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JPMORGAN CHASE & CO - Quarter Report: 2023 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, 2023number1-5805
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, 2023: 2,906,085,273



FORM 10-Q
TABLE OF CONTENTS
Page
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
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,
2Q231Q234Q223Q222Q2220232022
Selected income statement data
Total net revenue$41,307 $38,349 $34,547 $32,716 $30,715 $79,656 $61,432 
Total noninterest expense20,822 20,107 19,022 19,178 18,749 40,929 37,940 
Pre-provision profit(a)
20,485 18,242 15,525 13,538 11,966 38,727 23,492 
Provision for credit losses2,899 2,275 2,288 1,537 1,101 5,174 2,564 
Income before income tax expense17,586 15,967 13,237 12,001 10,865 33,553 20,928 
Income tax expense3,114 3,345 2,229 2,264 2,216 6,459 3,997 
Net income
$14,472 $12,622 $11,008 $9,737 $8,649 $27,094 $16,931 
Earnings per share data
Net income:     Basic
$4.76 $4.11 $3.58 $3.13 $2.77 $8.86 $5.40 
         Diluted4.75 4.10 3.57 3.12 2.76 8.85 5.39 
Average shares: Basic2,943.8 2,968.5 2,962.9 2,961.2 2,962.2 2,956.1 2,969.6 
         Diluted2,948.3 2,972.7 2,967.1 2,965.4 2,966.3 2,960.5 2,973.7 
Market and per common share data
Market capitalization422,661 380,803 393,484 306,520 330,237 422,661 330,237 
Common shares at period-end2,906.1 2,922.3 2,934.3 2,933.2 2,932.6 2,906.1 2,932.6 
Book value per share98.11 94.34 90.29 87.00 86.38 98.11 86.38 
Tangible book value per share (“TBVPS”)(a)
79.90 76.69 73.12 69.90 69.53 79.90 69.53 
Cash dividends declared per share1.00 1.00 1.00 1.00 1.00 2.00 2.00 
Selected ratios and metrics
Return on common equity (“ROE”)(b)
20 %18 %16 %15 %13 %19 %13 %
Return on tangible common equity (“ROTCE”)(a)(b)
25 23 20 18 17 24 16 
Return on assets(b)
1.51 1.38 1.16 1.01 0.89 1.45 0.87 
Overhead ratio50 52 55 59 61 51 62 
Loans-to-deposits ratio54 47 49 46 45 54 45 
Firm Liquidity coverage ratio (“LCR”) (average)(c)
112 114 112 113 110 112 110 
JPMorgan Chase Bank, N.A. LCR (average)(c)
129 140 151 165 169 129 169 
Common equity Tier 1 (“CET1”) capital ratio(d)
13.8 13.8 13.2 12.5 12.2 13.8 12.2 
Tier 1 capital ratio(d)
15.4 15.4 14.9 14.1 14.1 15.4 14.1 
Total capital ratio(d)
17.3 17.4 16.8 16.0 15.7 17.3 15.7 
Tier 1 leverage ratio(c)(d)
6.9 6.9 6.6 6.2 6.2 6.9 6.2 
Supplementary leverage ratio (“SLR”)(c)(d)
5.8 5.9 5.6 5.3 5.3 5.8 5.3 
Selected balance sheet data (period-end)
Trading assets$636,996 $578,892 $453,799 $506,487 $465,577 $636,996 $465,577 
Investment securities, net of allowance for credit losses612,203 610,075 631,162 618,246 663,718 612,203 663,718 
Loans1,300,069 1,128,896 1,135,647 1,112,633 1,104,155 1,300,069 1,104,155 
Total assets3,868,240 3,744,305 3,665,743 3,773,884 3,841,314 3,868,240 3,841,314 
Deposits2,398,962 2,377,253 2,340,179 2,408,615 2,471,544 2,398,962 2,471,544 
Long-term debt364,078 295,489 295,865 287,473 288,212 364,078 288,212 
Common stockholders’ equity285,112 275,678 264,928 255,180 253,305 285,112 253,305 
Total stockholders’ equity312,516 303,082 292,332 288,018 286,143 312,516 286,143 
Headcount300,066 
(e)
296,877 293,723 288,474 278,494 300,066 
(e)
278,494 
Credit quality metrics
Allowances for credit losses$24,288 $22,774 $22,204 $20,797 $20,019 $24,288 $20,019 
Allowance for loan losses to total retained loans1.75 %1.85 %1.81 %1.70 %1.69 %1.75 %1.69 %
Nonperforming assets$7,838 $7,418 $7,247 $7,243 $7,845 $7,838 $7,845 
Net charge-offs1,411 1,137 887 727 657 2,548 1,239 
Net charge-off rate0.47 %0.43 %0.33 %0.27 %0.25 %0.45 %0.24 %
As of and for the period ended June 30, 2023, the results of the Firm include the impact of the First Republic acquisition. Refer to page 24 and Note 28 for additional information.
(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 20-21 for a further discussion of these measures.
(b)Quarterly ratios are based upon annualized amounts.
(c)For the six months ended June 30, 2023 and 2022, the percentage represents average ratios for the three months ended June 30, 2023 and 2022.
(d)The ratios reflect the Current Expected Credit Losses (“CECL”) capital transition provisions. Refer to Capital Risk Management on pages 48-53 of this Form 10-Q and pages 86-96 of JPMorgan Chase’s 2022 Form 10-K for additional information.
(e)Excluded 5,132 individuals associated with the First Republic acquisition who became employees effective July 2, 2023.
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 2023.
This Quarterly Report on Form 10-Q for the second quarter of 2023 (“Form 10-Q”) should be read together with JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). Refer to the Glossary of terms and acronyms and line of business metrics on pages 200–208 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 95 of this Form 10-Q; Part I, Item 1A, Risk Factors on pages 9-32 of the 2022 Form 10-K; and Part II, Item 1A, Risk Factors on page 209 of this Form 10-Q 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 $3.9 trillion in assets and $312.5 billion in stockholders’ equity as of June 30, 2023. 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. 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 Business Segment Results on pages 22-46 and Note 27 of this Form 10-Q, and Note 32 of JPMorgan Chase’s 2022 Form 10-K, for a description of the Firm’s business segments and the products and services they provide to their respective client bases. On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the “First Republic acquisition”) from the Federal Deposit Insurance Corporation (“FDIC”). Refer to Note 28 for additional information.
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 2022 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,
20232022Change20232022Change
Selected income statement data
Noninterest revenue$19,528 $15,587 25%$37,166 $32,432 15%
Net interest income21,779 15,128 4442,490 29,000 47
Total net revenue41,307 30,715 3479,656 61,432 30
Total noninterest expense20,822 18,749 1140,929 37,940 8
Pre-provision profit20,485 11,966 7138,727 23,492 65
Provision for credit losses2,899 1,101 1635,174 2,564 102
Net income14,472 8,649 6727,094 16,931 60
Diluted earnings per share4.75 2.76 728.85 5.39 64
Selected ratios and metrics
Return on common equity20 %13 %19 %13 %
Return on tangible common equity
25 17 24 16 
Book value per share$98.11 $86.38 14$98.11 $86.38 14
Tangible book value per share79.90 69.53 1579.90 69.53 15
Capital ratios(a)
CET1 capital13.8 %12.2 %13.8 %12.2 %
Tier 1 capital15.4 14.1 15.4 14.1 
Total capital17.3 15.7 17.3 15.7 
Memo:
NII excluding Markets(b)
$22,370 $13,682 63$43,306 $25,434 70
NIR excluding Markets(b)
13,013 10,158 2823,031 21,243 8
Markets(b)
7,018 7,790 (10)15,400 16,543 (7)
Total net revenue - managed basis$42,401 $31,630 34$81,737 $63,220 29
(a)The ratios reflect the CECL capital transition provisions. Refer to Capital Risk Management on pages 48-53 of this Form 10-Q and pages 86-96 of JPMorgan Chase’s 2022 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 2023 versus the second quarter of 2022, unless otherwise specified.
Firmwide overview
For the second quarter of 2023, JPMorgan Chase reported net income of $14.5 billion, up 67%, earnings per share of $4.75, ROE of 20% and ROTCE of 25%. The Firm's results for the second quarter of 2023 included an estimated bargain purchase gain of $2.7 billion in Corporate and a net addition to the allowance for credit losses of $1.2 billion associated with the First Republic acquisition. The Firm's results also included investment securities losses of $900 million in Treasury and CIO.
Total net revenue was $41.3 billion, up 34%, reflecting:
Net interest income of $21.8 billion, up 44%, driven by higher rates and, to a lesser extent, the impact of the First Republic acquisition, partially offset by lower Markets net interest income and lower average deposit
balances. Net interest income excluding Markets was $22.4 billion, up 63%.
Noninterest revenue was $19.5 billion, up 25%, driven by the impact of the First Republic acquisition, higher Markets noninterest revenue and the absence of losses on equity investments in Payments in the prior year, partially offset by higher net investment securities losses in Treasury and CIO. The impact of the First Republic acquisition included a $2.7 billion estimated bargain purchase gain in Corporate.
Total Markets revenue declined reflecting lower Markets NII, largely offset by higher NIR.
Noninterest expense was $20.8 billion, up 11%, driven by higher compensation expense due to additional headcount and the impact of wage inflation, $599 million expense associated with the First Republic acquisition, higher technology and marketing investments and higher legal expense.
5


The provision for credit losses was $2.9 billion, reflecting a $1.5 billion net addition to the allowance for credit losses and $1.4 billion of net charge-offs. The net addition to the allowance for credit losses included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments. The net addition also reflected:
$233 million in consumer predominantly in Card Services, and
$79 million in wholesale reflecting $389 million in CB, largely offset by a $243 million reduction in Corporate.
Net charge-offs increased $754 million, predominantly driven by CCB, primarily Card Services, as 30+ day delinquencies have returned to pre-pandemic levels.
The prior year included a $428 million net addition to the allowance for credit losses and net charge-offs of $657 million.
The total allowance for credit losses was $24.3 billion at June 30, 2023. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.75%, compared with 1.69% in the prior year.
The Firm’s nonperforming assets totaled $7.8 billion at June 30, 2023, relatively flat from the prior year, as lower consumer nonaccrual loans due to loan sales in the prior year were offset by higher wholesale nonaccrual loans, reflecting client-specific downgrades. Refer to Wholesale Credit Portfolio on pages 70-79 for additional information.
Firmwide average loans of $1.2 trillion were up 13%, driven by higher loans in CCB and CB, largely as a result of the First Republic acquisition.
Firmwide average deposits of $2.4 trillion were down 6%, driven by:
the continued migration into higher-yielding investments in AWM; declines in CIB and CB primarily due to continued deposit attrition, which for CIB included actions to reduce certain deposits; and a net decline in CCB primarily from existing accounts due to increased customer spending,
partially offset by
the impact of the First Republic acquisition in CCB, and an increase in Corporate related to the Firm's international consumer initiatives.
Refer to Liquidity Risk Management on pages 54-61 for additional information.

Selected capital and other metrics
CET1 capital was $236 billion, and the Standardized and Advanced CET1 ratios were 13.8% and 13.9%, respectively.
SLR was 5.8%.
TBVPS grew 15%, ending the second quarter of 2023 at $79.90.
As of June 30, 2023, the Firm had eligible end-of-period High Quality Liquid Assets (“HQLA”) of approximately $792 billion and unencumbered marketable securities with a fair value of approximately $620 billion, resulting in approximately $1.4 trillion of liquidity sources. Refer to Liquidity Risk Management on pages 54-61 for additional information.
Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 10-15 and pages 16-19, respectively, for a further discussion of the Firm's results; and Business Segment Results on page 24 and Note 28 for additional information on the First Republic acquisition.
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 20-21 for a further discussion of each of these measures.

6


Business segment highlights
Selected business metrics for each of the Firm’s four lines of business ("LOB") are presented below for the second quarter of 2023.
CCB
ROE 38%
Average deposits down 2%; client investment assets up 42%
Average loans up 19% year-over-year ("YoY") and 15% quarter-over-quarter ("QoQ"); Card Services net charge-off rate of 2.41%
Debit and credit card sales volume(a) up 7%
Active mobile customers(b) up 10%
CIB
ROE 15%
#1 ranking for Global Investment Banking fees with 8.4% wallet share year-to-date
Total Markets revenue of $7.0 billion, down 10%, with Fixed Income Markets down 3% and Equity Markets down 20%
CB
ROE 16%
Gross Investment Banking and Markets revenue of $767 million, down 3%
Average loans up 23% YoY and 14% QoQ; average deposits down 8%
AWM
ROE 29%
Assets under management ("AUM") of $3.2 trillion, up 16%
Average loans up 1% YoY and 4% QoQ; average deposits down 21%
(a)Excludes Commercial Card.
(b)Users of all mobile platforms who have logged in within the past 90 days. As of June 30, 2023, excludes the impact of the First Republic acquisition.
Refer to the Business Segment Results on pages 22-46 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 2023, consisting of:
$ 1.2 trillion
Total credit provided and capital raised (including loans and commitments)
$120
billion
Credit for consumers
$17
billion
Credit for U.S. small businesses
$520 billion
Credit for corporations
$535 billion
Capital raised for corporate clients and non-U.S. government entities
$24
 billion
Credit and capital raised for nonprofit and U.S. government entities(a)
(a)Includes states, municipalities, hospitals and universities.

7


Recent events
Basel III Finalization: In July 2023, the Federal Reserve, the Office of the Comptroller of the Currency ("OCC") and the FDIC released a proposal to amend the risk-based capital framework, entitled "Regulatory capital rule: Amendments applicable to large banking organizations and to banking organizations with significant trading activity". Under the proposal, changes would include replacement of the advanced approach with an expanded risk-based approach, which would not permit the use of internal models for the calculation of risk-weighted assets, other than for Market risk. In addition, the stress capital buffer requirement would be applicable to both the expanded risk-based approach and the standardized approach. The proposal would significantly revise risk-based capital requirements for all banks with assets of $100 billion or more, including the Firm and other U.S. global systemically important banks ("GSIBs"). The proposed effective date is July 1, 2025 with a three year transition period applicable to the expanded risk-based approach.
GSIB Surcharge: In July 2023, the Federal Reserve also released a proposal to amend the calculation of the GSIB surcharge. If adopted as proposed, these amendments would require the Firm to assess its GSIB surcharge on an annual basis, using the average of the quarterly surcharge calculations throughout the calendar year, with daily averaging required for certain measures within the surcharge calculation. Surcharge increments would be reduced from 50bp to 10bp and there would also be other technical amendments to the Method 2 calculation. The proposed amendments would revise risk-based capital requirements for the Firm and other U.S. GSIBs, and would become effective on two calendar quarters after the adoption of the final rule.
Refer to Capital Risk Management on pages 48-53 for additional information.
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 95 of this Form 10-Q; Part I, Item 1A, Risk Factors on pages 9-32 of the 2022 Form 10-K; and Part II, Item 1A, Risk Factors on page 209 of this Form 10-Q for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2023 will be in line with the outlook information set forth below, and the Firm does not undertake to update any forward-looking statements.
JPMorgan Chase’s current outlook for full-year 2023 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.
In May 2023, the FDIC issued a notice of proposed rulemaking recommending a special assessment related to the systemic risk determination made on March 12, 2023, to recover losses to the Deposit Insurance Fund ("DIF") arising from the protection of uninsured depositors resulting from recent bank resolutions. In its current form, the rule would impose a special assessment at an annual rate of 12.5 basis points on certain banks’ estimated uninsured deposits reported as of December 31, 2022. If this rule is finalized as proposed, the Firm expects to recognize an estimated assessment expense of approximately $3 billion (pre-tax) in the quarter in which the rule is finalized, which is expected to occur in the second half of 2023.
Full-year 2023
Management expects both net interest income and net interest income excluding Markets to be approximately $87 billion, market dependent.
Management expects adjusted expense to be approximately $84.5 billion, market dependent and excluding any FDIC special assessment.
Management expects the net charge-off rate in Card Services to be approximately 2.6%.
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 20-21.
8


Business Developments
First Republic acquisition
On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation (“FDIC”), as receiver, for $67.9 billion, resulting in an estimated bargain purchase gain of $2.7 billion recorded in other income. In connection with the First Republic acquisition, the Firm issued a five-year, $50 billion secured note to the FDIC (the "Purchase Money Note"), and entered into shared-loss agreements with the FDIC with respect to certain loans acquired and lending-related commitments assumed in the acquisition. Refer to Note 28 for additional information.
JPMorgan Chase’s Consolidated Financial Statements as of and for the period ended June 30, 2023 reflect the impact of the First Republic acquisition. Where meaningful to the disclosure, the impact of the First Republic acquisition is disclosed in various sections of this Form 10-Q. The Firm continues to convert certain operations, and to integrate clients, products and services, associated with the First Republic acquisition, to align with the Firm’s businesses and operations. The Firm also continues to evaluate to which segments certain clients, products and services associated with the First Republic acquisition, including deposits, should be allocated. Accordingly, reporting classifications and allocations may change in future periods, including across the Firm's segments.
Current market and economic conditions
Refer to Part I, Item 1A, Risk Factors on pages 9-32 of JPMorgan Chase's 2022 Form 10-K and Part II, Item 1A, Risk Factors on page 209 of this Form 10-Q for a discussion of material risk factors that could affect the Firm. These risk factors include potential impacts to the Firm associated with current market and economic conditions, including inflationary pressures, higher interest rates and geopolitical tensions (including secondary effects of the war in Ukraine), any or all of which could result in additional market disruption, government actions (including with respect to monetary policies), ongoing impacts to global supply chains, and other geopolitical risks.
Interbank Offered Rate (“IBOR”) transition
The publication of the remaining principal tenors of U.S. dollar LIBOR (i.e., overnight, one-month, three-month, six-month and 12-month LIBOR) ceased on June 30, 2023 (“LIBOR Cessation”). The one-month, three-month and six-month tenors of U.S. dollar LIBOR will continue to be published on a "synthetic" basis, which will allow market participants to use such rates for certain legacy LIBOR-linked contracts through September 30, 2024.
In the second quarter of 2023, the Firm successfully converted predominantly all of its cleared derivatives contracts linked to U.S. dollar LIBOR to the Secured Overnight Financing Rate (SOFR) as part of initiatives by the principal central counterparties (“CCPs”) to convert cleared derivatives prior to LIBOR Cessation. Nearly all of the Firm’s other U.S. dollar LIBOR-linked products that remained outstanding at LIBOR Cessation will be remediated through contractual fallback provisions or through the framework provided by the Adjustable Interest Rate (LIBOR) Act (“LIBOR Act”). The Firm continues its client outreach activities with respect to the limited amount of contracts that continue to reference “synthetic” U.S. dollar LIBOR in order to complete remediation by September 30, 2024.
Refer to Business Developments on page 50 of JPMorgan Chase's 2022 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, 2023 and 2022, 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 91-93 of this Form 10-Q and pages 149-152 of JPMorgan Chase’s 2022 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)20232022Change20232022Change
Investment banking fees$1,513 $1,586 (5)%$3,162 $3,594 (12)%
Principal transactions6,910 4,990 38 14,525 10,095 44 
Lending- and deposit-related fees1,828 1,873 (2)3,448 3,712 (7)
Asset management fees3,774 3,517 7,239 7,169 
Commissions and other fees1,739 1,723 3,434 3,433 — 
Investment securities losses(900)(153)(488)(1,768)(547)(223)
Mortgage fees and related income278 378 (26)499 838 (40)
Card income1,094 1,133 (3)2,328 2,108 10 
Other income(a)(b)
3,292 540 NM4,299 2,030 112 
Noninterest revenue19,528 15,587 25 37,166 32,432 15 
Net interest income21,779 15,128 44 42,490 29,000 47 
Total net revenue$41,307 $30,715 34 %$79,656 $61,432 30 %
(a)    Included operating lease income of $716 million and $945 million for the three months ended June 30, 2023 and 2022, respectively, and $1.5 billion and $2.0 billion for the six months ended June 30, 2023 and 2022, respectively, and an estimated bargain purchase gain of $2.7 billion associated with the First Republic acquisition in Corporate for the three and six months ended June 30, 2023. Refer to Business Segment Results on page 24, and Notes 6 and 28 for additional information.
(b)    Includes losses on tax-oriented investments. Refer to Note 6 for additional information.
Quarterly results
Investment banking fees decreased in CIB, reflecting:
lower advisory fees due to a lower level of announced deals in prior periods amid a challenging environment,
largely offset by
higher equity underwriting fees primarily due to higher convertible securities offerings and, in the second half of the quarter, follow-on offerings that benefited from the lower equity market volatility.
Refer to CIB segment results on pages 30-36 and Note 6 for additional information.
Principal transactions revenue increased, reflecting:
higher Equity Markets revenue in principal transactions, primarily in Prime Finance,
higher Fixed Income Markets revenue in principal transactions, driven by Securitized Products and Fixed Income Financing, partially offset by lower revenue in Rates and Currencies & Emerging Markets,
the increase in Markets principal transactions revenue was more than offset by a decline in Markets NII, primarily due to higher funding costs
the absence of $337 million of markdowns in the prior year on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio in CIB and CB,
a gain of $36 million in Credit Adjustments & Other in CIB, compared with a loss of $218 million in the prior year, and
higher revenue related to cash deployment transactions in Treasury and CIO,
partially offset by
net losses on certain legacy private equity investments in Corporate, compared with net gains in the prior year.
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 CIB, CB and Corporate segment results on pages 30-36, pages 37-40 and pages 45-46, respectively, and Note 6 for additional information.
Lending- and deposit-related fees decreased due to:
lower cash management fees in CIB and CB associated with the higher level of credits earned by clients that reduce such fees,
largely offset by
higher lending-related fees driven by the impact of the First Republic acquisition in AWM and CCB.
Refer to CIB, CB and AWM segment results on pages 30-36, pages 37-40 and pages 41-44, respectively, and Note 6 for additional information.
Asset management fees increased driven by:
higher management fees on strong net inflows in AWM, and
the impact of the First Republic acquisition in CCB.
Refer to CCB and AWM segment results on pages 25-29 and
10


pages 41-44, respectively, and Note 6 for additional information; and Business Segment Results on page 24 for additional information on the First Republic acquisition.
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 portfolio in Treasury and CIO. Refer to Corporate segment results on pages 45-46 and Note 10 for additional information.
Mortgage fees and related income decreased in Home Lending, reflecting lower production revenue due to a decline in volume, and lower net mortgage servicing revenue. Refer to CCB segment results on pages 25-29 and Notes 6 and 15 for additional information.
Card income decreased driven by:
lower net interchange income as a result of an increase to the rewards liability due to adjustments to the terms of certain reward programs in CCB,
largely offset by
higher payments-related revenue, reflecting growth in Commercial Card in CIB and CB.
Refer to CCB, CIB and CB segment results on pages 25-29, pages 30-36 and pages 37-40, respectively, Critical Accounting Estimates on pages 91-93, and Note 6 for additional information.
Other income increased, reflecting:
the $2.7 billion estimated bargain purchase gain associated with the First Republic acquisition in Corporate,
the absence of losses on equity investments in Payments in the prior year, and
the impact of net investment hedges in Treasury and CIO,
partially offset by
lower auto operating lease income in CCB due to a decline in volume, and
the absence of a gain in the prior year on an equity-method investment received in partial satisfaction of a loan in CB.
Refer to Business Segment Results on page 24 and Note 28 for additional information on the First Republic acquisition; and Note 5 for additional information on net investment hedges.
Net interest income increased driven by higher rates and, to a lesser extent, the impact from the First Republic acquisition, partially offset by lower Markets net interest income and lower average deposit balances.
The Firm’s average interest-earning assets were $3.3 trillion, down $42 billion, and the yield was 5.01%, up 279 basis points (“bps”). The net yield on these assets, on an FTE basis, was 2.62%, an increase of 82 bps. The net yield excluding Markets was 3.83%, up 157 bps.
Refer to the Consolidated average balance sheets, interest and rates schedule on page 198 for further information; and Business Segment Results on page 24 and Note 28 for additional i
nformation on the First Republic acquisition.
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 20-21 for a further discussion of Net yield excluding Markets.
Year-to-date results
Investment banking fees decreased in CIB, reflecting:
lower debt underwriting fees as challenging market conditions resulted in lower issuance activity in acquisition financing, and
lower advisory fees due to a lower level of announced deals in prior periods amid a challenging environment,
partially offset by
higher equity underwriting fees primarily due to higher convertible securities offerings and, in the second half of the second quarter, follow-on offerings that benefited from the lower equity market volatility.
Principal transactions revenue increased, reflecting:
higher Fixed Income Markets net revenue in principal transactions, driven by Securitized Products and Fixed Income Financing, partially offset by lower revenue in Currencies & Emerging Markets and Rates,
higher Equity Markets revenue in principal transactions, primarily in Prime Finance,
the increase in Markets principal transactions revenue was more than offset by a decline in Markets NII, primarily due to higher funding costs
losses of $117 million in Credit Adjustments & Other in CIB, driven by losses on certain components of fair value option elected liabilities, compared with losses of $742 million in the prior year, and
higher revenue related to cash deployment transactions in Treasury and CIO.
Lending- and deposit-related fees decreased due to:
lower cash management fees in CB and CIB associated with the higher level of credits earned by clients that reduce such fees,
partially offset by
higher lending-related fees driven by the impact of the First Republic acquisition in AWM and CCB.
Asset management fees increased driven by the impact of the First Republic acquisition in CCB.
Asset management fees in AWM was relatively flat, as the decline in market levels was predominantly offset by the removal of most money market fund fee waivers and the impact of net inflows.
Commissions and other fees was relatively flat. Refer to CIB and AWM segment results on pages 30-36 and pages 41-44, respectively, and Note 6 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 portfolio in both periods in Treasury and CIO.
Mortgage fees and related income decreased driven by
11


Home Lending, reflecting lower production revenue due to a decline in volume, and lower net mortgage servicing revenue due to lower net gains in MSR risk management.
Card income increased driven by higher payments-related revenue, reflecting growth in Commercial Card in CIB and CB.
Net interchange income in CCB was relatively flat as the benefit in partner payments in the first quarter of 2023 related to a periodic tax refund on airline miles redeemed was offset by an increase to the rewards liability due to adjustments to the terms of certain reward programs.
Other income increased, reflecting:
the $2.7 billion estimated bargain purchase gain associated with the First Republic acquisition in Corporate,
the impact of net investment hedges in Treasury and CIO, and
a gain of $339 million recognized in first quarter of 2023 in AWM on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% interest in the entity,
partially offset by
lower auto operating lease income in CCB due to a decline in volume,
the absence of proceeds in the prior year from an insurance settlement,
the absence of a gain in the prior year on an equity-method investment received in partial satisfaction of a loan in CB, and
lower net gains related to certain other Corporate investments.
Net interest income increased driven by higher rates and, to a lesser extent, higher revolving balances in Card Services and the impact from the First Republic acquisition, partially offset by lower Markets net interest income and lower average deposit balances.
The Firm’s average interest-earning assets were $3.3 trillion, down $113 billion, and the yield was 4.85%, up 281 basis points (“bps”). The net yield on these assets, on an FTE basis, was 2.63%, an increase of 89 bps. The net yield excluding Markets was 3.82%, up 171 bps.
12


Provision for credit losses
Three months ended June 30,Six months ended June 30,
(in millions)20232022Change20232022Change
Consumer, excluding credit card$555 $62 NM$803 $235 242 %
Credit card1,324 730 81 %2,546 1,236 106 
Total consumer1,879 792 137 3,349 1,471 128 
Wholesale1,007 303 232 1,811 1,088 66 
Investment securities13 117 14 180 
Total provision for credit losses$2,899 $1,101 163 %$5,174 $2,564 102 %
Quarterly results
The provision for credit losses was $2.9 billion, reflecting a $1.5 billion net addition to the allowance for credit losses and $1.4 billion of net charge-offs.
The net addition to the allowance for credit losses included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments, composed of $763 million in wholesale and $400 million in consumer.
The net addition also reflected:
$233 million in consumer predominantly in Card Services, and
$79 million in wholesale reflecting $389 million in CB, largely offset by a $243 million reduction in Corporate.
Net charge-offs increased $754 million, predominantly driven by CCB, primarily Card Services, as 30+ day delinquencies have returned to pre-pandemic levels.
The prior year included a $428 million net addition to the allowance for credit losses and net charge-offs of $657 million.
Refer to CCB segment results on pages 25-29, CIB on pages 30-36, CB on pages 37-40, AWM on pages 41-44, Corporate on pages 45-46; Allowance for Credit Losses on pages 80-82; Notes 10 and 13 for additional information on the credit portfolio and the allowance for credit losses; and Business segment results on page 24 for additional information on the First Republic acquisition.
Year-to-date results
The provision for credit losses was $5.2 billion, reflecting a $2.6 billion net addition to the allowance for credit losses and $2.5 billion of net charge-offs.
The net addition to the allowance for credit losses included $1.5 billion, consisting of:
$800 million in wholesale, predominantly driven by net downgrade activity, updates to certain assumptions related to office real estate in CB in the second quarter of 2023, and the impact of the additional weight placed on the adverse scenarios in the first quarter of 2023, and
$649 million in consumer, predominantly driven by Card Services, reflecting loan growth, the net effect of changes in the Firm's macroeconomic outlook, including the impact from the weighted average U.S. unemployment rate peaking in the third quarter of 2024, and the additional weight placed on the adverse scenarios in the first quarter of 2023, partially offset by reduced borrower uncertainty.
The net addition also included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments, in the second quarter of 2023.
Net charge-offs increased $1.3 billion, predominantly driven by CCB, primarily Card Services, as 30+ day delinquencies have returned to pre-pandemic levels.
The prior year included a $1.3 billion net addition to the allowance for credit losses and net charge-offs of $1.2 billion.



13


Noninterest expense
(in millions)Three months ended June 30,Six months ended June 30,
20232022Change20232022Change
Compensation expense$11,216 $10,301 %$22,892 $21,088 %
Noncompensation expense:
Occupancy1,070 1,129 (5)2,185 2,263 (3)
Technology, communications and equipment(a)
2,267 2,376 (5)4,451 4,736 (6)
Professional and outside services2,561 2,469 5,009 5,041 (1)
Marketing1,122 881 27 2,167 1,801 20 
Other expense(b)(c)
2,586 1,593 62 4,225 3,011 40 
Total noncompensation expense9,606 8,448 14 18,037 16,852 
Total noninterest expense$20,822 $18,749 11 %$40,929 $37,940 %
(a)Includes depreciation expense associated with auto operating lease assets.
(b)Included Firmwide legal expense of $420 million and $73 million for the three months ended June 30, 2023 and 2022, respectively, and $596 million and $192 million for the six months ended June 30, 2023 and 2022, respectively; as well as FDIC-related expense of $338 million and $216 million for the three months ended June 30, 2023 and 2022, respectively, and $655 million and $414 million for the six months ended June 30, 2023 and 2022, respectively. Refer to Note 6 for additional information.
(c)Included expense associated with the First Republic acquisition of $599 million for the three and six months ended June 30, 2023. Refer to Business Segment Results on page 24 for additional information.
Quarterly results
Compensation expense increased driven by:
additional headcount, primarily in technology and front office, as well as the impact of wage inflation, and
higher revenue-related compensation in AWM, partially offset by a decline in revenue-related compensation in CIB.
Noncompensation expense increased as a result of:
$599 million expense associated with the First Republic acquisition, substantially all of which is in Corporate,
higher investments in the businesses, including marketing and technology,
higher legal expense, largely in Corporate, and
higher structural expense, including the impact of the increase in the FDIC assessment that was announced in October 2022,
partially offset by
lower volume-related expense, reflecting lower depreciation expense on lower Auto lease assets.
Refer to Business Segment Results on page 24 for additional information on the First Republic acquisition.
Year-to-date results
Compensation expense increased driven by:
additional headcount, primarily in technology and front office, as well as the impact of wage inflation, and
higher revenue-related compensation in AWM, partially offset by a decline in revenue-related compensation in CIB.
Noncompensation expense increased as a result of:
expense associated with the First Republic acquisition, substantially all of which is in Corporate,
higher investments in the business, including marketing and technology,
higher legal expense across the LOBs and Corporate, and
higher structural expense, including the impact of the increase in the FDIC assessment that was announced in October 2022, and higher travel and entertainment expense,
partially offset by
lower volume-related expense, reflecting lower depreciation expense on lower Auto lease assets.







14


Income tax expense
(in millions)Three months ended June 30,Six months ended June 30,
20232022Change20232022Change
Income before income tax expense$17,586 $10,865 62 %$33,553 $20,928 60 %
Income tax expense3,114 2,216 41 6,459 3,997 62 
Effective tax rate17.7 %20.4 %19.3 %19.1 %

Quarterly results
The effective tax rate decreased, reflecting:
the impact of the income tax expense associated with the First Republic acquisition that was reflected in the estimated bargain purchase gain, which resulted in a reduction in the Firm’s effective tax rate of 3.4 percentage points,
partially offset by
the higher level of pre-tax income and changes in the mix of income and expenses subject to U.S. federal and state and local taxes.

Year-to-date results
The effective tax rate was relatively flat, reflecting:
the higher level of pre-tax income and changes in the mix of income and expenses subject to U.S. federal and state and local taxes, as well as the lower benefits related to vesting of employee stock based awards,
predominantly offset by
the impact of the income tax expense associated with the First Republic acquisition that was reflected in the estimated bargain purchase gain, which resulted in a reduction in the Firm’s effective tax rate.

15


CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS
Consolidated balance sheets analysis
The following is a discussion of the significant changes between June 30, 2023, and December 31, 2022.
Selected Consolidated balance sheets data
(in millions)June 30,
2023
December 31,
2022
Change
Assets
Cash and due from banks$26,064 $27,697 (6)%
Deposits with banks469,059 539,537 (13)
Federal funds sold and securities purchased under resale agreements325,628 315,592 
Securities borrowed163,563 185,369 (12)
Trading assets636,996 453,799 40 
Available-for-sale securities203,262 205,857 (1)
Held-to-maturity securities408,941 425,305 (4)
Investment securities, net of allowance for credit losses612,203 631,162 (3)
Loans1,300,069 1,135,647 14 
Allowance for loan losses(21,980)(19,726)(11)
Loans, net of allowance for loan losses1,278,089 1,115,921 15 
Accrued interest and accounts receivable111,561 125,189 (11)
Premises and equipment29,493 27,734 
Goodwill, MSRs and other intangible assets64,238 60,859 
Other assets151,346 182,884 (17)
Total assets$3,868,240 $3,665,743 %
Cash and due from banks and deposits with banks decreased primarily as a result of the First Republic acquisition, which included the impact of the repayment of deposits provided to First Republic Bank in March 2023 by the consortium of large U.S. banks and amounts paid to the FDIC, as well as CIB Markets activities. Deposits with banks reflect the Firm’s placement of its excess cash with various central banks, including the Federal Reserve Banks.
Federal funds sold and securities purchased under resale agreements increased due to the impact of a lower level of netting on a reduced level of resale balances in Markets.
Securities borrowed decreased driven by Markets, reflecting lower client-driven activities and lower demand for securities to cover short positions.
Refer to Note 11 for additional information on securities purchased under resale agreements and securities borrowed.
Trading assets increased due to higher levels of debt and equity instruments in Markets, in response to demand from client-driven market-making activities, and when compared with the seasonally lower levels at year-end. Refer to Notes 2 and 5 for additional information.
Investment securities decreased due to:
lower available-for-sale ("AFS") securities driven by paydowns, maturities and net sales, partially offset by $25.8 billion of securities associated with the First Republic acquisition as well as the transfer of securities from held-to-maturity in the first quarter of 2023 (“HTM”), and
lower HTM securities driven by paydowns, maturities and the transfer of securities to AFS.
Refer to Corporate segment results on pages 45-46,
Investment Portfolio Risk Management on page 83, and Notes 2 and 10 for additional information.
Loans increased, reflecting:
$150 billion of loans associated with the First Republic acquisition, primarily reflected in CCB, CB and AWM.
The increase also included:
growth in new accounts and revolving balances which continued to normalize to pre-pandemic levels in Card Services, and
higher revolver utilization and originations in CB,
partially offset by
lower securities-based lending in AWM.
The allowance for loan losses increased, reflecting:
a net addition to the allowance for loan losses of $1.8 billion, consisting of:
$1.1 billion in wholesale, predominantly driven by net downgrade activity, updates to certain assumptions related to office real estate in CB in the second quarter of 2023, and the impact of the additional weight placed on the adverse scenarios in the first quarter of 2023, and
$620 million in consumer, predominantly driven by Card Services, reflecting loan growth, the net effect of changes in the Firm's macroeconomic outlook, including the impact from the weighted average U.S. unemployment rate peaking in the third quarter of 2024, and the additional weight placed on the adverse scenarios in the first quarter of 2023, partially offset by reduced borrower uncertainty, and
$1.1 billion to establish the allowance for the First Republic loans in the second quarter of 2023.
16


The allowance for loan losses also reflected a reduction of $587 million, on January 1, 2023, as a result of the adoption of the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance. References in this Form 10-Q to "changes to the TDR accounting guidance" pertain to the Firm's adoption of this guidance.
There was also a $196 million net reduction in the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets, which included a $97 million addition to establish the allowance for the First Republic lending-related commitments.
Refer to Credit and Investment Risk Management on pages 62-83, and Notes 2, 3, 12 and 13 for additional information on loans and the total allowance for credit losses; and Business Segment Results on page 24 and Note 28 for additional information on the First Republic acquisition.
Accrued interest and accounts receivable decreased primarily due to lower client receivables related to client-driven activities in Markets.
Premises and equipment increased as a result of the First Republic acquisition, largely lease right-of-use assets, and the construction-in-process associated with the Firm's headquarters. Refer to Note 17 for information on leases.
Goodwill, MSRs and other intangible assets increased predominantly due to the other intangibles and goodwill related to the Firm's acquisition of the remaining 51% interest in CIFM, and the core deposit intangibles associated with the First Republic acquisition. Refer to Note 15 and 28 for additional information.
Other assets decreased reflecting lower cash collateral placed with central counterparties ("CCPs").
Selected Consolidated balance sheets data (continued)
(in millions)June 30,
2023
December 31,
2022
Change
Liabilities
Deposits$2,398,962 $2,340,179 %
Federal funds purchased and securities loaned or sold under repurchase agreements266,272 202,613 31 
Short-term borrowings41,022 44,027 (7)
Trading liabilities178,809 177,976 — 
Accounts payable and other liabilities286,934 300,141 (4)
Beneficial interests issued by consolidated variable interest entities (“VIEs”)19,647 12,610 56 
Long-term debt364,078 295,865 23 
Total liabilities3,555,724 3,373,411 
Stockholders’ equity312,516 292,332 
Total liabilities and stockholders’ equity$3,868,240 $3,665,743 %
Deposits increased, reflecting:
increases in CIB due to deposit inflows related to client-driven activities and net issuances of structured notes as a result of client demand,
$68 billion of deposits in CCB associated with the First Republic acquisition, partially offset by a net decline primarily in existing accounts due to increased customer spending, and
an increase in Corporate related to the Firm's international consumer initiatives,
partially offset by
the continued migration into higher-yielding investments in AWM as a result of the rising interest rate environment, and
ongoing attrition in CB driven by higher rates and seasonal outflows, predominantly offset by inflows as a result of disruptions in the market in the first quarter of 2023.
Federal funds purchased and securities loaned or sold under repurchase agreements increased due to higher secured financing of trading assets and the impact of a lower level of netting on client-driven market-making activities in Markets.
Short-term borrowings decreased predominantly as a result of lower financing requirements in Markets, partially offset by short-term FHLB advances associated with the First Republic acquisition in Treasury and CIO.
Refer to Liquidity Risk Management on pages 54-61 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; Notes 2 and 16 for deposits and Note 11 for federal funds purchased and securities loaned or sold under repurchase agreements; Business Segment Results on page 24 and Note 28 for additional information on the First Republic acquisition.
Trading liabilities: refer to Notes 2 and 5 for additional information.
Accounts payable and other liabilities decreased primarily due to lower client payables related to client-driven activities in Markets.
Beneficial interests issued by consolidated VIEs increased driven by higher levels of Firm-administered multi-seller conduit commercial paper held by third parties, reflecting changes in the Firm’s short-term liquidity management, and an increase in loans in the conduits in CIB. Refer to Liquidity Risk Management on pages 54-61 and Notes 14 and 24 for additional information, specifically Firm-sponsored VIEs and loan securitization trusts.
17


Long-term debt increased, reflecting the impact of the First Republic acquisition, which included the Purchase Money Note issued to the FDIC, and $25 billion of FHLB advances, partially offset by maturities and redemptions in Treasury and CIO. Refer to Liquidity Risk Management on pages 54-61; and Note 28 for additional information on the First Republic acquisition.
Stockholders’ equity: refer to Consolidated statements of changes in stockholders’ equity on page 99, Capital Actions on page 52, and Note 21 for additional information.

18


Consolidated cash flows analysis
The following is a discussion of cash flow activities during the six months ended June 30, 2023 and 2022.
(in millions)Six months ended June 30,
20232022
Net cash provided by/(used in)
Operating activities$(92,376)$24,101 
Investing activities5,551 (125,811)
Financing activities
14,642 48,970 
Effect of exchange rate changes on cash72 (18,834)
Net increase/(decrease) in cash and due from banks and deposits with banks$(72,111)$(71,574)
Operating activities
In 2023, cash used resulted from higher trading assets and lower accounts payable, partially offset by lower other assets, securities borrowed and accrued interest and accounts receivable.
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.
Investing activities
In 2023, cash provided reflected net proceeds from investment securities, largely offset by higher net originations of loans, higher securities purchased under resale agreements, and net cash used in the First Republic acquisition.
In 2022, cash used resulted from higher securities purchased under resale agreements, net originations of loans, and net purchases of investment securities.
Financing activities
In 2023, cash provided reflected higher securities loaned or sold under repurchase agreements, largely offset by net activity in deposits, which included the impact of the repayment of the deposits provided to First Republic Bank by the consortium of large U.S. banks that the Firm assumed as part of the First Republic acquisition, as well as net payments on long- and short-term borrowings.
In 2022, cash provided reflected higher 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 16-19, Capital Risk Management on pages 48-53, and Liquidity Risk Management on pages 54-61, and the Consolidated Statements of Cash Flows on page 100 of this Form 10-Q, and pages 97-104 of JPMorgan Chase’s 2022 Form 10-K for a further discussion of the activities affecting the Firm’s cash flows.

19


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 pages 96-100.
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 2022 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,
20232022
(in millions, except ratios)Reported
Fully taxable-equivalent adjustments(a)
Managed
basis
Reported
Fully taxable-equivalent adjustments(a)
Managed
basis
Other income$3,292 $990 $4,282 $540 $812 $1,352 
Total noninterest revenue19,528 990 20,518 15,587 812 16,399 
Net interest income21,779 104 21,883 15,128 103 15,231 
Total net revenue41,307 1,094 42,401 30,715 915 31,630 
Total noninterest expense20,822 NA20,822 18,749 NA18,749 
Pre-provision profit20,485 1,094 21,579 11,966 915 12,881 
Provision for credit losses2,899 NA2,899 1,101 NA1,101 
Income before income tax expense17,586 1,094 18,680 10,865 915 11,780 
Income tax expense3,114 1,094 4,208 2,216 915 3,131 
Net income$14,472 NA$14,472 $8,649 NA$8,649 
Overhead ratio50 %NM49 %61 %NM59 %
Six months ended June 30,
20232022
(in millions, except ratios)Reported
Fully taxable-equivalent adjustments(a)
Managed
basis
Reported
Fully taxable-equivalent adjustments(a)
Managed
basis
Other income$4,299 $1,857 $6,156 $2,030 $1,587 $3,617 
Total noninterest revenue37,166 1,857 39,023 32,432 1,587 34,019 
Net interest income42,490 224 42,714 29,000 201 29,201 
Total net revenue79,656 2,081 81,737 61,432 1,788 63,220 
Total noninterest expense40,929 NA40,929 37,940 NA37,940 
Pre-provision profit38,727 2,081 40,808 23,492 1,788 25,280 
Provision for credit losses5,174 NA5,174 2,564 NA2,564 
Income before income tax expense33,553 2,081 35,634 20,928 1,788 22,716 
Income tax expense6,459 2,081 8,540 3,997 1,788 5,785 
Net Income$27,094 NA$27,094 $16,931 NA$16,931 
Overhead ratio51 %NM50 %62 %NM60 %
(a)Predominantly recognized in CIB, CB and Corporate.



20


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,
20232022Change20232022Change
Net interest income – reported
$21,779 $15,128 44 %$42,490 $29,000 47 %
Fully taxable-equivalent adjustments
104 103 224 201 11 
Net interest income – managed basis(a)
$21,883 $15,231 44 $42,714 $29,201 46 
Less: Markets net interest income(b)
(487)1,549 NM(592)3,767 NM
Net interest income excluding Markets(a)
$22,370 $13,682 63 $43,306 $25,434 70 
Average interest-earning assets$3,343,780 $3,385,894 (1)$3,280,619 $3,393,879 (3)
Less: Average Markets interest-earning assets(b)
1,003,877 957,304 993,283 960,556 
Average interest-earning assets excluding Markets$2,339,903 $2,428,590 (4)%$2,287,336 $2,433,323 (6)%
Net yield on average interest-earning assets – managed basis
2.62 %1.80 %2.63 %1.74 %
Net yield on average Markets interest-earning assets(b)
(0.19)0.65 (0.12)0.79 
Net yield on average interest-earning assets excluding Markets3.83 %2.26 %3.82 %2.11 %
Noninterest revenue – reported$19,528$15,58725 %$37,166$32,43215 %
Fully taxable-equivalent adjustments99081222 1,8571,58717 
Noninterest revenue – managed basis$20,518$16,39925 $39,023$34,01915 
Less: Markets noninterest revenue(b)
7,5056,24120 15,99212,77625 
Noninterest revenue excluding Markets$13,013$10,15828 $23,031$21,243
Memo: Total Markets net revenue(b)
$7,018$7,790(10)$15,400$16,543(7)
(a)Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
(b)Refer to page 35 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,
2023
Dec 31,
2022
Three months ended June 30,Six months ended June 30,
2023202220232022
Common stockholders’ equity
$285,112 $264,928 $277,885 $247,986 $274,560 $250,234 
Less: Goodwill52,380 51,662 52,342 50,575 52,031 50,442 
Less: Other intangible assets
3,629 1,224 2,191 1,119 1,746 1,007 
Add: Certain deferred tax liabilities(a)
3,097 2,510 2,902 2,503 2,727 2,500 
Tangible common equity$232,200 $214,552 $226,254 $198,795 $223,510 $201,285 
Return on tangible common equityNANA25 %17 %24 %16 %
Tangible book value per share$79.90 $73.12 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.
21


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 20-21 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 and customers, 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. Refer to Market Risk Management on pages 84-89 for additional information.
Capital allocation
The amount of capital assigned to each business segment is referred to as equity. At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs may change. As of June 30, 2023, the Firm updated its line of business capital allocations to reflect the impact of the First Republic acquisition. Refer to Line of business equity on page 51, and page 93 of JPMorgan Chase’s 2022 Form 10-K for additional information on capital allocation.
Refer to Business Segment Results – Description of business segment reporting methodology on pages 61-62 and Note 32 of JPMorgan Chase’s 2022 Form 10-K for a further discussion of those methodologies.

22


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)20232022Change20232022Change20232022Change
Total net revenue$17,233 $12,558 
(a)
37 %$12,519 $12,003 
(a)
4%$3,988 $2,683 49 %
Total noninterest expense8,313 7,658 
(a)
6,894 6,810 
(a)
11,300 1,156 12 
Pre-provision profit/(loss)8,920 4,900 82 5,625 5,193 82,688 1,527 76 
Provision for credit losses1,862 761 145 38 59 (36)1,097 209 425 
Net income/(loss)5,306 3,108 
(a)
71 4,092 3,717 
(a)
101,208 994 22 
Return on equity (“ROE”)38 %24 %

15 %14 %16 %15 %
Three months ended June 30,Asset & Wealth ManagementCorporateTotal
(in millions, except ratios)20232022Change20232022Change20232022Change
Total net revenue$4,943 $4,306 15 %$3,718$80NM$42,401 $31,630 34 %
Total noninterest expense3,163 2,919 1,15220645920,822 18,749 11 
Pre-provision profit/(loss)1,780 1,387 28 2,566(126)NM21,579 12,881 68 
Provision for credit losses145 44 230 (243)28NM2,899 1,101 163 
Net income/(loss)1,226 1,004 22 2,640(174)NM14,472 8,649 67 
ROE29 %23 %NMNM20 %13 %
Six months ended June 30,Consumer & Community BankingCorporate & Investment BankCommercial Banking
(in millions, except ratios)20232022Change20232022Change20232022Change
Total net revenue$33,689 $24,740 
(a)
36 %$26,119 $25,579
(a)
2%$7,499 $5,081 48 %
Total noninterest expense16,378 15,313 
(a)
14,377 14,173
(a)
12,608 2,285 14 
Pre-provision profit/(loss)17,311 9,427 84 11,742 11,40634,891 2,796 75 
Provision for credit losses3,264 1,439 127 96 504(81)1,514 366 314 
Net income/(loss)10,549 6,016 
(a)
75 8,513 8,089
(a)
52,555 1,844 39 
ROE39 %23 %15 %15 %17 %14 %
Six months ended June 30,Asset & Wealth ManagementCorporateTotal
(in millions, except ratios)20232022Change20232022Change20232022Change
Total net revenue$9,727 $8,621 13 %$4,703$(801)NM$81,737 $63,220 29 %
Total noninterest expense6,254 5,779 1,31239023640,929 37,940 
Pre-provision profit/(loss)3,473 2,842 22 3,391(1,191)NM40,808 25,280 61 
Provision for credit losses173 198 (13)127571235,174 2,564 102 
Net income/(loss)2,593 2,012 29 2,884(1,030)NM27,094 16,931 60 
ROE31 %23 %NMNM19 %13 %
(a)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.

23


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, 2023 versus the corresponding period in the prior year, unless otherwise specified.
Selected Firmwide Metrics
The following tables present key metrics for Wealth Management, which consists of the Global Private Bank in AWM and J.P. Morgan Wealth Management in CCB; and total revenue and key metrics for J.P. Morgan Payments, which consists of payments activities in CIB and CB. This presentation is intended to provide investors with additional information concerning Wealth Management and J.P. Morgan Payments, each of which consists of similar business activities conducted across LOBs to serve different types of clients and customers.
Selected metrics - Wealth Management
June 30, 2023 June 30, 2022
Client assets (in billions)(a)
$2,862 
(b)
$2,177 
Number of client advisors8,367 7,756 
(a)    Consists of Global Private Bank in AWM and client investment assets in J.P. Morgan Wealth Management in CCB.
(b)As of June 30, 2023, included $150.9 billion of client investment assets associated with the First Republic acquisition.

Selected metrics - J.P. Morgan Payments
(in millions, except where otherwise noted)Three months ended June 30,Six months ended June 30,
2023202220232022
Total net revenue(a)
$4,729 $3,130 $9,187 $5,725 
Merchant processing volume
(in billions)
600.1 539.6 1,158.9 1,029.8 
Average deposits (in billions)720 816 714 819 
(a) Excludes the net impact of equity investments.
Segment information related to the First Republic acquisition
The following table presents selected impacts to CCB, CB, AWM and Corporate associated with the First Republic acquisition.
As of or for the three and six months ended
June 30, 2023
(in millions)Consumer & Community BankingCommercial BankingAsset & Wealth ManagementCorporateTotal
Selected Income Statement Data
Revenue
Asset management fees$107 $ $ $ $107 
All other income105  174 2,762 
(a)
3,041 
Noninterest revenue212  174 2,762 3,148 
Net interest income619 178 129 (29)897 
Total net revenue831 178 303 2,733 4,045 
Provision for credit losses408 608 146  1,162 
Noninterest expense37   562 599 
Net income293 (327)119 2,301 2,386 
Selected Balance Sheet Data (period-end)
Loans$94,721 $39,500 $13,696 $ $147,917 
(b)
Deposits68,351    68,351 
(a)Reflects the estimated bargain purchase gain of $2.7 billion recorded in other income. Refer to Note 28 for additional information.
(b)Excluded $1.9 billion of loans transferred to the CIB.
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, 2023 and 2022.
24


CONSUMER & COMMUNITY BANKING
Refer to pages 63-66 of JPMorgan Chase's 2022 Form 10-K and Line of Business Metrics on page 206 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)
20232022Change20232022Change
Revenue
Lending- and deposit-related fees$841 $855 (2)%$1,664 $1,660 — %
Asset management fees816 
(d)
684 

19 1,492 
(d)
1,410 
Mortgage fees and related income274 377 (27)497 833 (40)
Card income483 621 
(f)
(22)1,222 1,162 
(f)
All other income(a)
1,129 
(d)
1,313 
(f)
(14)2,291 
(d)
2,640 
(f)
(13)
Noninterest revenue3,543 3,850 (8)7,166 7,705 (7)
Net interest income13,690 
(d)
8,708 57 26,523 
(d)
17,035 56 
Total net revenue17,233 12,558 37 33,689 24,740 36 
Provision for credit losses1,862 
(d)
761 145 3,264 
(d)
1,439 127 
Noninterest expense
Compensation expense3,628 3,237 12 7,173 6,408 12 
Noncompensation expense(b)
4,685 
(d)
4,421 
(f)
9,205 
(d)
8,905 
(f)
Total noninterest expense8,313 7,658 16,378 15,313 
Income before income tax expense7,058 4,139 71 14,047 7,988 76 
Income tax expense1,752 1,031 
(f)
70 3,498 1,972 
(f)
77 
Net income$5,306 $3,108 71 $10,549 $6,016 75 
Revenue by line of business
Banking & Wealth Management$10,936 
(e)
$6,502 
(f)
68 $20,977 
(e)
$12,517 
(f)
68 
Home Lending1,007 
(e)
1,001 1,727 
(e)
2,170 (20)
Card Services & Auto5,290 5,055 10,985 10,053 
Mortgage fees and related income details:
Production revenue102 150 (32)177 361 (51)
Net mortgage servicing revenue(c)
172 227 (24)320 472 (32)
Mortgage fees and related income
$274 $377 (27)%$497 $833 (40)%
Financial ratios
Return on equity38 %24 %39 %23 %
Overhead ratio48 61 49 62 
(a)Primarily includes operating lease income and commissions and other fees. For the three months ended June 30, 2023 and 2022, operating lease income was $704 million and $929 million, respectively, and $1.4 billion and $2.0 billion for the six months ended June 30, 2023 and 2022, respectively.
(b)Included depreciation expense on leased assets of $445 million and $652 million for the three months ended June 30, 2023 and 2022, respectively, and $852 million and $1.3 billion for the six months ended June 30, 2023 and 2022, respectively.
(c)Included MSR risk management results of $25 million and $28 million for the three months ended June 30, 2023 and 2022, respectively, and $13 million and $137 million for the six months ended June 30, 2023 and 2022, respectively.
(d)Includes the impact of the First Republic acquisition. Refer to page 24 for additional information.
(e)For the three and six months ended June 30, 2023, included $596 million and $235 million for Banking & Wealth Management and Home Lending, respectively, associated with the First Republic acquisition.
(f)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.
25


Quarterly results
Net income was $5.3 billion, up 71%.
Net revenue was $17.2 billion, an increase of 37%.
Net interest income was $13.7 billion, up 57%, driven by:
deposit margin expansion on higher rates in Banking & Wealth Management ("BWM"), and
higher NII in Card Services driven by increased revolving balances.
Noninterest revenue was $3.5 billion, down 8%, driven by:
lower auto operating lease income as a result of a decline in volume, and
a decrease in card income driven by lower net interchange, as a result of an increase to the rewards liability due to adjustments to certain reward program terms,
partially offset by
higher asset management fees in BWM predominantly driven by the impact of the First Republic acquisition.
Refer to Note 6 for additional information on card income, asset management fees, and commissions and other fees; and Critical Accounting Estimates on pages 91-93 for card income.
Refer to Note 15 for further information regarding changes in the value of the MSR asset and related hedges, and mortgage fees and related income.
Noninterest expense was $8.3 billion, up 9%, driven by:
higher compensation expense, including wage inflation and headcount growth, as well as higher marketing and technology,
partially offset by
lower auto lease depreciation on lower auto lease assets.
The provision for credit losses was $1.9 billion, and included:
net charge-offs of $1.3 billion, up $640 million, predominantly driven by Card Services, as 30+ day delinquencies have returned to pre-pandemic levels, and
a $611 million net addition to the allowance for credit losses, reflecting $408 million to establish the allowance for the First Republic loans and lending-related commitments. The net addition also included $203 million driven by Card Services, reflecting loan growth, and the net effect of changes in the Firm's macroeconomic outlook, including the impact from the weighted average U.S. unemployment rate peaking in the third quarter of 2024, largely offset by reduced borrower uncertainty.
The prior year included a $150 million addition to the allowance for credit losses in Card Services.
Refer to Credit and Investment Risk Management on pages 62-83 and Allowance for Credit Losses on pages 80-82 for a further discussion of the credit portfolios and the allowance for credit losses.


Year-to-date results
Net income was $10.5 billion, up 75%.
Net revenue was $33.7 billion, an increase of 36%.
Net interest income was $26.5 billion, up 56%, driven by:
deposit margin expansion on higher rates, partially offset by lower average deposits in BWM, and
higher NII in Card Services driven by increased revolving balances,
partially offset by
the impact of lower PPP loan forgiveness in BWM.
Noninterest revenue was $7.2 billion, down 7%, driven by:
lower auto operating lease income as a result of a decline in volume and
in Home Lending, lower production revenue from a decline in volume and lower net mortgage servicing revenue predominantly driven by lower net gains on MSR risk management,
partially offset by
higher travel-related commissions in Card Services,
higher asset management fees in BWM driven by the impact of the First Republic acquisition.
Card income was relatively flat as the increase in net interchange in the first quarter of 2023 due to a reduction in rewards costs and partner payments related to a periodic tax refund on airline miles redeemed was offset by an increase to the rewards liability due to adjustments to certain reward program terms in the second quarter of 2023.
Noninterest expense was $16.4 billion, up 7%, driven by:
higher compensation expense, including wage inflation and headcount growth, as well as higher marketing and technology,
partially offset by
lower auto lease depreciation on lower auto lease assets.
The provision for credit losses was $3.3 billion, and included:
net charge-offs of $2.3 billion, up $1.1 billion, predominantly driven by Card Services, as 30+ day delinquencies have returned to pre-pandemic levels, and
a $553 million net addition, predominantly driven by Card Services, reflecting loan growth, the net effect of changes in the Firm's macroeconomic outlook, including the impact from the weighted average U.S. unemployment rate peaking in the third quarter of 2024, and the additional weight placed on the adverse scenarios in the first quarter of 2023, partially offset by reduced borrower uncertainty, and
a $408 million net addition to the allowance for credit losses to establish the allowance for the First Republic loans and lending-related commitments, in the second quarter of 2023.
The prior year included a $275 million addition to the allowance for credit losses in Card Services and Home Lending.
26


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)20232022Change20232022Change
Selected balance sheet data (period-end)
Total assets$620,193 $500,219 24 %$620,193 $500,219 24 %
Loans:
Banking & Wealth Management(a)
30,959 
(d)
31,494 (2)30,959 
(d)
31,494 (2)
Home Lending(b)
262,432 
(d)
176,939 48 262,432 
(d)
176,939 48 
Card Services191,353 165,494 16 191,353 165,494 16 
Auto 73,587 67,842 73,587 67,842 
Total loans558,331 441,769 26 558,331 441,769 26 
Deposits1,173,514 
(e)
1,178,825 — 1,173,514 
(e)
1,178,825 — 
Equity55,500 50,000 11 55,500 50,000 11 
Selected balance sheet data (average)
Total assets$576,417 $496,177 16 $541,788 $492,592 10 
Loans:
Banking & Wealth Management30,628 
(f)
32,294 (5)29,572 
(f)
33,014 (10)
Home Lending(c)
229,569 
(f)
177,330 29 201,005 
(f)
176,911 14 
Card Services187,028 158,434 18 183,758 153,941 19 
Auto 71,083 68,569 69,920 68,908 
Total loans518,308 436,627 19 484,255 432,774 12 
Deposits1,157,309 
(g)
1,180,453 (2)1,135,261 
(g)
1,167,057 (3)
Equity54,346 50,000 53,180 50,000 
Headcount137,087 130,907 %137,087 130,907 %
(a)At June 30, 2023 and 2022, included $163 million and $1.5 billion of loans, respectively, in Business Banking under the PPP. Refer to Credit Portfolio on pages 108-109 of JPMorgan Chase's 2022 Form 10-K for a further discussion of the PPP.
(b)At June 30, 2023 and 2022, Home Lending loans held-for-sale and loans at fair value were $3.9 billion and $5.2 billion, respectively.
(c)Average Home Lending loans held-for sale and loans at fair value were $5.3 billion and $8.1 billion for the three months ended June 30, 2023 and 2022, respectively, and $4.4 billion and $9.5 billion for the six months ended June 30, 2023 and 2022, respectively.
(d)As of June 30, 2023, included $3.4 billion and $91.3 billion for Banking & Wealth Management and Home Lending, respectively, associated with the First Republic acquisition.
(e)Includes the impact of the First Republic acquisition. Refer to page 24 for additional information.
(f)For the three months ended June 30, 2023, included $2.7 billion and $57.2 billion for Banking & Wealth Management and Home Lending, respectively, and for the six months ended June 30, 2023, included $1.4 billion and $28.7 billion for Banking & Wealth Management and Home Lending, respectively, associated with the First Republic acquisition.
(g)For the three and six months ended June 30, 2023, included $47.2 billion and $23.7 billion, respectively, associated with the First Republic acquisition.




























27


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)20232022Change20232022Change
Credit data and quality statistics
Nonaccrual loans(a)(b)
$3,823 $4,217 (9)%$3,823 $4,217 (9)%
Net charge-offs/(recoveries)
Banking & Wealth Management92 81 14 171 170 
Home Lending(28)(68)59 (46)(137)66 
Card Services1,124 580 94 2,046 1,086 88 
Auto63 18 250 132 45 193 
Total net charge-offs/(recoveries)$1,251 $611 105 $2,303 $1,164 98 
Net charge-off/(recovery) rate
Banking & Wealth Management(c)
1.20 %1.01 %1.17 %1.04 %
Home Lending(0.05)(0.16)(0.05)(0.16)
Card Services2.41 1.47 2.25 1.42 
Auto0.36 0.11 0.38 0.13 
Total net charge-off/(recovery) rate0.98 %0.57 %0.97 %0.55 %
30+ day delinquency rate
Home Lending(d)(e)
0.58 %0.85 %0.58 %0.85 %
Card Services1.70 1.05 1.70 1.05 
Auto 0.92 0.69 0.92 0.69 
90+ day delinquency rate - Card Services0.84 %0.51 %0.84 %0.51 %
Allowance for loan losses
Banking & Wealth Management$731 $697 $731 $697 
Home Lending777 
(f)
785 (1)777 
(f)
785 (1)
Card Services11,600 10,400 12 11,600 10,400 12 
Auto 717 740 (3)717 740 (3)
Total allowance for loan losses$13,825 
(g)
$12,622 10 %$13,825 
(g)
$12,622 10 %
(a)At June 30, 2023 and 2022, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $139 million and $257 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, 2023 and 2022, generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic. Refer to Credit Portfolio on pages 108-109 of JPMorgan Chase's 2022 Form 10-K for further information on consumer assistance.
(c)At June 30, 2023 and 2022, included $163 million and $1.5 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 pages 108-109 of JPMorgan Chase's 2022 Form 10-K for a further discussion of the PPP.
(d)At June 30, 2023 and 2022, the principal balance of loans under payment deferral programs offered in response to the COVID-19 pandemic was $177 million and $513 million in Home Lending, respectively. Loans that are performing according to their modified terms are generally not considered delinquent. Refer to Credit Portfolio on pages 108-109 of JPMorgan Chase's 2022 Form 10-K for further information on consumer assistance.
(e)At June 30, 2023 and 2022, excluded mortgage loans insured by U.S. government agencies of $195 million and $315 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
(f)As of June 30, 2023, included a $377 million allowance established as part of the First Republic acquisition.
(g)On January 1, 2023, the Firm adopted changes to the TDR accounting guidance. The adoption of this guidance resulted in a net decrease in the allowance for loan losses of $591 million, driven by residential real estate and credit card. Refer to Note 1 for further information.
28


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)
20232022Change20232022Change
Business Metrics
Number of branches4,874 4,822 %4,874 4,822 %
Active digital customers (in thousands)(a)
65,559 
(f)
60,735 65,559 
(f)
60,735 
Active mobile customers (in thousands)(b)
51,963 
(f)
47,436 10 51,963 
(f)
47,436 10 
Debit and credit card sales volume
$424.0 $397.0 $811.3 $748.5 
Total payments transaction volume (in trillions)(c)
1.5 
(f)
1.5 — 2.9 
(f)
2.8 
Banking & Wealth Management
Average deposits
$1,142.8 
(g)
$1,163.4 (2)$1,120.7 
(g)
$1,149.8 (3)
Deposit margin
2.83 %1.31 %2.81 %1.27 %
Business Banking average loans$19.6 $22.8 (14)$19.8 $23.8 (17)
Business banking origination volume1.3 1.2 2.3 2.2 
Client investment assets(d)
892.9 628.5 42 892.9 628.5 42 
Number of client advisors5,153 4,890 5,153 4,890
Home Lending
Mortgage origination volume by channel
Retail
$7.3 
(h)
$11.0 (34)$10.9 
(h)
$26.1 (58)
Correspondent
3.9 10.9 (64)6.0 20.5 (71)
Total mortgage origination volume(e)
$11.2 $21.9 (49)$16.9 $46.6 (64)
Third-party mortgage loans serviced (period-end)
$604.5 $575.6 604.5 $575.6 
MSR carrying value (period-end)
8.2 7.4 11 8.2 7.4 11 
Card Services
Sales volume, excluding commercial card$294.0 $271.2 $560.2 $507.6 10 
Net revenue rate9.11 %9.59 %9.73 %9.72 %
Net yield on average loans9.31 9.50 9.60 9.73 
Auto
Loan and lease origination volume
$12.0 $7.0 71 $21.2 $15.4 38 
Average auto operating lease assets
11.0 14.9 (26)%11.3 15.6 (28)%
(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)Total payments transaction volume includes debit and credit card sales volume and gross outflows of ACH, ATM, teller, wires, BillPay, PayChase, Zelle, person-to-person and checks.
(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 41-44 for additional information. As of June 30, 2023, included $150.9 billion of client investment assets associated with the First Republic acquisition.
(e)Firmwide mortgage origination volume was $13.0 billion and $27.9 billion for the three months ended June 30, 2023 and 2022, respectively, and $19.8 billion and $58.1 billion for the six months ended June 30, 2023 and 2022, respectively.
(f)Excludes the impact of the First Republic acquisition.
(g)For the three and six months ended June 30, 2023, included $47.2 billion and $23.7 billion, respectively, associated with the First Republic acquisition.
(h)For the three and six months ended June 30, 2023, included $1.1 billion associated with the First Republic acquisition.
29


CORPORATE & INVESTMENT BANK
Refer to pages 67-72 of JPMorgan Chase’s 2022 Form 10-K and Line of Business Metrics on page 206 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)20232022Change20232022Change
Revenue
Investment banking fees (a)
$1,557 $1,650 (6)%$3,211 $3,700 (13)%
Principal transactions6,697 5,048 33 14,105 10,271 37 
Lending- and deposit-related fees533 641 (17)1,072 1,282 (16)
Commissions and other fees1,219 1,328 (8)2,453 2,660 (8)
Card income400 337 
(c)
19 715 603 
(c)
19 
All other income396 (199)
(c)
NM769 293 
(c)
162 
Noninterest revenue10,802 8,805 23 22,325 18,809 19 
Net interest income1,717 3,198 (46)3,794 6,770 (44)
Total net revenue(b)
12,519 12,003 26,119 25,579 
Provision for credit losses38 59 (36)96 504 (81)
Noninterest expense
Compensation expense3,461 3,510 (1)7,546 7,516 — 
Noncompensation expense3,433 3,300 
(c)
6,831 6,657 
(c)
Total noninterest expense6,894 6,810 14,377 14,173 
Income before income tax expense
5,587 5,134 11,646 10,902 
Income tax expense1,495 1,417 
(c)
3,133 2,813 
(c)
11 
Net income$4,092 $3,717 10 %$8,513 $8,089 %
Financial ratios
Return on equity15 %14 %15 %15 %
Overhead ratio55 57 
(c)
55 55 
Compensation expense as percentage of total net revenue
28 29 29 29 
(c)
(a)Includes CB's share of revenue from investment banking products sold to CB clients through the CIB that is subject to a revenue sharing arrangement which is reported as a reduction in All other income.
(b)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 $953 million and $772 million for the three months ended June 30, 2023 and 2022, respectively and $1.8 billion and $1.5 billion for the six months ended June 30, 2023 and 2022, respectively.
(c)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. 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)20232022Change20232022Change
Revenue by business
Investment Banking
$1,494 $1,351 11 %$3,054 $3,408 (10)%
Payments2,451 1,519 
(b)
61 4,847 3,420 
(b)
42 
Lending299 410 (27)566 731 (23)
Total Banking4,244 3,280 29 8,467 7,559 12 
Fixed Income Markets4,567 4,711 (3)10,266 10,409 (1)
Equity Markets2,451 3,079 (20)5,134 6,134 (16)
Securities Services1,221 1,151 2,369 2,219 
Credit Adjustments & Other(a)
36 (218)NM(117)(742)84 
Total Markets & Securities Services
8,275 8,723 (5)17,652 18,020 (2)
Total net revenue$12,519 $12,003 %$26,119 $25,579 %
(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.
(b)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.


30


Quarterly results
Net income was $4.1 billion, up 10%.
Net revenue was $12.5 billion, up 4%.
Banking revenue was $4.2 billion, up 29%.
Investment Banking revenue was $1.5 billion, up 11%. Excluding $257 million of markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio recorded in the prior year, Investment Banking revenue was down 7%. Investment Banking fees were down 6%, driven by lower advisory fees. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.
Advisory fees were $540 million, down 19%, due to a lower level