-use software.
Once the software is ready for its intended use, these costs Note 18 - Leases
are amortized on a straight-line basis over the software’s Lease commitments
expected useful life and reviewed for impairment on an Effective January 1, 2019, the Firm adopted new guidance
ongoing basis. that requires lessees to recognize on the Consolidated
balance sheets all leases with lease terms greater than
Note 17 – Deposits twelve months as a lease liability with a corresponding
At December 31, 2019 and 2018, noninterest-bearing and right-of-use (“ROU”) asset. Accordingly, the Firm recognized
interest-bearing deposits were as follows. operating lease liabilities and ROU assets of $8.2 billion and
$8.1 billion, respectively. The adoption of the new lease
guidance did not have a material impact on the Firm’s
U.S. offices
Consolidated statements of income. The change in
Noninterest-bearing (included $22,637 accounting due to the adoption of the new lease guidance
and $17,204 at fair value)(a)(b) $ 395,667 $ 386,709
did not result in a material change to the future net
Interest-bearing (included $2,534 and
$2,487 at fair value)(a)(b) 876,156 813,881 minimum rental payments/receivables or to the net rental
Total deposits in U.S. offices 1,271,823 1,200,590 expense when compared to December 31, 2018.
Non-U.S. offices Firm as lessee
Noninterest-bearing (included $1,980 and At December 31, 2019, JPMorgan Chase and its
$2,367 at fair value)(a)(b) 20,087 21,459 subsidiaries were obligated under a number of
Interest-bearing (included $1,438 and noncancelable leases, predominantly operating leases for
$1,159 at fair value)(a)(b) 270,521 248,617
premises and equipment used primarily for business
Total deposits in non-U.S. offices 290,608 270,076
purposes. These leases generally have terms of 20 years or
Total deposits $ 1,562,431 $1,470,666
less, determined based on the contractual maturity of the
(a) Includes structured notes classified as deposits for which the fair value
option has been elected. Refer to Note 3 for further discussion. lease, and include periods covered by options to extend or
(b) In the second quarter of 2019, the Firm reclassified balances related terminate the lease when the Firm is reasonably certain
to certain structured notes from interest-bearing to noninterest- that it will exercise those options. None of these lease
bearing deposits as the associated returns are recorded in principal agreements impose restrictions on the Firm’s ability to pay
transactions revenue and not in net interest income. This change was
applied retrospectively and, accordingly, prior period amounts were dividends, engage in debt or equity financing transactions
revised to conform with the current presentation. or enter into further lease agreements. Certain of these
leases contain escalation clauses that will increase rental
At December 31, 2019 and 2018, time deposits in payments based on maintenance, utility and tax increases,
denominations of $250,000 or more were as follows. which are non-lease components. The Firm elected not to
separate lease and non-lease components of a contract for
its real estate leases. As such, real estate lease payments
U.S. offices $ 44,127 $ 25,119
represent payments on both lease and non-lease
Non-U.S. offices 50,840 41,661
components.
Total $ 94,967 $ 66,780

Operating lease liabilities and ROU assets are recognized at Firm as lessor
the lease commencement date based on the present value The Firm provides auto and equipment lease financing to its
of the future minimum lease payments over the lease term. customers through lease arrangements with lease terms
The future lease payments are discounted at a rate that that may contain renewal, termination and/or purchase
represents the Firm’s collateralized borrowing rate for options. Generally, the Firm’s lease financings are operating
financing instruments of a similar term and are included in leases. These assets are recognized in other assets on the
accounts payable and other liabilities. The operating lease Firm’s Consolidated balance sheets and are depreciated on
ROU asset, included in premises and equipment, also a straight-line basis over the lease term to reduce the asset
includes any lease prepayments made, plus initial direct to its estimated residual value. Depreciation expense is
costs incurred, less any lease incentives received. Rental included in technology, communications and equipment
expense associated with operating leases is recognized on a expense in the Consolidated statements of income. The
straight-line basis over the lease term, and generally Firm’s lease income is generally recognized on a straight-
included in occupancy expense in the Consolidated line basis over the lease term and is included in other
statements of income. The following tables provide income in the Consolidated statements of income.
information related to the Firm’s operating leases: On a periodic basis, the Firm assesses leased assets for
impairment, and if the carrying amount of the leased asset
December 31, exceeds the undiscounted cash flows from the lease
(in millions, except where otherwise noted) 2019
payments and the estimated residual value upon disposition
Right-of-use assets $ 8,190
of the leased asset, an impairment loss is recognized.
Lease liabilities 8,505
The risk of loss on auto and equipment leased assets
Weighted average remaining lease term (in years) 8.8 relating to the residual value of the leased assets is
Weighted average discount rate 3.68% monitored through projections of the asset residual values
at lease origination and periodic review of residual values,
Supplemental cash flow information and is mitigated through arrangements with certain
Cash paid for amounts included in the measurement of manufacturers or lessees.
lease liabilities - operating cash flows $ 1,572
The following table presents the carrying value of assets
Supplemental non-cash information
subject to leases reported on the Consolidated balance
Right-of-use assets obtained in exchange for operating
lease obligations $ 1,413 sheets:
December 31,
(in millions) 2019 Carrying value of assets subject to
operating leases, net of accumulated
Rental expense depreciation $ 23,587 $ 21,428
Gross rental expense $ 2,057 Accumulated depreciation 6,121 5,303
Sublease rental income (184)
Net rental expense $ 1,873 The following table presents the Firm’s operating lease
income and the related depreciation expense on the
The following table presents future payments under Consolidated statements of income:
operating leases as of December 31, 2019:
Year ended December 31, (in millions) (in millions) 2019 2018 2017
2020 $ 1,604 Operating lease income $ 5,455 $ 4,540 $ 3,611
2021 1,447 Depreciation expense 4,157 3,522 2,808
2022 1,257
2023 1,081 The following table presents future receipts under operating
2024 944 leases as of December 31, 2019:
After 2024 3,757
Total future minimum lease payments 10,090 Year ended December 31, (in millions)
Less: Imputed interest (1,585) 2020 $ 4,168
Total $ 8,505 2021 2,733
2022 1,025
In addition to the table above, as of December 31, 2019, 2023 86
the Firm had additional future operating lease 2024 37
commitments of $1.2 billion that were signed but had not
After 2024 52
yet commenced. These operating leases will commence
Total future minimum lease receipts $ 8,101
between 2020 and 2022 with lease terms up to 25 years.

Note 19 – Accounts payable and other liabilities

Accounts payable and other liabilities consist of brokerage
payables, which includes payables to customers, dealers
and clearing organizations, and payables from security
purchases that did not settle; accrued expenses, including
income tax payables and credit card rewards liability; and
all other liabilities, including obligations to return securities
received as collateral and litigation reserves.
The following table details the components of accounts
payable and other liabilities.
Brokerage payables $ 118,375 $ 114,794
Other payables and liabilities(a) 92,032 81,916
Total accounts payable and other
liabilities $ 210,407 $ 196,710
(a) Includes credit card rewards liability of $6.4 billion and $5.8 billion at

Note 20 – Long-term debt
JPMorgan Chase issues long-term debt denominated in various currencies, predominantly U.S. dollars, with both fixed and
variable interest rates. Included in senior and subordinated debt below are various equity-linked or other indexed instruments,
which the Firm has elected to measure at fair value. Changes in fair value are recorded in principal transactions revenue in the
Consolidated statements of income, except for unrealized gains/(losses) due to DVA which are recorded in OCI. The following
table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs,
valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31,
2019.
By remaining maturity at 2019 2018

December 31,
(in millions, except rates) Under 1 year 1-5 years After 5 years Total Total
Parent company
Senior debt: Fixed rate $ 13,580 $ 51,982 $ 95,636 $ 161,198 $ 145,820
Variable rate 2,788 12,708 3,119 18,615 22,978
Interest rates(a) 0.15-4.95% 0.50-4.63% 0.45-6.40% 0.15-6.40% 0.17-6.40%
Subordinated debt: Fixed rate $ — $ 5,109 $ 10,046 $ 15,155 $ 14,308
Variable rate — — 9 9 9
Interest rates(a) —% 3.38-3.88% 3.63-8.00% 3.38-8.00% 3.38-8.53%
Subtotal $ 16,368 $ 69,799 $ 108,810 $ 194,977 $ 183,115
Subsidiaries
Federal Home Loan Banks
advances: Fixed rate $ 4 $ 35 $ 96 $ 135 $ 155
Variable rate 9,500 19,000 — 28,500 44,300
Interest rates(a) 1.88-2.18% 1.67-2.24% —% 1.67-2.24% 2.36-2.96%
Senior debt: Fixed rate $ 761 $ 6,955 $ 11,881 $ 19,597 $ 16,434
Variable rate 11,650 24,938 9,273 45,861 35,601
Interest rates(a) 7.50% 2.15-9.43% 1.00-7.50% 1.00-9.43% 1.00-7.50%
Subordinated debt: Fixed rate $ — $ 305 $ — $ 305 $ 301
Variable rate — — — — —
Interest rates(a) —% 8.25% —% 8.25% 8.25%
Subtotal $ 21,915 $ 51,233 $ 21,250 $ 94,398 $ 96,791
Junior subordinated debt: Fixed rate $ — $ — $ 693 $ 693 $ 659
Variable rate — — 1,430 1,430 1,466
Interest rates(a) —% —% 2.41-8.75% 2.41-8.75% 3.04-8.75%
Subtotal $ — $ — $ 2,123 $ 2,123 $ 2,125
Total long-term debt(b)(c)(d) $ 38,283 $ 121,032 $ 132,183 $ 291,498 (f)(g) $ 282,031
Long-term beneficial
interests: Fixed rate $ 1,621 $ 1,369 $ — $ 2,990 $ 7,611
Variable rate 900 2,572 276 3,748 6,103
Interest rates 1.49-2.19% 0.00-2.77% 0.84-4.06% 0.00-4.06% 0.00-4.62%
Total long-term beneficial
interests(e) $ 2,521 $ 3,941 $ 276 $ 6,738 $ 13,714
(a) The interest rates shown are the range of contractual rates in effect at December 31, 2019 and 2018, respectively, including non-U.S. dollar fixed- and
variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The use
of these derivative instruments modifies the Firm’s exposure to the contractual interest rates disclosed in the table above. Including the effects of the
hedge accounting derivatives, the range of modified rates in effect at December 31, 2019, for total long-term debt was (0.02)% to 9.43%, versus the
contractual range of 0.15% to 9.43% presented in the table above. The interest rate ranges shown exclude structured notes accounted for at fair value.
(b) Included long-term debt of $32.0 billion and $47.7 billion secured by assets totaling $186.1 billion and $207.0 billion at December 31, 2019 and 2018,
respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments.
(c) Included $75.7 billion and $54.9 billion of long-term debt accounted for at fair value at December 31, 2019 and 2018, respectively.
(d) Included $13.6 billion and $11.2 billion of outstanding zero-coupon notes at December 31, 2019 and 2018, respectively. The aggregate principal amount
of these notes at their respective maturities is $39.3 billion and $37.4 billion, respectively. The aggregate principal amount reflects the contractual
principal payment at maturity, which may exceed the contractual principal payment at the Firm’s next call date, if applicable.
(e) Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included $36 million and $28 million accounted for at
fair value at December 31, 2019 and 2018, respectively. Excluded short-term commercial paper and other short-term beneficial interests of $11.1 billion
and $6.5 billion at December 31, 2019 and 2018, respectively.
(f) At December 31, 2019, long-term debt in the aggregate of $141.3 billion was redeemable at the option of JPMorgan Chase, in whole or in part, prior to
maturity, based on the terms specified in the respective instruments.
(g) The aggregate carrying values of debt that matures in each of the five years subsequent to 2019 is $38.3 billion in 2020, $45.8 billion in 2021, $19.6
billion in 2022, $29.7 billion in 2023 and $25.9 billion in 2024.

The weighted-average contractual interest rates for total

long-term debt excluding structured notes accounted for at
fair value were 3.13% and 3.28% as of December 31,
2019 and 2018, respectively. In order to modify exposure
to interest rate and currency exchange rate movements,
JPMorgan Chase utilizes derivative instruments, primarily
interest rate and cross-currency interest rate swaps, in
conjunction with some of its debt issuances. The use of
these instruments modifies the Firm’s interest expense on
the associated debt. The modified weighted-average
interest rates for total long-term debt, including the effects
of related derivative instruments, were 3.19% and 3.64%
as of December 31, 2019 and 2018, respectively.
JPMorgan Chase & Co. has guaranteed certain long-term
debt of its subsidiaries, including both long-term debt and
structured notes. These guarantees rank on parity with the
Firm’s other unsecured and unsubordinated indebtedness.
The amount of such guaranteed long-term debt and
structured notes was $14.4 billion and $10.9 billion at
The Firm’s unsecured debt does not contain requirements
that would call for an acceleration of payments, maturities
or changes in the structure of the existing debt, provide any
limitations on future borrowings or require additional
collateral, based on unfavorable changes in the Firm’s credit
ratings, financial ratios, earnings or stock price.

Note 21 – Preferred stock
At December 31, 2019 and 2018, JPMorgan Chase was In the event of a liquidation or dissolution of the Firm,
authorized to issue 200 million shares of preferred stock, in JPMorgan Chase’s preferred stock then outstanding takes
one or more series, with a par value of $1 per share. precedence over the Firm’s common stock with respect to
the payment of dividends and the distribution of assets.
The following is a summary of JPMorgan Chase’s non-cumulative preferred stock outstanding as of December 31, 2019 and 2018.
Carrying value Floating
Shares(a) (in millions) annualized Dividend declared per share(c)
Contractual rate rate of
December 31, December 31, in effect at Earliest three-month Year ended December 31,
December 31, redemption LIBOR/Term
2019 2018 2019 2018 Issue date 2019 date(b) SOFR plus: 2019 2018 2017
Fixed-rate:
Series P — 90,000 $ — $ 900 2/5/2013 —% 3/1/2018 NA $545.00 $545.00 $545.00
Series T — 92,500 — 925 1/30/2014 — 3/1/2019 NA 167.50 670.00 670.00
Series W — 88,000 — 880 6/23/2014 — 9/1/2019 NA 472.50 630.00 630.00
Series Y 143,000 143,000 1,430 1,430 2/12/2015 6.125 3/1/2020 NA 612.52 612.52 612.52
Series AA 142,500 142,500 1,425 1,425 6/4/2015 6.100 9/1/2020 NA 610.00 610.00 610.00
Series BB 115,000 115,000 1,150 1,150 7/29/2015 6.150 9/1/2020 NA 615.00 615.00 615.00
Series DD 169,625 169,625 1,696 1,696 9/21/2018 5.750 12/1/2023 NA 575.00 111.81 —
Series EE 185,000 — 1,850 — 1/24/2019 6.000 3/1/2024 NA 511.67 — — (d)
Series GG 90,000 — 900 — 11/7/2019 4.750 12/1/2024 NA — — — (e)
Fixed-to-floating-rate:
Series I 293,375 430,375 2,934 4,304 4/23/2008 LIBOR + 3.47% 4/30/2018 LIBOR + 3.47% $593.23 $646.38 $790.00 (f)
Series Q 150,000 150,000 1,500 1,500 4/23/2013 5.150 5/1/2023 LIBOR + 3.25 515.00 515.00 515.00
Series R 150,000 150,000 1,500 1,500 7/29/2013 6.000 8/1/2023 LIBOR + 3.30 600.00 600.00 600.00
Series S 200,000 200,000 2,000 2,000 1/22/2014 6.750 2/1/2024 LIBOR + 3.78 675.00 675.00 675.00
Series U 100,000 100,000 1,000 1,000 3/10/2014 6.125 4/30/2024 LIBOR + 3.33 612.50 612.50 612.50
Series V 250,000 250,000 2,500 2,500 6/9/2014 LIBOR + 3.32% 7/1/2019 LIBOR + 3.32 534.09 500.00 500.00 (g)
Series X 160,000 160,000 1,600 1,600 9/23/2014 6.100 10/1/2024 LIBOR + 3.33 610.00 610.00 610.00
Series Z 200,000 200,000 2,000 2,000 4/21/2015 5.300 5/1/2020 LIBOR + 3.80 530.00 530.00 530.00
Series CC 125,750 125,750 1,258 1,258 10/20/2017 4.625 11/1/2022 LIBOR + 2.58 462.50 462.50 129.76
Series FF 225,000 — 2,250 — 7/31/2019 5.000 8/1/2024 SOFR + 3.38 251.39 — — (h)
Total
preferred
stock 2,699,250 2,606,750 $ 26,993 $ 26,068
(a) Represented by depositary shares.
(b) Fixed-to-floating rate notes convert to a floating rate at the earliest redemption date.
(c) Dividends are declared quarterly. Dividends are payable quarterly on fixed-rate preferred stock. Dividends are payable semiannually on fixed-to-floating-
rate preferred stock while at a fixed rate, and payable quarterly after converting to a floating rate.
(d) Dividends in the amount of $211.67 per share were declared on April 12, 2019 and include dividends from the original issue date of January 24, 2019
through May 31, 2019. Dividends in the amount of $150.00 per share were declared thereafter on July 10, 2019 and October 9, 2019.
(e) No dividends were declared for Series GG from the original issue date of November 7, 2019 through December 31, 2019.
(f) The dividend rate for Series I preferred stock became floating and payable quarterly starting on April 30, 2018; prior to which the dividend rate was fixed
at 7.90% or $395.00 per share payable semi annually.
(g) The dividend rate for Series V preferred stock became floating and payable quarterly starting on July 1, 2019; prior to which the dividend rate was fixed at
5% or $250.00 per share payable semi annually. The Firm declared a dividend of $144.11 and $139.98 per share on outstanding Series V preferred
stock on August 15, 2019 and November 15, 2019, respectively.
(h) Dividends in the amount of $126.39 per share were declared on September 9, 2019 and include dividends from the original issue date of July 31, 2019
through October 31, 2019. Dividends in the amount of $125.00 per share were declared thereafter on December 10, 2019.
Each series of preferred stock has a liquidation value and On January 23, 2020, the Firm issued $3.0 billion of fixed-
redemption price per share of $10,000, plus accrued but to-floating rate non-cumulative preferred stock, Series HH.
unpaid dividends. The aggregate liquidation value was
$27.3 billion at December 31, 2019. On December 1, 2019, the Firm redeemed all $900 million
of its 5.45% non-cumulative preferred stock, Series P.
On February 24, 2020, the Firm issued $1.5 billion of fixed-
to- floating rate non-cumulative preferred stock, Series II. On November 7, 2019, the Firm issued $900 million of
4.75% non-cumulative preferred stock, Series GG.
On January 31, 2020, the Firm announced that it will
redeem all $1.43 billion of its 6.125% non-cumulative On October 30, 2019, the Firm redeemed $1.37 billion of
preferred stock, Series Y on March 1, 2020. its fixed-to-floating rate non-cumulative perpetual preferred
stock, Series I.

On September 1, 2019, the Firm redeemed all $880 million

of its 6.30% non-cumulative preferred stock, Series W.
On July 31, 2019, the Firm issued $2.25 billion of fixed-to-
floating rate non-cumulative preferred stock, Series FF.
On March 1, 2019, the Firm redeemed $925 million of its
6.70% non-cumulative preferred stock, Series T.
On January 24, 2019, the Firm issued $1.85 billion of
6.00% non-cumulative preferred stock, Series EE.
On October 30, 2018, the Firm redeemed $1.7 billion of its
fixed-to-floating rate non-cumulative perpetual preferred
stock, Series I.
On September 21, 2018, the Firm issued $1.7 billion of
5.75% non-cumulative preferred stock, Series DD.
Dividends in the amount of $550.00 per share were
declared for series O from January 1, 2017 through
redemption on December 1, 2017.
Redemption rights
Each series of the Firm’s preferred stock may be redeemed
on any dividend payment date on or after the earliest
redemption date for that series. All outstanding preferred
stock series except Series I may also be redeemed following
a “capital treatment event,” as described in the terms of
each series. Any redemption of the Firm’s preferred stock is
subject to non-objection from the Board of Governors of the
Federal Reserve System (the “Federal Reserve”).

Note 22 – Common stock
At December 31, 2019 and 2018, JPMorgan Chase was The following table sets forth the Firm’s repurchases of
authorized to issue 9.0 billion shares of common stock with common equity for the years ended December 31, 2019,
a par value of $1 per share. 2018 and 2017. There were no Warrants repurchased
Common shares issued (newly issued or reissuance from during any of the years.
treasury) by JPMorgan Chase during the years ended Year ended December 31, (in millions) 2019 2018 2017
December 31, 2019, 2018 and 2017 were as follows. Total number of shares of common stock
repurchased 213.0 181.5 166.6
Year ended December 31, Aggregate purchase price of common
(in millions) 2019 2018 2017 stock repurchases $24,121 $19,983 $15,410
Total issued – balance at
January 1 4,104.9 4,104.9 4,104.9 The Firm from time to time enters into written trading plans
Treasury – balance at January 1 (829.1) (679.6) (543.7) under Rule 10b5-1 of the Securities Exchange Act of 1934
Repurchase (213.0) (181.5) (166.6) to facilitate repurchases in accordance with the common
Reissuance: equity repurchase program. A Rule 10b5-1 repurchase plan
Employee benefits and allows the Firm to repurchase its equity during periods
compensation plans 20.4 21.7 24.5 when it would not otherwise be repurchasing common
Warrant exercise — 9.4 5.4 equity — for example, during internal trading “blackout
Employee stock purchase plans 0.8 0.9 0.8 periods.” All purchases under a Rule 10b5-1 plan must be
Total reissuance 21.2 32.0 30.7 made according to a predefined plan established when the
Total treasury – balance at Firm is not aware of material nonpublic information. Refer
December 31 (1,020.9) (829.1) (679.6)
to Part II, Item 5: Market for registrant’s common equity,
Outstanding at December 31 3,084.0 3,275.8 3,425.3
related stockholder matters and issuer purchases of equity
There were no warrants to purchase shares of common securities, on page 30 for additional information regarding
stock (“Warrants”) outstanding at December 31, 2019, as repurchases of the Firm’s equity securities.
any Warrants that were not exercised on or before October As of December 31, 2019, approximately 70.5 million
29, 2018, have expired. At December 31, 2017, the Firm shares of common stock were reserved for issuance under
had 15.0 million Warrants outstanding. various employee incentive, compensation, option and stock
On June 27, 2019, in conjunction with the Federal Reserve’s purchase plans, and directors’ compensation plans.
release of its 2019 CCAR results, the Firm’s Board of
Directors authorized a $29.4 billion common equity
repurchase program. As of December 31, 2019, $15.6
billion of authorized repurchase capacity remained under
the program. This authorization includes shares
repurchased to offset issuances under the Firm’s share-
based compensation plans.

Note 23 – Earnings per share

Basic earnings per share (“EPS”) is calculated using the
two-class method. Under the two-class method, all earnings
(distributed and undistributed) are allocated to common
stock and participating securities. JPMorgan Chase grants
RSUs under its share-based compensation programs,
predominantly all of which entitle recipients to receive
nonforfeitable dividends during the vesting period on a
basis equivalent to dividends paid to holders of the Firm’s
common stock. These unvested RSUs meet the definition of
participating securities based on their respective rights to
receive nonforfeitable dividends, and they are treated as a
separate class of securities in computing basic EPS.
Participating securities are not included as incremental
shares in computing diluted EPS; refer to Note 9 for
Diluted EPS incorporates the potential impact of
contingently issuable shares, including awards which
require future service as a condition of delivery of the
underlying common stock. Diluted EPS is calculated under
both the two-class and treasury stock methods, and the
more dilutive amount is reported. For each of the periods
presented in the table below, diluted EPS calculated under
the two-class method was more dilutive.
The following table presents the calculation of net income
applicable to common stockholders and basic and diluted
EPS for the years ended December 31, 2019, 2018 and
2017.

(in millions,
except per share amounts) 2019 2018 2017
Basic earnings per share
Net income $ 36,431 $ 32,474 $ 24,441
Less: Preferred stock dividends 1,587 1,551 1,663
Net income applicable to common
equity 34,844 30,923 22,778
Less: Dividends and undistributed
earnings allocated to participating
securities 202 214 211
stockholders $ 34,642 $ 30,709 $ 22,567
Total weighted-average basic shares

outstanding 3,221.5 3,396.4 3,551.6
Net income per share $ 10.75 $ 9.04 $ 6.35
Diluted earnings per share

stockholders $ 34,642 $ 30,709 $ 22,567
Total weighted-average basic shares

outstanding 3,221.5 3,396.4 3,551.6
Add: Dilutive impact of SARs and
employee stock options, unvested
PSUs and non-dividend-earning
RSUs, and warrants 8.9 17.6 25.2
Total weighted-average diluted
shares outstanding 3,230.4 3,414.0 3,576.8
Net income per share $ 10.72 $ 9.00 $ 6.31

Note 24 – 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 loss and prior service costs/(credit) 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).
Unrealized Accumulated
Year ended gains/(losses) Translation DVA on fair value other
December 31, on investment adjustments, Fair value Cash flow Defined benefit pension option elected comprehensive
(in millions) securities net of hedges hedges hedges and OPEB plans liabilities income/(loss)
Balance at
December 31,
2016 $ 1,524 $ (164) NA $ (100) $ (2,259) $ (176) $ (1,175)
Net change 640 (306) NA 176 738 (192) 1,056
Balance at
December 31,
2017 $ 2,164 $ (470) $ — $ 76 $ (1,521) $ (368) $ (119)
Cumulative effect of
changes in
accounting
principles:(a) 896 (277) (54) 16 (414) (79) 88
Net change (1,858) 20 (107) (201) (373) 1,043 (1,476)
Balance at
December 31,
2018 $ 1,202 $ (727) $ (161) $ (109) $ (2,308) $ 596 $ (1,507)
Net change 2,855 20 30 172 964 (965) 3,076
Balance at
December 31,
2019 $ 4,057 $ (707) $ (131) $ 63 $ (1,344) $ (369) $ 1,569
(a) Represents the adjustment to AOCI as a result of the accounting standards adopted in the first quarter of 2018. Refer to Note 1 for additional information.

The following table presents the pre-tax and after-tax changes in the components of OCI.
2019 2018 2017
Tax Tax Tax
Year ended December 31, (in millions) Pre-tax effect After-tax Pre-tax effect After-tax Pre-tax effect After-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period $ 4,025 $ (974) $ 3,051 $ (2,825) $ 665 $ (2,160) $ 944 $ (346) $ 598
Reclassification adjustment for realized (gains)/losses
included in net income(a) (258) 62 (196) 395 (93) 302 66 (24) 42
Net change 3,767 (912) 2,855 (2,430) 572 (1,858) 1,010 (370) 640
Translation adjustments(b):
Translation (49) 33 (16) (1,078) 156 (922) 1,313 (801) 512
Hedges 46 (10) 36 1,236 (294) 942 (1,294) 476 (818)
Net change (3) 23 20 158 (138) 20 19 (325) (306)
Fair value hedges, net change(c): 39 (9) 30 (140) 33 (107) NA NA NA
Cash flow hedges:
Net unrealized gains/(losses) arising during the period 122 (28) 94 (245) 58 (187) 147 (55) 92
Reclassification adjustment for realized (gains)/losses
included in net income(d) 103 (25) 78 (18) 4 (14) 134 (50) 84
Net change 225 (53) 172 (263) 62 (201) 281 (105) 176
Defined benefit pension and OPEB plans:
Prior service credit/(cost) arising during the period (5) 1 (4) (29) 7 (22) — — —
Net gain/(loss) arising during the period 1,005 (169) 836 (558) 102 (456) 802 (160) 642
Reclassification adjustments included in net income(e):
Amortization of net loss 167 (36) 131 103 (24) 79 250 (90) 160
Amortization of prior service cost/(credit) 3 (1) 2 (23) 6 (17) (36) 13 (23)
Curtailment (gain)/loss — — — 21 (5) 16 — — —
Settlement (gain)/loss — — — 2 — 2 2 (1) 1
Foreign exchange and other (13) 12 (1) 34 (9) 25 (54) 12 (42)
Net change 1,157 (193) 964 (450) 77 (373) 964 (226) 738
DVA on fair value option elected liabilities, net change: $ (1,264) $ 299 $ (965) $ 1,364 $ (321) $ 1,043 $ (303) $ 111 $ (192)
Total other comprehensive income/(loss) $ 3,921 $ (845) $ 3,076 $ (1,761) $ 285 $ (1,476) $ 1,971 $ (915) $ 1,056
(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 year ended December 31, 2019, the Firm reclassified net pre-tax gains of $7 million to other income and
$1 million to other expense, respectively. These amounts, which related to the liquidation of certain legal entities, are comprised of $18 million related to
net investment hedge gains and$10 million related to cumulative translation adjustments. During the year ended December 31, 2018, the Firm
reclassified a net pre-tax loss of $168 million to other expense related to the liquidation of certain legal entities, $17 million related to net investment
hedge losses and $151 million related to cumulative translation adjustments. During the year ended December 31, 2017, the Firm reclassified a net pre-
tax loss of $25 million to other expense related to the liquidation of a legal entity, $50 million related to net investment hedge gains and $75 million
related to cumulative translation adjustments.
(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 swap.
(d) The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of
income.
(e) The pre-tax amount is reported in other expense in the Consolidated statements of income.

Note 25 – Income taxes
JPMorgan Chase and its eligible subsidiaries file a Impact of the TCJA
consolidated U.S. federal income tax return. JPMorgan 2018
Chase uses the asset and liability method to provide income The Firm’s effective tax rate decreased in 2018 due to the
taxes on all transactions recorded in the Consolidated TCJA, including the reduction in the U.S. federal statutory
Financial Statements. This method requires that income income tax rate as well as a $302 million net tax benefit
taxes reflect the expected future tax consequences of recorded in 2018 resulting from changes in the estimates
temporary differences between the carrying amounts of related to the remeasurement of certain deferred taxes and
assets or liabilities for book and tax purposes. Accordingly, the deemed repatriation tax on non-U.S. earnings. The
a deferred tax asset or liability for each temporary change in estimate was recorded under SEC Staff
difference is determined based on the tax rates that the Accounting Bulletin No. 118 (“SAB 118”) and the
Firm expects to be in effect when the underlying items of accounting under SAB 118 is complete.
income and expense are realized. JPMorgan Chase’s
expense for income taxes includes the current and deferred 2017
portions of that expense. A valuation allowance is The Firm’s effective tax rate increased in 2017 driven by a
established to reduce deferred tax assets to the amount the $1.9 billion income tax expense representing the estimated
Firm expects to realize. impact of the enactment of the TCJA. The $1.9 billion tax
expense was predominantly driven by a deemed
Due to the inherent complexities arising from the nature of repatriation of the Firm’s unremitted non-U.S. earnings and
the Firm’s businesses, and from conducting business and adjustments to the value of certain tax-oriented
being taxed in a substantial number of jurisdictions, investments partially offset by a benefit from the
significant judgments and estimates are required to be revaluation of the Firm’s net deferred tax liability.
made. Agreement of tax liabilities between JPMorgan Chase
and the many tax jurisdictions in which the Firm files tax The deemed repatriation of the Firm’s unremitted non-U.S.
returns may not be finalized for several years. Thus, the earnings is based on the post-1986 earnings and profits of
Firm’s final tax-related assets and liabilities may ultimately each controlled foreign corporation. The calculation
be different from those currently reported. resulted in an estimated income tax expense of $3.7 billion.
Furthermore, accounting for income taxes requires the
Effective tax rate and expense remeasurement of certain deferred tax assets and liabilities
The following table presents a reconciliation of the based on the rates at which they are expected to reverse in
applicable statutory U.S. federal income tax rate to the the future. The Firm remeasured its deferred tax asset and
effective tax rate. liability balances in the fourth quarter of 2017 to the new
Effective tax rate statutory U.S. federal income tax rate of 21% as well as any
federal benefit associated with state and local deferred
Year ended December 31, 2019 2018 2017
income taxes. The remeasurement resulted in an estimated
Statutory U.S. federal tax rate 21.0% 21.0% 35.0%
income tax benefit of $2.1 billion.
Increase/(decrease) in tax rate
resulting from: Adjustments were also recorded in 2017 to income tax
U.S. state and local income expense for certain tax-oriented investments. These
taxes, net of U.S. federal
income tax benefit 3.5 4.0 2.2 adjustments were driven by changes to affordable housing
Tax-exempt income (1.4) (1.5) (3.3) proportional amortization resulting from the reduction of
the federal income tax rate under the TCJA. SAB 118 did not
Non-U.S. earnings 1.8 0.6 (3.1) (a)
apply to these adjustments.
Business tax credits (4.4) (3.5) (4.2)
Tax audit resolutions (2.3) (0.1) (0.3)
Impact of the TCJA — (0.7) 5.4
Other, net — 0.5 0.2
Effective tax rate 18.2% 20.3% 31.9%
(a) Predominantly includes earnings of U.K. subsidiaries that were deemed

to be reinvested indefinitely through December 31, 2017.

The following table reflects the components of income tax Prior to December 31, 2017, U.S. federal income taxes had
expense/(benefit) included in the Consolidated statements not been provided on the undistributed earnings of certain
of income. non-U.S. subsidiaries, to the extent that such earnings had
been reinvested abroad for an indefinite period of time. The
Income tax expense/(benefit) Firm is no longer maintaining the indefinite reinvestment
Year ended December 31, assertion on the undistributed earnings of those non-U.S.
(in millions) 2019 2018 2017
subsidiaries in light of the enactment of the TCJA. The U.S.
Current income tax expense/(benefit)
federal and state and local income taxes associated with the
U.S. federal $ 3,284 $ 2,854 $ 5,718 undistributed and previously untaxed earnings of those
Non-U.S. 2,103 2,077 2,400 non-U.S. subsidiaries was included in the deemed
U.S. state and local 1,778 1,638 1,029 repatriation charge recorded as of December 31, 2017. The
Total current income tax expense/ Firm will recognize any taxes it may incur on global
(benefit) 7,165 6,569 9,147
intangible low tax income as income tax expense in the
Deferred income tax expense/(benefit)
period in which the tax is incurred.
U.S. federal 709 1,359 2,174
Non-U.S. 20 (93) (144) Affordable housing tax credits
U.S. state and local 220 455 282
The Firm recognized $1.5 billion, $1.5 billion and $1.7
billion of tax credits and other tax benefits associated with
Total deferred income tax
expense/(benefit) 949 1,721 2,312 investments in affordable housing projects within income
Total income tax expense $ 8,114 $ 8,290 $ 11,459 tax expense for the years 2019, 2018 and 2017,
respectively. The amount of amortization of such
Total income tax expense includes $1.1 billion, $54 million investments reported in income tax expense was $1.1
and $252 million of tax benefits recorded in 2019, 2018, billion, $1.2 billion and $1.7 billion, respectively. The
and 2017, respectively, resulting from the resolution of tax carrying value of these investments, which are reported in
audits. other assets on the Firm’s Consolidated balance sheets, was
$8.6 billion and $7.9 billion at December 31, 2019 and
Tax effect of items recorded in stockholders’ equity
2018, respectively. The amount of commitments related to
The preceding table does not reflect the tax effect of certain
these investments, which are reported in accounts payable
items that are recorded each period directly in
and other liabilities on the Firm’s Consolidated balance
stockholders’ equity. The tax effect of all items recorded
sheets, was $2.8 billion and $2.3 billion at December 31,
directly to stockholders’ equity resulted in a decrease of
$862 million in 2019, an increase of $172 million in 2018,
and a decrease of $915 million in 2017.
Results from Non-U.S. earnings
The following table presents the U.S. and non-U.S.
components of income before income tax expense.
(in millions) 2019 2018 2017
U.S. $ 36,670 $ 33,052 $ 27,103
Non-U.S.(a) 7,875 7,712 8,797
Income before income tax expense $ 44,545 $ 40,764 $ 35,900
(a) For purposes of this table, non-U.S. income is defined as income

generated from operations located outside the U.S.

Deferred taxes Unrecognized tax benefits
Deferred income tax expense/(benefit) results from At December 31, 2019, 2018 and 2017, JPMorgan Chase’s
differences between assets and liabilities measured for unrecognized tax benefits, excluding related interest
financial reporting purposes versus income tax return expense and penalties, were $4.0 billion, $4.9 billion and
purposes. Deferred tax assets are recognized if, in $4.7 billion, respectively, of which $2.8 billion, $3.8 billion
management’s judgment, their realizability is determined to and $3.5 billion, respectively, if recognized, would reduce
be more likely than not. If a deferred tax asset is the annual effective tax rate. Included in the amount of
determined to be unrealizable, a valuation allowance is unrecognized tax benefits are certain items that would not
established. The significant components of deferred tax affect the effective tax rate if they were recognized in the
assets and liabilities are reflected in the following table. Consolidated statements of income. These unrecognized
items include the tax effect of certain temporary
differences, the portion of gross state and local
Deferred tax assets unrecognized tax benefits that would be offset by the
Allowance for loan losses $ 3,400 $ 3,433 benefit from associated U.S. federal income tax deductions,
Employee benefits 1,039 1,129 and the portion of gross non-U.S. unrecognized tax benefits
Accrued expenses and other 2,767 2,701 that would have offsets in other jurisdictions. JPMorgan
Non-U.S. operations 949 629 Chase is presently under audit by a number of taxing
Tax attribute carryforwards 605 163 authorities, most notably by the Internal Revenue Service as
Gross deferred tax assets 8,760 8,055 summarized in the Tax examination status table below. As
Valuation allowance (557) (89)
JPMorgan Chase is presently under audit by a number of
taxing authorities, it is reasonably possible that over the
Deferred tax assets, net of valuation
allowance $ 8,203 $ 7,966 next 12 months the resolution of these examinations may
Deferred tax liabilities increase or decrease the gross balance of unrecognized tax
Depreciation and amortization $ 2,852 $ 2,533 benefits by as much as $0.5 billion. Upon settlement of an
Mortgage servicing rights, net of
audit, the change in the unrecognized tax benefit would
hedges 2,354 2,586 result from payment or income statement recognition.
Leasing transactions 5,598 4,719
The following table presents a reconciliation of the
Other, net 4,683 3,713
beginning and ending amount of unrecognized tax benefits.
Gross deferred tax liabilities 15,487 13,551
Net deferred tax (liabilities)/assets $ (7,284) $ (5,585) Year ended December 31,
(in millions) 2019 2018 2017
JPMorgan Chase has recorded deferred tax assets of $605 Balance at January 1, $ 4,861 $ 4,747 $ 3,450
million at December 31, 2019, in connection with U.S. Increases based on tax positions
related to the current period 871 980 1,355
federal and non-U.S. NOL carryforwards, foreign tax credit
Increases based on tax positions
(“FTC”) carryforwards, and state and local capital loss related to prior periods 10 649 626
carryforwards. At December 31, 2019, total U.S. federal Decreases based on tax positions
NOL carryforwards were $1.0 billion, non-U.S. NOL related to prior periods (706) (1,249) (350)
carryforwards were $80 million, FTC carryforwards were Decreases related to cash
$329 million, and state and local capital loss carryforwards settlements with taxing authorities (1,012) (266) (334)
were $1.1 billion. If not utilized, a portion of the U.S. Balance at December 31, $ 4,024 $ 4,861 $ 4,747
federal NOL carryforwards will expire between 2022 and
2036 whereas others have an unlimited carryforward After-tax interest expense/(benefit) and penalties related to
period. Similarly, certain non-U.S. NOL carryforwards will income tax liabilities recognized in income tax expense were
expire between 2029 and 2037 whereas others have an $(52) million, $192 million and $102 million in 2019,
unlimited carryforward period. The FTC carryforwards will 2018 and 2017, respectively.
expire in 2029 and the state and local capital loss At December 31, 2019 and 2018, in addition to the liability
carryforwards will expire between 2020 and 2022. for unrecognized tax benefits, the Firm had accrued $817
The valuation allowance at December 31, 2019, was due to million and $887 million, respectively, for income tax-
the state and local capital loss carryforwards, FTC related interest and penalties.
carryforwards, and certain non-U.S. deferred tax assets,
including NOL carryforwards.

Tax examination status
JPMorgan Chase is continually under examination by the
Internal Revenue Service, by taxing authorities throughout
the world, and by many state and local jurisdictions
throughout the U.S. The following table summarizes the
status of significant income tax examinations of JPMorgan
Chase and its consolidated subsidiaries as of December 31,
2019.
Periods under
examination Status
JPMorgan Chase – U.S. 2011 – 2013 Field Examination
completed; JPMorgan
Chase intends to file
amended returns
JPMorgan Chase – U.S. 2014 - 2016 Field Examination
JPMorgan Chase – New 2012 - 2014 Field Examination
York State
JPMorgan Chase – New 2012 - 2014 Field Examination
York City
JPMorgan Chase – 2011 – 2012 Field Examination
California
JPMorgan Chase – U.K. 2006 – 2017 Field examination of
certain select entities

Note 26 – Restricted cash, other restricted Intercompany funds transfers
assets and intercompany funds transfers Restrictions imposed by U.S. federal law prohibit JPMorgan
Chase & Co. (“Parent Company”) and certain of its affiliates
Restricted cash and other restricted assets from borrowing from banking subsidiaries unless the loans
Certain of the Firm’s cash and other assets are restricted as are secured in specified amounts. Such secured loans
to withdrawal or usage. These restrictions are imposed by provided by any banking subsidiary to the Parent Company
various regulatory authorities based on the particular or to any particular affiliate, together with certain other
activities of the Firm’s subsidiaries. transactions with such affiliate (collectively referred to as
The business of JPMorgan Chase Bank, N.A. is subject to “covered transactions”), are generally limited to 10% of the
examination and regulation by the OCC. The Bank is a banking subsidiary’s total capital, as determined by the risk-
member of the U.S. Federal Reserve System, and its based capital guidelines; the aggregate amount of covered
deposits in the U.S. are insured by the FDIC, subject to transactions between any banking subsidiary and all of its
applicable limits. affiliates is limited to 20% of the banking subsidiary’s total
The Federal Reserve requires depository institutions to capital.
maintain cash reserves with a Federal Reserve Bank. The The Parent Company’s two principal subsidiaries are
average required amount of reserve balances is deposited JPMorgan Chase Bank, N.A. and JPMorgan Chase Holdings
by the Firm’s bank subsidiaries. In addition, the Firm is LLC, an intermediate holding company (the “IHC”). The IHC
required to maintain cash reserves at certain non-US holds the stock of substantially all of JPMorgan Chase’s
central banks. subsidiaries other than JPMorgan Chase Bank, N.A. and its
The Firm is also subject to rules and regulations established subsidiaries. The IHC also owns other assets and owes
by other U.S. and non U.S. regulators. As part of its intercompany indebtedness to the holding company. The
compliance with the respective regulatory requirements, Parent Company is obligated to contribute to the IHC
the Firm’s broker-dealers (principally J.P. Morgan Securities substantially all the net proceeds received from securities
LLC in the U.S and J.P. Morgan Securities plc in the U.K.) are issuances (including issuances of senior and subordinated
subject to certain restrictions on cash and other assets. debt securities and of preferred and common stock).
The following table presents the components of the Firm’s The principal sources of income and funding for the Parent
restricted cash: Company are dividends from JPMorgan Chase Bank, N.A.
and dividends and extensions of credit from the IHC. In
December 31, (in billions) 2019 2018 addition to dividend restrictions set forth in statutes and
Cash reserves – Federal Reserve
regulations, the Federal Reserve, the OCC and the FDIC have
Banks $ 26.6 $ 22.1 authority under the Financial Institutions Supervisory Act to
Segregated for the benefit of prohibit or to limit the payment of dividends by the banking
securities and cleared derivative organizations they supervise, including the Parent Company
customers 16.0 14.6
and its subsidiaries that are banks or bank holding
Cash reserves at non-U.S. central companies, if, in the banking regulator’s opinion, payment
banks and held for other general
purposes 3.9 4.1 of a dividend would constitute an unsafe or unsound
Total restricted cash (a)
$ 46.5 $ 40.8 practice in light of the financial condition of the banking
organization. The IHC is prohibited from paying dividends or
(a) Comprises $45.3 billion and $39.6 billion in deposits with banks as of
December 31, 2019 and 2018, respectively, and $1.2 billion in cash extending credit to the Parent Company if certain capital or
and due from banks as of December 31, 2019 and 2018, on the liquidity “thresholds” are breached or if limits are otherwise
Consolidated balance sheets. imposed by the Parent Company’s management or Board of
Also, as of December 31, 2019 and 2018, the Firm had the Directors.
following other restricted assets:
At January 1, 2020, the Parent Company’s banking
• Cash and securities pledged with clearing organizations subsidiaries could pay, in the aggregate, approximately $9
for the benefit of customers of $24.7 billion and $20.6 billion in dividends to their respective bank holding
billion, respectively. companies without the prior approval of their relevant
• Securities with a fair value of $8.8 billion and $9.7 banking regulators. The capacity to pay dividends in 2020
billion, respectively, were also restricted in relation to will be supplemented by the banking subsidiaries’ earnings
customer activity. during the year.

Note 27 – Regulatory capital

The Federal Reserve establishes capital requirements, The following table presents the minimum and well-
including well-capitalized standards, for the consolidated capitalized ratios to which the Firm and its IDI subsidiaries
financial holding company. The OCC establishes similar were subject as of December 31, 2019.
minimum capital requirements and standards for the Firm’s
IDI subsidiaries, including JPMorgan Chase Bank, N.A. Minimum capital ratios Well-capitalized ratios
BHC(a)(e)(f) IDI(b)(e)(f) BHC(c) IDI(d)
The capital rules under Basel III establish minimum capital
ratios and overall capital adequacy standards for large and Capital ratios
internationally active U.S. bank holding companies and CET1 10.5% 7.0% N/A 6.5%
banks, including the Firm and its IDI subsidiaries, including Tier 1 12.0 8.5 6.0 8.0
JPMorgan Chase Bank, N.A. Two comprehensive approaches Total 14.0 10.5 10.0 10.0
are prescribed for calculating RWA: a standardized Tier 1 leverage 4.0 4.0 N/A 5.0
approach (“Basel III Standardized”), and an advanced SLR 5.0 6.0 N/A 6.0
approach (“Basel III Advanced”). Effective January 1, 2019,
the capital adequacy of the Firm and JPMorgan Chase Bank, Note: The table above is as defined by the regulations issued by the Federal
Reserve, OCC and FDIC and to which the Firm and its IDI subsidiaries are
N.A. is evaluated against the fully phased-in measures
subject.
under Basel III that represents the lower of the
(a) Represents the minimum capital ratios applicable to the Firm under
Standardized or Advanced approaches. During 2018, the Basel III. The CET1 minimum capital ratio includes a capital
required capital measures were subject to the transitional conservation buffer of 2.5% and GSIB surcharge of 3.5% as calculated
rules and as of December 31, 2018 were the same on a under Method 2.
fully phased-in and on a transitional basis. (b) Represents requirements for JPMorgan Chase’s IDI subsidiaries. The
CET1 minimum capital ratio includes a capital conservation buffer of
The three components of regulatory capital under the Basel 2.5% that is applicable to the IDI subsidiaries. The IDI subsidiaries are
III rules are as illustrated below: not subject to the GSIB surcharge.
(c) Represents requirements for bank holding companies pursuant to
regulations issued by the Federal Reserve.
(d) Represents requirements for IDI subsidiaries pursuant to regulations
issued under the FDIC Improvement Act.
(e) For the period ended December 31, 2018, the CET1, Tier 1, Total and
Tier 1 leverage minimum capital ratios applicable to the Firm were
9.0%, 10.5%, 12.5%, and 4.0% and the CET1, Tier 1, Total and Tier 1
leverage minimum capital ratios applicable to the Firm’s IDI
subsidiaries were 6.375%, 7.875%, 9.875%, and 4.0%, respectively.
(f) Represents minimum SLR requirement of 3.0%, as well as,
supplementary leverage buffers of 2.0% and 3.0% for BHC and IDI,
respectively.
Under the risk-based capital and leverage-based guidelines

of the Federal Reserve, JPMorgan Chase is required to
maintain minimum ratios for CET1, Tier 1, Total, Tier 1
leverage and the SLR. Failure to meet these minimum
requirements could cause the Federal Reserve to take
action. IDI subsidiaries are also subject to these capital
requirements by their respective primary regulators.

The following tables present the risk-based and leverage-based capital metrics for JPMorgan Chase and JPMorgan Chase Bank,
N.A. under both the Basel III Standardized and Basel III Advanced Approaches. As of December 31, 2019 and 2018, JPMorgan
Chase and JPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject.
Basel III Standardized Fully Phased-In Basel III Advanced Fully Phased-In
December 31, 2019 JPMorgan JPMorgan JPMorgan JPMorgan
(in millions, except ratios) Chase & Co. Chase Bank, N.A. Chase & Co. Chase Bank, N.A.
Regulatory capital
CET1 capital $ 187,753 $ 206,848 $ 187,753 $ 206,848
Tier 1 capital 214,432 206,851 214,432 206,851
Total capital 242,589 224,390 232,112 214,091
Assets
Risk-weighted 1,515,869 1,457,689 1,397,878 1,269,991
Adjusted average(a) 2,730,239 2,353,432 2,730,239 2,353,432
Capital ratios(b)
CET1 12.4% 14.2% 13.4% 16.3%
Tier 1 14.1 14.2 15.3 16.3
Total 16.0 15.4 16.6 16.9
Tier 1 leverage(c) 7.9 8.8 7.9 8.8
Basel III Standardized Transitional Basel III Advanced Transitional

December 31, 2018 JPMorgan JPMorgan JPMorgan JPMorgan
(in millions, except ratios) Chase & Co. Chase Bank, N.A.(d) Chase & Co. Chase Bank, N.A.(d)
Regulatory capital
CET1 capital $ 183,474 $ 211,671 $ 183,474 $ 211,671
Tier 1 capital 209,093 211,671 209,093 211,671
Total capital 237,511 229,952 227,435 220,025
Assets
Risk-weighted 1,528,916 1,446,529 1,421,205 1,283,146
Adjusted average(a) 2,589,887 2,250,480 2,589,887 2,250,480
Capital ratios(b)
CET1 12.0% 14.6% 12.9% 16.5%
Tier 1 13.7 14.6 14.7 16.5
Total 15.5 15.9 16.0 17.1
Tier 1 leverage (c)
8.1 9.4 8.1 9.4
(a) Adjusted average assets, for purposes of calculating the Tier 1 leverage ratio, includes total quarterly average assets adjusted for on-balance sheet assets
that are subject to deduction from Tier 1 capital, predominantly goodwill and other intangible assets.
(b) For each of the risk-based capital ratios, the capital adequacy of the Firm and JPMorgan Chase Bank, N.A. is evaluated against the lower of the two ratios
as calculated under Basel III approaches (Standardized or Advanced).
(c) The Tier 1 leverage ratio is not a risk-based measure of capital.
(d) On May 18, 2019, Chase Bank USA, N.A. merged with and into JPMorgan Chase Bank, N.A., with JPMorgan Chase Bank, N.A as the surviving entity. The
December 31, 2018 amounts reported for JPMorgan Chase Bank, N.A. retrospectively reflect the impact of the merger.

Basel III Advanced Fully Phased-In Basel III Advanced Fully Phased-In
JPMorgan JPMorgan JPMorgan JPMorgan

(in millions, except ratios) Chase & Co. Chase Bank, N.A. Chase & Co. Chase Bank, N.A.(a)
Total leverage exposure 3,423,431 $ 3,044,509 $ 3,269,988 $ 2,915,541
SLR 6.3% 6.8% 6.4% 7.3%
(a) On May 18, 2019, Chase Bank USA, N.A. merged with and into JPMorgan Chase Bank, N.A., with JPMorgan Chase Bank, N.A as the surviving entity. The
December 31, 2018 amounts reported for JPMorgan Chase Bank, N.A. retrospectively reflect the impact of the merger.

Note 28 – Off–balance sheet lending-related

financial instruments, guarantees, and
other commitments
JPMorgan Chase provides lending-related financial To provide for probable credit losses inherent in wholesale
instruments (e.g., commitments and guarantees) to address and certain consumer lending-commitments, an allowance
the financing needs of its customers and clients. The for credit losses on lending-related commitments is
contractual amount of these financial instruments maintained. Refer to Note 13 for further information
represents the maximum possible credit risk to the Firm regarding the allowance for credit losses on lending-related
should the customer or client draw upon the commitment commitments. The following table summarizes the
or the Firm be required to fulfill its obligation under the contractual amounts and carrying values of off-balance
guarantee, and should the customer or client subsequently sheet lending-related financial instruments, guarantees and
fail to perform according to the terms of the contract. Most other commitments at December 31, 2019 and 2018. The
of these commitments and guarantees are refinanced, amounts in the table below for credit card and home equity
extended, cancelled, or expire without being drawn or a lending-related commitments represent the total available
default occurring. As a result, the total contractual amount credit for these products. The Firm has not experienced,
of these instruments is not, in the Firm’s view, and does not anticipate, that all available lines of credit for
representative of its expected future credit exposure or these products will be utilized at the same time. The Firm
funding requirements. can reduce or cancel credit card 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.

Off–balance sheet lending-related financial instruments, guarantees and other commitments
Contractual amount Carrying value(g)
2019 2018 2019 2018
Expires Expires
after after
Expires in 1 year 3 years Expires
By remaining maturity at December 31, 1 year or through through after 5
(in millions) less 3 years 5 years years Total Total
Lending-related
Consumer, excluding credit card:
Home equity $ 680 $ 1,187 $ 2,548 $ 16,704 $ 21,119 $ 20,901 $ 12 $ 12
Residential mortgage(a) 9,086 — — 12 9,098 5,481 — —
Auto 8,296 600 197 195 9,288 8,011 2 2
Consumer & Business Banking 9,994 646 105 1,162 11,907 11,673 19 19
Total consumer, excluding credit card 28,056 2,433 2,850 18,073 51,412 46,066 33 33
Credit card 650,720 — — — 650,720 605,379 — —
Total consumer(b) 678,776 2,433 2,850 18,073 702,132 651,445 33 33
Wholesale:
Other unfunded commitments to extend credit(c) 58,645 129,414 168,400 10,791 367,250 351,490 938 852
Standby letters of credit and other financial
guarantees(c) 15,919 11,127 5,117 1,745 33,908 33,498 618 521
Other letters of credit(c) 2,734 183 40 — 2,957 2,825 4 3
Total wholesale(b) 77,298 140,724 173,557 12,536 404,115 387,813 1,560 1,376
Total lending-related $ 756,074 $ 143,157 $ 176,407 $ 30,609 $ 1,106,247 $1,039,258 $ 1,593 $ 1,409
Other guarantees and commitments
Securities lending indemnification agreements and
guarantees(d) $ 204,827 $ — $ — $ — $ 204,827 $ 186,077 $ — $ —
Derivatives qualifying as guarantees 1,403 144 11,299 40,243 53,089 55,271 159 367
Unsettled resale and securities borrowed
agreements 117,203 748 — — 117,951 102,008 — —
Unsettled repurchase and securities loaned
agreements 72,790 561 — — 73,351 57,732 — —
Loan sale and securitization-related
indemnifications:
Mortgage repurchase liability NA NA NA NA NA NA 59 89
Loans sold with recourse NA NA NA NA 944 1,019 27 30
Exchange & clearing house guarantees and
commitments(e) 206,432 — — — 206,432 58,960 — —
Other guarantees and commitments (f) 2,684 841 293 3,399 7,217 8,183 (73) (73)
(a) Includes certain commitments to purchase loans from correspondents.
(b) Predominantly all consumer and wholesale lending-related commitments are in the U.S.
(c) At December 31, 2019 and 2018, reflected the contractual amount net of risk participations totaling $76 million and $282 million, respectively, for other
unfunded commitments to extend credit; $9.8 billion and $10.4 billion, respectively, for standby letters of credit and other financial guarantees; and $546
million and $385 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk
participations.
(d) At December 31, 2019 and 2018, collateral held by the Firm in support of securities lending indemnification agreements was $216.2 billion and $195.6
billion, respectively. Securities lending collateral primarily consists of cash, G7 government securities, and securities issued by U.S. GSEs and government
agencies.
(e) At December 31, 2019 and 2018, 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.
(f) At December 31, 2019 and 2018, primarily includes letters of credit hedged by derivative transactions and managed on a market risk basis, and unfunded
commitments related to institutional lending. Additionally, includes unfunded commitments predominantly related to certain tax-oriented equity
investments.
(g) For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivative-
related products, the carrying value represents the fair value.

Other unfunded commitments to extend credit types of guarantees, the Firm records this fair value amount
Other unfunded commitments to extend credit generally in other liabilities with an offsetting entry recorded in cash
consist of commitments for working capital and general (for premiums received), or other assets (for premiums
corporate purposes, extensions of credit to support receivable). Any premium receivable recorded in other
commercial paper facilities and bond financings in the event assets is reduced as cash is received under the contract, and
that those obligations cannot be remarketed to new the fair value of the liability recorded at inception is
investors, as well as committed liquidity facilities to clearing amortized into income as lending and deposit-related fees
organizations. The Firm also issues commitments under over the life of the guarantee contract. For indemnifications
multipurpose facilities which could be drawn upon in provided in sales agreements, a portion of the sale
several forms, including the issuance of a standby letter of proceeds is allocated to the guarantee, which adjusts the
credit. gain or loss that would otherwise result from the
transaction. For these indemnifications, the initial liability is
Guarantees
amortized to income as the Firm’s risk is reduced (i.e., over
U.S. GAAP requires that a guarantor recognize, at the
time or when the indemnification expires). Any contingent
inception of a guarantee, a liability in an amount equal to
liability that exists as a result of issuing the guarantee or
the fair value of the obligation undertaken in issuing the
indemnification is recognized when it becomes probable
guarantee. U.S. GAAP defines a guarantee as a contract that
and reasonably estimable. The contingent portion of the
contingently requires the guarantor to pay a guaranteed
liability is not recognized if the estimated amount is less
party based upon: (a) changes in an underlying asset,
than the carrying amount of the liability recognized at
liability or equity security of the guaranteed party; or (b) a
inception (adjusted for any amortization). The contractual
third party’s failure to perform under a specified
amount and carrying value of guarantees and
agreement. The Firm considers the following off–balance
indemnifications are included in the table on page 273. For
sheet arrangements to be guarantees under U.S. GAAP:
additional information on the guarantees, see below.
standby letters of credit and other financial guarantees,
securities lending indemnifications, certain indemnification Standby letters of credit and other financial guarantees
agreements included within third-party contractual Standby letters of credit and other financial guarantees are
arrangements, certain derivative contracts and the conditional lending commitments issued by the Firm to
guarantees under the sponsored member repo program. guarantee the performance of a client or customer to a
third party under certain arrangements, such as
As required by U.S. GAAP, the Firm initially records
commercial paper facilities, bond financings, acquisition
guarantees at the inception date fair value of the obligation
financings, trade and similar transactions.
assumed (e.g., the amount of consideration received or the
net present value of the premium receivable). For certain
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 December 31, 2019 and 2018.
Standby letters of credit, other financial guarantees and other letters of credit
2019 2018
December 31, Standby letters of credit and Other letters Standby letters of credit and Other letters
(in millions) other financial guarantees of credit other financial guarantees of credit
Investment-grade(a) $ 26,647 $ 2,136 $ 26,420 $ 2,079
Noninvestment-grade(a) 7,261 821 7,078 746
Total contractual amount $ 33,908 $ 2,957 $ 33,498 $ 2,825
Allowance for lending-related commitments $ 216 $ 4 $ 167 $ 3
Guarantee liability 402 — 354 —
Total carrying value $ 618 $ 4 $ 521 $ 3
Commitments with collateral $ 17,582 $ 726 $ 17,400 $ 583
(a) The ratings scale is based on the Firm’s internal risk ratings. Refer to Note 12 for further information on internal risk ratings.

Securities lending indemnifications The following table summarizes the derivatives qualifying as
Through the Firm’s securities lending program, guarantees as of December 31, 2019 and 2018.
counterparties’ securities, via custodial and non-custodial
arrangements, may be lent to third parties. As part of this (in millions) 2019 2018
program, the Firm provides an indemnification in the
Notional amounts
lending agreements which protects the lender against the
Derivative guarantees $ 53,089 $ 55,271
failure of the borrower to return the lent securities. To
minimize its liability under these indemnification Stable value contracts with
contractually limited exposure 28,877 28,637
agreements, the Firm obtains cash or other highly liquid
Maximum exposure of stable
collateral with a market value exceeding 100% of the value value contracts with
of the securities on loan from the borrower. Collateral is contractually limited exposure 2,967 2,963
marked to market daily to help assure that collateralization Fair value
is adequate. Additional collateral is called from the
Derivative payables 159 367
borrower if a shortfall exists, or collateral may be released
to the borrower in the event of overcollateralization. If a In addition to derivative contracts that meet the
borrower defaults, the Firm would use the collateral held to characteristics of a guarantee, the Firm is both a purchaser
purchase replacement securities in the market or to credit and seller of credit protection in the credit derivatives
the lending client or counterparty with the cash equivalent market. Refer to Note 5 for a further discussion of credit
thereof. derivatives.
The cash collateral held by the Firm may be invested on Unsettled securities financing agreements
behalf of the client in indemnified resale agreements, In the normal course of business, the Firm enters into resale
whereby the Firm indemnifies the client against the loss of and securities borrowed agreements. At settlement, these
principal invested. To minimize its liability under these commitments result in the Firm advancing cash to and
agreements, the Firm obtains collateral with a market value receiving securities collateral from the counterparty. The
exceeding 100% of the principal invested. Firm also enters into repurchase and securities loaned
Derivatives qualifying as guarantees agreements. At settlement, these commitments result in the
The Firm transacts in certain derivative contracts that have Firm receiving cash from and providing securities collateral
the characteristics of a guarantee under U.S. GAAP. These to the counterparty. Such agreements settle at a future
contracts include written put options that require the Firm date. These agreements generally do not meet the
to purchase assets upon exercise by the option holder at a definition of a derivative, and therefore, are not recorded
specified price by a specified date in the future. The Firm on the Consolidated balance sheets until settlement date.
may enter into written put option contracts in order to meet These agreements predominantly have regular-way
client needs, or for other trading purposes. The terms of settlement terms. Refer to Note 11 for a further discussion
written put options are typically five years or less. of securities financing agreements.
Derivatives deemed to be guarantees also includes stable Loan sales- and securitization-related indemnifications
value contracts, commonly referred to as “stable value Mortgage repurchase liability
products”, that require the Firm to make a payment of the In connection with the Firm’s mortgage loan sale and
difference between the market value and the book value of securitization activities with U.S. GSEs the Firm has made
a counterparty’s reference portfolio of assets in the event representations and warranties that the loans sold meet
that market value is less than book value and certain other certain requirements, and that may require the Firm to
conditions have been met. Stable value products are repurchase mortgage loans and/or indemnify the loan
transacted in order to allow investors to realize investment purchaser if such representations and warranties are
returns with less volatility than an unprotected portfolio. breached by the Firm. Further, although the Firm’s
These contracts are typically longer-term or may have no securitizations are predominantly nonrecourse, the Firm
stated maturity, but allow the Firm to elect to terminate the does provide recourse servicing in certain limited cases
contract under certain conditions. where it agrees to share credit risk with the owner of the
mortgage loans. To the extent that repurchase demands
The notional value of derivatives guarantees generally
that are received relate to loans that the Firm purchased
represents the Firm’s maximum exposure. However,
from third parties that remain viable, the Firm typically will
exposure to certain stable value products is contractually
have the right to seek a recovery of related repurchase
limited to a substantially lower percentage of the notional
losses from the third party. Generally, the maximum amount
amount.
of future payments the Firm would be required to make for
The fair value of derivative guarantees reflects the breaches of these representations and warranties would be
probability, in the Firm’s view, of whether the Firm will be equal to the unpaid principal balance of such loans that are
required to perform under the contract. The Firm reduces deemed to have defects that were sold to purchasers
exposures to these contracts by entering into offsetting (including securitization-related SPEs) plus, in certain
transactions, or by entering into contracts that hedge the circumstances, accrued interest on such loans and certain
market risk related to the derivative guarantees. expenses.

Private label securitizations Merchant charge-backs

The liability related to repurchase demands associated with Under the rules of payment networks, the Firm, in its role as
private label securitizations is separately evaluated by the a merchant acquirer, retains a contingent liability for
Firm in establishing its litigation reserves. disputed processed credit and debit card transactions that
result in a charge-back to the merchant. If a dispute is
Refer to Note 30 for additional information regarding
resolved in the cardholder’s favor, Merchant Services will
litigation.
(through the cardholder’s issuing bank) credit or refund the
Loans sold with recourse amount to the cardholder and will charge back the
The Firm provides servicing for mortgages and certain transaction to the merchant. If Merchant Services is unable
commercial lending products on both a recourse and to collect the amount from the merchant, Merchant Services
nonrecourse basis. In nonrecourse servicing, the principal will bear the loss for the amount credited or refunded to the
credit risk to the Firm is the cost of temporary servicing cardholder. Merchant Services mitigates this risk by
advances of funds (i.e., normal servicing advances). In withholding future settlements, retaining cash reserve
recourse servicing, the servicer agrees to share credit risk accounts or obtaining other collateral. In addition, Merchant
with the owner of the mortgage loans, such as Fannie Mae Services recognizes a valuation allowance that covers the
or Freddie Mac or a private investor, insurer or guarantor. payment or performance risk to the Firm related to charge-
Losses on recourse servicing predominantly occur when backs.
foreclosure sales proceeds of the property underlying a
For the years ended December 31, 2019, 2018 and 2017,
defaulted loan are less than the sum of the outstanding
Merchant Services processed an aggregate volume of
principal balance, plus accrued interest on the loan and the
$1,511.5 billion, $1,366.1 billion, and $1,191.7 billion,
cost of holding and disposing of the underlying property.
respectively, and the related losses from merchant charge-
The Firm’s securitizations are predominantly nonrecourse,
backs were not material.
thereby effectively transferring the risk of future credit
losses to the purchaser of the mortgage-backed securities Clearing Services – Client Credit Risk
issued by the trust. At December 31, 2019 and 2018, the The Firm provides clearing services for clients by entering
unpaid principal balance of loans sold with recourse totaled into securities purchases and sales and derivative contracts
$944 million and $1.0 billion, respectively. The carrying with CCPs, including ETDs such as futures and options, as
value of the related liability that the Firm has recorded in well as OTC-cleared derivative contracts. As a clearing
accounts payable and other liabilities on the Consolidated member, the Firm stands behind the performance of its
balance sheets, which is representative of the Firm’s view of clients, collects cash and securities collateral (margin) as
the likelihood it will have to perform under its recourse well as any settlement amounts due from or to clients, and
obligations, was $27 million and $30 million at remits them to the relevant CCP or client in whole or part.
December 31, 2019 and 2018, respectively. There are two types of margin: variation margin is posted
on a daily basis based on the value of clients’ derivative
Other off-balance sheet arrangements
contracts and initial margin is posted at inception of a
Indemnification agreements – general
derivative contract, generally on the basis of the potential
In connection with issuing securities to investors outside the
changes in the variation margin requirement for the
U.S., the Firm may agree to pay additional amounts to the
contract.
holders of the securities in the event that, due to a change
in tax law, certain types of withholding taxes are imposed As a clearing member, the Firm is exposed to the risk of
on payments on the securities. The terms of the securities nonperformance by its clients, but is not liable to clients for
may also give the Firm the right to redeem the securities if the performance of the CCPs. Where possible, the Firm
such additional amounts are payable. The Firm may also seeks to mitigate its risk to the client through the collection
enter into indemnification clauses in connection with the of appropriate amounts of margin at inception and
licensing of software to clients (“software licensees”) or throughout the life of the transactions. The Firm can also
when it sells a business or assets to a third party (“third- cease providing clearing services if clients do not adhere to
party purchasers”), pursuant to which it indemnifies their obligations under the clearing agreement. In the event
software licensees for claims of liability or damages that of nonperformance by a client, the Firm would close out the
may occur subsequent to the licensing of the software, or client’s positions and access available margin. The CCP
third-party purchasers for losses they may incur due to would utilize any margin it holds to make itself whole, with
actions taken by the Firm prior to the sale of the business or any remaining shortfalls required to be paid by the Firm as
assets. It is difficult to estimate the Firm’s maximum a clearing member.
exposure under these indemnification arrangements, since
The Firm reflects its exposure to nonperformance risk of the
this would require an assessment of future changes in tax
client through the recognition of margin receivables from
law and future claims that may be made against the Firm
clients and margin payables to CCPs; the clients’ underlying
that have not yet occurred. However, based on historical
securities or derivative contracts are not reflected in the
experience, management expects the risk of loss to be
Firm’s Consolidated Financial Statements.
remote.

It is difficult to estimate the Firm’s maximum possible Sponsored member repo program
exposure through its role as a clearing member, as this In 2018 the Firm commenced the sponsored member repo
would require an assessment of transactions that clients program, wherein the Firm acts as a sponsoring member to
may execute in the future. However, based upon historical clear eligible overnight resale and repurchase agreements
experience, and the credit risk mitigants available to the through the Government Securities Division of the Fixed
Firm, management believes it is unlikely that the Firm will Income Clearing Corporation (“FICC”) on behalf of clients
have to make any material payments under these that become sponsored members under the FICC’s rules.
arrangements and the risk of loss is expected to be remote. The Firm also guarantees to the FICC the prompt and full
payment and performance of its sponsored member clients’
Refer to Note 5 for information on the derivatives that the
respective obligations under the FICC’s rules. The Firm
Firm executes for its own account and records in its
minimizes its liability under these overnight guarantees by
Consolidated Financial Statements.
obtaining a security interest in the cash or high-quality
Exchange & Clearing House Memberships securities collateral that the clients place with the clearing
The Firm is a member of several securities and derivative house; therefore, the Firm expects the risk of loss to be
exchanges and clearing houses, both in the U.S. and other remote. The Firm’s maximum possible exposure, without
countries, and it provides clearing services to its clients. taking into consideration the associated collateral, is
Membership in some of these organizations requires the included in the Exchange & clearing house guarantees and
Firm to pay a pro rata share of the losses incurred by the commitments line on page 273. Refer to Note 11 for
organization as a result of the default of another member. additional information on credit risk mitigation practices on
Such obligations vary with different organizations. These resale agreements and the types of collateral pledged under
obligations may be limited to the amount (or a multiple of repurchase agreements.
the amount) of the Firm’s contribution to the guarantee
Guarantees of subsidiaries
fund maintained by a clearing house or exchange as part of
In the normal course of business, the Parent Company may
the resources available to cover any losses in the event of a
provide counterparties with guarantees of certain of the
member default. Alternatively, these obligations may also
trading and other obligations of its subsidiaries on a
include a pro rata share of the residual losses after applying
contract-by-contract basis, as negotiated with the Firm’s
the guarantee fund. Additionally, certain clearing houses
counterparties. The obligations of the subsidiaries are
require the Firm as a member to pay a pro rata share of
included on the Firm’s Consolidated balance sheets or are
losses that may result from the clearing house’s investment
reflected as off-balance sheet commitments; therefore, the
of guarantee fund contributions and initial margin,
Parent Company has not recognized a separate liability for
unrelated to and independent of the default of another
these guarantees. The Firm believes that the occurrence of
member. Generally a payment would only be required
any event that would trigger payments by the Parent
should such losses exceed the resources of the clearing
Company under these guarantees is remote.
house or exchange that are contractually required to absorb
the losses in the first instance. In certain cases, it is difficult The Parent Company has guaranteed certain long-term debt
to estimate the Firm’s maximum possible exposure under and structured notes of its subsidiaries, including JPMorgan
these membership agreements, since this would require an Chase Financial Company LLC (“JPMFC”), a 100%-owned
assessment of future claims that may be made against the finance subsidiary. All securities issued by JPMFC are fully
Firm that have not yet occurred. However, based on and unconditionally guaranteed by the Parent Company.
historical experience, management expects the risk of loss These guarantees, which rank on a parity with the Firm’s
to the Firm to be remote. Where the Firm’s maximum unsecured and unsubordinated indebtedness, are not
possible exposure can be estimated, the amount is disclosed included in the table on page 273 of this Note. Refer to
in the table on page 273, in the Exchange & clearing house Note 20 for additional information.
guarantees and commitments line.

Note 29 – Pledged assets and collateral

Pledged assets Collateral
The Firm pledges financial assets that it owns to maintain The Firm accepts financial assets as collateral that it is
potential borrowing capacity at discount windows with permitted to sell or repledge, deliver or otherwise use. This
Federal Reserve banks, various other central banks and collateral is generally obtained under resale and other
FHLBs. Additionally, the Firm pledges assets for other securities financing agreements, prime brokerage-related
purposes, including to collateralize repurchase and other held-for-investment customer receivables and derivative
securities financing agreements, to cover short sales and to contracts. Collateral is generally used under repurchase and
collateralize derivative contracts and deposits. Certain of other securities financing agreements, to cover short sales,
these pledged assets may be sold or repledged or otherwise and to collateralize derivative contracts and deposits.
used by the secured parties and are parenthetically The following table presents the fair value of collateral
identified on the Consolidated balance sheets as assets accepted.
pledged.
The following table presents the Firm’s pledged assets.
Collateral permitted to be sold or repledged,
delivered, or otherwise used $ 1,282.5 $ 1,245.3
Collateral sold, repledged, delivered or
Assets that may be sold or repledged or otherwise used 1,000.5 998.3
otherwise used by secured parties $ 125.2 $ 104.0
Assets that may not be sold or repledged or
otherwise used by secured parties 80.2 83.7
Assets pledged at Federal Reserve banks and
FHLBs 478.9 475.3
Total pledged assets $ 684.3 $ 663.0
Total pledged assets do not include assets of consolidated

VIEs; these assets are used to settle the liabilities of those
entities. Refer to Note 14 for additional information on
assets and liabilities of consolidated VIEs. Refer to Note 11
for additional information on the Firm’s securities financing
activities. Refer to Note 20 for additional information on the
Firm’s long-term debt. The significant components of the
Firm’s pledged assets were as follows.
Investment securities $ 35.9 $ 59.5
Loans 460.4 440.1
Trading assets and other 188.0 163.4
Total pledged assets $ 684.3 $ 663.0

Note 30 – Litigation
Contingencies
As of December 31, 2019, the Firm and its subsidiaries and Set forth below are descriptions of the Firm’s material legal
affiliates are defendants, putative defendants or proceedings.
respondents in numerous legal proceedings, including
Federal Republic of Nigeria Litigation. JPMorgan Chase Bank,
private, civil litigations and regulatory/government
N.A. operated an escrow and depository account for the
investigations. The litigations range from individual actions
Federal Government of Nigeria (“FGN”) and two major
involving a single plaintiff to class action lawsuits with
international oil companies. The account held
potentially millions of class members. Investigations involve
approximately $1.1 billion in connection with a dispute
both formal and informal proceedings, by both
among the clients over rights to an oil field. Following the
governmental agencies and self-regulatory organizations.
settlement of the dispute, JPMorgan Chase Bank, N.A. paid
These legal proceedings are at varying stages of
out the monies in the account in 2011 and 2013 in
adjudication, arbitration or investigation, and involve each
accordance with directions received from its clients. In
of the Firm’s lines of business and several geographies and
November 2017, the Federal Republic of Nigeria (“FRN”)
a wide variety of claims (including common law tort and
commenced a claim in the English High Court for
contract claims and statutory antitrust, securities and
approximately $875 million in payments made out of the
consumer protection claims), some of which present novel
accounts. The FRN, claiming to be the same entity as the
legal theories.
FGN, alleges that the payments were instructed as part of a
The Firm believes the estimate of the aggregate range of complex fraud not involving JPMorgan Chase Bank, N.A., but
reasonably possible losses, in excess of reserves that JPMorgan Chase Bank, N.A. was or should have been on
established, for its legal proceedings is from $0 to notice that the payments may be fraudulent. JPMorgan
approximately $1.3 billion at December 31, 2019. This Chase Bank, N.A. applied for summary judgment and was
estimated aggregate range of reasonably possible losses unsuccessful. The claim is ongoing and no trial date has
was based upon information available as of that date for been set.
those proceedings in which the Firm believes that an
Foreign Exchange Investigations and Litigation. The Firm
estimate of reasonably possible loss can be made. For
previously reported settlements with certain government
certain matters, the Firm does not believe that such an
authorities relating to its foreign exchange (“FX”) sales and
estimate can be made, as of that date. The Firm’s estimate
trading activities and controls related to those activities. FX-
of the aggregate range of reasonably possible losses
related investigations and inquiries by government
involves significant judgment, given:
authorities, including competition authorities, are ongoing,
• the number, variety and varying stages of the and the Firm is cooperating with and working to resolve
proceedings, including the fact that many are in those matters. In May 2015, the Firm pleaded guilty to a
preliminary stages, single violation of federal antitrust law. In January 2017,
the Firm was sentenced, with judgment entered thereafter
• the existence in many such proceedings of multiple
and a term of probation ending in January 2020. The term
defendants, including the Firm, whose share of liability
of probation has concluded, with the Firm remaining in
(if any) has yet to be determined,
good standing throughout the probation period. The
• the numerous yet-unresolved issues in many of the Department of Labor has granted the Firm a five-year
proceedings, including issues regarding class exemption of disqualification that allows the Firm and its
certification and the scope of many of the claims, and affiliates to continue to rely on the Qualified Professional
Asset Manager exemption under the Employee Retirement
• the attendant uncertainty of the various potential
Income Security Act (“ERISA”) until January 2023. The Firm
outcomes of such proceedings, including where the Firm
will need to reapply in due course for a further exemption
has made assumptions concerning future rulings by the
to cover the remainder of the ten-year disqualification
court or other adjudicator, or about the behavior or
period. In addition, the Firm has paid fines totaling
incentives of adverse parties or regulatory authorities,
approximately $265 million in connection with the
and those assumptions prove to be incorrect.
settlement of FX-related investigations conducted by the
In addition, the outcome of a particular proceeding may be European Commission and the Swiss Competition
a result which the Firm did not take into account in its Commission which were announced in May 2019 and June
estimate because the Firm had deemed the likelihood of 2019, respectively. Separately, in February 2017 the South
that outcome to be remote. Accordingly, the Firm’s estimate Africa Competition Commission referred its FX investigation
of the aggregate range of reasonably possible losses will of the Firm and other banks to the South Africa Competition
change from time to time, and actual losses may vary Tribunal, which is conducting civil proceedings concerning
significantly. that matter.

In August 2018, the United States District Court for the various governmental agencies and entities around the
Southern District of New York granted final approval to the world relating primarily to the British Bankers Association’s
Firm’s settlement of a consolidated class action brought by London Interbank Offered Rate (“LIBOR”) for various
U.S.-based plaintiffs, which principally alleged violations of currencies and the European Banking Federation’s Euro
federal antitrust laws based on an alleged conspiracy to Interbank Offered Rate (“EURIBOR”). The Swiss Competition
manipulate foreign exchange rates and also sought Commission’s investigation relating to EURIBOR, to which
damages on behalf of persons who transacted in FX futures the Firm and other banks are subject, continues. In
and options on futures. Certain members of the settlement December 2016, the European Commission issued a
class filed requests to the Court to be excluded from the decision against the Firm and other banks finding an
class, and certain of them filed a complaint against the Firm infringement of European antitrust rules relating to
and a number of other foreign exchange dealers in EURIBOR. The Firm has filed an appeal of that decision with
November 2018. A number of these actions remain the European General Court, and that appeal is pending.
pending. Further, putative class actions have been filed
In addition, the Firm has been named as a defendant along
against the Firm and a number of other foreign exchange
with other banks in a series of individual and putative class
dealers on behalf of certain consumers who purchased
actions related to benchmarks, including U.S. dollar LIBOR
foreign currencies at allegedly inflated rates and purported
during the period that it was administered by the BBA and,
indirect purchasers of FX instruments; these actions also
in a separate consolidated putative class action, during the
remain pending in the District Court. In addition, some FX-
period that it was administered by ICE Benchmark
related individual and putative class actions based on
Administration. These actions have been filed, or
similar alleged underlying conduct have been filed outside
consolidated for pre-trial purposes, in the United States
the U.S., including in the U.K., Israel and Australia.
District Court for the Southern District of New York. In these
Interchange Litigation. Groups of merchants and retail actions, plaintiffs make varying allegations that in various
associations filed a series of class action complaints alleging periods, starting in 2000 or later, defendants either
that Visa and Mastercard, as well as certain banks, individually or collectively manipulated various benchmark
conspired to set the price of credit and debit card rates by submitting rates that were artificially low or high.
interchange fees and enacted related rules in violation of Plaintiffs allege that they transacted in loans, derivatives or
antitrust laws. In 2012, the parties initially settled the cases other financial instruments whose values are affected by
for a cash payment, a temporary reduction of credit card changes in these rates and assert a variety of claims
interchange, and modifications to certain credit card including antitrust claims seeking treble damages. These
network rules. In 2017, after the approval of that actions are in various stages of litigation.
settlement was reversed on appeal, the case was remanded
In actions related to U.S. dollar LIBOR during the period that
to the District Court for further proceedings consistent with
it was administered by the BBA, the District Court dismissed
the appellate decision.
certain claims, including antitrust claims brought by some
The original class action was divided into two separate plaintiffs whom the District Court found did not have
actions, one seeking primarily monetary relief and the other standing to assert such claims, and permitted certain claims
seeking primarily injunctive relief. In September 2018, the to proceed, including antitrust, Commodity Exchange Act,
parties to the class action seeking monetary relief finalized Section 10(b) of the Securities Exchange Act and common
an agreement which amends and supersedes the prior law claims. The plaintiffs whose antitrust claims were
settlement agreement. Pursuant to this settlement, the dismissed for lack of standing have filed an appeal. The
defendants collectively contributed an additional $900 District Court granted class certification of antitrust claims
million to the approximately $5.3 billion previously held in related to bonds and interest rate swaps sold directly by the
escrow from the original settlement. In December 2019, the defendants and denied class certification motions filed by
amended agreement was approved by the District Court. other plaintiffs. The Firm’s settlements of putative class
Certain merchants filed notices of appeal of the District actions related to Swiss franc LIBOR, the Singapore
Court’s approval order. Based on the percentage of Interbank Offered Rate and the Singapore Swap Offer Rate
merchants that opted out of the amended class settlement, (“SIBOR”), the Australian Bank Bill Swap Reference Rate,
$700 million has been returned to the defendants from the and certain of the putative class actions related to U.S.
settlement escrow in accordance with the settlement dollar LIBOR remain subject to court approval. In the class
agreement. The class action seeking primarily injunctive actions related to SIBOR and Swiss franc LIBOR, the District
relief continues separately. Court concluded that the Court lacked subject matter
jurisdiction, and plaintiffs’ appeals of those decisions are
In addition, certain merchants have filed individual actions pending.
raising similar allegations against Visa and Mastercard, as
well as against the Firm and other banks, and those actions Metals and U.S. Treasuries Investigations and Litigation and
are proceeding. Related Inquiries. Various authorities, including the
Department of Justice’s Criminal Division, are conducting
LIBOR and Other Benchmark Rate Investigations and investigations relating to trading practices in the metals
Litigation. JPMorgan Chase has responded to inquiries from markets and related conduct. The Firm also is responding to
related requests concerning similar trading-practices issues The Firm has established reserves for several hundred of its
in markets for other financial instruments, such as U.S. currently outstanding legal proceedings. In accordance with
Treasuries. The Firm continues to cooperate with these the provisions of U.S. GAAP for contingencies, the Firm
investigations and is currently engaged in discussions with accrues for a litigation-related liability when it is probable
various regulators about resolving their respective that such a liability has been incurred and the amount of
investigations. There is no assurance that such discussions the loss can be reasonably estimated. The Firm evaluates its
will result in settlements. Several putative class action outstanding legal proceedings each quarter to assess its
complaints have been filed in the United States District litigation reserves, and makes adjustments in such reserves,
Court for the Southern District of New York against the Firm upwards or downward, as appropriate, based on
and certain former employees, alleging a precious metals management’s best judgment after consultation with
futures and options price manipulation scheme in violation counsel. The Firm’s legal expense/(benefit) was $239
of the Commodity Exchange Act. Some of the complaints million, $72 million and $(35) million for the years ended
also allege unjust enrichment and deceptive acts or December 31, 2019, 2018 and 2017, respectively. There is
practices under the General Business Law of the State of no assurance that the Firm’s litigation reserves will not need
New York. The Court consolidated these putative class to be adjusted in the future.
actions in February 2019. The Firm is also a defendant in a
In view of the inherent difficulty of predicting the outcome
consolidated action filed in the United States District Court
of legal proceedings, particularly where the claimants seek
for the Southern District of New York alleging
very large or indeterminate damages, or where the matters
monopolization of silver futures in violation of the Sherman
present novel legal theories, involve a large number of
Act.
parties or are in early stages of discovery, the Firm cannot
Wendel. Since 2012, the French criminal authorities have state with confidence what will be the eventual outcomes of
been investigating a series of transactions entered into by the currently pending matters, the timing of their ultimate
senior managers of Wendel Investissement (“Wendel”) resolution or the eventual losses, fines, penalties or
during the period from 2004 through 2007 to restructure consequences related to those matters. JPMorgan Chase
their shareholdings in Wendel. JPMorgan Chase Bank, N.A., believes, based upon its current knowledge and after
Paris branch provided financing for the transactions to a consultation with counsel, consideration of the material
number of managers of Wendel in 2007. JPMorgan Chase legal proceedings described above and after taking into
has cooperated with the investigation. The investigating account its current litigation reserves and its estimated
judges issued an ordonnance de renvoi in November 2016, aggregate range of possible losses, that the other legal
referring JPMorgan Chase Bank, N.A. to the French tribunal proceedings currently pending against it should not have a
correctionnel for alleged complicity in tax fraud. No date for material adverse effect on the Firm’s consolidated financial
trial has been set by the court. In January 2018, the Paris condition. The Firm notes, however, that in light of the
Court of Appeal issued a decision cancelling the mise en uncertainties involved in such proceedings, there is no
examen of JPMorgan Chase Bank, N.A. The Court of assurance that the ultimate resolution of these matters will
Cassation, France’s highest court, ruled in September 2018 not significantly exceed the reserves it has currently
that a mise en examen is a prerequisite for an ordonnance accrued or that a matter will not have material reputational
de renvoi and in January 2020 ordered the annulment of consequences. As a result, the outcome of a particular
the ordonnance de renvoi referring JPMorgan Chase Bank, matter may be material to JPMorgan Chase’s operating
N.A. to the French tribunal correctionnel. In addition, a results for a particular period, depending on, among other
number of the managers have commenced civil proceedings factors, the size of the loss or liability imposed and the level
against JPMorgan Chase Bank, N.A. The claims are separate, of JPMorgan Chase’s income for that period.
involve different allegations and are at various stages of
proceedings.
* * *
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.

Note 31 – International operations

The following table presents income statement and balance As the Firm’s operations are highly integrated, estimates
sheet-related information for JPMorgan Chase by major and subjective assumptions have been made to apportion
international geographic area. The Firm defines revenue and expense between U.S. and international
international activities for purposes of this footnote operations. These estimates and assumptions are consistent
presentation as business transactions that involve clients with the allocations used for the Firm’s segment reporting
residing outside of the U.S., and the information presented as set forth in Note 32.
below is based predominantly on the domicile of the client,
The Firm’s long-lived assets for the periods presented are
the location from which the client relationship is managed,
not considered by management to be significant in relation
booking location or the location of the trading desk.
to total assets. The majority of the Firm’s long-lived assets
However, many of the Firm’s U.S. operations serve
are located in the U.S.
international businesses.
Income before
As of or for the year ended December 31, income tax
(in millions) Revenue
(c)
Expense
(d)
expense Net income Total assets
2019
Europe/Middle East/Africa $ 15,902 $ 9,977 $ 5,925 $ 4,084 $ 388,353 (e)
Asia-Pacific 7,270 5,014 2,256 1,511 183,408

Latin America/Caribbean 2,411 1,561 850 613 47,836
Total international 25,583 16,552 9,031 6,208 619,597
North America(a) 90,044 54,530 35,514 30,223 2,067,782
Total $ 115,627 $ 71,082 $ 44,545 $ 36,431 $ 2,687,379
2018(b)
Asia-Pacific 6,997 4,877 2,120 1,491 171,637

Latin America/Caribbean 2,365 1,301 1,064 745 43,870
North America(a) 83,199 52,054 31,145 25,655 1,980,896
Total $ 109,029 $ 68,265 $ 40,764 $ 32,474 $ 2,622,532
2017 (b)
Asia-Pacific 5,835 4,523 1,312 725 163,823

Latin America/Caribbean 1,959 1,527 432 274 42,403
North America(a) 77,406 49,520 27,886 19,122 1,918,170
Total $ 100,705 $ 64,805 $ 35,900 $ 24,441 $ 2,533,600
(a) Substantially reflects the U.S.

(c) Revenue is composed of net interest income and noninterest revenue.
(d) Expense is composed of noninterest expense and the provision for credit losses.
(e) Total assets for the U.K. were approximately $305 billion, $297 billion, and $310 billion at December 31, 2019, 2018 and 2017, respectively.

Note 32 – Business segments
The Firm is managed on an LOB basis. There are four major management solutions, prime brokerage, and
reportable business segments – Consumer & Community research. Markets & Securities Services also includes
Banking, Corporate & Investment Bank, Commercial Securities Services, a leading global custodian which
Banking and Asset & Wealth Management. In addition, there provides custody, fund accounting and administration, and
is a Corporate segment. The business segments are securities lending products principally for asset managers,
determined based on the products and services provided, or insurance companies and public and private investment
the type of customer served, and they reflect the manner in funds.
which financial information is currently evaluated by the
Commercial Banking
Firm’s Operating Committee. Segment results are presented
Commercial Banking provides comprehensive financial
on a managed basis. Refer to Segment results of this
solutions, including lending, treasury services, investment
footnote for a further discussion of JPMorgan Chase’s
banking and asset management products across three
business segments.
primary client segments: Middle Market Banking, Corporate
The following is a description of each of the Firm’s business Client Banking and Commercial Real Estate Banking. Other
segments, and the products and services they provide to includes amounts not aligned with a primary client
their respective client bases. segment.
Consumer & Community Banking Middle Market Banking covers small business and midsized
Consumer & Community Banking offers services to corporations, local governments and nonprofit clients.
consumers and businesses through bank branches, ATMs,
digital (including mobile and online) and telephone Corporate Client Banking covers large corporations.
banking. CCB is organized into Consumer & Business Commercial Real Estate Banking covers investors,
Banking (including Consumer Banking/Chase Wealth developers, and owners of multifamily, office, retail,
Management and Business Banking), Home Lending industrial and affordable housing properties.
(including Home Lending Production, Home Lending
Servicing and Real Estate Portfolios) and Card, Merchant Asset & Wealth Management
Services & Auto. Consumer & Business Banking offers Asset & Wealth Management, with client assets of $3.2
deposit and investment products and services to trillion, is a global leader in investment and wealth
consumers, and lending, deposit, and cash management management. AWM clients include institutions, high-net-
and payment solutions to small businesses. Home Lending worth individuals and retail investors in major markets
includes mortgage origination and servicing activities, as throughout the world. AWM offers investment management
well as portfolios consisting of residential mortgages and across most major asset classes including equities, fixed
home equity loans. Card, Merchant Services & Auto issues income, alternatives and money market funds. AWM also
credit cards to consumers and small businesses, offers offers multi-asset investment management, providing
payment processing services to merchants, and originates solutions for a broad range of clients’ investment needs. For
and services auto loans and leases. Wealth Management clients, AWM also provides retirement
products and services, brokerage and banking services
Corporate & Investment Bank including trusts and estates, loans, mortgages and deposits.
The Corporate & Investment Bank, which consists of The majority of AWM’s client assets are in actively managed
Banking and Markets & Securities Services, offers a broad portfolios.
suite of investment banking, market-making, prime
brokerage, and treasury and securities products and Corporate
services to a global client base of corporations, investors, The Corporate segment consists of Treasury and Chief
financial institutions, government and municipal entities. Investment Office and Other Corporate, which includes
Banking offers a full range of investment banking products corporate staff functions and expense that is centrally
and services in all major capital markets, including advising managed. Treasury and CIO is predominantly responsible
on corporate strategy and structure, capital-raising in for measuring, monitoring, reporting and managing the
equity and debt markets, as well as loan origination and Firm’s liquidity, funding, capital, structural interest rate and
syndication. Banking also includes Treasury Services, which foreign exchange risks. The major Other Corporate functions
provides transaction services, consisting of cash include Real Estate, Technology, Legal, Corporate Finance,
management and liquidity solutions. Markets & Securities Human Resources, Internal Audit, Risk Management,
Services is a global market-maker in cash securities and Compliance, Control Management, Corporate Responsibility
derivative instruments, and also offers sophisticated risk and various Other Corporate groups.

Segment results
The following table provides a summary of the Firm’s Business segment capital allocation
segment results as of or for the years ended December 31, Each business segment is allocated capital by taking into
2019, 2018 and 2017, on a managed basis. The Firm’s consideration a variety of factors including capital levels of
definition of managed basis starts with the reported U.S. similarly rated peers and applicable regulatory capital
GAAP results and includes certain reclassifications to requirements. ROE is measured and internal targets for
present total net revenue for the Firm (and each of the expected returns are established as key measures of a
reportable business segments) on an FTE basis. Accordingly, business segment’s performance.
revenue from investments that receive tax credits and tax-
The Firm’s allocation methodology incorporates Basel III
exempt securities is presented in the managed results on a
Standardized RWA, Basel III Advanced RWA, leverage, the
basis comparable to taxable investments and securities.
GSIB surcharge, and a simulation of capital in a severe
This allows management to assess the comparability of
stress environment. Periodically, the assumptions and
revenue from year-to-year arising from both taxable and
methodologies used to allocate capital are assessed and as
tax-exempt sources. The corresponding income tax impact
a result, the capital allocated to the LOBs may change.
related to tax-exempt items is recorded within income tax
expense/(benefit). These adjustments have no impact on
net income as reported by the Firm as a whole or by the
LOBs.
Segment results and reconciliation

Consumer & Community Banking Corporate & Investment Bank Commercial Banking Asset & Wealth Management
December 31,
(in millions, except ratios) 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017
Noninterest revenue $ 18,642 $ 16,260 $ 14,710 $ 29,142 $ 26,968 $ 24,539 $ 2,430 $ 2,343 $ 2,522 $ 10,816 $ 10,539 $ 10,456
Net interest income 37,241 35,819 31,775 9,156 9,480 10,118 6,554 6,716 6,083 3,500 3,537 3,379
Total net revenue 55,883 52,079 46,485 38,298 36,448 34,657 8,984 9,059 8,605 14,316 14,076 13,835
Provision for credit losses 4,952 4,753 5,572 277 (60) (45) 296 129 (276) 61 53 39
Noninterest expense 28,896 27,835 26,062 21,519 20,918 19,407 3,500 3,386 3,327 10,515 10,353 10,218
Income/(loss) before income

tax expense/(benefit) 22,035 19,491 14,851 16,502 15,590 15,295 5,188 5,544 5,554 3,740 3,670 3,578
Income tax expense/(benefit) 5,394 4,639 5,456 4,580 3,817 4,482 1,264 1,307 2,015 907 817 1,241
Net income/(loss) $ 16,641 $ 14,852 $ 9,395 $ 11,922 $ 11,773 $ 10,813 $ 3,924 $ 4,237 $ 3,539 $ 2,833 $ 2,853 $ 2,337
Average equity $ 52,000 $ 51,000 $ 51,000 $ 80,000 $ 70,000 $ 70,000 $ 22,000 $ 20,000 $ 20,000 $ 10,500 $ 9,000 $ 9,000
Total assets 539,090 557,441 552,601 908,153 903,051 826,384 220,514 220,229 221,228 182,004 170,024 151,909
Return on equity 31% 28% 17% 14% 16% 14% 17% 20% 17% 26% 31% 25%
Overhead ratio 52 53 56 56 57 56 39 37 39 73 74 74

(Table continued from previous page)
Corporate Reconciling Items(a) Total
December 31,
(b)
Noninterest revenue $ (114) $ (263) $ 1,085 $ (2,534) $ (1,877) $ (2,704) $ 58,382 $ 53,970 $ 50,608
Net interest income 1,325 135 55 (531) (628) (1,313) 57,245 55,059 50,097
Total net revenue 1,211 (128) 1,140 (3,065) (2,505) (4,017) 115,627 109,029 100,705
Provision for credit losses (1) (4) — — — — 5,585 4,871 5,290
Noninterest expense 1,067 902 501 — — — 65,497 63,394 59,515
Income/(loss) before income

tax expense/(benefit) 145 (1,026) 639 (3,065) (2,505) (4,017) 44,545 40,764 35,900
(b)
Income tax expense/(benefit) (966) 215 2,282 (3,065) (2,505) (4,017) 8,114 8,290 11,459
Net income/(loss) $ 1,111 $ (1,241) $ (1,643) $ — $ — $ — $ 36,431 $ 32,474 $ 24,441
Average equity $ 68,407 $ 79,222 $ 80,350 $ — $ — $ — $ 232,907 $ 229,222 $ 230,350
Total assets 837,618 771,787 781,478 NA NA NA 2,687,379 2,622,532 2,533,600
Return on equity NM NM NM NM NM NM 15% 13% 10%
Overhead ratio NM NM NM NM NM NM 57 58 59
(a) Segment results on a managed basis reflect revenue on a FTE basis with the corresponding income tax impact recorded within income tax expense/
(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results.
(b) Included $375 million related to tax-oriented investments as a result of the enactment of the TCJA.

Note 33 – Parent Company Statements of cash flows
The following tables present Parent Company-only financial Year ended December 31,
(in millions) 2019 2018 2017
statements.
Statements of income and comprehensive income Net income $ 36,431 $ 32,474 $ 24,441
Year ended December 31, Less: Net income of subsidiaries
(in millions) 2019 2018 2017 and affiliates(a) 42,906 38,125 26,185
Income Parent company net loss (6,475) (5,651) (1,744)
Dividends from subsidiaries and Cash dividends from subsidiaries
affiliates: and affiliates(a) 26,000 32,501 13,540
Bank and bank holding company $ 26,000 $ 32,501 $ 13,000 Other operating adjustments 9,862 (4,400) 4,635
Non-bank(a) — 2 540 Net cash provided by/(used in)
Interest income from subsidiaries 223 216 72 operating activities 29,387 22,450 16,431
Other interest income — — 41 Investing activities
Net change in:
Other income from subsidiaries:
Other changes in loans, net — — 78
Bank and bank holding company 2,738 515 1,553
Advances to and investments in
Non-bank 197 (444) (88) subsidiaries and affiliates, net (6) (e) 8,036 (280)
Other income (1,731) 888 (623) All other investing activities, net 71 63 49
Total income 27,427 33,678 14,495 Net cash provided by/(used in)
Expense investing activities 65 8,099 (153)
Interest expense to subsidiaries Financing activities
and affiliates(a) (5,303) 2,291 400
Net change in:
Other interest expense 13,246 4,581 5,202 Borrowings from subsidiaries
Noninterest expense 1,992 1,793 (1,897) and affiliates(a) 2,941 (2,273) 13,862
Total expense 9,935 8,665 3,705 Short-term borrowings (56) (678) (481)
Income before income tax benefit Proceeds from long-term
and undistributed net income of borrowings 25,569 25,845 25,855
subsidiaries 17,492 25,013 10,790
Payments of long-term
Income tax benefit 2,033 1,838 1,007 borrowings (21,226) (21,956) (29,812)
Equity in undistributed net income Proceeds from issuance of
of subsidiaries 16,906 5,623 12,644 preferred stock 5,000 1,696 1,258
Net income $ 36,431 $ 32,474 $ 24,441 Redemption of preferred stock (4,075) (1,696) (1,258)
Other comprehensive income, net 3,076 (1,476) 1,056 Treasury stock repurchased (24,001) (19,983) (15,410)
Comprehensive income $ 39,507 $ 30,998 $ 25,497 Dividends paid (12,343) (10,109) (8,993)
All other financing activities, net (1,290) (1,526) (1,361)
Balance sheets
Net cash used in financing
December 31, (in millions) 2019 2018 activities (29,481) (30,680) (16,340)
Assets Net decrease in cash and due
Cash and due from banks $ 32 $ 55 from banks and deposits with
banking subsidiaries (29) (131) (62)
Deposits with banking subsidiaries 5,309 5,315
Cash and due from banks and
Trading assets 3,011 3,304 deposits with banking
Advances to, and receivables from, subsidiaries: subsidiaries at the beginning of
the year 5,370 5,501 5,563
Bank and bank holding company 2,358 3,334 Cash and due from banks and
Non-bank 84 74 deposits with banking
subsidiaries at the end of the
Investments (at equity) in subsidiaries and year $ 5,341 $ 5,370 $ 5,501
affiliates:
Cash interest paid $ 7,957 $ 6,911 $ 5,426
Bank and bank holding company 471,207 449,628
Cash income taxes paid, net(d) 3,910 1,782 1,775
Non-bank 1,044 1,077
(a) Affiliates include trusts that issued guaranteed capital debt securities (“issuer
Other assets 10,699 10,478 trusts”).
Total assets $ 493,744 $ 473,265 (b) At December 31, 2019, long-term debt that contractually matures in 2020
through 2024 totaled $16.4 billion, $20.4 billion, $12.7 billion, $18.6 billion,
Liabilities and stockholders’ equity and $18.2 billion, respectively.
Borrowings from, and payables to, subsidiaries (c) Refer to Notes 20 and 28 for information regarding the Parent Company’s
and affiliates(a) $ 23,410 $ 20,017 guarantees of its subsidiaries’ obligations.
(d) Represents payments, net of refunds, made by the Parent Company to various
Short-term borrowings 2,616 2,672
taxing authorities and includes taxes paid on behalf of certain of its subsidiaries
Other liabilities 9,288 8,821 that are subsequently reimbursed. The reimbursements were $6.4 billion, $1.2
Long-term debt(b)(c) 197,100 185,240 billion, and $4.1 billion for the years ended December 31, 2019, 2018, and
2017, respectively.
Total liabilities(c) 232,414 216,750 (e) As a result of the merger of Chase Bank USA, N.A. with and into JPMorgan Chase
Total stockholders’ equity 261,330 256,515 Bank, N.A., JPMorgan Chase Bank, N.A. distributed $13.5 billion to the Parent
company as a return of capital, which the Parent company contributed to the
Total liabilities and stockholders’ equity $ 493,744 $ 473,265 IHC.

Supplementary information
Selected quarterly financial data (unaudited)

As of or for the period ended 2019 2018
(in millions, except per share, ratio, headcount
data and where otherwise noted) 4th quarter 3rd quarter 2nd quarter 1st quarter 4th quarter 3rd quarter 2nd quarter 1st quarter
Total net revenue $ 28,331 $ 29,341 $ 28,832 $ 29,123 $ 26,109 $ 27,260 $ 27,753 $ 27,907
Total noninterest expense 16,339 16,422 16,341 16,395 15,720 15,623 15,971 16,080
Pre-provision profit 11,992 12,919 12,491 12,728 10,389 11,637 11,782 11,827
Provision for credit losses 1,427 1,514 1,149 1,495 1,548 948 1,210 1,165
Income before income tax expense 10,565 11,405 11,342 11,233 8,841 10,689 10,572 10,662
Income tax expense 2,045 2,325 1,690 2,054 1,775 2,309 2,256 1,950
Net income $ 8,520 $ 9,080 $ 9,652 $ 9,179 $ 7,066 $ 8,380 $ 8,316 $ 8,712
Earnings per share data
Net income: Basic $ 2.58 $ 2.69 $ 2.83 $ 2.65 $ 1.99 $ 2.35 $ 2.31 $ 2.38
Diluted 2.57 2.68 2.82 2.65 1.98 2.34 2.29 2.37
Average shares: Basic 3,140.7 3,198.5 3,250.6 3,298.0 3,335.8 3,376.1 3,415.2 3,458.3
Diluted 3,148.5 3,207.2 3,259.7 3,308.2 3,347.3 3,394.3 3,434.7 3,479.5
Market and per common share data
Market capitalization $ 429,913 $ 369,133 $ 357,479 $ 328,387 $ 319,780 $ 375,239 $ 350,204 $ 374,423
Common shares at period-end 3,084.0 3,136.5 3,197.5 3,244.0 3,275.8 3,325.4 3,360.9 3,404.8
Book value per share 75.98 75.24 73.88 71.78 70.35 69.52 68.85 67.59
TBVPS(a) 60.98 60.48 59.52 57.62 56.33 55.68 55.14 54.05
Cash dividends declared per share 0.90 0.90 0.80 0.80 0.80 0.80 0.56 0.56
Selected ratios and metrics
ROE(b) 14% 15% 16% 16% 12% 14% 14% 15%
ROTCE(a)(b) 17 18 20 19 14 17 17 19
ROA(b) 1.22 1.30 1.41 1.39 1.06 1.28 1.28 1.37
Overhead ratio 58 56 57 56 60 57 58 58
Loans-to-deposits ratio 61 62 63 64 67 65 65 63
LCR (average)(c) 116 115 113 111 113 115 115 115
CET1 capital ratio(d) 12.4 12.3 12.2 12.1 12.0 12.0 12.0 11.8
Tier 1 capital ratio(d) 14.1 14.1 14.0 13.8 13.7 13.6 13.6 13.5
Total capital ratio(d) 16.0 15.9 15.8 15.7 15.5 15.4 15.5 15.3
Tier 1 leverage ratio(d) 7.9 7.9 8.0 8.1 8.1 8.2 8.2 8.2
SLR(e) 6.3 6.3 6.4 6.4 6.4 6.5 6.5 6.5
Trading assets $ 411,103 $ 495,875 $ 523,373 $ 533,402 $ 413,714 $ 419,827 $ 418,799 $ 412,282
Investment Securities 398,239 394,251 307,264 267,365 $ 261,828 231,398 233,015 238,188
Loans 959,769 945,218 956,889 956,245 $ 984,554 954,318 948,414 934,424
Core loans 916,144 899,572 908,971 905,943 931,856 899,006 889,433 870,536
Average core loans 903,707 900,567 905,786 916,567 907,271 894,279 877,640 861,089
Total assets 2,687,379 2,764,661 2,727,379 2,737,188 2,622,532 2,615,183 2,590,050 2,609,785
Deposits 1,562,431 1,525,261 1,524,361 1,493,441 1,470,666 1,458,762 1,452,122 1,486,961
Long-term debt 291,498 296,472 288,869 290,893 282,031 270,124 273,114 274,449
Common stockholders’ equity 234,337 235,985 236,222 232,844 230,447 231,192 231,390 230,133
Total stockholders’ equity 261,330 264,348 263,215 259,837 256,515 258,956 257,458 256,201
Headcount 256,981 257,444 254,983 255,998 256,105 255,313 252,942 253,707
Credit quality metrics
Allowance for credit losses $ 14,314 $ 14,400 $ 14,295 $ 14,591 $ 14,500 $ 14,225 $ 14,367 $ 14,482
Allowance for loan losses to total retained loans 1.39% 1.42% 1.39% 1.43% 1.39% 1.39% 1.41% 1.44%
Allowance for loan losses to retained loans
excluding purchased credit-impaired loans(f) 1.31 1.32 1.28 1.28 1.23 1.23 1.22 1.25
Nonperforming assets $ 4,497 $ 5,343 $ 5,260 $ 5,616 $ 5,190 $ 5,034 $ 5,767 $ 6,364
Net charge-offs 1,494 1,371 1,403 1,361 1,236 1,033 1,252 1,335
Net charge-off rate 0.63% 0.58% 0.60% 0.58% 0.52% 0.43% 0.54% 0.59%
(a) TBVPS and ROTCE are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures and Key Performance
Measures on pages 57–59 for further discussion of these measures.
(b) Quarterly ratios are based upon annualized amounts.
(c) The percentage represents the Firm’s reported average LCR.
(d) The Basel III capital rules became fully phased-in effective January 1, 2019. Prior to this date, the required capital measures were subject to the transitional rules
which, as of December 31, 2018 and September 30, 2018, were the same on a fully phased-in and transitional basis. Refer to Capital Risk Management on pages
85–92 for additional information on these measures.
(e) The Basel III rule for the SLR became fully phased-in effective January 1, 2018. Refer to Capital Risk Management on pages 85–92 for additional information on
these measures.
(f) This ratio is a non-GAAP financial measure as it excludes the impact of residential real estate PCI loans. Refer to Explanation and Reconciliation of the Firm’s Use of
Non-GAAP Financial Measures and Key Performance Measures on pages 57–59, and the Allowance for credit losses on pages 116–117 for further discussion of this
measure.

Distribution of assets, liabilities and stockholders’ equity; interest rates and interest differentials
Consolidated average balance sheets, interest and rates adjusted to present interest income and rates earned on
Provided below is a summary of JPMorgan Chase’s assets exempt from income taxes (i.e., federal taxes) on a
consolidated average balances, interest and rates on a basis comparable with other taxable investments. The
taxable-equivalent basis for the years 2017 through 2019. incremental tax rate used for calculating the taxable-
Income computed on a taxable-equivalent basis is the equivalent adjustment was approximately 24% in both
income reported in the Consolidated statements of income, 2019 and 2018, and 37% in 2017.

(Unaudited) 2019
Year ended December 31, Average
(Taxable-equivalent interest and rates; in millions, except rates) balance Interest(h) Rate
Assets
Deposits with banks $ 280,004 $ 3,887 1.39%
Federal funds sold and securities purchased under resale agreements 275,429 6,146 2.23
Securities borrowed(a) 131,291 1,574 1.20
Trading assets – debt instruments(a) 334,269 10,848 3.25
Taxable securities 284,127 7,962 2.80
Non-taxable securities(b) 35,748 1,655 4.63
Total investment securities 319,875 9,617 3.01 (j)
(i)
Loans 954,539 50,532 5.29
All other interest-earning assets(a)(c) 50,084 1,967 3.93
Total interest-earning assets(a) 2,345,491 84,571 3.61
Allowance for loan losses (13,331)
Cash and due from banks 20,645
Trading assets – equity and other instruments(a) 114,323
Trading assets – derivative receivables 53,786
Goodwill, MSRs and other intangible assets 53,683
All other noninterest-earning assets 167,244
Total assets $ 2,741,841
Liabilities
Interest-bearing deposits(a) $ 1,115,848 $ 8,957 0.80%
Federal funds purchased and securities loaned or sold under repurchase agreements 227,994 4,630 2.03
Short-term borrowings(a)(d) 52,426 1,248 2.38
Trading liabilities – debt and all other interest-bearing liabilities(a)(e)(f) 182,105 2,585 1.42
Beneficial interests issued by consolidated VIEs 22,501 568 2.52
Long-term debt(a) 247,968 8,807 3.55
Total interest-bearing liabilities(a) 1,848,842 26,795 1.45
Noninterest-bearing deposits(a) 407,219
Trading liabilities – equity and other instruments(a)(f) 31,085
Trading liabilities – derivative payables 42,560
All other liabilities, including the allowance for lending-related commitments(a) 151,717
Total liabilities 2,481,423
Stockholders’ equity
Preferred stock 27,511
Common stockholders’ equity 232,907
Total stockholders’ equity 260,418 (g)
Total liabilities and stockholders’ equity $ 2,741,841

Interest rate spread(a) 2.16%
Net interest income and net yield on interest-earning assets(a) $ 57,776 2.46
(a) In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect on net
interest income. These changes were made to align the accounting treatment between the balance sheet and the related interest income or expense, primarily by
offsetting interest income and expense for certain prime brokerage-related held-for-investment customer receivables and payables that are currently presented as a
single margin account on the balance sheet. In addition, the Firm reclassified balances related to certain instruments and structured notes from interest-earning/
bearing to noninterest-earning/bearing assets and liabilities as the associated returns are recorded in principal transactions revenue and not in net interest income.
These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.
(b) Represents securities that are tax-exempt for U.S. federal income tax purposes.
(c) Includes prime 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) Includes commercial paper.
(e) All other interest-bearing liabilities include prime brokerage-related customer payables.

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

2018 2017
Average Average
balance Interest(h) Rate balance Interest(h) Rate
$ 405,514 $ 5,907 1.46% $ 439,663 $ 4,238 0.96%

217,150 3,819 1.76 191,820 2,327 1.21
115,082 913 0.79 95,324 94 0.10
244,771 8,763 3.58 227,588 7,714 3.39
194,232 5,653 2.91 223,592 5,534 2.48
42,456 1,987 4.68 45,086 2,769 6.14
236,688 7,640 3.23 (j)
268,678 8,303 3.09 (j)
(i) (i)
944,885 47,796 5.06 906,397 41,296 4.56
48,818 1,890 3.87 41,504 1,312 3.16
2,212,908 76,728 3.47 2,170,974 65,284 3.01
(13,269) (13,453)
21,694 20,432
118,152 125,530
60,734 59,588
54,669 53,999
154,010 138,992
$ 2,608,898 $ 2,556,062
$ 1,045,037 $ 5,973 0.57% $ 1,006,184 $ 2,857 0.28%

189,282 3,066 1.62 187,386 1,611 0.86
54,993 1,144 2.08 38,095 481 1.26
177,788 2,387 1.34 171,731 1,669 0.97
21,079 493 2.34 32,457 503 1.55
243,246 7,978 3.28 263,928 6,753 2.56
1,731,425 21,041 1.22 1,699,781 13,874 0.82
411,424 411,202
34,667 21,104
43,075 44,122
132,836 123,291
2,353,427 2,299,500
26,249 26,212
229,222 230,350
255,471 (g)
256,562 (g)
$ 2,608,898 $ 2,556,062
2.25% 2.19%
$ 55,687 2.52 $ 51,410 2.37
(f) The combined balance of trading liabilities – debt and equity instruments was $101.0 billion, $107.0 billion and $90.7 billion for the years ended December 31,
(g) The ratio of average stockholders’ equity to average assets was 9.5%, 9.8% and 10.0% for the years ended December 31, 2019, 2018 and 2017, respectively.
The return on average stockholders’ equity, based on net income, was 14.0%, 12.7% and 9.5% for the years ended December 31, 2019, 2018 and 2017,
respectively.
(h) Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(i) Fees and commissions on loans included in loan interest amounted to $1.2 billion each for the years ended December 31, 2019 and 2018, and $1.0 billion for
2017.
(j) The annualized rate for securities based on amortized cost was 3.05%, 3.25% and 3.13% for the years ended December 31, 2019, 2018 and 2017, respectively,
and does not give effect to changes in fair value that are reflected in AOCI.

Interest rates and interest differential analysis of net interest income – U.S. and non-U.S.
Presented below is a summary of interest and rates the location of the office recording the transaction.
segregated between U.S. and non-U.S. operations for the Intercompany funding generally consists of dollar-
years 2017 through 2019. The segregation of U.S. and non- denominated deposits originated in various locations that
U.S. components is based on are centrally managed by Treasury and CIO.

2019
(Unaudited)
(Taxable-equivalent interest and rates; in millions, except rates) Average balance Interest Rate
Interest-earning assets
Deposits with banks:
U.S. $ 165,066 $ 3,588 2.17%
Non-U.S. 114,938 299 0.26
Federal funds sold and securities purchased under resale agreements:
U.S. 150,205 4,068 2.71
Non-U.S. 125,224 2,078 1.66
Securities borrowed:(a)
U.S. 92,625 1,423 1.54
Non-U.S. 38,666 151 0.39
Trading assets – debt instruments:
U.S. 223,270 7,125 3.19
Non-U.S. 110,999 3,723 3.35
Investment securities:
U.S. 287,961 8,963 3.11
Non-U.S. 31,914 654 2.05
Loans:
U.S. 875,869 48,097 5.49
Non-U.S. 78,670 2,435 3.10
All other interest-earning assets, predominantly U.S.(a) 50,084 1,967 3.93
Total interest-earning assets(a) 2,345,491 84,571 3.61
Interest-bearing liabilities
Interest-bearing deposits:
U.S. 850,493 6,896 0.81
Non-U.S. 265,355 2,061 0.78
Federal funds purchased and securities loaned or sold under repurchase agreements:
U.S. 164,284 3,989 2.43
Non-U.S. 63,710 641 1.01
Trading liabilities – debt, short-term and all other interest-bearing liabilities:(a)(b)
U.S. 147,247 2,574 1.75
Non-U.S. 87,284 1,259 1.44
Beneficial interests issued by consolidated VIEs, predominantly U.S. 22,501 568 2.52
Long-term debt:
U.S. 241,914 8,766 3.62
Non-U.S. 6,054 41 0.68
Intercompany funding:
U.S. (42,947) (1,414) —
Non-U.S. 42,947 1,414 —
Total interest-bearing liabilities(a) 1,848,842 26,795 1.45
Noninterest-bearing liabilities(c) 496,649
Total investable funds $ 2,345,491 $ 26,795 1.14%
Net interest income and net yield: $ 57,776 2.46%
U.S. 52,217 2.86
Non-U.S. 5,559 1.07
Percentage of total assets and liabilities attributable to non-U.S. operations:
Assets 24.5
Liabilities 22.1
(a) In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect on net
interest income. These changes were made to align the accounting treatment between the balance sheet and the related interest income or expense, primarily by
offsetting interest income and expense for certain prime brokerage-related held-for-investment customer receivables and payables that are currently presented as a
single margin account on the balance sheet. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the
current presentation.
(b) Includes commercial paper.
(c) Represents the amount of noninterest-bearing liabilities funding interest-earning assets.

Refer to the “Net interest income” discussion in Consolidated Results of Operations on pages 48–51 for further information.

2018 2017
Average balance Interest Rate Average balance Interest Rate
$ 305,117 $ 5,703 1.87% $ 366,814 $ 4,093 1.12%

100,397 204 0.20 72,849 145 0.20
102,144 2,427 2.38 90,879 1,360 1.50

115,006 1,392 1.21 100,941 967 0.96
77,027 825 1.07 68,110 65 0.11

38,055 88 0.23 27,214 29 0.11
140,221 5,068 3.61 128,157 4,186 3.27

104,550 3,695 3.53 99,431 3,528 3.55
200,883 6,943 3.46 223,140 7,490 3.36

35,805 697 1.95 45,538 813 1.79
864,149 45,395 5.25 832,608 39,439 4.74

80,736 2,401 2.97 73,789 1,857 2.52
48,818 1,890 3.87 41,504 1,312 3.16
2,212,908 76,728 3.47 2,170,974 65,284 3.01
802,786 4,562 0.57 769,596 2,223 0.29

242,251 1,411 0.58 236,588 634 0.27
117,754 2,562 2.18 115,574 1,349 1.17

71,528 504 0.70 71,812 262 0.37
147,512 2,225 1.51 134,826 927 0.69

85,269 1,306 1.53 75,000 1,223 1.63
21,079 493 2.34 32,457 503 1.55
239,718 7,954 3.32 262,817 6,745 2.57

3,528 24 0.68 1,111 8 0.72
(51,933) (746) — (2,874) (25) —

51,933 746 — 2,874 25 —
1,731,425 21,041 1.22 1,699,781 13,874 0.82
481,483 471,193
$ 2,212,908 $ 21,041 0.95% $ 2,170,974 $ 13,874 0.64%
$ 55,687 2.52% $ 51,410 2.37%
50,236 2.95 46,059 2.69
5,451 1.05 5,351 1.16
24.7 22.5
22.3 21.1

Changes in net interest income, volume and rate analysis
The table below presents an attribution of net interest income between volume and rate. The attribution between volume and rate
is calculated using annual average balances for each category of assets and liabilities shown in the table and the corresponding
annual rates (refer to pages 288–292 for more information on average balances and rates). In this analysis, when the change
cannot be isolated to either volume or rate, it has been allocated to volume. The annual rates include the impact of changes in
market rates, as well as the impact of any change in composition of the various products within each category of asset or liability.
This analysis is calculated separately for each category without consideration of the relationship between categories (for example,
the net spread between the rates earned on assets and the rates paid on liabilities that fund those assets). As a result, changes in
the granularity or groupings considered in this analysis would produce a different attribution result, and due to the complexities
involved, precise allocation of changes in interest rates between volume and rates is inherently complex and judgmental.
2019 versus 2018 2018 versus 2017
Increase/(decrease) due Increase/(decrease) due
(Unaudited) to change in: to change in:
Year ended December 31, Net Net
(On a taxable-equivalent basis; in millions) Volume Rate change Volume Rate change
Interest-earning assets
Deposits with banks:
U.S. $ (3,030) $ 915 $ (2,115) $ (1,141) $ 2,751 $ 1,610
Non-U.S. 35 60 95 59 — 59
Federal funds sold and securities purchased under resale
agreements:
U.S. 1,304 337 1,641 267 800 1,067
Non-U.S. 168 518 686 173 252 425
Securities borrowed:(a)
U.S. 236 362 598 106 654 760
Non-U.S. 2 61 63 26 33 59
Trading assets – debt instruments:
U.S. 2,646 (589) 2,057 446 436 882
Non-U.S. 216 (188) 28 187 (20) 167
Investment securities:
U.S. 2,723 (703) 2,020 (770) 223 (547)
Non-U.S. (79) 36 (43) (189) 73 (116)
Loans:
U.S. 628 2,074 2,702 1,710 4,246 5,956
Non-U.S. (71) 105 34 212 332 544
All other interest-earning assets, predominantly U.S.(a) 48 29 77 283 295 578
Change in interest income(a) 4,826 3,017 7,843 1,369 10,075 11,444
Interest-bearing liabilities
Interest-bearing deposits:
U.S. 407 1,927 2,334 184 2,155 2,339
Non-U.S. 165 485 650 44 733 777
Federal funds purchased and securities loaned or sold under
repurchase agreements:
U.S. 1,133 294 1,427 46 1,167 1,213
Non-U.S. (85) 222 137 5 237 242
Trading liabilities – debt, short-term and all other interest-bearing
liabilities: (a)(b)
U.S. (5) 354 349 203 1,095 1,298
Non-U.S. 30 (77) (47) 158 (75) 83
Beneficial interests issued by consolidated VIEs, predominantly
U.S. 37 38 75 (266) 256 (10)
Long-term debt:
U.S. 93 719 812 (762) 1,971 1,209
Non-U.S. 17 — 17 16 — 16
Intercompany funding:
U.S. 293 (961) (668) (704) (17) (721)
Non-U.S. (293) 961 668 704 17 721
Change in interest expense(a) 1,792 3,962 5,754 (372) 7,539 7,167
Change in net interest income $ 3,034 $ (945) $ 2,089 $ 1,741 $ 2,536 $ 4,277
(a) In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect on net interest
income. These changes were made to align the accounting treatment between the balance sheet and the related interest income or expense, primarily by offsetting
interest income and expense for certain prime brokerage-related held-for-investment customer receivables and payables that are currently presented as a single margin
account on the balance sheet. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.
(b) Includes commercial paper.

Glossary of Terms and Acronyms
2019 Form 10-K: Annual report on Form 10-K for year CFP: Contingency funding plan
ended December 31, 2019, filed with the U.S. Securities
Chase Bank USA, N.A.: Chase Bank USA, National
and Exchange Commission.
Association
ABS: Asset-backed securities
CIB: Corporate & Investment Bank
AFS: Available-for-sale
CIO: Chief Investment Office
ALCO: Asset Liability Committee
Client assets: Represent assets under management as well
AWM: Asset & Wealth Management as custody, brokerage, administration and deposit accounts.
AOCI: Accumulated other comprehensive income/(loss) Client deposits and other third-party liabilities: Deposits,
as well as deposits that are swept to on-balance sheet
ARM: Adjustable rate mortgage(s)
liabilities (e.g., commercial paper, federal funds purchased
AUC: Assets under custody and securities loaned or sold under repurchase
agreements) as part of client cash management programs.
AUM: “Assets under management”: Represent assets
managed by AWM on behalf of its Private Banking, CLO: Collateralized loan obligations
Institutional and Retail clients. Includes “Committed capital
CLTV: Combined loan-to-value
not Called.”
Collateral-dependent: A loan is considered to be collateral-
Auto loan and lease origination volume: Dollar amount of
dependent when repayment of the loan is expected to be
auto loans and leases originated.
provided solely by the underlying collateral, rather than by
Beneficial interests issued by consolidated VIEs: cash flows from the borrower’s operations, income or other
Represents the interest of third-party holders of debt, resources.
equity securities, or other obligations, issued by VIEs that
Commercial Card: provides a wide range of payment
JPMorgan Chase consolidates.
services to corporate and public sector clients worldwide
Benefit obligation: Refers to the projected benefit through the commercial card products. Services include
obligation for pension plans and the accumulated procurement, corporate travel and entertainment, expense
postretirement benefit obligation for OPEB plans. management services, and business-to-business payment
solutions.
BHC: Bank holding company
Core loans: Represents loans central to the Firm’s ongoing
Card Services includes the Credit Card and Merchant
businesses; core loans exclude loans classified as trading
Services businesses.
assets, runoff portfolios, discontinued portfolios and
CB: Commercial Banking portfolios the Firm has an intent to exit.
CBB: Consumer & Business Banking Credit cycle: A period of time over which credit quality
improves, deteriorates and then improves again (or vice
CCAR: Comprehensive Capital Analysis and Review
versa). The duration of a credit cycle can vary from a couple
CCB: Consumer & Community Banking of years to several years.
CCO: Chief Compliance Officer Credit derivatives: Financial instruments whose value is
derived from the credit risk associated with the debt of a
CCP: “Central counterparty” is a clearing house that
interposes itself between counterparties to contracts traded third-party issuer (the reference entity) which allow one
in one or more financial markets, becoming the buyer to party (the protection purchaser) to transfer that risk to
every seller and the seller to every buyer and thereby another party (the protection seller). Upon the occurrence
ensuring the future performance of open contracts. A CCP of a credit event by the reference entity, which may include,
becomes a counterparty to trades with market participants among other events, the bankruptcy or failure to pay its
through novation, an open offer system, or another legally obligations, or certain restructurings of the debt of the
binding arrangement. reference entity, neither party has recourse to the reference
entity. The protection purchaser has recourse to the
CDS: Credit default swaps protection seller for the difference between the face value
CECL: Current Expected Credit Losses of the CDS contract and the fair value at the time of settling
the credit derivative contract. The determination as to
CEO: Chief Executive Officer whether a credit event has occurred is generally made by
CET1 Capital: Common equity Tier 1 capital the relevant International Swaps and Derivatives
Association (“ISDA”) Determinations Committee.
CFTC: Commodity Futures Trading Commission
Criticized: Criticized loans, lending-related commitments
CFO: Chief Financial Officer and derivative receivables that are classified as special

mention, substandard and doubtful categories for FFIEC: Federal Financial Institutions Examination Council
regulatory purposes.
FHA: Federal Housing Administration
CRO: Chief Risk Officer
FHLB: Federal Home Loan Bank
CRSC: Conduct Risk Steering Committee
FICC: The Fixed Income Clearing Corporation
CTC: CIO, Treasury and Corporate
FICO score: A measure of consumer credit risk provided by
CVA: Credit valuation adjustment credit bureaus, typically produced from statistical models
by Fair Isaac Corporation utilizing data collected by the
Debit and credit card sales volume: Dollar amount of card
credit bureaus.
member purchases, net of returns.
Firm: JPMorgan Chase & Co.
Deposit margin/deposit spread: Represents net interest
income expressed as a percentage of average deposits. Forward points: Represents the interest rate differential
between two currencies, which is either added to or
Distributed denial-of-service attack: The use of a large
subtracted from the current exchange rate (i.e., “spot rate”)
number of remote computer systems to electronically send
to determine the forward exchange rate.
a high volume of traffic to a target website to create a
service outage at the target. This is a form of cyberattack. FRC: Firmwide Risk Committee
Dodd-Frank Act: Wall Street Reform and Consumer Freddie Mac: Federal Home Loan Mortgage Corporation
Protection Act
Free standing derivatives: a derivative contract entered
DVA: Debit valuation adjustment into either separate and apart from any of the Firm’s other
financial instruments or equity transactions. Or, in
EC: European Commission
conjunction with some other transaction and is legally
Eligible LTD: Long-term debt satisfying certain eligibility detachable and separately exercisable.
criteria
FSB: Financial Stability Board
Embedded derivatives: are implicit or explicit terms or
FTE: Fully taxable equivalent
features of a financial instrument that affect some or all of
the cash flows or the value of the instrument in a manner FVA: Funding valuation adjustment
similar to a derivative. An instrument containing such terms
FX: Foreign exchange
or features is referred to as a “hybrid.” The component of
the hybrid that is the non-derivative instrument is referred G7: Group of Seven nations: Countries in the G7 are
to as the “host.” For example, callable debt is a hybrid Canada, France, Germany, Italy, Japan, the U.K. and the U.S.
instrument that contains a plain vanilla debt instrument
G7 government bonds: Bonds issued by the government of
(i.e., the host) and an embedded option that allows the
one of the G7 nations.
issuer to redeem the debt issue at a specified date for a
specified amount (i.e., the embedded derivative). However, Ginnie Mae: Government National Mortgage Association
a floating rate instrument is not a hybrid composed of a
GSIB: Global systemically important banks
fixed-rate instrument and an interest rate swap.
Headcount-related expense: Includes salary and benefits
ERISA: Employee Retirement Income Security Act of 1974
(excluding performance-based incentives), and other
EPS: Earnings per share noncompensation costs related to employees.
ETD: “Exchange-traded derivatives”: Derivative contracts HELOAN: Home equity loan
that are executed on an exchange and settled via a central
HELOC: Home equity line of credit
clearing house.
Home equity – senior lien: Represents loans and
EU: European Union
commitments where JPMorgan Chase holds the first
Fannie Mae: Federal National Mortgage Association security interest on the property.
FASB: Financial Accounting Standards Board Home equity – junior lien: Represents loans and
commitments where JPMorgan Chase holds a security
FCA: Financial Conduct Authority
interest that is subordinate in rank to other liens.
FCC: Firmwide Control Committee
Households: A household is a collection of individuals or
FDIA: Federal Depository Insurance Act entities aggregated together by name, address, tax
identifier and phone number.
FDIC: Federal Deposit Insurance Corporation
HQLA: High-quality liquid assets
Federal Reserve: The Board of the Governors of the Federal
Reserve System HTM: Held-to-maturity
IBOR: Interbank Offered Rate date.

ICAAP: Internal capital adequacy assessment process Current estimated LTV ratio
An estimate of the LTV as of a certain date. The current
IDI: Insured depository institutions
estimated LTV ratios are calculated using estimated
IHC: JPMorgan Chase Holdings LLC, an intermediate holding collateral values derived from a nationally recognized home
company price index measured at the metropolitan statistical area
(“MSA”) level. These MSA-level home price indices consist of
Impaired loan: Impaired loans are loans measured at
actual data to the extent available and forecasted data
amortized cost, for which it is probable that the Firm will be
where actual data is not available. As a result, the estimated
unable to collect all amounts due, including principal and
collateral values used to calculate these ratios do not
interest, according to the contractual terms of the
represent actual appraised loan-level collateral values; as
agreement. Impaired loans include the following:
such, the resulting LTV ratios are necessarily imprecise and
• All wholesale nonaccrual loans should therefore be viewed as estimates.
• All TDRs (both wholesale and consumer), including ones Combined LTV ratio
that have returned to accrual status The LTV ratio considering all available lien positions, as well
as unused lines, related to the property. Combined LTV
Investment-grade: An indication of credit quality based on
ratios are used for junior lien home equity products.
JPMorgan Chase’s internal risk assessment. The Firm
considers ratings of BBB-/Baa3 or higher as investment- Managed basis: A non-GAAP presentation of Firmwide
grade. financial results that includes reclassifications to present
revenue on a fully taxable-equivalent basis. Management
IPO: Initial public offering
also uses this financial measure at the segment level,
ISDA: International Swaps and Derivatives Association because it believes this provides information to enable
investors to understand the underlying operational
JPMorgan Chase: JPMorgan Chase & Co.
performance and trends of the particular business segment
JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank, and facilitates a comparison of the business segment with
National Association the performance of competitors.
JPMorgan Securities: J.P. Morgan Securities LLC Master netting agreement: A single agreement with a
counterparty that permits multiple transactions governed
Loan-equivalent: Represents the portion of the unused
by that agreement to be terminated or accelerated and
commitment or other contingent exposure that is expected,
settled through a single payment in a single currency in the
based on historical portfolio experience, to become drawn
event of a default (e.g., bankruptcy, failure to make a
prior to an event of a default by an obligor.
required payment or securities transfer or deliver collateral
LCR: Liquidity coverage ratio or margin when due).
LDA: Loss Distribution Approach Measurement alternative: Measures equity securities
without readily determinable fair values at cost less
LGD: Loss given default
impairment (if any), plus or minus observable price changes
LIBOR: London Interbank Offered Rate from an identical or similar investment of the same issuer.
LLC: Limited Liability Company MBS: Mortgage-backed securities
LOB: Line of business MD&A: Management’s discussion and analysis
LOB CROs: Line of Business and CTC Chief Risk Officers Merchant Services: is a business that primarily processes
transactions for merchants.
Loss emergence period: Represents the time period
between the date at which the loss is estimated to have Moody’s: Moody’s Investor Services
been incurred and the ultimate realization of that loss.
Mortgage origination channels:
LTIP: Long-term incentive plan
Retail – Borrowers who buy or refinance a home through
LTV: “Loan-to-value”: For residential real estate loans, the direct contact with a mortgage banker employed by the
relationship, expressed as a percentage, between the Firm using a branch office, the Internet or by phone.
principal amount of a loan and the appraised value of the Borrowers are frequently referred to a mortgage banker by
collateral (i.e., residential real estate) securing the loan. a banker in a Chase branch, real estate brokers, home
builders or other third parties.
Origination date LTV ratio
The LTV ratio at the origination date of the loan. Origination Correspondent – Banks, thrifts, other mortgage banks and
date LTV ratios are calculated based on the actual appraised other financial institutions that sell closed loans to the Firm.
values of collateral (i.e., loan-level data) at the origination

Mortgage product types: Net Capital Rule: Rule 15c3-1 under the Securities
Exchange Act of 1934.
Alt-A
Alt-A loans are generally higher in credit quality than Net charge-off/(recovery) rate: Represents net charge-
subprime loans but have characteristics that would offs/(recoveries) (annualized) divided by average retained
disqualify the borrower from a traditional prime loan. Alt-A loans for the reporting period.
lending characteristics may include one or more of the
Net interchange income includes the following
following: (i) limited documentation; (ii) a high CLTV ratio;
components:
(iii) loans secured by non-owner occupied properties; or (iv)
a debt-to-income ratio above normal limits. A substantial • Interchange income: Fees earned by credit and debit
proportion of the Firm’s Alt-A loans are those where a card issuers on sales transactions.
borrower does not provide complete documentation of his
• Reward costs: The cost to the Firm for points earned by
or her assets or the amount or source of his or her income.
cardholders enrolled in credit card rewards programs.
Option ARMs
• Partner payments: Payments to co-brand credit card
The option ARM real estate loan product is an adjustable-
partners based on the cost of loyalty program rewards
rate mortgage loan that provides the borrower with the
earned by cardholders on credit card transactions.
option each month to make a fully amortizing, interest-only
or minimum payment. The minimum payment on an option Net mortgage servicing revenue: Includes operating
ARM loan is based on the interest rate charged during the revenue earned from servicing third-party mortgage loans,
introductory period. This introductory rate is usually which is recognized over the period in which the service is
significantly below the fully indexed rate. The fully indexed provided; changes in the fair value of MSRs; the impact of
rate is calculated using an index rate plus a margin. Once risk management activities associated with MSRs; and gains
the introductory period ends, the contractual interest rate and losses on securitization of excess mortgage servicing.
charged on the loan increases to the fully indexed rate and Net mortgage servicing revenue also includes gains and
adjusts monthly to reflect movements in the index. The losses on sales and lower of cost or fair value adjustments
minimum payment is typically insufficient to cover interest of certain repurchased loans insured by U.S. government
accrued in the prior month, and any unpaid interest is agencies.
deferred and added to the principal balance of the loan.
Net production revenue: Includes fees and income
Option ARM loans are subject to payment recast, which
recognized as earned on mortgage loans originated with the
converts the loan to a variable-rate fully amortizing loan
intent to sell, and the impact of risk management activities
upon meeting specified loan balance and anniversary date
associated with the mortgage pipeline and warehouse
triggers.
loans. Net production revenue also includes gains and
Prime losses on sales and lower of cost or fair value adjustments
Prime mortgage loans are made to borrowers with good on mortgage loans held-for-sale (excluding certain
credit records who meet specific underwriting repurchased loans insured by U.S. government agencies),
requirements, including prescriptive requirements related and changes in the fair value of financial instruments
to income and overall debt levels. New prime mortgage measured under the fair value option.
borrowers provide full documentation and generally have
Net revenue rate: Represents Card Services net revenue
reliable payment histories.
(annualized) expressed as a percentage of average loans for
Subprime the period.
Subprime loans are loans that, prior to mid-2008, were
Net yield on interest-earning assets: The average rate for
offered to certain customers with one or more high risk
interest-earning assets less the average rate paid for all
characteristics, including but not limited to: (i) unreliable or
sources of funds.
poor payment histories; (ii) a high LTV ratio of greater than
80% (without borrower-paid mortgage insurance); (iii) a NM: Not meaningful
high debt-to-income ratio; (iv) an occupancy type for the
NOL: Net operating loss
loan is other than the borrower’s primary residence; or (v) a
history of delinquencies or late payments on the loan. Nonaccrual loans: Loans for which interest income is not
recognized on an accrual basis. Loans (other than credit
MSA: Metropolitan statistical areas
card loans and certain consumer loans insured by U.S.
MSR: Mortgage servicing rights government agencies) are placed on nonaccrual status
when full payment of principal and interest is not expected,
Multi-asset: Any fund or account that allocates assets under
regardless of delinquency status, or when principal and
management to more than one asset class.
interest have been in default for a period of 90 days or
NA: Data is not applicable or available for the period more unless the loan is both well-secured and in the
presented. process of collection. Collateral-dependent loans are
typically maintained on nonaccrual status.
NAV: Net Asset Value
Nonperforming assets: Nonperforming assets include Pre-provision profit/(loss): Represents total net revenue
nonaccrual loans, nonperforming derivatives and certain less noninterest expense. The Firm believes that this
assets acquired in loan satisfaction, predominantly real financial measure is useful in assessing the ability of a
estate owned and other commercial and personal property. lending institution to generate income in excess of its
provision for credit losses.
NOW: Negotiable Order of Withdrawal
Pretax margin: Represents income before income tax
OAS: Option-adjusted spread
expense divided by total net revenue, which is, in
OCC: Office of the Comptroller of the Currency management’s view, a comprehensive measure of pretax
performance derived by measuring earnings after all costs
OCI: Other comprehensive income/(loss)
are taken into consideration. It is one basis upon which
OPEB: Other postretirement employee benefit management evaluates the performance of AWM against
the performance of their respective competitors.
OTTI: Other-than-temporary impairment
Principal transactions revenue: Principal transactions
Over-the-counter (“OTC”) derivatives: Derivative contracts
revenue is driven by many factors, including:
that are negotiated, executed and settled bilaterally
between two derivative counterparties, where one or both • the bid-offer spread, which is the difference between the
counterparties is a derivatives dealer. price at which a market participant is willing and able to
sell an instrument to the Firm and the price at which
Over-the-counter cleared (“OTC-cleared”) derivatives: another market participant is willing and able to buy it
Derivative contracts that are negotiated and executed from the Firm, and vice versa; and
bilaterally, but subsequently settled via a central clearing • realized and unrealized gains and losses on financial
house, such that each derivative counterparty is only instruments and commodities transactions, including
exposed to the default of that clearing house. those accounted for under the fair value option, primarily
Overhead ratio: Noninterest expense as a percentage of used in client-driven market-making activities, and on
total net revenue. private equity investments.
– Realized gains and losses result from the sale of
Parent Company: JPMorgan Chase & Co. instruments, closing out or termination of transactions,
Participating securities: Represents unvested share-based or interim cash payments.
compensation awards containing nonforfeitable rights to – Unrealized gains and losses result from changes in
dividends or dividend equivalents (collectively, “dividends”), valuation.
which are included in the earnings per share calculation In connection with its client-driven market-making
using the two-class method. JPMorgan Chase grants RSUs to activities, the Firm transacts in debt and equity
certain employees under its share-based compensation instruments, derivatives and commodities, including
programs, which entitle the recipients to receive physical commodities inventories and financial instruments
that reference commodities.
nonforfeitable dividends during the vesting period on a
basis equivalent to the dividends paid to holders of common Principal transactions revenue also includes realized and
stock. These unvested awards meet the definition of unrealized gains and losses related to:
participating securities. Under the two-class method, all • derivatives designated in qualifying hedge accounting
earnings (distributed and undistributed) are allocated to relationships, primarily fair value hedges of commodity
each class of common stock and participating securities, and foreign exchange risk;
• derivatives used for specific risk management purposes,
based on their respective rights to receive dividends.
primarily to mitigate credit risk and foreign exchange
PCA: Prompt corrective action risk.
PCI: “Purchased credit-impaired” loans represents certain PSUs: Performance share units
loans that were acquired and deemed to be credit-impaired
REIT: “Real estate investment trust”: A special purpose
on the acquisition date in accordance with the guidance of
investment vehicle that provides investors with the ability to
the FASB. The guidance allows purchasers to aggregate
participate directly in the ownership or financing of real-
credit-impaired loans acquired in the same fiscal quarter
estate related assets by pooling their capital to purchase
into one or more pools, provided that the loans have
and manage income property (i.e., equity REIT) and/or
common risk characteristics(e.g., product type, LTV ratios,
mortgage loans (i.e., mortgage REIT). REITs can be publicly
FICO scores, past due status, geographic location). A pool is
or privately held and they also qualify for certain favorable
then accounted for as a single asset with a single composite
tax considerations.
interest rate and an aggregate expectation of cash flows.
Regulatory VaR: Daily aggregated VaR calculated in
PD: Probability of default
accordance with regulatory rules.
PRA: Prudential Regulation Authority
REO: Real estate owned
Reported basis: Financial statements prepared under U.S.
GAAP, which excludes the impact of taxable-equivalent Securities financing agreements: Include resale,
adjustments. repurchase, securities borrowed and securities loaned
agreements
Retained loans: Loans that are held-for-investment (i.e.,
excludes loans held-for-sale and loans at fair value). Seed capital: Initial JPMorgan capital invested in products,
such as mutual funds, with the intention of ensuring the
Revenue wallet: Proportion of fee revenue based on
fund is of sufficient size to represent a viable offering to
estimates of investment banking fees generated across the
clients, enabling pricing of its shares, and allowing the
industry (i.e., the revenue wallet) from investment banking
manager to develop a track record. After these goals are
transactions in M&A, equity and debt underwriting, and
achieved, the intent is to remove the Firm’s capital from the
loan syndications. Source: Dealogic, a third-party provider
investment.
of investment banking competitive analysis and volume-
based league tables for the above noted industry products. Shelf Deals: Shelf offerings are SEC provisions that allow
issuers to register for new securities without selling the
RHS: Rural Housing Service of the U.S. Department of entire issuance at once. Since these issuances are filed with
Agriculture the SEC but are not yet priced in the market, they are not
Risk-rated portfolio: Credit loss estimates are based on included in the league tables until the actual securities are
estimates of the probability of default (“PD”) and loss issued.
severity given a default. The probability of default is the Single-name: Single reference-entities
likelihood that a borrower will default on its obligation; the
SLR: Supplementary leverage ratio
loss given default (“LGD”) is the estimated loss on the loan
that would be realized upon the default and takes into SMBS: Stripped mortgage-backed securities
consideration collateral and structural support for each SOFR: Secured Overnight Financing Rate
credit facility.
SPEs: Special purpose entities
ROA: Return on assets
Structural interest rate risk: Represents interest rate risk
ROE: Return on equity of the non-trading assets and liabilities of the Firm.
ROTCE: Return on tangible common equity Structured notes: Structured notes are financial
ROU assets: Right-of-use assets instruments whose cash flows are linked to the movement
in one or more indexes, interest rates, foreign exchange
RSU(s): Restricted stock units
rates, commodities prices, prepayment rates, or other
RWA: “Risk-weighted assets”: Basel III establishes two market variables. The notes typically contain embedded
comprehensive approaches for calculating RWA (a (but not separable or detachable) derivatives. Contractual
Standardized approach and an Advanced approach) which cash flows for principal, interest, or both can vary in
include capital requirements for credit risk, market risk, and amount and timing throughout the life of the note based on
in the case of Basel III Advanced, also operational risk. Key non-traditional indexes or non-traditional uses of traditional
differences in the calculation of credit risk RWA between the interest rates or indexes.
Standardized and Advanced approaches are that for Basel
Taxable-equivalent basis: In presenting results on a
III Advanced, credit risk RWA is based on risk-sensitive
managed basis, the total net revenue for each of the
approaches which largely rely on the use of internal credit
business segments and the Firm is presented on a tax-
models and parameters, whereas for Basel III Standardized,
equivalent basis. Accordingly, revenue from investments
credit risk RWA is generally based on supervisory risk-
that receive tax credits and tax-exempt securities is
weightings which vary primarily by counterparty type and
presented in managed basis results on a level comparable
asset class. Market risk RWA is calculated on a generally
to taxable investments and securities; the corresponding
consistent basis between Basel III Standardized and Basel III
income tax impact related to tax-exempt items is recorded
Advanced.
within income tax expense.
S&P: Standard and Poor’s 500 Index
TBVPS: Tangible book value per share
SAR(s): Stock appreciation rights
TCE: Tangible common equity
Scored portfolio: The scored portfolio predominantly
TDR: “Troubled debt restructuring” is deemed to occur
includes residential real estate loans, credit card loans and
when the Firm modifies the original terms of a loan
certain auto and business banking loans where credit loss
agreement by granting a concession to a borrower that is
estimates are based on statistical analysis of credit losses
experiencing financial difficulty.
over discrete periods of time. The statistical analysis uses
portfolio modeling, credit scoring and decision-support TLAC: Total loss-absorbing capacity
tools.
U.K.: United Kingdom
SEC: Securities and Exchange Commission
Unaudited: Financial statements and information that have

not been subjected to auditing procedures sufficient to

permit an independent certified public accountant to
express an opinion.
U.S.: United States of America
U.S. government agencies: U.S. government agencies
include, but are not limited to, agencies such as Ginnie Mae
and FHA, and do not include Fannie Mae and Freddie Mac
which are U.S. government-sponsored enterprises (“U.S.
GSEs”). In general, obligations of U.S. government agencies
are fully and explicitly guaranteed as to the timely payment
of principal and interest by the full faith and credit of the
U.S. government in the event of a default.
U.S. GAAP: Accounting principles generally accepted in the
U.S.
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. LCR: Liquidity coverage ratio under the final U.S. rule.
U.S. Treasury: U.S. Department of the Treasury
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.
VCG: Valuation Control Group
VGF: Valuation Governance Forum
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 trading assets.

Board of Directors
Linda B. Bammann 4 James S. Crown 4 Laban P. Jackson, Jr.1 Member of:

Retired Deputy Head of Risk Chairman and Chairman and Chief Executive Officer 1 Audit Committee
Management Chief Executive Officer Clear Creek Properties, Inc. 2 Compensation & Management
JPMorgan Chase & Co. Henry Crown and Company (Real estate development) Development Committee
(Financial services) (Diversified investments) 3 Corporate Governance &
Michael A. Neal 4 Nominating Committee
James A. Bell 1 James Dimon Retired Vice Chairman 4 Risk Committee
Retired Executive Vice President Chairman and General Electric Company; 5 Public Responsibility Committee
The Boeing Company Chief Executive Officer Retired Chairman and
(Aerospace) JPMorgan Chase & Co. Chief Executive Officer
(Financial services) GE Capital
Stephen B. Burke 2, 3 (Industrial and financial services)
Chairman Timothy P. Flynn 1, 5
NBCUniversal, LLC Retired Chairman and Lee R. Raymond 2, 3
(Television and entertainment) Chief Executive Officer Lead Independent Director
KPMG JPMorgan Chase & Co.;
Todd A. Combs 2, 3, 5 (Professional services) Retired Chairman and
Investment Officer Chief Executive Officer
Berkshire Hathaway Inc. Mellody Hobson 4, 5 Exxon Mobil Corporation
(Conglomerate) Co-CEO and President (Oil and gas)
Ariel Investments, LLC
(Investment management)
Operating Committee
James Dimon Ashley Bacon Robin Leopold
Chairman and Chief Risk Officer Head of Human Resources
Chief Executive Officer
Lori A. Beer Douglas B. Petno
Daniel E. Pinto Chief Information Officer CEO, Commercial Banking
Co-President and
Chief Operating Officer; Mary Callahan Erdoes Jennifer A. Piepszak
CEO, Corporate & Investment Bank CEO, Asset & Wealth Management Chief Financial Officer
Gordon A. Smith Stacey Friedman Peter L. Scher

Co-President and General Counsel Head of Corporate Responsibility;
Chief Operating Officer; Chairman of the Mid-Atlantic Region
CEO, Consumer & Community Banking Marianne Lake
CEO, Consumer Lending
Other Corporate Officers

Molly Carpenter Nicole Giles Jason R. Scott
Secretary Firmwide Controller Investor Relations
Joseph M. Evangelisti Lou Rauchenberger

Corporate Communications General Auditor
300 JPMorgan Chase & Co./2019 Annual Report

Regional Chief Executive Officers
Asia Pacific Europe/Middle East/Africa Latin America/Canada
Filippo Gori Viswas Raghavan Martin G. Marrón
Senior Country Officers and Location Heads

Asia Pacific Europe/Middle East/Africa Latin America/Caribbean
Australia and New Zealand Austria Saudi Arabia Andean, Caribbean and Central
Robert Bedwell Anton J. Ulmer Bader Alamoudi America
Moises Mainster
China Bahrain, Egypt and Lebanon Sub-Saharan Africa
Mark Leung Ali Moosa Kevin Latter Colombia
Angela Hurtado
Hong Kong Belgium Switzerland
Filippo Gori Tanguy A. Piret Nick Bossart Argentina
Facundo D. Gómez Minujin
Japan France Turkey
Steve Teru Rinoie Kyril Courboin Mustafa Bagriacik Brazil
José Berenguer
Korea Germany
Tae Jin Park Dorothee Blessing Chile
Alfonso Eyzaguirre
South and South East Asia Iberia
Kalpana Morparia Ignacio de la Colina Mexico
Felipe García-Moreno
Indonesia Ireland
Haryanto T. Budiman Carin Bryans
Malaysia Israel North America
Steve R. Clayton Roy Navon
Canada
Philippines Italy
David E. Rawlings
Carlos Ma. G Mendoza Francesco Cardinali
Singapore Luxembourg
Edmund Y. Lee Pablo Garnica
Thailand Middle East and North Africa
M.L. Chayotid Kridakon Khaled Hobballah
Karim Tannir
Taiwan
Carl K. Chien The Netherlands
Cassander Verwey
Vietnam
Van Bich Phan Russia and Kazakhstan
Yan Tavrovsky
JPMorgan Chase Vice Chairs

Phyllis J. Campbell Vittorio U. Grilli David Mayhew
John L. Donnelly Walter A. Gubert E. John Rosenwald
Mark S. Garvin Mel R. Martinez
JPMorgan Chase & Co./2019 Annual Report 301

J.P. Morgan International Council
Rt. Hon. Tony Blair Ignacio S. Galán The Hon. Henry A. Kissinger Ratan Naval Tata
Chairman of the Council Chairman and Chief Executive Officer Chairman Chairman Emeritus
Former Prime Minister of Great Britain Iberdrola, S.A. Kissinger Associates, Inc. Tata Sons Ltd
and Northern Ireland Madrid, Spain New York, New York Mumbai, India
London, United Kingdom

Armando Garza Sada Jorge Paulo Lemann Joseph C. Tsai
Chairman of the Board Director Executive Vice Chairman
The Hon. Robert M. Gates
ALFA, S.A.B. of C.V. The Kraft Heinz Company Alibaba Group
Vice Chairman of the Council
San Pedro Garza García, Mexico Pittsburgh, Pennsylvania Hong Kong, China
Partner
Rice, Hadley, Gates & Manuel LLC
Washington, District of Columbia Alex Gorsky Nancy McKinstry The Hon. Tung Chee Hwa GBM
Chairman and Chief Executive Officer Chief Executive Officer and Vice Chairman
Johnson & Johnson Chairman of the Executive Board National Committee of the Chinese
New Brunswick, New Jersey Wolters Kluwer People’s Political Consultative Conference
Bernard Arnault
Alphen aan den Rijn, The Netherlands Hong Kong, China
LVMH Moët Hennessy — Louis Vuitton Herman Gref
Paris, France Chief Executive Officer, Amin H. Nasser Masahiko Uotani
Chairman of the Executive Board President and Chief Executive Officer President and
Sberbank Saudi Aramco Group Chief Executive Officer
Paul Bulcke
Moscow, Russia Dhahran, Saudi Arabia Shiseido Co., Ltd.
Chairman of the Board of Directors
Tokyo, Japan
Nestlé S.A.
Vevey, Switzerland The Hon. Carla A. Hills The Hon. Condoleezza Rice
Chairman and Chief Executive Officer Partner Cees J.A. van Lede
Hills & Company International Consultants Rice, Hadley, Gates & Manuel LLC Former Chairman and Chief Executive
Jamie Dimon*
Washington, District of Columbia Stanford, California Officer, Board of Management
AkzoNobel
JPMorgan Chase & Co.
New York, New York The Hon. John Howard OM AC Paolo Rocca Amsterdam, The Netherlands
Former Prime Minister of Australia Chairman and Chief Executive Officer
Sydney, Australia Tenaris Jaime Augusto Zobel de Ayala
John Elkann
Buenos Aires, Argentina Chairman and Chief Executive Officer
EXOR N.V. Joe Kaeser Ayala Corporation
President and Chief Executive Officer Nassef Sawiris Makati City, Philippines
Turin, Italy
Siemens AG Chief Executive Officer
Munich, Germany OCI N.V.
London, United Kingdom
*Ex-officio
302 JPMorgan Chase & Co./2019 Annual Report

Corporate headquarters Directors Stockholder inquiries
383 Madison Avenue To contact any of the Board members or Contact Computershare:
New York, NY 10179-0001 committee chairs, the Lead Independent
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By telephone:
Telephone: 212-270-6000
jpmorganchase.com as a group, please mail correspondence to: Within the United States, Canada and
Puerto Rico: 800-758-4651
JPMorgan Chase & Co. (toll free)
Annual Report on Form 10-K Attention (Board member(s))
The Annual Report on Form 10-K of Office of the Secretary From all other locations:
JPMorgan Chase & Co. as filed with the 4 New York Plaza 201-680-6862 (collect)
U.S. Securities and Exchange Commission New York, NY 10004-2413 TDD service for the hearing impaired
will be made available without charge within the United States, Canada and
The Corporate Governance Principles, the
upon request to: Puerto Rico: 800-231-5469
charters of the principal standing Board
Office of the Secretary committees, the Code of Conduct, the Code (toll free)
JPMorgan Chase & Co. of Ethics for Finance Professionals and other All other locations:
4 New York Plaza governance information can be accessed by 201-680-6610 (collect)
New York, NY 10004-2413 visiting our website at jpmorganchase.com
and clicking on “Governance” under the By regular mail:
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New York Stock Exchange P.O. Box 505000
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The New York Stock Exchange ticker United States
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Financial information about JPMorgan Louisville, KY 40202 Computershare
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“JPMorgan Chase,” “J.P. Morgan,” “Chase,” This Annual Report is printed on paper made
the Octagon symbol and other words from well-managed forests and other controlled
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2019 A NNUA L REPORT

As of or for the year ended December 31,

Selected income statement data

#1 U.S. #1 U.S. Private Bank 90% of You Invest customers are

As we prepare this year’s annual letter to shareholders, the world is confronting

In these annual letters, I usually cover a range of topics, including a review of

Tangible Book Value and Average Stock Price per Share

Bank One S&P 500 Index Relative Results

Performance since becoming CEO of Bank One

JPMorgan Chase & Co. S&P 500 Index Relative Results

Performance since the Bank One

Bank One S&P 500 Index S&P Financials Index

Performance since becoming CEO of Bank One

Performance since the Bank One

Performance for the period ended

Dealing With an Extraordinary Crisis

1. We go to extraordinary lengths to help our customers — consumers,

2. We take excellent care of our employees.

3. We make extraordinary efforts to lift up our communities, especially

4. We are transparent with our shareholders: What they should expect

5. We are working closely with all levels of government during this

6. We need a plan to get safely back to work.

7. We need to come together: My fervent hope for America.

1. We go to extraordinary lengths to help our customers — consumers, small businesses,

2. We take excellent care of our employees.

Enhancing our employee feedback process

Making it easier for customers to access products and services

Instituting required firmwide Diversity & Inclusion Training

Increasing the diversity of the businesses we partner with firmwide

3. We make extraordinary efforts to lift up our communities, especially in challenging times.

• Assistance to small businesses vulnerable – Entrepreneurs of Color Fund, which

6. We need a plan to get safely back to work.

7. We need to come together: My fervent hope for America.

Client Franchises Built Over the Long Term

2006 2018 2019

New and Renewed Credit and Capital for Our Clients

Assets Entrusted to Us by Our Clients

Deposits and client assets1 $4,227 $4,211 $718

Assets under custody2

Commercial 39% 43% 40%+/- 17% 17% ~18%

Asset & Wealth 73% 56% <75% 26% 37% 25%+

JPMorgan Chase compared with peers4

Overhead ratio5 ROTCE

Achievement of medium-term targets may take time and require more

Our Fortress Balance Sheet

Total assets $2.2T +$0.5T $2.7T 2019 Basel III

Acquire, deepen and retain

Credit Journey Autosave Chase MyHome

These efforts have made us better at

$1.5+B 10 million to date – that wasn’t nec-

Strong Returns on Higher Capital

Overhead ratio 64% 54% 56% 57% 56%

#1 in global ECM wallet, #1 in subproducts including equity

MAINTAINING STRONG PERFORMANCE

We take great pride in the work we do to

170+ 290K+ 1700+ 50 172

2019 marked my 10th year as CEO of

88% 91% 81% 90%

$3.2* 7% $14.3* 5% $3.7* 5%

AUS + AUM $2.4* 7%

Accomplishments • Sustainable finance: In 2019, we provided

• Jobs and skills: Over the past six years, we

JPMorgan Chase & Co./2019 Form 10-K 39