JPMORGAN CHASE & CO
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 30, 2024
JPM$334.49-0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0000019617-24-000453
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsIntroductionExecutive OverviewConsolidated Results of OperationsExplanation and Reconciliation of the Firm’s Use of Non-GAAP Financial MeasuresBusiness Segment ResultsFirmwide Risk ManagementCapital Risk ManagementLiquidity Risk ManagementConsumer Credit PortfolioWholesale Credit PortfolioInvestment Portfolio Risk ManagementMarket Risk ManagementCountry Risk ManagementCritical Accounting Estimates Used by the FirmAccounting and Reporting DevelopmentsForward-Looking StatementsConsolidated statements of comprehensive income (unaudited) for the threeConsolidated balance sheets (unaudited) at June, 2024 and December 31, 2023Consolidated statements of changes in stockholders’ equity (unaudited) for the threeConsolidated statements of cash flows (unaudited) for the six months ended June, 2024 and 2023Notes to Consolidated Financial Statements (unaudited)Current report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0000019617-24-000611
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsIntroductionExecutive OverviewConsolidated Results of OperationsConsolidated Balance Sheets and Cash Flows AnalysisExplanation and Reconciliation of the Firm’s Use of Non-GAAP Financial MeasuresBusiness Segment ResultsFirmwide Risk ManagementCapital Risk ManagementLiquidity Risk ManagementConsumer Credit PortfolioWholesale Credit PortfolioInvestment Portfolio Risk ManagementMarket Risk ManagementCountry Risk ManagementCritical Accounting Estimates Used by the FirmAccounting and Reporting DevelopmentsForward-Looking StatementsConsolidated balance sheets (unaudited) at September 30, 2024 and December 31, 2023Consolidated statements of cash flows (unaudited) for the nine months ended September 30, 2024 and 2023Notes to Consolidated Financial Statements (unaudited)The baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 1737 previous paragraphs and 1723 current paragraphs.
1127 unchanged; 417 reworded; 161 added; 160 removed; 33 previous and 18 current paragraphs rearranged.
Tables are not compared: 238 previous and 238 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (161)
Current report
For the third quarter of 2024, JPMorgan Chase reported net income of $12.9 billion, down 2%, earnings per share of $4.37, ROE of 16% and ROTCE of 19%.
Current report
•Total net revenue was $42.7 billion, up 7%, reflecting:
Current report
–Noninterest revenue ("NIR") was $19.2 billion, up 12%, predominantly driven by lower net investment securities losses in Treasury and CIO, higher asset management fees in AWM and CCB, and higher investment banking fees.
Current report
The provision in the prior year was $1.4 billion, reflecting $1.5 billion of net charge-offs and a $113 million net reduction in the allowance for credit losses.
Current report
–the impact of new and existing product offerings in AWM, and
Current report
Refer to Liquidity Risk Management on pages 50-57 for additional information.
Current report
•TBVPS grew 18%, ending the third quarter of 2024 at $96.42.
Current report
(d)In the fourth quarter of 2023, CCB transferred certain deposits associated with First Republic to AWM and CIB.
Current report
•On October 17, 2024, JPMorgan Chase announced that Brad D. Smith, 60, had been elected as a director of the Firm, effective January 21, 2025. Mr. Smith is the President of Marshall University and served as Chief Executive Officer of Intuit from 2008 to 2018.
Current report
(d) Included the estimated bargain purchase gain of $2.8 billion for the nine months ended September 30, 2023 associated with the First Republic acquisition. Refer to Notes 5 and 26 for additional information.
Current report
•higher advisory fees predominantly driven by the closing of several large transactions, and
Current report
•higher equity underwriting fees driven by increased industry-wide fees in follow-on offerings and wallet share gains in convertible securities offerings.
Current report
•lower Fixed Income Markets revenue across most businesses, and
Current report
Lending- and deposit-related fees decreased driven by:
Current report
•a decline in the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic in AWM, and to a lesser extent in CIB,
Current report
Refer to CIB and AWM segment results on pages 27-34 and pages 35-39, respectively, and Note 5 for additional information.
Current report
Investment securities losses decreased, reflecting lower net losses associated with repositioning the investment securities portfolio in Treasury and CIO. Refer to Corporate segment results on pages 40-42 and Note 9 for additional information.
Current report
Refer to CCB segment results on pages 22-26 and Note 14 for information onmortgage fees and related income.
Current report
•an increase associated with other equity investments in Corporate, primarily driven by a net gain compared to a net loss in the prior year related to Visa shares, and
Current report
•the absence of the prior-year adjustment to the estimated bargain purchase gain associated with the First Republic acquisition in Corporate.
Current report
Both periods included impairment losses related to certain equity investments in CIB.
Current report
•higher advisory fees predominantly driven by increased M&A activity.
Current report
•lower Fixed Income Markets revenue, reflecting the net impact of declines across macro businesses and higher revenue in Securitized Products,
Current report
–the absence of the prior-year $2.8 billion estimated bargain purchase gain associated with the First Republic acquisition, and
Current report
Both periods included impairment losses related to certain equity investments in CIB.
Current report
Net charge-offs included $1.9 billion inconsumer, predominantly driven by Card Services, reflecting the seasoning of newer vintages and continued credit normalization, and $158 million inwholesale.
Current report
The net addition to the allowance for credit losses consisted of:
Current report
•$144 million inwholesale, reflecting the impact of changes in the loan and lending-related commitment portfolios, and net downgrade activity, primarily in Real Estate, partially offset by changes in certain macroeconomic variables.
Current report
The provision in the prior year was $1.4 billion, reflecting net charge-offs of $1.5 billion and a $113 million net reduction in the allowance for credit losses.
Current report
The provision for credit losses was $8.0 billion, reflecting $6.3 billion of net charge-offs and a $1.8 billion net addition to the allowance for credit losses.
Current report
The net addition to the allowance for credit losses consisted of:
Current report
•$191 million inwholesale, reflecting:
Current report
•higher revenue-related compensation particularly in CIB and AWM, and
Current report
Noncompensation expense decreased as a result of:
Current report
•lower indirect tax expense in CIB, and
Current report
•lower restructuring costs associated with First Republic,
Showing the first 40 of 161 passages. Open the source sections for the rest.
Removed paragraphs (160)
Previous report
For the second quarter of 2024, JPMorgan Chase reported net income of $18.1 billion, up 25%, earnings per share of $6.12, ROE of 23% and ROTCE of 28%. The Firm's results included the following in Corporate: a $7.9 billion net gain related to Visa shares, a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation, and $546 million of net investment securities losses.
Previous report
•Total net revenue was $50.2 billion, up 22%, reflecting:
Previous report
The provision in the prior year was $2.9 billion, reflecting a $1.5 billion net addition to the allowance for credit losses, including$1.2 billion to establish the allowance for the First Republic loans and lending-related commitments, and$1.4 billion of net charge-offs.
Previous report
–an increase in Corporate related to the Firm's international consumer initiatives.
Previous report
Refer to Liquidity Risk Management on pages 51-58 for additional information.
Previous report
•TBVPS grew 16%, ending the second quarter of 2024 at $92.77.
Previous report
Refer to Note 26 for additional information related to First Republic.
Previous report
On June 21, 2024, the Federal Reserve and the FDIC announced joint determinations on the Firm’s 2023 resolution plan, which identified no deficiencies and one shortcoming that must be satisfactorily addressed in the Firm’s next resolution plan due on July 1, 2025.
Previous report
Refer to Supervision and regulation on pages 4-8 of JPMorgan Chase’s 2023 Form 10-K for additional information on the Firm’s resolution plan.
Previous report
(d) Included the preliminary estimated bargain purchase gain of $2.7 billion for the three and six months ended June 30, 2023, associated with the First Republic acquisition. Refer to Notes 5 and 26 for additional information.
Previous report
Investment banking fees increased in CIB reflecting:
Previous report
•higher equity underwriting fees driven by follow-on offerings, IPOs and private placements, reflecting wallet share gains amid favorable market conditions, and
Previous report
•higher advisory fees driven by a higher number of large completed transactions compared with a challenging prior-year quarter.
Previous report
Mortgage fees and related income increased in Home Lending, predominantly reflecting higher production revenue. Refer to CCB segment results on pages 23-27 and Note 14 for additional information.
Previous report
The prior-year net interchange included an increase to the rewards liability due to adjustments to the terms of certain reward programs. Refer to CCB segment results on pages 23-27 and Note 5 for additional information.
Previous report
–the prior year included the preliminary estimated bargain purchase gain of $2.7 billion associated with the First Republic acquisition, and
Previous report
Principal transactions revenue decreased predominantly in CIB, reflecting:
Previous report
•lower Fixed Income Markets revenue in Rates, and Commodities, partially offset by higher revenue in Securitized Products,
Previous report
Investment securities losses decreased related to sales of U.S. GSE and government agency MBS and U.S. Treasuries, associated with repositioning the investment securities portfolio in Treasury and CIO.
Previous report
–the prior year included the preliminary estimated bargain purchase gain of $2.7 billion associated with the First Republic acquisition, and
Previous report
Refer to Executive Overview onpages 5-8 for additional information on the timing impact of First Republic.
Previous report
Net charge-offs included $2.0 billion inconsumer, driven by Card Services, reflecting the seasoning of newer vintages and continued credit normalization, and $267 million inwholesale.
Previous report
•$189 million inwholesale, driven by the impact of incorporating the First Republic portfolio into the Firm’s modeled credit loss estimates, as well as net downgrade activity, primarily in Real Estate, largely offset by the impact of changes in the loan and lending-related commitment portfolios.
Previous report
The provision for credit losses was $4.9 billion, reflecting $4.2 billion of net charge-offs and a $749 million net addition to the allowance for credit losses.
Previous report
•$653 million inconsumer, reflecting a $753 million net addition in Card Services, predominantly driven by the seasoning of newer vintages, loan growth, and updates to certain macroeconomic variables, and a $125 million net reduction in Home Lending, and
Previous report
•$47 million inwholesale, driven by
Previous report
•the $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation in Corporate,
Previous report
Refer to Note 26 for additional information on the First Republic acquisition; Notes 2 and 5 for additional information on Visa shares and other expense.
Previous report
•the $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation in Corporate,
Previous report
•lower legal expense in Corporate and CIB.
Previous report
Refer to Executive Overview onpages 5-8 for additional information on the timing impact of First Republic.
Previous report
Loans were relatively flat, and included:
Previous report
Theallowance for loan losses incre ased, reflecting a net addition to the allowance for loan losses of $571 million, consisting of:
Previous report
•$636 million inconsumer, primarily in Card Services, predominantly driven by the seasoning of newer vintages, loan growth, and updates to certain macroeconomic variables, and a $141 million net reduction in Home Lending,
Previous report
•a net reduction of $65 million inwholesale, driven by
Showing the first 40 of 160 passages. Open the source sections for the rest.
Reworded paragraphs (417)
Previous wording
The following is Management’s discussion and analysis of the financial condition and results of operations (“MD&A”) of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) for the second quarter of 2024.
Current wording
The following is Management’s discussion and analysis of the financial condition and results of operations (“MD&A”) of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) for the third quarter of 2024.
Previous wording
This Quarterly Report on Form 10-Q for the second quarter of 2024 (“Form 10-Q”) should be read together with JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”). Refer to the Glossary of terms and acronyms and line of business metrics on pages 194-201 for definitions of terms and acronyms used throughout this Form 10-Q.
Current wording
This Quarterly Report on Form 10-Q for the third quarter of 2024 (“Form 10-Q”) should be read together with JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”). Refer to the Glossary of terms and acronyms and line of business metrics on pages 192–199 for definitions of terms and acronyms used throughout this Form 10-Q.
Previous wording
JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $4.1 trillion in assets and $340.6 billion in stockholders’ equity as of June 30, 2024. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers, predominantly in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally.
Current wording
JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $4.2 trillion in assets and $345.8 billion in stockholders’ equity as of September 30, 2024. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers, predominantly in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally.
Previous wording
Business Segment Reorganization: Effective in the second quarter of 2024, the Firm reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank (“CIB”). As a result of the reorganization, the Firm now has three reportable business segments, as well as a Corporate segment. The Firm’s consumer business is the Consumer & Community Banking (“CCB”) segment. The Firm’s wholesale businesses are the Commercial & Investment Bank (“CIB”) and Asset & Wealth Management (“AWM”) segments. Refer to Business Segment Results on pages 20-22 of this Form 10-Q and Recent events on page 52 of the 2023 Form 10-K for additional information on the reorganization, as well as Note 25 of this Form 10-Q and Note 32 of the 2023 Form 10-K, for a description of the Firm’s business segments and the products and services they provide to their respective client bases.
Current wording
Business Segment Reorganization: Effective in the second quarter of 2024, the Firm reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank (“CIB”). As a result of the reorganization, the Firm has three reportable business segments, as well as a Corporate segment. The Firm’s consumer business is the Consumer & Community Banking (“CCB”) segment. The Firm’s wholesale businesses are the Commercial & Investment Bank (“CIB”) and Asset & Wealth Management (“AWM”) segments. Refer to Business Segment Results on pages 20-21 of this Form 10-Q and Recent events on page 52 of the 2023 Form 10-K for additional information on the reorganization, as well as Note 25 of this Form 10-Q and Note 32 of the 2023 Form 10-K, for a description of the Firm’s business segments and the products and services they provide to their respective client bases.
Previous wording
First Republic: On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the “First Republic acquisition”) from the Federal Deposit Insurance Corporation (“FDIC”). References in this Form 10-Q to "associated with First Republic," "related to First Republic," "impact of First Republic" or similar expressions refer to the relevant effects of the First Republic acquisition, as well as subsequent related business and activities, as applicable. Refer to Note 26 for additional information.
Current wording
First Republic: On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the “First Republic acquisition”) from the Federal Deposit Insurance Corporation (“FDIC”). References in this Form 10-Q to "associated with First Republic," "impact of First Republic" or similar expressions refer to the relevant effects of the First Republic acquisition, as well as subsequent related business and activities, as applicable. Refer to Note 26 for additional information.
Previous wording
(b)Reflects the Firm’s ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 45-50 for additional information.
Current wording
(b)Reflects the Firm’s ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 44-49 for additional information.
Previous wording
Comparisons noted in the sections below are for the second quarter of 2024 versus the second quarter of 2023, unless otherwise specified.
Current wording
Comparisons noted in the sections below are for the third quarter of 2024 versus the third quarter of 2023, unless otherwise specified.
Previous wording
–Net interest income ("NII") of $22.7 billion, up 4%, driven by the impact of balance sheet mix and higher rates; higher revolving balances in Card Services; the timing impact of First Republic; and higher Markets net interest income, largely offset by deposit margin compression across the LOBs and lower average deposit balances in CCB. NII excluding Markets was $22.9 billion, up 3%.
Current wording
–Net interest income ("NII") of $23.4 billion, up 3%, driven by the impact of balance sheet mix and reinvestments in the investment securities portfolio, higher revolving balances in Card Services, higher Markets net interest income, and higher wholesale deposit balances, largely offset by lower average deposit balances in CCB and deposit margin compression across the lines of business. NII excluding Markets was $23.4 billion, up 1%.
Previous wording
•Noninterest expense was $23.7 billion, up 14%, predominantly driven by higher compensation expense, including higher revenue-related compensation and growth in employees, as well as the $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation.
Current wording
•Noninterest expense was $22.6 billion, up 4%, driven by higher compensation expense, including higher revenue-related compensation and growth in the number of employees, partially offset by lower legal expense.
Previous wording
•Theprovision for credit losses was $3.1 billion, reflecting $2.2 billion of net charge-offs and a net addition to the allowance for credit losses of $821 million. Net charge-offs increased by $820 million, predominantly driven by the seasoning of newer vintages and continued credit normalization in Card Services. The net addition to the allowance for credit losses included $609 million in consumer, primarily in Card Services, and $189 million inwholesale.
Current wording
•Theprovision for credit losses was $3.1 billion, reflecting $2.1 billion of net charge-offs and a net addition to the allowance for credit losses of $1.0 billion. Net charge-offs increased by $590 million, predominantly driven by the seasoning of newer vintages and continued credit normalization in Card Services. The net addition to the allowance for credit losses included $882 million in consumer, driven by Card Services, and $144 million inwholesale.
Previous wording
•The total allowance for credit losses was $25.5 billion at June 30, 2024. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.81%, compared with 1.75% in the prior year.
Current wording
•The total allowance for credit losses was $26.5 billion at September 30, 2024. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.86%, compared with 1.73% in the prior year.
Previous wording
•The Firm’snonperforming assets totaled $8.4 billion at June 30, 2024, up 7%, driven by wholesale nonaccrual loans, which reflect downgrades in Real Estate, concentrated in Office, partially offset by net sales of consumer nonaccrual loans. Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 65-74 and pages 61-64, respectively, for additional information.
Current wording
•The Firm’snonperforming assets totaled $8.6 billion at September 30, 2024, up 6%, driven by higher wholesale nonaccrual loans, which reflected downgrades in Real Estate, concentrated in Office, partially offset by net sales of consumer nonaccrual loans. Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 64-72 and pages 60-63, respectively, for additional information.
Previous wording
•Firmwide average loans of $1.3 trillion were up 6%, predominantly driven by higher loans in CCB and CIB, including the timing impact of First Republic.
Current wording
•Firmwide average loans of $1.3 trillion were up 1%, driven by higher loans across the lines of business.
Previous wording
•Firmwide average deposits of $2.4 trillion were down 1%, reflecting:
Current wording
•Firmwide average deposits of $2.4 trillion were up 1%, reflecting:
Previous wording
–net issuances of structured notes in CIB as a result of client demand in Markets, and net inflows in Payments,
Previous wording
•higher balances in AWM driven by new product offerings, and an increase in deposits in existing accounts due to a change in product offerings associated with First Republic, predominantly offset by continued migration into higher-yielding investments.
Current wording
–higher balances in Corporate related to the Firm's international consumer initiatives,
Previous wording
•CET1 capital was $267 billion, and the Standardized and Advanced CET1 ratios were 15.3% and 15.5%, respectively.
Current wording
•CET1 capital was $273 billion, and the Standardized and Advanced CET1 ratios were 15.3% and 15.5%, respectively.
Previous wording
•As of June 30, 2024, the Firm had eligible end-of-period High Quality Liquid Assets (“HQLA”) of approximately $841 billion and unencumbered marketable securities with a fair value of approximately $623 billion, resulting in approximately $1.5 trillion of liquidity sources. Refer to Liquidity Risk Management on pages 51-58 for additional information.
Current wording
•As of September 30, 2024, the Firm had eligible end-of-period High Quality Liquid Assets (“HQLA”) of approximately $868 billion and unencumbered marketable securities with a fair value of approximately $608 billion, resulting in approximately $1.5 trillion of liquidity sources. Refer to Liquidity Risk Management on pages 50-57 for additional information.
Previous wording
Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 9-14 and pages 15-16, respectively, for a further discussion of the Firm's results, including the provision for credit losses; and Notes 5 and 26 for additional information on First Republic.
Current wording
Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 9–14 and pages 15–16, respectively, for a further discussion of the Firm's results, including the provision for credit losses.
Previous wording
Selected business metrics for each of the Firm’s lines of business ("LOB") are presented below for the second quarter of 2024.
Current wording
Selected business metrics for each of the Firm’s lines of business ("LOB") are presented below for the third quarter of 2024.
Previous wording
Refer to the Business Segment Results on pages 20-43 for a detailed discussion of results by business segment.
Current wording
Refer to the Business Segment Results on pages 20-42 for a detailed discussion of results by business segment.
Previous wording
JPMorgan Chase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during the first six months of 2024, consisting of approximately:
Current wording
JPMorgan Chase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during the first nine months of 2024, consisting of approximately:
Previous wording
(a)Credit and capital for corporations and non-U.S. government entities include Individuals and Individual Entities primarily consisting of Global Private Bank clients within AWM.
Current wording
(a)Includes Individuals and Individual Entities primarily consisting of Global Private Bank clients within AWM.
Previous wording
•Management expects net interest income, and net interest income excluding Markets, to be approximately $91 billion, market dependent.
Current wording
•Management expects net interest income to be approximately $92.5 billion and net interest income excluding Markets to be approximately $91.5 billion, market dependent.
Previous wording
•Management expects adjusted expense to be approximately $92 billion, market dependent.
Current wording
•Management expects adjusted expense to be approximately $91.5 billion, market dependent.
Previous wording
This section provides a comparative discussion of JPMorgan Chase’s Consolidated Results of Operations on a reported basis for the three and six months ended June 30, 2024 and 2023, unless otherwise specified. Factors that relate primarily to a single business segment are discussed in more detail within that business segment's results. Refer to pages 86-88 of this Form 10-Q and pages 155–158 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.
Current wording
This section provides a comparative discussion of JPMorgan Chase’s Consolidated Results of Operations on a reported basis for the three and nine months ended September 30, 2024 and 2023, unless otherwise specified. Factors that relate primarily to a single business segment are discussed in more detail within that business segment's results. Refer to pages 84-86 of this Form 10-Q and pages 155–158 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.
Previous wording
Visa shares: On April 8, 2024, Visa Inc. commenced an initial exchange offer for Visa Class B-1 common shares. On May 6, 2024, the Firm announced that Visa had accepted the Firm’s tender of its 37.2 million Visa Class B-1 common shares in exchange for a combination of Visa Class B-2 common shares and Visa Class C common shares (“Visa C shares”), resulting in a $7.9 billion net gain for the period ended June 30, 2024.
Current wording
Visa shares: On April 8, 2024, Visa Inc. commenced an initial exchange offer for its Class B-1 common shares. On May 6, 2024, the Firm announced that Visa had accepted the Firm’s tender of its 37.2 million Visa Class B-1 common shares in exchange for a combination of Visa Class B-2 common shares and Visa Class C common shares (“Visa C shares”), resulting in a $7.9 billion net gain on the share exchange recorded in the second quarter of 2024. As of September 30, 2024, the Firm had disposed of all of its Visa C shares through sales and through a donation to the Firm’s Foundation. Refer to Market Risk Management on pages 77-82, and Notes 2 and 5 for additional information.
Previous wording
First Republic: JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank from the FDIC on May 1, 2023. As a result, the current-quarter and year-to-date results include the three- and six-month impact of First Republic, respectively, compared with two months in the prior-year periods. Where meaningful to the results, this is referred to in this Form 10-Q as the "timing impact" of First Republic.
Current wording
First Republic: JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank from the FDIC on May 1, 2023. As a result, the year-to-date results include the nine-month impact of First Republic compared with five months in the prior-year period. Where meaningful to the results, this is referred to in this Form 10-Q as the "timing impact" of First Republic. Refer to Notes 5 and 26 for additional information.
Previous wording
(a) Included operating lease income of $689 million and $716 million for the three months ended June 30, 2024 and 2023, respectively, and $1.4 billion and $1.5 billion for the six months ended June 30, 2024 and 2023, respectively. Refer to Note 5 for additional information.
Current wording
(a) Included operating lease income of $706 million and $695 million for the three months ended September 30, 2024 and 2023, respectively, and $2.1 billion and $2.2 billion for the nine months ended September 30, 2024 and 2023, respectively. Refer to Note 5 for additional information.
Previous wording
(c) Included the net gain related to Visa shares of $7.9 billion for the three and six months ended June 30, 2024. Refer to Notes 2 and 5 for additional information.
Current wording
(c) Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Notes 2 and 5 for additional information.
Previous wording
•higher debt underwriting fees predominantly driven by higher industry-wide issuance in leveraged loans, high-grade bonds and high-yield bonds, and
Current wording
•higher debt underwriting fees predominantly driven by higher industry-wide issuances in high-grade and high-yield bonds, as well as wallet share gains in investment-grade loans,
Previous wording
Refer to CIB segment results on pages 28-35 and Note 5 for additional information.
Current wording
Refer to CIB segment results on pages 27-34 and Note 5 for additional information.
Previous wording
Principal transactions revenue decreased, reflecting in CIB:
Current wording
Principal transactions revenue decreased driven by:
Previous wording
•a loss of $87 million in Credit Adjustments & Other in CIB, compared with a gain of $36 million in the prior year, and
Current wording
•a loss of $109 million in Credit Adjustments & Other in CIB, compared with a loss of $61 million in the prior year,
Previous wording
Principal transactions revenue in CIB generally has offsets across other revenue lines, including net interest income. The Firm assesses the performance of its Markets business on a total net revenue basis.
Current wording
Principal transactions revenue in CIB generally has offsets across other revenue lines, including net interest income.
Previous wording
Refer to CIBand Corporate segment results on pages 28-35 and pages 41-43, respectively, and Note 5 for additional information.
Current wording
Refer to CIBand Corporate segment results on pages 27-34 and pages 40-42, respectively, and Note 5 for additional information.
Previous wording
Lending- and deposit-related fees was flat as higher other lending- and deposit-related fees in CIB were offset by lower amortization in the current quarter associated with the purchase discount on certain short-dated First Republic lending-related commitments, predominantly in AWM. Refer to CCB, CIB and AWM segment results on pages 23-27, pages 28-35 and pages 36-40, respectively, and Note 5 for additional information.
Current wording
•higher other lending- and deposit-related fees in CIB.
Previous wording
Asset management fees increased driven by higher average market levels and net inflows in AWM and CCB. Refer to CCB and AWM segment results on pages 23-27 and pages 36-40, respectively, and Note 5 for additional information.
Current wording
Asset management fees increased driven by higher average market levels in AWM and CCB, and net inflows in AWM. Refer to CCB and AWM segment results on pages 22-26 and pages 35-39, respectively, and Note 5 for additional information.
Previous wording
Commissions and other fees increased and included higher brokerage commissions and fees in CIB and AWM, and higher annuity sales commissions in CCB. Refer to CCB, CIB and AWM segment results on pages 23-27, pages 28-35 and pages 36-40, respectively, and Note 5 for additional information.
Current wording
Commissions and other fees increased, predominantly due to higher brokerage commissions and fees, higher custody fees primarily in CIB, as well as higher annuity sales commissions in CCB. Refer to CCB, CIB and AWM segment results on pages 22-26, pages 27-34 and pages 35-39, respectively, and Note 5 for additional information.
Previous wording
Card income increased in CCB, reflecting higher net interchange on increased debit and credit card sales volume, and higher annual fees, partially offset by an increase inamortization of new account origination costs, reflecting continued growth in Card Services.
Current wording
Card income increased in CCB, reflecting higher annual fees, and higher net interchange on increased debit and credit card sales volume, partially offset by an increase inamortization related to new account origination costs. Refer to CCB segment results on pages 22-26 and Note 5 for additional information.
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Rearranged current paragraphs (18)
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Refer to Note 26 for additional information on First Republic.
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The Firm assesses the performance of its Markets business on a total net revenue basis.
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Investment banking fees increased, reflecting in CIB:
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Principal transactions revenue decreased driven by:
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The decrease in principal transactions revenue also included lower revenue in Treasury and CIO.
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Refer to Notes 2 and 5 for additional information on Visa shares.
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•net issuances of long-term debt, partially offset by lower FHLB advances in Treasury and CIO.
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Net income was $5.7 billion, up 13%.
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–higher fair value losses on credit protection purchased against certain retained loans and lending-related commitments
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•higher asset management fees reflecting higher average market levels and strong net inflows, and
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•lower net investment securities losses associated with repositioning the investment securities portfolio in Treasury and CIO, and
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Refer to Note 9 for additional information on the investment securities portfolio.
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proposal would significantly revise risk-based capital requirements for all banks with assets of $100 billion or more, including the Firm and other U.S. global systemically important banks ("GSIBs"). The proposed effective date is July 1, 2025, with a three-year transition period applicable to the expanded risk-based approach. However, a speech given by the Federal Reserve’s Vice Chair for Supervision in September 2024 indicated that a revised proposal could be issued with a delayed implementation date.
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•the timing impact of First Republic,
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The net addition to the allowance for credit losses included:
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•$2.3 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.
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The net addition to the allowance for credit losses included:
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December 2022, the court granted defendants’ motion to dismiss this action in full, and in July 2023, the plaintiff filed an appeal, which remains pending.
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–the timing impact of First Republic, and
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•losses of $102 million in Credit Adjustments & Other in CIB compared with losses of $117 million in the prior year.
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–the $7.9 billion net gain related to Visa shares;
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•higher investments in technology and marketing, predominantly in CCB, and
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•the alignment of expense to compensation expense, as noted above, partially offset by the timing impact associated with First Republic.
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•higher volume- and revenue-related compensation across the LOBs,
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•the impact of First Republic, predominantly in CCB and Corporate, as the prior-year expense related to individuals associated with First Republic who were not employees of the Firm until July 2023, was recognized in other expense in Corporate.
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Noncompensation expense increased as a result of:
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•the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance on January 1, 2024, and
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•changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes, which included the impact of the net gain on Visa shares and the contribution of Visa shares to the JPMorgan Chase Foundation.
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The prior year included the impact of the income tax expense associated with the First Republic acquisition that was reflected in thepreliminary estimated bargain purchase gain, which resulted in a reduction in the Firm's effective tax rate.
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Refer to Notes 2 and 4 for additional information.
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•the timing impact of First Republic in Home Lending,
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Noninterest expense was $18.7 billion, up 14%, reflecting First Republic-related expense that was aligned to CCB from Corporate starting in the third quarter of 2023, impacting both compensation and noncompensation expense.
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The increase in expense also reflected:
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•higher compensation expense, largely driven by higher revenue-related compensation, primarily for advisors and bankers, and an increase in employees, including in technology, and
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Net income was $1.3 billion, up 3%.
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•higher net interest income, driven by:
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Noninterest expense was $7.0 billion, up 12%, predominantly driven by:
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(d)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation. Refer to Note 5 for additional information.
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•the $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation,
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•lower expense associated with the First Republic acquisition as substantially all the expense was reported in Corporate in the second quarter of 2023 and subsequently aligned to the appropriate LOBs starting in the third quarter of 2023.
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Refer to Note 9 for additional information on the investment securities portfolio, and Note 12 for additional information on the allowance for credit losses.
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The prior year tax expense benefited from the income tax expense associated with the First Republic acquisition reflected in the preliminary estimated bargain purchase gain.
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•the timing impact of First Republic, and
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•the timing impact of First Republic, and
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The increase for the three months ended June 30, 2024 was largely driven by higher:
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For the three months ended June 30, 2023, significant transfers from level 2 into level 3 included the following:
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•$1.6 billion of gross interest rate derivative payables as a result of transition to term SOFR for certain interest rate options.
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•$917 million of non-trading loans driven by a decrease in observability.
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Refer to Note 14 for information on MSRs.
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rates for U.S.-based merchants. The parties are considering next steps.
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Certain of these shareholder suits relate to historical trading practices by former employees in the precious