JPMORGAN CHASE & CO

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

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

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

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

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

Firmwide overview

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

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

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

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

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

•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.

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

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

•The Firm’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.

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

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

–net inflows in Payments and Securities Services,

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

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

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

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

Selected capital and other metrics

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

•SLR was 6.0%.

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

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

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

Pre-provision profit, ROTCE, TCE, TBVPS, NII and NIR excluding Markets, and total net revenue on a managed basis are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 18-19 for a further discussion of each of these measures.

Business segment highlights

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

(a)Excludes Commercial Card.

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

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

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

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

Credit provided and capital raised

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

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

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

Recent events

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

Outlook

These current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-Q, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 88 of this Form 10-Q and Part I, Item 1A, Risk Factors on pages 9-33 of the 2023 Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2024 will be in line with the outlook information set forth below, and the Firm does not undertake to update any forward-looking statements.

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

Full-year 2024

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

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

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

Net interest income excluding Markets and adjusted expense are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 18-19.

Business Developments

First Republic acquisition

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

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

Refer to Note 26 for additional information on First Republic.