JPMORGAN CHASE & CO

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

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

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

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

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

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

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

(f)Includes billed interest and fees.

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

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

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

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

Consumer, excluding credit card

Portfolio analysis

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

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

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

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

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

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

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

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

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

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

Modified residential real estate loans

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

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

Nonperforming assets

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

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

Nonaccrual loans

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

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

Credit card

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

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

Geographic and FICO composition of credit card loans

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

Modified credit card loans

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

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