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JPMORGAN CHASE & CO - Quarter Report: 2022 June (Form 10-Q)



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly report pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarterly period endedCommission file
June 30, 2022number1-5805
JPMorgan Chase & Co.
(Exact name of registrant as specified in its charter)
Delaware13-2624428
(State or other jurisdiction of
incorporation or organization)
(I.R.S. employer
identification no.)
383 Madison Avenue,
New York,New York10179
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (212) 270-6000
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stockJPMThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-Cumulative Preferred Stock, Series DD
JPM PR DThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-Cumulative Preferred Stock, Series EE
JPM PR CThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-Cumulative Preferred Stock, Series GG
JPM PR JThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.55% Non-Cumulative Preferred Stock, Series JJJPM PR KThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.625% Non-Cumulative Preferred Stock, Series LL
JPM PR L
The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.20% Non-Cumulative Preferred Stock, Series MMJPM PR MThe New York Stock Exchange
Alerian MLP Index ETNs due May 24, 2024AMJNYSE Arca, Inc.
Guarantee of Callable Fixed Rate Notes due June 10, 2032 of JPMorgan Chase Financial Company LLC
JPM/32The New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Number of shares of common stock outstanding as of June 30, 2022: 2,932,572,390



FORM 10-Q
TABLE OF CONTENTS
Page
Item 1.
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Item 2.
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Item 3.191
Item 4.191
Item 1.191
Item 1A.191
Item 2.191
Item 3.192
Item 4.192
Item 5.192
Item 6.192
2


JPMorgan Chase & Co.
Consolidated financial highlights (unaudited)
As of or for the period ended, (in millions, except per share, ratio, headcount data and where otherwise noted)

Six months ended June 30,
2Q221Q224Q213Q212Q2120222021
Selected income statement data
Total net revenue$30,715 $30,717 $29,257 $29,647 $30,479 $61,432 $62,745 
Total noninterest expense18,749 19,191 17,888 17,063 17,667 37,940 36,392 
Pre-provision profit(a)
11,966 11,526 11,369 12,584 12,812 23,492 26,353 
Provision for credit losses1,101 1,463 (1,288)(1,527)(2,285)2,564 (6,441)
Income before income tax expense10,865 10,063 12,657 14,111 15,097 20,928 32,794 
Income tax expense2,216 1,781 2,258 2,424 3,149 3,997 6,546 
Net income
$8,649 $8,282 $10,399 $11,687 $11,948 $16,931 $26,248 
Earnings per share data
Net income:     Basic
$2.77 $2.64 $3.33 $3.74 $3.79 $5.40 $8.30 
         Diluted2.76 2.63 3.33 3.74 3.78 5.39 8.28 
Average shares: Basic2,962.2 2,977.0 2,977.3 2,999.9 3,036.6 2,969.6 3,054.9 
         Diluted2,966.3 2,981.0 2,981.8 3,005.1 3,041.9 2,973.7 3,060.3 
Market and per common share data
Market capitalization330,237 400,379 466,206 483,748 464,778 330,237 464,778 
Common shares at period-end2,932.6 2,937.1 2,944.1 2,955.3 2,988.2 2,932.6 2,988.2 
Book value per share86.38 86.16 88.07 86.36 84.85 86.38 84.85 
Tangible book value per share (“TBVPS”)(a)
69.53 69.58 71.53 69.87 68.91 69.53 68.91 
Cash dividends declared per share1.00 1.00 1.00 1.00 0.90 2.00 1.80 
Selected ratios and metrics
Return on common equity (“ROE”)(b)
13 %13 %16 %18 %18 %13 %21 %
Return on tangible common equity (“ROTCE”)(a)(b)
17 16 19 22 23 16 26 
Return on assets(b)
0.89 0.86 1.08 1.24 1.29 0.87 1.44 
Overhead ratio61 62 61 58 58 62 58 
Loans-to-deposits ratio45 42 44 43 45 45 45 
Firm Liquidity coverage ratio (“LCR”) (average)(c)
110 110 111 112 111 110 111 
JPMorgan Chase Bank, N.A. LCR (average)(c)
169 181 178 174 171 169 171 
Common equity Tier 1 (“CET1”) capital ratio(d)
12.2 11.9 13.1 12.9 13.0 12.2 13.0 
Tier 1 capital ratio(d)
14.1 13.7 15.0 15.0 15.1 14.1 15.1 
Total capital ratio(d)
15.7 15.4 16.8 16.9 17.1 15.7 17.1 
Tier 1 leverage ratio(c)(d)
6.2 6.2 6.5 6.6 6.6 6.2 6.6 
Supplementary leverage ratio (“SLR”)(c)(d)
5.3 5.2 5.4 5.5 5.4 5.3 5.4 
Selected balance sheet data (period-end)
Trading assets$465,577 $511,528 $433,575 $515,901 $520,588 $465,577 $520,588 
Investment securities, net of allowance for credit losses663,718 679,460 672,232 595,132 573,637 663,718 573,637 
Loans1,104,155 1,073,285 1,077,714 1,044,615 1,040,954 1,104,155 1,040,954 
Total assets3,841,314 3,954,687 3,743,567 3,757,576 3,684,256 3,841,314 3,684,256 
Deposits2,471,544 2,561,207 2,462,303 2,402,353 2,305,217 2,471,544 2,305,217 
Long-term debt288,212 293,239 301,005 298,465 299,926 288,212 299,926 
Common stockholders’ equity253,305 253,061 259,289 255,203 253,548 253,305 253,548 
Total stockholders’ equity286,143 285,899 294,127 290,041 286,386 286,143 286,386 
Headcount278,494 273,948 271,025 265,790 260,110 278,494 260,110 
Credit quality metrics
Allowances for credit losses$20,019 $19,591 $18,689 $20,528 $22,585 $20,019 $22,585 
Allowance for loan losses to total retained loans1.69 %1.69 %1.62 %1.86 %2.02 %1.69 %2.02 %
Nonperforming assets$7,845 $8,605 $8,346 $8,882 $9,802 $7,845 $9,802 
Net charge-offs657 582 550 524 734 1,239 1,791 
Net charge-off rate0.25 %0.24 %0.22 %0.21 %0.31 %0.24 %0.38 %
(a)Pre-provision profit, TBVPS and ROTCE are each non-GAAP financial measures. Tangible common equity (“TCE”) is also a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 18-19 for a further discussion of these measures.
(b)Quarterly ratios are based upon annualized amounts.
(c)For the six months ended June 30, 2022 and 2021, the percentage represents average ratios for the three months ended June 30, 2022 and 2021.
(d)The capital metrics reflect the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the Current Expected Credit Losses (“CECL”) capital transition provisions. Refer to Capital Risk Management on pages 44-49 of this Form 10-Q and pages 86-96 of JPMorgan Chase’s 2021 Form 10-K for additional information.
3


INTRODUCTION
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 2022.
This Quarterly Report on Form 10-Q for the second quarter of 2022 (“Form 10-Q”) should be read together with JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”). Refer to the Glossary of terms and acronyms and line of business (“LOB”) metrics on pages 182-190 for definitions of terms and acronyms used throughout this Form 10-Q.
This Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These 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 87 of this Form 10-Q and Part I, Item 1A, Risk Factors, on pages 9-33 of the 2021 Form 10-K 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. There is no assurance that actual results will be in line with any outlook information set forth herein, and the Firm does not undertake to update any forward-looking statements.
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 $3.8 trillion in assets and $286.1 billion in stockholders’ equity as of June 30, 2022. 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.
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 48 states and Washington, D.C. as of June 30, 2022. JPMorgan Chase’s principal non-bank 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 subsidiaries outside the U.S. are J.P. Morgan Securities plc and J.P. Morgan SE (“JPMSE”), which are subsidiaries of JPMorgan Chase Bank, N.A. and are based in the United Kingdom (“U.K.”) and Germany, respectively.
For management reporting purposes, the Firm’s activities are organized into four major reportable business segments, as well as a Corporate segment. The Firm’s consumer business segment is Consumer & Community Banking (“CCB”). The Firm’s wholesale business segments are the Corporate & Investment Bank (“CIB”), Commercial Banking (“CB”), and Asset & Wealth Management (“AWM”). Refer to Note 25 of this Form 10-Q and Note 32 of JPMorgan Chase’s 2021 Form 10-K for a description of the Firm’s business segments and the products and services they provide to their respective client bases.
The Firm's website is www.jpmorganchase.com. JPMorgan Chase makes available on its website, free of charge, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after it electronically files or furnishes such material to the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov. JPMorgan Chase makes new and important information about the Firm available on its website at https://www.jpmorganchase.com, including on the Investor Relations section of its website at https://www.jpmorganchase.com/ir. Information on the Firm's website is not incorporated by reference into this Form 10-Q or the Firm’s other filings with the SEC.
4


EXECUTIVE OVERVIEW
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 2021 Form 10-K should be read together and in their entirety.
Financial performance of JPMorgan Chase
(unaudited)
As of or for the period ended,
(in millions, except per share data and ratios)
Three months ended June 30,Six months ended June 30,
20222021Change20222021Change
Selected income statement data
Noninterest revenue$15,587$17,738(12)%$32,432$37,115(13)%
Net interest income15,12812,74119 29,00025,63013 
Total net revenue$30,715$30,479$61,432$62,745(2)
Total noninterest expense18,74917,66737,94036,392
Pre-provision profit11,96612,812(7)23,49226,353(11)
Provision for credit losses1,101(2,285)NM2,564(6,441)NM
Net income8,64911,948(28)16,93126,248(35)
Diluted earnings per share$2.76$3.78(27)$5.39$8.28(35)
Selected ratios and metrics
Return on common equity13%18%13%21%
Return on tangible common equity
17231626
Book value per share$86.38$84.85$86.38$84.85
Tangible book value per share69.5368.9169.5368.91
Capital ratios(a)
CET1 capital12.2%13.0%12.2%13.0%
Tier 1 capital14.115.114.115.1
Total capital15.717.115.717.1
Memo:
NII excluding Markets(b)
$13,682 $10,863 26 $25,434 $21,638 18 
NIR excluding Markets(b)
10,158 13,745 (26)21,243 27,039 (21)
Markets(b)
7,790 6,787 15 16,543 15,837 
Total net revenue - managed basis$31,630 $31,395 $63,220 $64,514 (2)
(a)The capital metrics reflect the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the CECL capital transition provisions. Refer to Capital Risk Management on pages 44-49 of this Form 10-Q and pages 86-96 of JPMorgan Chase’s 2021 Form 10-K for additional information.
(b)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 second quarter of 2022 versus the second quarter of 2021, unless otherwise specified.
Firmwide overview
For the second quarter of 2022, JPMorgan Chase reported net income of $8.6 billion, down 28%, earnings per share of $2.76, an ROE of 13% and ROTCE of 17%.
Total net revenue was up 1%, and reflected:
Net interest income of $15.1 billion, up 19%. Net interest income excluding Markets was $13.7 billion, up 26%, driven by higher rates and balance sheet growth.
Noninterest revenue was $15.6 billion, down 12%, predominantly driven by:
lower Investment Banking fees, a loss in Credit Adjustments & Other compared to a gain in the prior year, and net losses on equity investments in CIB
lower Card income in CCB, and
$337 million of markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio in CIB and CB,
partially offset by
higher CIB Markets revenue.
Noninterest expense was up 6%, driven by continued investments in the business, including technology and marketing, and higher structural expense, primarily compensation, partially offset by lower revenue-related compensation.
The provision for credit losses was $1.1 billion, driven by:
a net addition of $428 million to the allowance for credit losses, primarily reflecting loan growth, as well as a modest deterioration in the Firm's macroeconomic forecast, and
5


$657 million of net charge-offs, down $77 million, driven by Card.
The prior year provision was a net benefit of $2.3 billion, reflecting a net reduction in the allowance for credit losses of $3.0 billion.
The total allowance for credit losses was $20.0 billion at June 30, 2022. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.69%, compared with 2.02% in the prior year.
The Firm’s nonperforming assets totaled $7.8 billion at June 30, 2022, a net decrease of $2.0 billion from the prior year, driven by lower nonaccrual loans, reflecting improved credit performance in consumer and net portfolio activity in wholesale.
Firmwide average loans of $1.1 trillion were up 7%, driven by higher loans across the LOBs.
Firmwide average deposits of $2.5 trillion were up 9%, reflecting the residual impact associated with government actions in the prior year. In CCB, the increase was also driven by growth from new and existing accounts across both consumer and small business customers. However, during the second quarter of 2022, there was a decline in deposits, including in CB due to migration of non-operating deposits into higher-yielding alternatives, and in CCB as consumer spending continued to grow.
Selected capital-related metrics
The Firm’s CET1 capital was $207 billion, and the Standardized and Advanced CET1 ratios were 12.2% and 12.9%, respectively.
The Firm’s SLR was 5.3%.
The Firm grew TBVPS, ending the second quarter of 2022 at $69.53, up 1% versus the prior year.
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.

6


Business segment highlights
Selected business metrics for each of the Firm’s four LOBs are presented below for the second quarter of 2022.
CCB
ROE
24%
Average deposits up 13%; client investment assets down 7%
Average loans up 2% year-over-year ("YoY") and up 2% quarter-over-quarter ("QoQ"); Card net charge-off rate of 1.47%
Debit and credit card sales volume(a) up 15%
Active mobile customers(b) up 11%
CIB
ROE
14%
#1 ranking for Global Investment Banking fees with 8.1% wallet share year-to-date
Total Markets revenue of $7.8 billion, up 15%, with Fixed Income Markets up 15% and Equity Markets up 15%
CB
ROE
15%
Gross Investment Banking revenue of $788 million, down 32%
Average loans up 7% YoY and up 4% QoQ; average deposits up 4%
AWM
ROE
23%
Assets under management ("AUM") of $2.7 trillion, down 8%
Average loans up 11% YoY and 1% QoQ; average deposits up 22%
(a)Excludes Commercial Card.
(b)Users of all mobile platforms who have logged in within the past 90 days.
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 six months of 2022, consisting of:
$1.4 trillion
Total credit provided and capital raised (including loans and commitments)(a)
$138
billion
Credit for consumers
$16
billion
Credit for U.S. small businesses
$553 billion
Credit for corporations
$609 billion
Capital raised for corporate clients and non-U.S. government entities
$36
 billion
Credit and capital raised for nonprofit and U.S. government entities(a)
(a)Includes states, municipalities, hospitals and universities.

7


Recent events
On July 19, 2022, JPMorgan Chase announced that Alex Gorsky had been elected as a member of the Firm's Board of Directors, effective immediately. Mr. Gorsky serves as the Executive Chairman of Johnson & Johnson.
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 87 and page 155 of JPMorgan Chase’s 2021 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 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 2022 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 2022
Management expects net interest income excluding Markets to be in excess of $58 billion, market dependent.
Management expects adjusted expense to be approximately $77 billion, which includes increased investments in technology, distribution and marketing, and higher structural expense.
Management expects the net charge-off rate in Card to be less than 2%.
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.
8


Business Developments
War in Ukraine
The duration and potential outcomes of the war in Ukraine remain uncertain. The Firm has taken steps to close positions and reduce exposures connected with the war, and continues to assist clients with fulfilling or terminating pre-existing obligations and managing their Russia-related risks.
The Firm’s exposure to Russia and Russia-associated clients and counterparties is not material to its financial condition or results of operations. However, the secondary impacts of the war in Ukraine, including increased market volatility, inflationary pressures and the effects of financial and economic sanctions imposed by various governments, could have adverse effects on the Firm’s businesses.
The Firm also continues to monitor and manage the operational risks associated with the war, including compliance with the financial and economic sanctions and the increased risk of cyber attacks.
Refer to Wholesale Credit Portfolio on pages 62-70, Allowance for Credit Losses on pages 71-73, Market Risk Management on pages 75-79, Country Risk Management on pages 80-81 and Operational Risk Management on page 82 for additional information.
For purposes of this Form 10-Q, “Russia” refers to exposure to clients and counterparties of the Firm for which the largest proportion of their assets is located, or the largest proportion of their revenue is derived, in Russia, based on the Firm’s internal country risk management framework; and “Russia-associated” refers to exposure to clients and counterparties of the Firm with respect to which economic or financial sanctions relating to the war in Ukraine have been imposed or which have close association with Russia.
Interbank Offered Rate (“IBOR”) transition
JPMorgan Chase and other market participants continue to make progress with respect to the transition from the use of the London Interbank Offered Rate (“LIBOR”) and other IBORs to comply with the International Organization of Securities Commission's standards for transaction-based benchmark rates. The cessation of the publication of the principal tenors of the U.S. dollar LIBOR (i.e., overnight, one-month, three-month, six-month and 12-month LIBOR) is scheduled for June 30, 2023.
The Firm continues its client outreach with respect to U.S. dollar LIBOR-linked loans and continues to monitor and evaluate client, industry, market, regulatory and legislative developments. Refer to Business Developments on pages 50-51 of JPMorgan Chase's 2021 Form 10-K for additional information.

9


CONSOLIDATED RESULTS OF OPERATIONS
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, 2022 and 2021, 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 83-85 of this Form 10-Q and pages 150-153 of JPMorgan Chase’s 2021 Form 10-K for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.
Revenue
Three months ended June 30,Six months ended June 30,
(in millions)20222021Change20222021Change
Investment banking fees$1,586 $3,470 (54)%$3,594 $6,440 (44)%
Principal transactions4,990 4,076 22 10,095 10,576 (5)
Lending- and deposit-related fees1,873 1,760 3,712 3,447 
Asset management, administration and commissions5,240 5,194 10,602 10,223 
Investment securities losses(153)(155)(547)(141)(288)
Mortgage fees and related income378 551 (31)838 1,255 (33)
Card income1,133 1,647 (31)2,108 2,997 (30)
Other income(a)
540 1,195 (55)2,030 2,318 (12)
Noninterest revenue15,587 17,738 (12)32,432 37,115 (13)
Net interest income15,128 12,741 19 29,000 25,630 13 
Total net revenue$30,715 $30,479 %$61,432 $62,745 (2)%
(a) Included operating lease income of $945 million and $1.3 billion for the three months ended June 30, 2022 and 2021, respectively and $2.0 billion and $2.6 billion for the six months ended June 30, 2022 and 2021, respectively.
Quarterly results
Investment banking fees decreased in CIB, reflecting:
lower debt and equity underwriting fees as volatile market conditions resulted in lower issuance activity, and
lower advisory fees driven by a lower level of announced deals, starting in the first quarter of 2022.
Refer to CIB segment results on pages 27-32 and Note 5 for additional information.
Principal transactions revenue increased primarily in CIB, reflecting:
higher revenue in Fixed Income Markets, driven by a strong performance in macro businesses amid a volatile market, particularly in Currencies & Emerging Markets, partially offset by lower revenue in Credit and Securitized Products, and
higher revenue in Equity Markets predominantly driven by a strong performance in derivatives amid a volatile market,
partially offset by
a $218 million loss in Credit Adjustments & Other, largely driven by funding spread widening, compared with a gain of $233 million in the prior year, and
$337 million of markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio in CIB and CB.
The increase in Principal transactions revenue also reflected net gains on certain legacy private equity investments in Corporate, compared with net losses in the prior year.
Principal transactions revenue in CIB may in certain cases have offsets across other revenue lines, including net
interest income. The Firm assesses the performance of its CIB Markets business on a total revenue basis.
Refer to CIB, CB and Corporate segment results on pages 27-32, pages 33-36 and pages 41-42, and Note 5 for additional information.
Lending- and deposit-related fees increased as a result of higher deposit-related fees in CCB.
Refer to CCB segment results on pages 22-26 and Note 5 for additional information.
Asset management, administration and commissions revenue was relatively flat, reflecting higher asset management fees in AWM resulting from the removal of most money market fund fee waivers, offset by lower market levels and performance fees. Refer to AWM segment results on pages 22-26 and Note 5 for additional information.
Investment securities losses were relatively flat, and reflected losses in both periods from repositioning the investment securities portfolios in Treasury and CIO. Refer to Corporate segment results on pages 41-42 and Note 9 for additional information.
Mortgage fees and related income decreased due to:
lower production revenue from lower margins and volume,
largely offset by
higher net mortgage servicing revenue resulting from
an increase in MSR risk management results primarily driven by changes in prepayment expectations, and
higher operating revenue on a higher level of third-party loans serviced.
10


Refer to CCB segment results on pages 22-26 Note 5 and 14 for additional information.
Card income decreased reflecting:
higher amortization related to new account origination costs in Card, and
lower net interchange income due to the impact from the renegotiation of a co-brand partner contract in Card in the fourth quarter of 2021.
Refer to CCB segment results on pages 22-26 and Note 5 for additional information.
Other income decreased reflecting:
net losses on equity investments in CIB compared with net gains in the prior year, and
lower auto operating lease income in CCB as a result of a decline in volume,
partially offset by
a gain on an equity-method investment received in partial satisfaction of a loan in CB, and
higher net gains related to certain other Corporate investments.
Net interest income increased driven by higher rates and balance sheet growth, partially offset by lower Markets NII, as well as lower NII from PPP loans.
The Firm’s average interest-earning assets were $3.4 trillion, up $209 billion, and the yield was 2.22%, up 43 basis points (“bps”). The net yield on these assets, on an FTE basis, was 1.80%, an increase of 18 bps. The net yield excluding Markets was 2.26%, up 36 bps.
Refer to the Consolidated average balance sheets, interest and rates schedule on page 180 for further details. 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 18-19 for a further discussion of Net interest yield excluding Markets.
Year-to-date results
Investment banking fees decreased in CIB, reflecting:
lower equity and debt underwriting fees as volatile market conditions resulted in lower issuance activity, and
lower advisory fees driven by a lower level of announced deals.
Principal transactions revenue decreased reflecting:
a loss of $742 million in Credit Adjustments & Other in CIB, largely driven by funding spread widening and, to a lesser extent, losses on exposures relating to commodities and Russia and Russia-associated counterparties, compared with a gain of $230 million in the prior year,
$337 million of markdowns in the second quarter of 2022 on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio in CIB and CB, and
net losses on certain legacy private equity investments in Corporate compared with net gains in the prior year,
partially offset by
an increase in Markets, reflecting
higher revenue in Fixed Income Markets, predominantly driven by higher revenue in the macro businesses, particularly in Currencies & Emerging Markets, partially offset by lower revenue in Securitized Products and Credit, and
higher revenue in Equity Markets, driven by a strong performance in prime brokerage and derivatives, partially offset by lower revenue in Cash Equities.
Lending- and deposit-related fees increased as a result of:
higher deposit-related fees in CCB, and
higher cash management fees in CIB and CB driven by growth in transaction volume.
Refer to CCB, CIB and CB segment results on pages 22-26, pages 27-32 and pages 33-36, respectively, and Note 5 for additional information.
Asset management, administration and commissions revenue increased, predominantly driven by higher asset management fees in AWM, reflecting strong cumulative net inflows into long-term products, and the removal of most money market fund fee waivers in the second quarter of 2022, and net inflows in CCB. Refer to CCB and AWM segment results on pages 22-26, pages 37-40, respectively, and Note 5 for additional information.
Investment securities losses reflected higher net losses on sales of U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolios in both periods in Treasury and CIO.
Mortgage fees and related income decreased due to:
lower production revenue from lower margins and volume,
largely offset by
higher net mortgage servicing revenue resulting from
an increase in MSR risk management results primarily driven by changes in prepayment expectations, and
higher operating revenue on a higher level of third-party loans serviced.
Card income decreased due to higher amortization related to new account origination costs in Card.
Other income decreased reflecting:
lower auto operating lease income in CCB as a result of a decline in volume,
net losses on several investments in AWM and CIB compared with net gains in the prior year,
partially offset by
proceeds from an insurance settlement in the first quarter of 2022 in Corporate,
higher net gains related to certain other Corporate investments in,
a gain on an equity-method investment received in partial satisfaction of a loan in CB, and
11


the absence of weather-related write-downs recorded in the prior year on certain renewable energy investments in CIB.
Net interest income increased driven by higher rates and balance sheet growth, partially offset by lower NII from PPP loans, as well as lower Markets NII.
The Firm’s average interest-earning assets were $3.4 trillion, up $242 billion, and the yield was 2.04%, up 21 basis points (“bps”). The net yield on these assets, on an FTE basis, was 1.74%, an increase of 9 bps. The net yield excluding Markets was 2.11%, up 19 bps.
12


Provision for credit losses
Three months ended June 30,Six months ended June 30,
(in millions)20222021Change20222021Change
Consumer, excluding credit card$62 $(808)NM$235 $(1,792)NM
Credit card730 (1,045)NM1,236 (3,562)NM
Total consumer792 (1,853)NM1,471 (5,354)NM
Wholesale303 (425)NM1,088 (1,096)NM
Investment securities6 (7)NM5 NM
Total provision for credit losses$1,101 $(2,285)NM$2,564 $(6,441)NM
Quarterly results
The provision for credit losses was $1.1 billion, reflecting $657 million of net charge-offs and a net addition of $428 million to the allowance for credit losses, consisting of:
$238 million in wholesale driven by a modest deterioration in the Firm's macroeconomic forecast, and loan growth largely in CB, partially offset by client-specific reductions in the allowance for credit losses, and
$184 million in consumer predominantly driven by loan growth in Card.
Net charge-offs decreased $77 million driven by Card, reflecting the financial strength of U.S. consumers.
The prior year included a $3.0 billion net reduction in the allowance for credit losses and net charge-offs of $734 million.
Refer to CCB segment results on pages 22-26, CIB on pages 27-32, CB on pages 33-36, AWM on pages 37-40, the Allowance for Credit Losses on pages 71-73, and Notes 9 and 12 for additional information on the credit portfolio and the allowance for credit losses.




Year-to-date results
The provision for credit losses was $2.6 billion, reflecting a net addition of $1.3 billion to the allowance for credit losses and $1.2 billion of net charge-offs. The addition to the allowance primarily consisted of:
$1.0 billion in wholesale reflecting the increased weight placed on the adverse scenarios in the current year due to the ongoing effects associated with higher inflation, changes in monetary policy, and geopolitical risks, including the war in Ukraine, and a modest deterioration in the Firm's macroeconomic forecast. The increase in the allowance was also driven by loan growth in CB in the second quarter of 2022, and client-specific Russia and Russia-associated downgrades in CIB and AWM in the first quarter of 2022, and
$311 million in consumer primarily driven by Card, related to loan growth, and Home Lending due to the increased weight placed on the adverse scenarios in the first quarter of 2022.
Net charge-offs decreased $552 million driven by Card, reflecting the financial strength of U.S. consumers.
The prior year included an $8.2 billion net reduction in the allowance for credit losses and net charge-offs of $1.8 billion.

13


Noninterest expense
(in millions)Three months ended June 30,Six months ended June 30,
20222021Change20222021Change
Compensation expense$10,301 $9,814 %$21,088 $20,415 %
Noncompensation expense:
Occupancy1,129 1,090 2,263 2,205 
Technology, communications and equipment(a)
2,376 2,488 (5)4,736 5,007 (5)
Professional and outside services2,469 2,385 5,041 4,588 10 
Marketing881 626 41 1,801 1,377 31 
Other expense(b)
1,593 1,264 26 3,011 2,800 
Total noncompensation expense8,448 7,853 16,852 15,977 
Total noninterest expense$18,749 $17,667 %$37,940 $36,392 %
(a)Includes depreciation expense associated with auto operating lease assets.
(b)Included Firmwide legal expense of $73 million and $185 million for the three months ended June 30, 2022 and 2021, respectively and $192 million and $213 million for the six months ended June 30, 2022 and 2021, respectively.
Quarterly results
Compensation expense increased driven by investments and higher structural expense across the LOBs, partially offset by lower revenue-related compensation in CIB.
Noncompensation expense increased as a result of:
higher investments across the Firm, including marketing and technology, and
higher structural expense, including travel and entertainment,
partially offset by
lower volume-related expense, primarily depreciation expense in CCB on lower auto lease assets, and
lower legal expense.
Year-to-date results
Compensation expense increased driven by investments and higher structural expense across the LOBs, largely offset by lower revenue-related compensation in CIB.
Noncompensation expense increased as a result of:
higher investments across the Firm, including marketing and technology, and
higher structural expense, including travel and entertainment and regulatory assessments. The prior year included a $550 million contribution to the Firm's Foundation,
partially offset by
lower volume-related expense, reflecting a net decrease related to lower depreciation expense on lower auto lease assets and higher operating losses, both in CCB.
Income tax expense
(in millions)Three months ended June 30,Six months ended June 30,
20222021Change20222021Change
Income before income tax expense$10,865 $15,097 (28)%$20,928 $32,794 (36)%
Income tax expense2,216 3,149 (30)3,997 6,546 (39)
Effective tax rate20.4 %20.9 %19.1 %20.0 %

Quarterly results
The effective tax rate decreased driven by the impact of benefits related to tax audit settlements, partially offset by the change in the level and mix of income and expenses subject to U.S. federal and state and local taxes. The prior year included expenses related to tax audit settlements.

Year-to-date results
The effective tax rate decreased for the six months ended June 30, 2022, driven by benefits from tax audit settlements, as well as the relative net impact of certain tax benefits and expenses on a lower level of pretax income, partially offset by the change in the level and mix of income and expenses subject to U.S. federal and state and local taxes. The prior year included expenses related to tax audit settlements.
14


CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS
Consolidated balance sheets analysis
The following is a discussion of the significant changes between June 30, 2022, and December 31, 2021.
Selected Consolidated balance sheets data
(in millions)June 30,
2022
December 31,
2021
Change
Assets
Cash and due from banks$27,215 $26,438 %
Deposits with banks642,045 714,396 (10)
Federal funds sold and securities purchased under resale agreements322,156 261,698 23 
Securities borrowed202,393 206,071 (2)
Trading assets465,577 433,575 
Available-for-sale securities222,069 308,525 (28)
Held-to-maturity securities, net of allowance for credit losses441,649 363,707 21 
Investment securities, net of allowance for credit losses663,718 672,232 (1)
Loans1,104,155 1,077,714 
Allowance for loan losses(17,750)(16,386)
Loans, net of allowance for loan losses1,086,405 1,061,328 
Accrued interest and accounts receivable145,442 102,570 42 
Premises and equipment26,770 27,070 (1)
Goodwill, MSRs and other intangible assets59,360 56,691 
Other assets200,233 181,498 10 
Total assets$3,841,314 $3,743,567 %
Cash and due from banks and deposits with banks decreased primarily as a result of Markets activities and loan growth. Deposits with banks reflect the Firm’s placements of its excess cash with various central banks, including the Federal Reserve Banks.
Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting:
higher collateral requirements, higher demand for securities to cover short positions, and
the impact of netting on client-driven market-making activities.
Refer to Note 10 for additional information on securities purchased under resale agreements.
Trading assets increased driven by:
higher foreign exchange and commodity derivative receivables as a result of market movements, as well as higher levels of debt instruments, partially offset by lower equity instruments, related to client-driven market-making activities in Markets, and
higher deployment of funds in Treasury and CIO.
Refer to Notes 2 and 4 for additional information.
Investment securities included the transfer of $73.2 billion of securities from the available-for-sale (“AFS”) to the held-to-maturity (“HTM”) portfolio.
The decrease in AFS securities was also due to paydowns, and unrealized losses, recognized in accumulated other comprehensive income (AOCI), predominantly offset by net purchases.
The increase in HTM securities was also due to purchases predominantly offset by paydowns.

Refer to Corporate segment results on pages 41-42, Investment Portfolio Risk Management on page 74, and Notes 2 and 9 for additional information.
Loans increased, reflecting:
higher loans in CB as a result of higher revolver utilization and originations,
higher retained residential real estate loans in AWM and Home Lending as a result of originations, net of paydowns,
higher balances in Card on higher consumer spending, and
higher wholesale loans in CIB,
partially offset by
lower mortgage warehouse loans in Home Lending as sales outpaced originations due to higher interest rates, and
a decline in CBB due to the impact of PPP loan forgiveness.
The allowance for loan losses increased as a result of a net addition of $1.4 billion to the allowance for loan losses, consisting of $1.1 billion in wholesale and $314 million in consumer. The addition reflects the increased weight placed on the adverse scenarios in the current year, due to the ongoing effects associated with higher inflation, changes in monetary policy, and geopolitical risks, including the war in Ukraine, and a modest deterioration in the Firm's macroeconomic forecast. The increase in the allowance for loan losses was also driven by loan growth in Card and CB in the second quarter of 2022, and client-specific Russia and Russia-associated downgrades in CIB and AWM in the first quarter of 2022.
15


There was a $39 million reduction in the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets.
Refer to Credit and Investment Risk Management on pages 55-74, and Notes 2, 3, 11 and 12 for a more detailed discussion of loans and the allowance for loan losses.
Accrued interest and accounts receivable increased due to higher client receivables related to client-driven activities in Markets, including prime brokerage.

Goodwill, MSRs and other intangibles increased, reflecting:
higher MSRs as a result of changes in market interest rates and net additions, partially offset by the realization of expected cash flows, and
higher goodwill associated with the acquisitions of Frosch Travel Group, LLC in CCB and Volkswagen Payments S.A. in CIB.
Refer to Note 14 for additional information.
Other assets increased largely due to the higher cash collateral placed with counterparties, as well as higher securities financing transactions in Markets.
Selected Consolidated balance sheets data (continued)
(in millions)June 30,
2022
December 31,
2021
Change
Liabilities
Deposits$2,471,544 $2,462,303 — %
Federal funds purchased and securities loaned or sold under repurchase agreements222,719 194,340 15 
Short-term borrowings58,422 53,594 
Trading liabilities190,308 164,693 16 
Accounts payable and other liabilities313,326 262,755 19 
Beneficial interests issued by consolidated variable interest entities (“VIEs”)10,640 10,750 (1)
Long-term debt288,212 301,005 (4)
Total liabilities3,555,171 3,449,440 
Stockholders’ equity286,143 294,127 (3)
Total liabilities and stockholders’ equity$3,841,314 $3,743,567 %
Deposits were relatively flat, reflecting:
growth in new accounts in CCB that more than offset the decline in deposits in existing accounts across consumer and small business customers, as consumer spending continued to grow, and
higher deposits in Securities Services and Payments primarily driven by client activities,
offset by
a decline in CB due to the migration of non-operating deposits into higher-yielding alternatives; and additionally, in AWM and CB reflecting seasonality.
Refer to Liquidity Risk Management on pages 50-54 and Notes 2 and 15 for additional information.
Federal funds purchased and securities loaned or sold under repurchase agreements increased due to:
higher secured financing of trading assets and the impact of netting on client-driven market-making activities in Markets,
partially offset by
lower secured financing of AFS investment securities in Treasury and CIO. Refer to Liquidity Risk Management on pages 50-54 and Note 10 for additional information.
Short-term borrowings increased as a result of higher net issuance of commercial paper primarily for short-term liquidity management in Treasury and CIO. Refer to Liquidity Risk Management on pages 50-54 for additional information.

Trading liabilities increased due to client-driven market-making activities in Fixed Income Markets, which resulted in higher levels of short positions in debt instruments. Refer to Notes 2 and 4 for additional information.
Accounts payable and other liabilities increased due to higher client payables related to client-driven activities primarily in Markets, including prime brokerage. Refer to Note 10 for additional information on securities financing transactions.
Refer to Liquidity Risk Management on pages 50-54 and Notes 13 and 22 for additional information on Beneficial interests issued by consolidated VIEs, specifically Firm-sponsored VIEs and loan securitization trusts.
Long-term debt decreased driven by fair value hedge accounting adjustments in Treasury and CIO related to higher rates, and a decline in the fair value of structured notes in CIB. These were largely offset by net issuances in Treasury and CIO and CIB. Refer to Liquidity Risk Management on pages 50-54 for additional information.
Stockholders’ equity decreased as a result of a net unrealized loss in AOCI, which was predominantly driven by the impact of higher rates on the AFS portfolio and cash flow hedges in Treasury and CIO. Refer to Capital actions on page 48, Consolidated statements of changes in stockholders’ equity on page 91, and Note 19 for additional information.

16


Consolidated cash flows analysis
The following is a discussion of cash flow activities during the six months ended June 30, 2022 and 2021.
(in millions)Six months ended June 30,
20222021
Net cash provided by/(used in)
Operating activities$24,101 $(30,342)
Investing activities(125,811)33,089 
Financing activities
48,970 180,968 
Effect of exchange rate changes on cash(18,834)(5,903)
Net increase/(decrease) in cash and due from banks and deposits with banks$(71,574)$177,812 
Operating activities
In 2022, cash provided reflected higher accounts payable and other liabilities, trading liabilities, and net proceeds from loans held-for-sale, predominantly offset by higher trading assets and accrued interest and accounts receivable.
In 2021, cash used resulted from higher accrued interest and accounts receivable and securities borrowed, partially offset by higher accounts payable and other liabilities.
Investing activities
In 2022, cash used resulted from higher securities purchased under resale agreements, net originations of loans, and net purchases of investment securities.
In 2021, cash provided reflected lower securities purchased under resale agreements, partially offset by net originations of loans.
Financing activities
In 2022, cash provided reflected higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings.
In 2021, cash provided reflected higher deposits and securities loaned or sold under repurchase agreements, and net proceeds from long- and short-term borrowings.
For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock.
* * *
Refer to Consolidated Balance Sheets Analysis on pages 15-16, Capital Risk Management on pages 44-49, and Liquidity Risk Management on pages 50-54 of this Form 10-Q, and pages 97-104 of JPMorgan Chase’s 2021 Form 10-K for a further discussion of the activities affecting the Firm’s cash flows.

17


EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES
The Firm prepares its Consolidated Financial Statements in accordance with U.S. GAAP and this presentation is referred to as “reported” basis; these financial statements appear on page 88-92.
In addition to analyzing the Firm’s results on a reported basis, the Firm also reviews and uses certain non-GAAP financial measures at the Firmwide and segment level. These non-GAAP measures include:
Firmwide “managed” basis results, including the overhead ratio, which include certain reclassifications to present total net revenue from investments that receive tax credits and tax-exempt securities on a basis comparable to taxable investments and securities (“FTE” basis);

Pre-provision profit, which represents total net revenue less total noninterest expense;
Net interest income, net yield, and noninterest revenue excluding Markets;
TCE, ROTCE, and TBVPS;
Adjusted expense, which represents noninterest expense excluding Firmwide legal expense; and
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits.
Refer to Explanation and Reconciliation of the Firm’s Use Of Non-GAAP Financial Measures and Key Performance Measures on pages 58-60 of JPMorgan Chase’s 2021 Form 10-K for a further discussion of management’s use of non-GAAP financial measures.
The following summary tables provide a reconciliation from the Firm’s reported U.S. GAAP results to managed basis.
Three months ended June 30,
20222021
(in millions, except ratios)Reported
Fully taxable-equivalent adjustments(a)
Managed
basis
Reported
Fully taxable-equivalent adjustments(a)
Managed
basis
Other income$540 $812 $1,352 $1,195 $807 $2,002 
Total noninterest revenue15,587 812 16,399 17,738 807 18,545 
Net interest income15,128 103 15,231 12,741 109 12,850 
Total net revenue30,715 915 31,630 30,479 916 31,395 
Total noninterest expense18,749 NA18,749 17,667 NA17,667 
Pre-provision profit11,966 915 12,881 12,812 916 13,728 
Provision for credit losses1,101 NA1,101 (2,285)NA(2,285)
Income before income tax expense10,865 915 11,780 15,097 916 16,013 
Income tax expense2,216 915 3,131 3,149 916 4,065 
Net income$8,649 NA$8,649 $11,948 NA$11,948 
Overhead ratio61 %NM59 %58 %NM56 %
Six months ended June 30,
20222021
(in millions, except ratios)Reported
Fully taxable-equivalent adjustments(a)
Managed
basis
Reported
Fully taxable-equivalent adjustments(a)
Managed
basis
Other income$2,030 $1,587 $3,617 $2,318 $1,551 $3,869 
Total noninterest revenue32,432 1,587 34,019 37,115 1,551 38,666 
Net interest income29,000 201 29,201 25,630 218 25,848 
Total net revenue61,432 1,788 63,220 62,745 1,769 64,514 
Total noninterest expense37,940 NA37,940 36,392 NA36,392 
Pre-provision profit23,492 1,788 25,280 26,353 1,769 28,122 
Provision for credit losses2,564 NA2,564 (6,441)NA(6,441)
Income before income tax expense20,928 1,788 22,716 32,794 1,769 34,563 
Income tax expense3,997 1,788 5,785 6,546 1,769 8,315 
Net Income$16,931 NA$16,931 $26,248 NA$26,248 
Overhead ratio62 %NM60 %58 %NM56 %
(a)Predominantly recognized in CIB, CB and Corporate.



18


The following table provides information on net interest income, net yield, and noninterest revenue excluding Markets.

(in millions, except rates)
Three months ended June 30,Six months ended June 30,
20222021Change20222021Change
Net interest income – reported
$15,128 $12,741 19 %$29,000 $25,630 13 %
Fully taxable-equivalent adjustments
103 109 (6)201 218 (8)
Net interest income – managed basis(a)
$15,231 $12,850 19 $29,201 $25,848 13 
Less: Markets net interest income(b)
1,549 1,987 (22)3,767 4,210 (11)
Net interest income excluding Markets(a)
$13,682 $10,863 26 $25,434 $21,638 18 
Average interest-earning assets$3,385,894 $3,177,195 $3,393,879 $3,152,022 
Less: Average Markets interest-earning assets(b)
957,304 882,848 960,556 874,764 10 
Average interest-earning assets excluding Markets$2,428,590 $2,294,347 %$2,433,323 $2,277,258 %
Net yield on average interest-earning assets – managed basis
1.80 %1.62 %1.74 %1.65 %
Net yield on average Markets interest-earning assets(b)
0.65 0.90 0.79 0.97 
Net yield on average interest-earning assets excluding Markets2.26 %1.90 %2.11 %1.92 %
Noninterest revenue – reported$15,587 $17,738 (12)%$32,432 $37,115 (13)%
Fully taxable-equivalent adjustments812 807 1,587 1,551 
Noninterest revenue – managed basis$16,399 $18,545 (12)$34,019 $38,666 (12)
Less: Markets noninterest revenue(b)
6,241 4,800 30 12,776 11,627 10 
Noninterest revenue excluding Markets$10,158 $13,745 (26)$21,243 $27,039 (21)
Memo: Total Markets net revenue(b)
$7,790 $6,787 15 $16,543 $15,837 
(a)Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
(b)Refer to page 31 for further information on Markets.
The following summary table provides a reconciliation from the Firm’s common stockholders’ equity to TCE.
Period-endAverage
(in millions, except per share and ratio data)Jun 30,
2022
Dec 31,
2021
Three months ended June 30,Six months ended June 30,
2022202120222021
Common stockholders’ equity
$253,305 $259,289 $247,986 $250,849 $250,234 $248,209 
Less: Goodwill50,697 50,315 50,575 49,260 50,442 49,254 
Less: Other intangible assets
1,224 882 1,119 864 1,007 877 
Add: Certain deferred tax liabilities(a)
2,509 2,499 2,503 2,459 2,500 2,457 
Tangible common equity$203,893 $210,591 $198,795 $203,184 $201,285 $200,535 
Return on tangible common equityNANA17 %23 %16 %26 %
Tangible book value per share$69.53 $71.53 NANANANA
(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.
19


BUSINESS SEGMENT RESULTS
The Firm is managed on an LOB basis. There are four major reportable business segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. In addition, there is a Corporate segment.
The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by the Firm’s Operating Committee. Segment results are presented on a managed basis. Refer to Explanation and Reconciliation of the Firm’s use of Non-GAAP Financial Measures on pages 18-19 for a definition of managed basis.
Description of business segment reporting methodology
Results of the business segments are intended to present each segment as if it were a stand-alone business. The management reporting process that derives business segment results includes the allocation of certain income and expense items. The Firm periodically assesses the assumptions, methodologies and reporting classifications used for segment reporting, and further refinements may be implemented in future periods. The Firm also assesses the level of capital required for each LOB on at least an annual basis. The Firm’s LOBs also provide various business metrics which are utilized by the Firm and its investors and analysts in assessing performance.
Revenue sharing
When business segments join efforts to sell products and services to the Firm’s clients, the participating business segments may agree to share revenue from those transactions. Revenue is generally recognized in the segment responsible for the related product or service, with allocations to the other segment(s) involved in the transaction. The segment results reflect these revenue-sharing agreements.
Funds transfer pricing
Funds transfer pricing (“FTP”) is the process by which the Firm allocates interest income and expense to the LOBs and Other Corporate and transfers the primary interest rate risk and liquidity risk to Treasury and CIO.
The funds transfer pricing process considers the interest rate risk and liquidity risk characteristics of assets and liabilities and off-balance sheet products. Periodically the methodology and assumptions utilized in the FTP process are adjusted to reflect economic conditions and other factors, which may impact the allocation of net interest income to the segments.
Foreign exchange risk
Foreign exchange risk is transferred from the LOBs and Other Corporate to Treasury and CIO for certain revenues and expenses. Treasury and CIO manages these risks centrally and reports the impact of foreign exchange rate movements related to the transferred risk in its results.
Capital allocation
The amount of capital assigned to each business segment is referred to as equity. Periodically, the assumptions and methodologies used to allocate capital are reassessed and as a result, the capital allocated to the LOBs may change. Refer to Line of business equity on page 47, and page 93 of JPMorgan Chase’s 2021 Form 10-K for additional information on capital allocation.
Refer to Business Segment Results – Description of business segment reporting methodology on pages 61-62 of JPMorgan Chase’s 2021 Form 10-K for a further discussion of those methodologies.

20


Segment results – managed basis
The following tables summarize the Firm’s results by segment for the periods indicated.
Three months ended June 30,Consumer & Community BankingCorporate & Investment BankCommercial Banking
(in millions, except ratios)20222021Change20222021Change20222021Change
Total net revenue$12,614 $12,760(1)%$11,947 $13,214(10)%$2,683 $2,4838%
Total noninterest expense7,723 7,06296,745 6,52331,156 98118
Pre-provision profit/(loss)4,891 5,698(14)5,202 6,691(22)1,527 1,5022
Provision for credit losses761 (1,868)NM59 (79)NM209 (377)NM
Net income/(loss)3,100 5,645
(a)
(45)3,725 5,020
(a)
(26)994 1,422
(a)
(30)
Return on equity (“ROE”)24%44%

14 %23%15 %23%
Three months ended June 30,Asset & Wealth ManagementCorporateTotal
(in millions, except ratios)20222021Change20222021Change20222021Change
Total net revenue$4,306 $4,1075%$80 $(1,169)NM$31,630 $31,3951%
Total noninterest expense2,919 2,58613206 515(60)18,749 17,6676
Pre-provision profit/(loss)1,387 1,521(9)(126)(1,684)9312,881 13,728(6)
Provision for credit losses44 (10)NM28 49(43)1,101 (2,285)NM
Net income/(loss)1,004 1,156
(a)
(13)(174)(1,295)
(a)
878,649 11,948(28)
ROE23 %32%NMNM13 %18%
Six months ended June 30,Consumer & Community BankingCorporate & Investment BankCommercial Banking
(in millions, except ratios)20222021Change20222021Change20222021Change
Total net revenue$24,843 $25,277(2)%$25,476 $27,819(8)%$5,081 $4,8764%
Total noninterest expense15,443 14,264814,043 13,62732,285 1,95017
Pre-provision profit/(loss)9,400 11,013(15)11,433 14,192(19)2,796 2,926(4)
Provision for credit losses1,439 (5,470)NM504 (410)NM366 (495)NM
Net income/(loss)5,995 12,432
(a)
(52)8,110 10,944
(a)
(26)1,844 2,603
(a)
(29)
ROE23%49%15 %26%
(a)
14 %21%
Six months ended June 30,Asset & Wealth ManagementCorporateTotal
(in millions, except ratios)20222021Change20222021Change20222021Change
Total net revenue$8,621 $8,1845%$(801)$(1,642)51%$63,220 $64,514(2)%
Total noninterest expense5,779 5,16012390 1,391(72)37,940 36,3924
Pre-provision profit/(loss)2,842 3,024(6)(1,191)(3,033)6125,280 28,122(10)
Provision for credit losses198 (131)NM57 65(12)2,564 (6,441)NM
Net income/(loss)2,012 2,416
(a)
(17)(1,030)(2,147)
(a)
5216,931 26,248(35)
ROE23 %34%

NMNM13 %21%
(a)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.

The following sections provide a comparative discussion of the Firm’s results by segment as of or for the three and six months ended June 30, 2022 versus the corresponding period in the prior year, unless otherwise specified.
21


CONSUMER & COMMUNITY BANKING
Refer to pages 63-66 of JPMorgan Chase's 2021 Form 10-K and Line of Business Metrics on page 188 for a further discussion of the business profile of CCB.
Selected income statement data
Three months ended June 30,Six months ended June 30,
(in millions, except ratios)
20222021Change20222021Change
Revenue
Lending- and deposit-related fees$855 $753 14%$1,660 $1,495 11 %
Asset management, administration and commissions947 866 91,876 1,671 12 
Mortgage fees and related income377 548 (31)833 1,251 (33)
Card income678 1,238 (45)1,268 2,237 (43)
All other income1,049 1,321 (21)2,171 2,660 (18)
Noninterest revenue3,906 4,726 (17)7,808 9,314 (16)
Net interest income8,708 8,034 817,035 15,963 
Total net revenue12,614 12,760 (1)24,843 25,277 (2)
Provision for credit losses761 (1,868)NM1,439 (5,470)NM
Noninterest expense
Compensation expense3,237 2,977 96,408 5,953 
Noncompensation expense(a)
4,486 4,085 109,035 8,311 
Total noninterest expense7,723 7,062 915,443 14,264 
Income before income tax expense4,130 7,566 (45)7,961 16,483 (52)
Income tax expense1,030 1,921 
(c)
(46)1,966 4,051 
(c)
(51)
Net income$3,100 $5,645 
(c)
(45)$5,995 $12,432 
(c)
(52)
Revenue by line of business
Consumer & Business Banking $6,558 $6,016 9$12,620 $11,651 
Home Lending1,001 1,349 (26)2,170 2,807 (23)
Card & Auto5,055 5,395 (6)10,053 10,819 (7)
Mortgage fees and related income details:
Production revenue150 517 (71)361 1,274 (72)
Net mortgage servicing revenue(b)
227 31 NM472 (23)NM
Mortgage fees and related income
$377 $548 (31)%$833 $1,251 (33)%
Financial ratios
Return on equity24 %44 %23 %49 %
Overhead ratio61 55 62 56 
(a)Included depreciation expense on leased assets of $652 million and $856 million for the three months ended June 30, 2022 and 2021, respectively, and $1.3 billion and $1.8 billion for the six months ended June 30, 2022 and 2021, respectively.
(b)Included MSR risk management results of $28 million and $(103) million for the three months ended June 30, 2022 and 2021, respectively, and $137 million and $(218) million for the six months ended June 30, 2022 and 2021, respectively.
(c)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.

22


Quarterly results
Net income was $3.1 billion, down 45%, reflecting an increase in the provision for credit losses compared with a net benefit in the prior year.
Net revenue was $12.6 billion, a decrease of 1%.
Net interest income was $8.7 billion, up 8%, driven by:
growth in deposits in CBB, and higher revolving loans in Card,
partially offset by
a reduction associated with PPP loan forgiveness in CBB, and lower NII in Home Lending primarily due to tighter loan spreads.
Noninterest revenue was $3.9 billion, down 17%, driven by:
lower card income reflecting higher amortization related to new account origination costs and lower net interchange income due to the impact from the renegotiation of a co-brand partner contract in the fourth quarter of 2021,
lower production revenue from lower margins and volume in Home Lending, and
lower auto operating lease income as a result of a decline in volume,
partially offset by
higher net mortgage servicing revenue from an increase in MSR risk management results primarily driven by changes in prepayment expectations, and higher operating revenue on a higher level of third-party loans serviced, and
higher deposit-related fees.
Refer to Note 14 for further information regarding changes in the value of the MSR asset and related hedges, and mortgage fees and related income. Refer to Note 5 for additional information on card income.
Noninterest expense was $7.7 billion, up 9%, reflecting:
investments in the business and increased structural expenses, predominantly driven by compensation, technology and marketing,
partially offset by
lower volume- and revenue-related expenses primarily due to depreciation expense on lower auto lease assets.
The provision for credit losses was $761 million, reflecting:
net charge-offs of $611 million, down $121 million, driven by Card reflecting the financial strength of U.S. consumers, and
a $150 million addition to the allowance for credit losses in Card driven by loan growth.
The prior year included a $2.6 billion reduction in the allowance for credit losses across CCB.
Refer to Credit and Investment Risk Management on pages 55-74 and Allowance for Credit Losses on pages 71-73 for a further discussion of the credit portfolios and the allowance for credit losses.
Year-to-date results
Net income was $6.0 billion, down 52%, reflecting an increase in the provision for credit losses compared with a net benefit in the prior year.
Net revenue was $24.8 billion, a decrease of 2%.
Net interest income was $17.0 billion, up 7%, driven by:
growth in deposits net of margin compression in CBB, and higher revolving loans in Card,
partially offset by
a reduction associated with PPP loan forgiveness in CBB, and lower NII in Home Lending primarily due to tighter loan spreads.
Noninterest revenue was $7.8 billion, down 16%, driven by:
lower production revenue from lower margins and volume in Home Lending,
higher amortization related to new account origination costs in Card, and
lower auto operating lease income as a result of a decline in volume,
partially offset by
higher net mortgage servicing revenue from an increase in MSR risk management results primarily driven by changes in prepayment expectations, and higher operating revenue on a higher level of third-party loans serviced,
higher commissions largely on travel, and higher asset management fees as a result of net inflows, and
higher deposit-related fees.
Noninterest expense was $15.4 billion, up 8%, reflecting:
investments in the business and increased structural expenses, predominantly driven by compensation, technology and marketing,
partially offset by
lower volume- and revenue-related expenses, reflecting a net decrease related to lower depreciation expense on lower auto lease assets and higher operating losses.
The provision for credit losses was $1.4 billion, reflecting:
net charge-offs of $1.2 billion, down $591 million, driven by Card reflecting the financial strength of U.S. consumers, and
a $275 million addition to the allowance for credit losses in Card and Home Lending.
The prior year included a $7.2 billion reduction in the allowance for credit losses across CCB.



23


Selected metrics
As of or for the three months
ended June 30,
As of or for the six months
ended June 30,
(in millions, except headcount)20222021Change20222021Change
Selected balance sheet data (period-end)
Total assets$500,219 $494,305 1%$500,219 $494,305 %
Loans:
Consumer & Business Banking(a)
31,494 46,228 (32)31,494 46,228 (32)
Home Lending(b)
176,939 179,371 (1)176,939 179,371 (1)
Card165,494 141,802 17165,494 141,802 17 
Auto 67,842 67,598 67,842 67,598 — 
Total loans441,769 434,999 2441,769 434,999 
Deposits1,178,825 1,056,507 121,178,825 1,056,507 12 
Equity50,000 50,000 50,000 50,000 — 
Selected balance sheet data (average)
Total assets$496,177 $485,209 2$492,592 $484,868 
Loans:
Consumer & Business Banking
32,294 49,356 (35)33,014 49,611 (33)
Home Lending(c)
177,330 177,444 176,911 179,832 (2)
Card158,434 136,149 16153,941 135,520 14 
Auto 68,569 67,183 268,908 67,072 
Total loans436,627 430,132 2432,774 432,035 — 
Deposits1,180,453 1,047,771 131,167,057 1,013,917 15 
Equity50,000 50,000 50,000 50,000 — 
Headcount130,907 125,300 4%130,907 125,300 %
(a)At June 30, 2022 and 2021, included $1.5 billion and $16.7 billion of loans, respectively, in Business Banking under the PPP. Refer to Credit Portfolio on page 109 of JPMorgan Chase's 2021 Form 10-K for a further discussion on the PPP.
(b)At June 30, 2022 and 2021, Home Lending loans held-for-sale and loans at fair value were $5.2 billion and $16.5 billion, respectively.
(c)Average Home Lending loans held-for sale and loans at fair value were $8.1 billion and $14.2 billion for the three months ended June 30, 2022 and 2021, respectively, and $9.5 billion and $13.3 billion for the six months ended June 30, 2022 and 2021, respectively.





































































24


Selected metrics
As of or for the three months
ended June 30,
As of or for the six months
ended June 30,
(in millions, except ratio data)20222021Change20222021Change
Credit data and quality statistics
Nonaccrual loans(a)(b)(c)
$4,217 $5,256 (20)%$4,217 $5,256 (20)%
Net charge-offs/(recoveries)
Consumer & Business Banking 81 72 13170 137 24 
Home Lending(68)(79)14(137)(130)(5)
Card580 755 (23)1,086 1,738 (38)
Auto18 (16)NM45 10 350 
Total net charge-offs/(recoveries)$611 $732 (17)$1,164 $1,755 (34)
Net charge-off/(recovery) rate
Consumer & Business Banking(d)
1.01 %0.59 %1.04 %0.56 %
Home Lending(0.16)(0.19)(0.16)(0.16)
Card1.47 2.241.42 2.60
Auto0.11 (0.10)0.13 0.03
Total net charge-off/(recovery) rate0.57 %0.71 %0.55 %0.85 %
30+ day delinquency rate
Home Lending(e)(f)
0.85 %1.08 %0.85 %1.08 %
Card1.05 1.01 1.05 1.01 
Auto 0.69 0.42 0.69 0.42 
90+ day delinquency rate - Card0.51 %0.54 %0.51 %0.54 %
Allowance for loan losses
Consumer & Business Banking $697 $897 (22)$697 $897 (22)
Home Lending785 630 25785 630 25 
Card10,400 12,500 (17)10,400 12,500 (17)
Auto 740 817 (9)740 817 (9)
Total allowance for loan losses$12,622 $14,844 (15)%$12,622 $14,844 (15)%
(a)At June 30, 2022 and 2021, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $257 million and $397 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.
(b)At June 30, 2022 and 2021, generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic. Refer to Consumer Credit Portfolio on pages 110-116 of JPMorgan Chase's 2021 Form 10-K for further information on consumer payment assistance activity. Includes loans to customers that have exited COVID-19 related payment deferral programs and are 90 or more days past due, predominantly all of which were considered collateral-dependent at time of exit.
(c)At June 30, 2022, nonaccrual loans excluded $86 million of PPP loans 90 or more days past due and guaranteed by the SBA.
(d)At June 30, 2022 and 2021, included $1.5 billion and $16.7 billion of loans, respectively, in Business Banking under the PPP. The Firm does not expect to realize material credit losses on PPP loans because the loans are guaranteed by the SBA. Refer to Credit Portfolio on page 109 of JPMorgan Chase's 2021 Form 10-K for a further discussion of the PPP.
(e)At June 30, 2022 and 2021, the principal balance of loans under payment deferral programs offered in response to the COVID-19 pandemic was $513 million and $5.2 billion in Home Lending, respectively. Loans that are performing according to their modified terms are generally not considered delinquent. Refer to Consumer Credit Portfolio on pages 110-116 of JPMorgan Chase's 2021 Form 10-K for further information on consumer payment assistance activity.
(f)At June 30, 2022 and 2021, excluded mortgage loans insured by U.S. government agencies of $315 million and $483 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
25


Selected metrics
As of or for the three months
ended June 30,
As of or for the six months
ended June 30,
(in billions, except ratios and where otherwise noted)
20222021Change20222021Change
Business Metrics
Number of branches4,822 4,869 (1)%4,822 4,869 (1)%
Active digital customers (in thousands)(a)
60,735 56,915 760,735 56,915 
Active mobile customers (in thousands)(b)
47,436 42,896 1147,436 42,896 11 
Debit and credit card sales volume
$397.0 $344.3 15$748.5 $634.6 18 
Consumer & Business Banking
Average deposits
$1,163.4 $1,028.5 13$1,149.8 $994.7 16 
Deposit margin
1.31 %1.28 %1.27 %1.29 %
Business banking origination volume(c)
$1.2 $2.2 (45)$2.2 $12.2 (82)
Client investment assets(d)
628.5 673.7 (7)628.5 673.7 (7)
Number of client advisors4,8904,57174,8904,571
Home Lending
Mortgage origination volume by channel
Retail
$11.0 $22.7 (52)$26.1 $45.7 (43)
Correspondent
10.9 16.9 (36)20.5 33.2 (38)
Total mortgage origination volume(e)
$21.9 $39.6 (45)$46.6 $78.9 (41)
Third-party mortgage loans serviced (period-end)
$575.6 $463.9 24575.6 $463.9 24 
MSR carrying value (period-end)
7.4 4.5 647.4 4.5 64 
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)
1.29 %0.97 %1.29 %0.97 %
MSR revenue multiple(f)
4.45 x3.59 x4.61 x3.59 x
Credit Card
Credit card sales volume, excluding commercial card$271.2 $223.7 21$507.6 $407.4 25 
Net revenue rate9.59 %11.32 %9.72 %11.43 %
Auto
Loan and lease origination volume
$7.0 $12.4 (44)$15.4 $23.6 (35)
Average auto operating lease assets
14.9 19.6 (24)%15.6 20.0 (22)%
(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)Included origination volume under the PPP of $1.3 billion and $10.6 billion for the three and six months ended June 30, 2021, respectively. The program ended on May 31, 2021 for new applications.
(d)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 37-40 for additional information.
(e)Firmwide mortgage origination volume was $27.9 billion and $44.9 billion for the three months ended June 30, 2022 and 2021, respectively, and $58.1 billion and $88.1 billion for the six months ended June 30, 2022 and 2021, respectively.
(f)Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average).
26


CORPORATE & INVESTMENT BANK
Refer to pages 67-72 of JPMorgan Chase’s 2021 Form 10-K and Line of Business Metrics on page 188 for a further discussion of the business profile of CIB.
Selected income statement data
Three months ended June 30,Six months ended June 30,
(in millions, except ratios)20222021Change20222021Change
Revenue
Investment banking fees$1,650 $3,572 (54)%$3,700 $6,560 (44)%
Principal transactions5,048 4,026 25 10,271 10,071 
Lending- and deposit-related fees641 633 1,282 1,226 
Asset management, administration and commissions1,330 1,246 2,669 2,532 
All other income80 435 (82)784 611 28 
Noninterest revenue8,749 9,912 (12)18,706 21,000 (11)
Net interest income3,198 3,302 (3)6,770 6,819 (1)
Total net revenue(a)
11,947 13,214 (10)25,476 27,819 (8)
Provision for credit losses59 (79)NM504 (410)NM
Noninterest expense
Compensation expense3,510 3,582 (2)7,516 7,911 (5)
Noncompensation expense3,235 2,941 10 6,527 5,716 14 
Total noninterest expense6,745 6,523 14,043 13,627 
Income before income tax expense
5,143 6,770 (24)10,929 14,602 (25)
Income tax expense1,418 1,750 
(b)
(19)2,819 3,658 
(b)
(23)
Net income$3,725 $5,020 
(b)
(26)%$8,110 $10,944 
(b)
(26)%
Financial ratios
Return on equity14 %23 %15 %26 %
(b)
Overhead ratio56 49 55 49 
Compensation expense as percentage of total net revenue
29 27 30 28 
(a)Includes tax-equivalent adjustments, predominantly due to income tax credits and other tax benefits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; and tax-exempt income from municipal bonds of $772 million and $763 million for the three months ended June 30, 2022 and 2021, respectively, and $1.5 billion for both the six months ended June 30, 2022 and 2021.
(b)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.
Selected income statement data
Three months ended June 30,Six months ended June 30,
(in millions)20222021Change20222021Change
Revenue by business
Investment Banking
$1,351 $3,424 (61)%$3,408 $6,275 (46)%
Payments1,463 1,453 3,317 2,845 17 
Lending410 229 79 731 494 48 
Total Banking3,224 5,106 (37)7,456 9,614 (22)
Fixed Income Markets4,711 4,098 15 10,409 9,859 
Equity Markets3,079 2,689 15 6,134 5,978 
Securities Services1,151 1,088 2,219 2,138 
Credit Adjustments & Other(a)
(218)233 NM(742)230 NM
Total Markets & Securities Services
8,723 8,108 18,020 18,205 (1)
Total net revenue$11,947 $13,214 (10)%$25,476 $27,819 (8)%
(a)Consists primarily of centrally managed credit valuation adjustments (“CVA”), funding valuation adjustments (“FVA”) on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.






27


Quarterly results
Net income was $3.7 billion, down 26%.
Net revenue was $11.9 billion, down 10%.
Banking revenue was $3.2 billion, down 37%.
Investment Banking revenue was $1.4 billion, down 61%, driven by lower Investment Banking fees, down 54%, reflecting lower fees across products, and $257 million of markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio.
Debt underwriting fees were $741 million, down 53%, and Equity underwriting fees were $245 million, down 77%, as volatile market conditions resulted in lower issuance activity.
Advisory fees were $664 million, down 28%, driven by a lower level of announced deals starting in the first quarter of 2022.
Payments revenue was $1.5 billion, up 1%, and included markdowns on equity investments. Excluding these markdowns, revenue was $1.8 billion, up 25%, predominantly driven by improved deposit margins and fees.
Lending revenue was $410 million, up 79%, driven by fair value gains on hedges of accrual loans, compared to losses in the prior year, and higher net interest income on higher loans.
Markets & Securities Services revenue was $8.7 billion, up 8%. Markets revenue was $7.8 billion, up 15%.
Fixed Income Markets revenue was $4.7 billion, up 15%, driven by a strong performance in macro businesses amid a volatile market, particularly in Currencies & Emerging Markets, partially offset by lower revenue in Credit and Securitized Products.
Equity Markets revenue was $3.1 billion, up 15%, driven by a strong performance in derivatives amid a volatile market.
Securities Services revenue was $1.2 billion, up 6%, predominantly driven by growth in fees, and to a lesser extent improved deposit margins, partially offset by lower market levels.
Credit Adjustments & Other was a loss of $218 million, largely driven by funding spread widening, compared with a gain of $233 million in the prior year.
Noninterest expense was $6.7 billion, up 3%, reflecting higher structural expense and investments in the business, largely offset by lower revenue-related compensation.
The provision for credit losses was $59 million, driven by an addition to the allowance for credit losses, associated with a modest deterioration in the Firm’s macroeconomic forecast, predominantly offset by client-specific reductions in the allowance for credit losses.
The prior year was a net benefit of $79 million.
Refer to Credit and Investment Risk Management on pages 55-74 and Allowance for Credit Losses on pages 71-73 for further discussions of the credit portfolios and the allowance for credit losses.


Year-to-date results
Net income was $8.1 billion, down 26%.
Net revenue was $25.5 billion, down 8%.
Banking revenue was $7.5 billion, down 22%.
Investment Banking revenue was $3.4 billion, down 46%, driven by lower Investment Banking fees, down 44%, reflecting lower fees across products, and $257 million of markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio in the second quarter of 2022. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.
Equity underwriting fees were $494 million, down 77%, and Debt underwriting fees were $1.7 billion, down 39%, as volatile market conditions resulted in lower issuance activity.
Advisory fees were $1.5 billion, down 8%, driven by a lower level of announced deals.
Payments revenue was $3.3 billion, up 17%, driven by improved deposit margins, as well as higher fees and deposits.
Lending revenue was $731 million, up 48%, driven by fair value gains on hedges of accrual loans, compared to losses in the prior year, and higher net interest income on higher loans.
Markets & Securities Services revenue was $18.0 billion, down 1%. Markets revenue was $16.5 billion, up 4%.
Fixed Income Markets revenue was $10.4 billion, up 6%, driven by higher revenue in macro businesses particularly in Currencies & Emerging Markets, largely offset by lower revenue in Securitized Products and Credit.
Equity Markets revenue was $6.1 billion, up 3%, predominantly driven by a strong performance in derivatives and prime brokerage, partially offset by lower revenue in Cash Equities.
Securities Services revenue was $2.2 billion, up 4%, predominantly driven by growth in fees and improved deposit margins, partially offset by lower market levels.
Credit Adjustments & Other was a loss of $742 million, predominantly driven by funding spread widening, and to a lesser extent losses on exposure relating to commodities and Russia and Russia-associated counterparties, compared with a gain of $230 million in the prior year.
Noninterest expense was $14.0 billion, up 3%, predominantly driven by higher structural expense, investments in the business and legal expense, largely offset by lower volume- and revenue-related expense including revenue-related compensation.
The provision for credit losses was $504 million, predominantly driven by a net addition to the allowance for credit losses, reflecting the increased weight placed on the adverse scenarios and a modest deterioration in the Firm’s macroeconomic forecast. The increase in the allowance also included client-specific Russia and Russia-associated downgrades in the first quarter of 2022.
The prior year was a net benefit of $410 million, driven by a net reduction in the allowance for credit losses.
28


Selected metrics
As of or for the three months
ended June 30,
As of or for the six months
ended June 30,
(in millions, except headcount)
20222021Change20222021Change
Selected balance sheet data (period-end)
Total assets$1,403,558 $1,363,992 %$1,403,558 $1,363,992 %
Loans:
Loans retained(a)
171,219 144,764 18 171,219 144,764 18 
Loans held-for-sale and loans at fair value(b)
46,032 56,668 (19)46,032 56,668 (19)
Total loans217,251 201,432 217,251 201,432 
Equity103,000 83,000 24 103,000 83,000 24 
Selected balance sheet data (average)
Total assets$1,429,953 $1,371,218 $1,418,955 $1,332,755 
Trading assets-debt and equity instruments411,079 473,875 (13)415,190 471,439 (12)
Trading assets-derivative receivables83,582 69,392 20 75,184 71,411 
Loans:
Loans retained(a)
$169,909 $140,096 21 $165,467 $138,454 20 
Loans held-for-sale and loans at fair value(b)
48,048 52,376 (8)49,714 49,042 
Total loans$217,957 $192,472 13 $215,181 $187,496 15 
Equity103,000 83,000 24 103,000 83,000 24 
Headcount69,447 64,261 %69,447 64,261 %
(a)Loans retained includes credit portfolio loans, loans held by consolidated Firm-administered multi-seller conduits, trade finance loans, other held-for-investment loans and overdrafts.
(b)Loans held-for-sale and loans at fair value primarily reflect lending related positions originated and purchased in CIB Markets, including loans held for securitization.
Selected metrics
As of or for the three months
ended June 30,
As of or for the six months
ended June 30,
(in millions, except ratios)
20222021Change20222021Change
Credit data and quality statistics
Net charge-offs/(recoveries)
$38 $(12)NM$58 $(19)NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained(a)
$697 $783 (11)$697 $783 (11)
Nonaccrual loans held-for-sale and loans at fair value(b)
840 1,187 (29)840 1,187 (29)
Total nonaccrual loans1,537 1,970 (22)1,537 1,970 (22)
Derivative receivables447 481 (7)447 481 (7)
Assets acquired in loan satisfactions
84 95 (12)84 95 (12)
Total nonperforming assets$2,068 $2,546 (19)$2,068