JPMORGAN CHASE & CO

This section provides a comparative discussion of JPMorganChase’s Consolidated Results of Operations on a reported basis for the three and six months ended June 30, 2025 and 2024, unless otherwise specified. Factors that relate primarily to a single business segment or Corporate are discussed in more detail in the results of that segment or Corporate. Refer to pages 85-88 of this Form 10-Q and pages 161–164 of JPMorganChase’s 2024 Form 10-K for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.

(a) Included operating lease income of $901 million and $689 million for the three months ended June 30, 2025 and 2024, respectively, and $1.7 billion and $1.4 billion for the six months ended June 30, 2025 and 2024, respectively. Refer to Note 5 for additional information.

(b) Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Notes 2 and 6 of JPMorganChase’s 2024 Form 10-K for additional information.

Investment banking fees increased, reflecting in CIB:

•higher debt underwriting fees primarily driven by several large deals, and

•higher advisory fees predominantly benefiting from increased sponsor activity,

•lower equity underwriting fees predominantly driven by lower IPOs.

Principal transactions revenue increased, reflecting in CIB:

•higher Fixed Income Markets revenue driven by higher revenue in Rates, Commodities and Currencies & Emerging Markets, largely offset by lower revenue in Securitized Products and Fixed Income Financing,

•lower Equity Markets revenue, particularly in Prime Finance.

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.

Lending- and deposit-related fees increased, reflecting in CIB, a reduction in client credits applied to deposit-related fees, as well as growth in volumes resulting in higher cash management fees in Payments.

Asset management fees increased in AWM and CCB, as a result of net inflows and higher average market levels. Refer to CCB and AWM segment results on pages 21-25 and pages 34-38, respectively, and Note 5 for additional information.

Commissions and other fees increased in CIB and AWM, predominantly due to higher brokerage commissions and fees on higher volume, and to a lesser extent, higher custody fees as a result of higher client activity and market levels. Refer to CIB and AWM segment results on pages 26-33 and pages 34-38, respectively, and Note 5 for additional information.

Investment securities losses decreased driven by lower net losses in Treasury and CIO. Refer to Corporate results on pages 39-41 and Note 9 for additional information.

Card income: refer to CCB segment results on pages 21-25 and Note 5 for additional information.

Other income decreased, reflecting:

•the absence in Corporate of several items recorded in the prior year, particularly the $7.9 billion net gain related to Visa shares,

•higher auto operating lease income in CCB due to growth in volume.

Refer to CCB and Corporate results on pages 21-25 and pages 39-41, respectively, for additional information.

Net interest income increased driven by higher Markets net interest income, higher wholesale deposit balances, higher revolving balances in Card Services, and the impact of investment securities activity including from prior quarters. These factors were predominantly offset by the impact of lower rates and deposit margin compression.

The Firm’s average interest-earning assets were $3.8 trillion, up $336 billion, and the yield was 5.04%, down 53 basis points (“bps”). The net yield on these assets, on an FTE basis, was 2.43%, a decrease of 19 bps. The net yield excluding Markets was 3.71%, down 15 bps.

Refer to the Consolidated average balance sheets, interest and rates schedule on pages 190-191 for additional information. Net yield excluding Markets is a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 17-18 for an additional discussion of net yield excluding Markets.

Investment banking fees increased, reflecting in CIB:

•higher debt underwriting fees driven by several large deals, and

•higher advisory fees, predominantly reflecting the closing of a higher number of large transactions,

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

Principal transactions revenue increased, reflecting in CIB:

•higher Fixed Income Markets revenue driven by higher revenue in Rates and Commodities, predominantly offset by lower revenue in Securitized Products, Fixed Income Financing and Currencies & Emerging Markets, and

•higher Equity Markets revenue, particularly in Equity Derivatives.

The increase in CIB was partially offset by lower revenue in Treasury and CIO.

Principal transactions revenue in CIB generally has offsets across other revenue lines, including net interest income. The Firm assesses the performance of its Markets business on a total net revenue basis.

Refer to Corporate results on pages 39-41 for additional information.

Lending- and deposit-related fees increased, reflecting in CIB, a reduction in client credits applied to deposit-related fees, as well as growth in volumes resulting in higher cash management fees in Payments.

Asset management fees increased in AWM and CCB, as a result of net inflows and higher average market levels.

Commissions and other fees increased in CIB and AWM, predominantly due to higher brokerage commissions and fees on higher volume, and to a lesser extent, higher custody fees as a result of higher client activity and market levels.

Investment securities losses decreased driven by lower net losses in Treasury and CIO.

Card income was flat, and included in CCB, higher amortization related to new account origination costs and lower net interchange, largely offset by higher annual fees.

Other income decreased, reflecting:

•the absence in Corporate of several items recorded in the prior year, particularly the $7.9 billion net gain related to Visa shares,

•the $588 million First Republic-related gain recorded in the first quarter of 2025, and

•higher auto operating lease income in CCB due to growth in volume.

Refer to Note 5, and Note 34 on pages 319-321 of the Firm’s 2024 Form 10-K, for additional information on the First Republic-related gain.

Net interest income increased driven by higher Markets net interest income, higher revolving balances in Card Services, higher wholesale deposit balances, and the impact of investment securities activity including from prior quarters. These factors were predominantly offset by the impact of lower rates and deposit margin compression, as well as lower average deposit balances in CCB.

The Firm’s average interest-earning assets were $3.8 trillion, up $280 billion, and the yield was 5.11%, down 45 basis points (“bps”). The net yield on these assets, on an FTE basis, was 2.51%, a decrease of 15 bps. The net yield excluding Markets was 3.75%, down 10 bps.

The provision for credit losses was $2.8 billion. Net charge-offs were $2.4 billion and the net addition to the allowance for credit losses was $439 million.

Net charge-offs included $2.1 billion inconsumer, predominantly driven by Card Services, reflecting loan growth, and $345 million inwholesale.

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

•$446 million inwholesale, driven by the impact of new lending-related commitments and changes in credit quality of client-specific exposures, partially offset by a decrease in the weight placed on the adverse scenarios, and

•$3 million inconsumer, as loan growth in Card Services was offset by the impact of changes in the Firm's weighted-average macroeconomic outlook.

In the prior year, the provision was $3.1 billion, net charge-offs were $2.2 billion and the net addition to the allowance for credit losses was $821 million.

Refer to CCB, CIB and AWM segment and Corporate results on pages 21-25, pages 26-33, pages 34-38, and pages 39-41, respectively; Allowance for Credit Losses on pages 73-75; Critical Accounting Estimates Used by the Firm on pages 85-88; and Notes 11 and 12 for additional information on the credit portfolio and the allowance for credit losses.

The provision for credit losses was $6.2 billion. Net charge-offs were $4.7 billion and the net addition to the allowance for credit losses was $1.4 billion.

Net charge-offs included $4.2 billion inconsumer, predominantly driven by Card Services, reflecting loan growth, and $532 million inwholesale.

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

•$995 million inwholesale, predominantly driven by changes in credit quality of client-specific exposures, the impact of new lending-related commitments, as well as the impact of changes in the Firm's weighted-average macroeconomic outlook, and

In the prior year, the provision was $4.9 billion, net charge-offs were $4.2 billion and the net addition to the allowance for credit losses was $749 million.

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

(b)Refer to Note 5 for additional information.

(c)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Notes 2 and 6 of JPMorganChase’s 2024 Form 10-K for additional information.

Compensation expense increased driven by:

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

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

Noncompensation expense decreased, reflecting:

•the absence in Corporate of the following items recorded in the prior year

–restructuring and integration costs associated with First Republic, and

•lower legal expense, particularly in CIB,

•higher brokerage expense in CIB and higher distribution fees in AWM,

•higher depreciation expense on higher auto operating lease assets in CCB and

•higher investments in technology across the businesses.

Refer to Note 5 for additional information on other expense.

Compensation expense increased driven by:

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

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

Noncompensation expense decreased, reflecting:

•the absence in Corporate of the following items recorded in the prior year

–restructuring and integration costs associated with First Republic, and

•lower FDIC-related expense, which included the impact of a release of an FDIC special assessment accrual of $323 million in Corporate recorded in the first quarter of 2025, compared with an accrual increase of $725 million in the first quarter of the prior year,

•higher brokerage expense in CIB and higher distribution fees in AWM,

•higher depreciation expense on higher auto operating lease assets in CCB,

•higher investments in technology across the businesses, as well as marketing, predominantly in CCB, and

•higher occupancy expense.

Theeffective tax rate decreased predominantly driven by:

•a $774 million income tax benefit in Corporate, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025, and

•other changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes.

Theeffective tax rate decreased predominantly driven by:

•a $774 million income tax benefit in Corporate, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025,

•other changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes, and

•higher tax benefits related to the vesting of employee share-based awards.