4Q14 ERF Exhibit 99.2 Supplement

EX-99.2 5 a4q14erfexhibit992suppleme.htm EARNINGS RELEASE FINANCIAL SUPPLEMENT - 4Q14 4Q14 ERF Exhibit 99.2 Supplement

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FOURTH QUARTER 2014



JPMORGAN CHASE & CO.
TABLE OF CONTENTS

										Page(s)
Consolidated Results
Preferred Stock Dividend Allocation Reporting Change										2
Consolidated Financial Highlights										3-4
Consolidated Statements of Income										5
Consolidated Balance Sheets										6
Condensed Average Balance Sheets and Annualized Yields										7
Core Net Interest Income										8
Reconciliation from Reported to Managed Basis										9
Segment Results - Managed Basis										10
Capital and Other Selected Balance Sheet Items										11
Earnings Per Share and Related Information										12

Business Segment Results
Consumer & Community Banking										13-14
Consumer & Business Banking										15
Mortgage Banking										16-19
Card, Merchant Services & Auto										20-21
Corporate & Investment Bank										22-24
Commercial Banking										25-26
Asset Management										27-29
Corporate/Private Equity										30-31

Credit-Related Information										32-35

Non-GAAP Financial Measures										36
Glossary of Terms (a)


(a)	Refer to the Firm’s Glossary of Terms on pages 341-345 and pages 182-187 of JPMorgan Chase’s 2013 Annual Report and its third quarter 2014 Form 10-Q, respectively.

JPMORGAN CHASE & CO.

PREFERRED STOCK DIVIDEND ALLOCATION REPORTING CHANGE

JPMorgan Chase & Co. (the “Firm”) is managed on a line of business basis. There are four major reportable business segments and a Corporate/Private Equity segment. As part of its funds transfer pricing process, the Firm allocates substantially all of the cost of its outstanding preferred stock to its reportable business segments, while retaining the balance of the cost in Corporate. Prior to the fourth quarter of 2014, this cost was allocated to the Firm’s reportable business segments as interest expense, with an offset recorded as interest income in Corporate. Effective with the fourth quarter of 2014, this cost is no longer included in interest income and expense in the business segments, but rather is now included in net income applicable to common equity to be consistent with the presentation of firmwide results. As a result of this reporting change, net interest income and net income in the reportable business segments increases; however, there was no impact to the business segments’ return on common equity (“ROE”). The Firm’s net interest income, net income, Consolidated balance sheets and consolidated results of operations were not impacted by this reporting change, as preferred stock dividends have been and continue to be distributed from retained earnings and, accordingly, were never reported as a component of the Firm’s consolidated net interest income or net income. Prior period business segment and core net interest income amounts have been revised to conform with the current period presentation.

The following chart depicts how preferred stock dividends were allocated to the business segments before and after the aforementioned methodology change.

Page 2



JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share and ratio data)

	QUARTERLY TRENDS																					FULL YEAR
																4Q14 Change												2014 Change
SELECTED INCOME STATEMENT DATA	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13			2014			2013			2013
Reported Basis
Total net revenue	$	22,512		$	24,246		$	24,454		$	22,993		$	23,156		(7	)	%	(3	)	%	$	94,205		$	96,606		(2	)	%
Total noninterest expense	15,409			15,798			15,431			14,636			15,552			(2	)		(1	)		61,274			70,467			(13	)
Pre-provision profit	7,103			8,448			9,023			8,357			7,604			(16	)		(7	)		32,931			26,139			26
Provision for credit losses	840			757			692			850			104			11			NM			3,139			225			NM
NET INCOME	4,931			5,572			5,985			5,274			5,278			(12	)		(7	)		21,762			17,923			21

Managed Basis (a)
Total net revenue	23,552			25,159			25,349			23,863			24,112			(6	)		(2	)		97,923			99,798			(2	)
Total noninterest expense	15,409			15,798			15,431			14,636			15,552			(2	)		(1	)		61,274			70,467			(13	)
Pre-provision profit	8,143			9,361			9,918			9,227			8,560			(13	)		(5	)		36,649			29,331			25
Provision for credit losses	840			757			692			850			104			11			NM			3,139			225			NM
NET INCOME	4,931			5,572			5,985			5,274			5,278			(12	)		(7	)		21,762			17,923			21

EARNINGS PER SHARE DATA
Net income: Basic	$	1.20		$	1.37		$	1.47		$	1.29		$	1.31		(12	)		(8	)		$	5.34		$	4.39		22
Diluted	1.19			1.36			1.46			1.28			1.30			(13	)		(8	)		5.29			4.35			22
Average shares: Basic	3,730.9			3,755.4			3,780.6			3,787.2			3,762.1			(1	)		(1	)		3,763.5			3,782.4			—
Diluted	3,765.2			3,788.7			3,812.5			3,823.6			3,797.1			(1	)		(1	)		3,797.5			3,814.9			—

MARKET AND PER COMMON SHARE DATA
Market capitalization	$	232,472		$	225,188		$	216,725		$	229,770		$	219,657		3			6			$	232,472		$	219,657		6
Common shares at period-end	3,714.8			3,738.2			3,761.3			3,784.7			3,756.1			(1	)		(1	)		3,714.8			3,756.1			(1	)
Closing share price (b)	$	62.58		$	60.24		$	57.62		$	60.71		$	58.48		4			7			$	62.58		$	58.48		7
Book value per share	57.07			56.50			55.53			54.05			53.25			1			7			57.07			53.25			7
Tangible book value per share (c)	44.69			44.13			43.17			41.73			40.81			1			10			44.69			40.81			10
Cash dividends declared per share	0.40			0.40			0.40		(h)	0.38			0.38			—			5			1.58		(h)	1.44		(h)	10

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)	9		%	10		%	11		%	10		%	10		%							10		%	9		%
Return on tangible common equity (“ROTCE”) (c)	11			13			14			13			14									13			11
Return on assets	0.78			0.90			0.99			0.89			0.87									0.89			0.75

CAPITAL RATIOS (e)
Common Equity Tier 1 (“CET1”) capital ratio	10.2		(g)	10.2			9.8			10.9			10.7									10.2		(g)	10.7
Tier 1 capital ratio	11.6		(g)	11.5			11.1			12.1			11.9									11.6		(g)	11.9
Total capital ratio	13.1		(g)	12.8			12.5			14.5			14.4									13.1		(g)	14.4

95% CONFIDENCE LEVEL- TOTAL VaR (f)
Average VaR	$	40		$	36		$	55		$	42		$	44		11			(9	)		$	43		$	52		(17	)


(a)	For a further discussion of managed basis, see Reconciliation from Reported to Managed Basis on page 9.


(b)	Share price shown is from the New York Stock Exchange. The common stock is also listed and traded on the London Stock Exchange and the Tokyo Stock Exchange.


(c)	Tangible book value per share and ROTCE are non-GAAP financial measures. Tangible book value per share represents tangible common equity divided by common shares at period-end. ROTCE measures the Firm’s annualized earnings as a percentage of tangible common equity. For further discussion of these measures, see page 36.


(d)	Ratios are based upon annualized amounts.

(e)

Basel III Transitional rules became effective on January 1, 2014; December 31, 2013 data is based on Basel I rules. As of December 31, 2014, September 30, 2014, and June 30, 2014, the ratios presented are calculated under the Basel III Advanced Transitional Approach. As of March 31, 2014, the ratios presented are calculated under the Basel III Standardized Transitional Approach. See footnote (a) on page 11 for additional information on Basel III. CET1 capital under Basel III replaced Tier 1 common capital under Basel I. Prior to Basel III becoming effective on January 1, 2014, Tier 1 common capital under Basel I was a non-GAAP financial measure. For further discussion of Tier 1 common capital, see page 36.

(f)

The increase in average VaR during the three months ended June 30, 2014 was due to a change in the MSR hedge position in Mortgage Banking in advance of an anticipated update to certain MSR model assumptions. When such updates were implemented, VaR decreased to prior levels. The MSR model and assumptions are continuously evaluated and periodically updated to reflect recent market behavior. Mortgage Banking average VaR was $3 million, $3 million, $20 million, $5 million and $6 million for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, and $7 million and $12 million for full year 2014 and 2013, respectively. For information regarding CIB VaR, see Corporate and Investment Bank on page 24.


(g)	Estimated.


(h)	On May 20, 2014, the Board of Directors increased the quarterly common stock dividend from $0.38 to $0.40 per share. On May 21, 2013, the Board increased the quarterly common stock dividend from $0.30 to $0.38 per share.

Page 3



JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)

	QUARTERLY TRENDS																					FULL YEAR
																4Q14 Change													2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13			2014			2013				2013
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,573,126		$	2,527,005		$	2,520,336		$	2,476,986		$	2,415,689		2		%	7		%	$	2,573,126		$	2,415,689			7		%
Loans:
Consumer, excluding credit card loans	295,374			288,860			289,178			288,168			289,063			2			2			295,374			289,063				2
Credit card loans	131,048			126,959			126,129			121,816			127,791			3			3			131,048			127,791				3
Wholesale loans	330,914			327,438			331,676			320,987			321,564			1			3			330,914			321,564				3
Total Loans	757,336			743,257			746,983			730,971			738,418			2			3			757,336			738,418				3
Deposits	1,363,427			1,334,534			1,319,751			1,282,705			1,287,765			2			6			1,363,427			1,287,765				6
Long-term debt (a)	276,836			268,721			269,929			274,512			267,889			3			3			276,836			267,889				3
Common stockholders’ equity	212,002			211,214			208,851			204,572			200,020			—			6			212,002			200,020				6
Total stockholders’ equity	232,065			231,277			227,314			219,655			211,178			—			10			232,065			211,178				10

Loans-to-deposits ratio	56		%	56		%	57		%	57		%	57		%							56		%	57			%

Headcount	241,359			242,388			245,192			246,994			251,196			—			(4	)		241,359			251,196				(4	)

LINE OF BUSINESS NET INCOME/(LOSS) (b)
Consumer & Community Banking	$	2,179		$	2,529		$	2,496		$	1,981		$	2,448		(14	)		(11	)		$	9,185		$	11,061			(17	)
Corporate & Investment Bank	972			1,687			2,136			2,130			941			(42	)		3			6,925			8,887				(22	)
Commercial Banking	693			671			677			594			711			3			(3	)		2,635			2,648				—
Asset Management	540			590			569			454			581			(8	)		(7	)		2,153			2,083				3
Corporate/Private Equity	547			95			107			115			597			476			(8	)		864			(6,756		)		NM
NET INCOME/(LOSS)	$	4,931		$	5,572		$	5,985		$	5,274		$	5,278		(12	)		(7	)		$	21,762		$	17,923			21


(a)	Included unsecured long-term debt of $207.5 billion, $204.7 billion, $205.6 billion, $206.1 billion and $199.4 billion for the periods ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively.

(b)

Effective with the fourth quarter of 2014, the Firm changed the methodology it uses to allocate preferred stock dividends to the lines of business. Prior period amounts for net income/(loss) for each line of business were revised to conform with the current allocation methodology. The Firm’s Consolidated balance sheets and consolidated results of operations were not affected by this reporting change. For further discussion, see page 2.

Page 4



JPMORGAN CHASE & CO.
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share and ratio data)

	QUARTERLY TRENDS																						FULL YEAR
																	4Q14 Change												2014 Change
REVENUE	4Q14			3Q14			2Q14			1Q14			4Q13				3Q14			4Q13			2014			2013			2013
Investment banking fees	$	1,833		$	1,538		$	1,751		$	1,420		$	1,685			19		%	9		%	$	6,542		$	6,354		3		%
Principal transactions (a)	1,335			2,966			2,908			3,322			(42		)		(55	)		NM			10,531			10,141			4
Lending- and deposit-related fees	1,454			1,479			1,463			1,405			1,469				(2	)		(1	)		5,801			5,945			(2	)
Asset management, administration and commissions	4,110			3,978			4,007			3,836			3,975				3			3			15,931			15,106			5
Securities gains	29			6			12			30			8				383			263			77			667			(88	)
Mortgage fees and related income	855			903			1,291			514			1,089				(5	)		(21	)		3,563			5,205			(32	)
Card income	1,526			1,537			1,549			1,408			1,582				(1	)		(4	)		6,020			6,022			—
Other income	308			732			675			391			2,483				(58	)		(88	)		2,106			3,847			(45	)
Noninterest revenue	11,450			13,139			13,656			12,326			12,249				(13	)		(7	)		50,571			53,287			(5	)
Interest income (b)	12,951			12,926			12,861			12,793			13,166				—			(2	)		51,531			52,669			(2	)
Interest expense (b)	1,889			1,819			2,063			2,126			2,259				4			(16	)		7,897			9,350			(16	)
Net interest income	11,062			11,107			10,798			10,667			10,907				—			1			43,634			43,319			1
TOTAL NET REVENUE	22,512			24,246			24,454			22,993			23,156				(7	)		(3	)		94,205			96,606			(2	)

Provision for credit losses	840			757			692			850			104				11			NM			3,139			225			NM

NONINTEREST EXPENSE
Compensation expense	6,860			7,831			7,610			7,859			7,052				(12	)		(3	)		30,160			30,810			(2	)
Occupancy expense	1,006			978			973			952			941				3			7			3,909			3,693			6
Technology, communications and equipment expense	1,495			1,465			1,433			1,411			1,376				2			9			5,804			5,425			7
Professional and outside services	2,080			1,907			1,932			1,786			2,109				9			(1	)		7,705			7,641			1
Marketing	726			610			650			564			745				19			(3	)		2,550			2,500			2
Other expense (c)	3,242			3,007			2,833			2,064			3,329				8			(3	)		11,146			20,398			(45	)
TOTAL NONINTEREST EXPENSE	15,409			15,798			15,431			14,636			15,552				(2	)		(1	)		61,274			70,467			(13	)
Income before income tax expense	6,263			7,691			8,331			7,507			7,500				(19	)		(16	)		29,792			25,914			15
Income tax expense	1,332			2,119			2,346			2,233			2,222				(37	)		(40	)		8,030			7,991			—
NET INCOME	$	4,931		$	5,572		$	5,985		$	5,274		$	5,278			(12	)		(7	)		$	21,762		$	17,923		21

NET INCOME PER COMMON SHARE DATA
Basic earnings per share	$	1.20		$	1.37		$	1.47		$	1.29		$	1.31			(12	)		(8	)		$	5.34		$	4.39		22
Diluted earnings per share	1.19			1.36			1.46			1.28			1.30				(13	)		(8	)		5.29			4.35			22

FINANCIAL RATIOS
Return on common equity (d)	9		%	10		%	11		%	10		%	10			%							10		%	9		%
Return on tangible common equity (d)(e)	11			13			14			13			14										13			11
Return on assets (d)	0.78			0.90			0.99			0.89			0.87										0.89			0.75
Effective income tax rate	21			28			28			30			30										27			31
Overhead ratio	68			65			63			64			67										65			73


(a)	Included a $(1.5) billion loss in the fourth quarter of 2013 as a result of implementing a funding valuation adjustment (“FVA”) framework for OTC derivatives and structured notes.


(b)	Effective January 1, 2014, prior period amounts were reclassified to conform with current period presentation.


(c)	Included Firmwide legal expense of $1.1 billion, $1.1 billion, $0.7 billion and $0.8 billion for the three months ended December 31, 2014, September 30, 2014, June 30, 2014 and December 31, 2013, respectively; legal expense for the three months ended March 31, 2014 was not material, and $2.9 billion and $11.1 billion for the full year 2014 and 2013, respectively.


(d)	Ratios are based upon annualized amounts.


(e)	For further discussion of ROTCE see pages 3 and 36.

Page 5



JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
																		Dec 31, 2014
																		Change
	Dec 31,			Sep 30,			Jun 30,				Mar 31,				Dec 31,			Sep 30,			Dec 31,
	2014			2014			2014				2014				2013			2014			2013
ASSETS
Cash and due from banks	$	27,831		$	25,372		$	27,523			$	26,321			$	39,771		10		%	(30	)	%
Deposits with banks	484,477			414,312			393,909				372,531				316,051			17			53
Federal funds sold and securities purchased under
resale agreements	215,803			214,336			248,149				265,168				248,116			1			(13	)
Securities borrowed	110,435			118,873			113,967				122,021				111,465			(7	)		(1	)
Trading assets:
Debt and equity instruments	320,013			338,204			330,165				315,932				308,905			(5	)		4
Derivative receivables	78,975			72,453			62,378				59,272				65,759			9			20
Securities	348,004			366,358			361,918				351,850				354,003			(5	)		(2	)
Loans	757,336			743,257			746,983				730,971				738,418			2			3
Less: Allowance for loan losses	14,185			14,889			15,326				15,847				16,264			(5	)		(13	)
Loans, net of allowance for loan losses	743,151			728,368			731,657				715,124				722,154			2			3
Accrued interest and accounts receivable	70,079			75,504			78,677			(a)	74,612			(a)	65,160			(7	)		8
Premises and equipment	15,133			15,177			15,216				14,919				14,891			—			2
Goodwill	47,647			47,970			48,110				48,065				48,081			(1	)		(1	)
Mortgage servicing rights	7,436			8,236			8,347				8,552				9,614			(10	)		(23	)
Other intangible assets	1,192			1,274			1,339				1,489				1,618			(6	)		(26	)
Other assets	102,950			100,568			98,981			(a)	101,130			(a)	110,101			2			(6	)
TOTAL ASSETS	$	2,573,126		$	2,527,005		$	2,520,336			$	2,476,986			$	2,415,689		2			7

LIABILITIES
Deposits	$	1,363,427		$	1,334,534		$	1,319,751			$	1,282,705			$	1,287,765		2			6
Federal funds purchased and securities loaned or sold
under repurchase agreements	192,101			198,746			216,561				217,442				181,163			(3	)		6
Commercial paper	66,344			59,960			63,804				60,825				57,848			11			15
Other borrowed funds	30,222			31,892			34,713				31,951				27,994			(5	)		8
Trading liabilities:
Debt and equity instruments	81,699			84,305			87,861				91,471				80,430			(3	)		2
Derivative payables	71,116			58,951			50,795				49,138				57,314			21			24
Accounts payable and other liabilities	206,954			211,055			203,885				202,499				194,491			(2	)		6
Beneficial interests issued by consolidated VIEs	52,362			47,564			45,723				46,788				49,617			10			6
Long-term debt	276,836			268,721			269,929				274,512				267,889			3			3
TOTAL LIABILITIES	2,341,061			2,295,728			2,293,022				2,257,331				2,204,511			2			6

STOCKHOLDERS’ EQUITY
Preferred stock	20,063			20,063			18,463				15,083				11,158			—			80
Common stock	4,105			4,105			4,105				4,105				4,105			—			—
Capital surplus	93,270			93,060			92,879				92,623				93,828			—			(1	)
Retained earnings	130,315			127,234			123,497				119,318				115,756			2			13
Accumulated other comprehensive income	2,189			3,266			3,438				2,276				1,199			(33	)		83
Shares held in RSU Trust, at cost	(21		)	(21		)	(21		)		(21		)		(21		)	—			—
Treasury stock, at cost	(17,856		)	(16,430		)	(15,047		)		(13,729		)		(14,847		)	(9	)		(20	)
TOTAL STOCKHOLDERS’ EQUITY	232,065			231,277			227,314				219,655				211,178			—			10
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,573,126		$	2,527,005		$	2,520,336			$	2,476,986			$	2,415,689		2			7


(a)	Prior period amounts were reclassified to conform with current period presentation due to the adoption of new accounting guidance. For further information, see footnote (a) on page 33.

Page 6



JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
	QUARTERLY TRENDS																										FULL YEAR
																					4Q14 Change														2014 Change
AVERAGE BALANCES	4Q14				3Q14				2Q14				1Q14				4Q13				3Q14			4Q13			2014				2013				2013
ASSETS
Deposits with banks	$	414,672			$	362,434			$	334,953			$	319,130			$	329,322			14		%	26		%	$	358,072			$	268,968			33		%
Federal funds sold and securities purchased under
resale agreements	215,439				224,088				237,440				245,389				233,149				(4	)		(8	)		230,489				231,567				—
Securities borrowed	115,033				118,014				114,905				118,227				117,730				(3	)		(2	)		116,540				118,300				(1	)
Trading assets - debt instruments	222,223				213,335				204,242				202,387				208,032				4			7			210,609				227,769				(8	)
Securities	350,804				360,365				353,278				348,771				348,223				(3	)		1			353,329				356,843				(1	)
Loans	746,735				741,831				737,613				730,312				729,621				1			2			739,175				726,450				2
Other assets (a)	38,873				41,718				41,514				41,430				39,384				(7	)		(1	)		40,879				40,334				1
Total interest-earning assets	2,103,779				2,061,785				2,023,945				2,005,646				2,005,461				2			5			2,049,093				1,970,231				4
Trading assets - equity instruments	114,652				118,201				121,184				112,525				111,051				(3	)		3			116,650				112,680				4
Trading assets - derivative receivables	76,937				65,786				60,830				64,820				68,709				17			12			67,123				72,629				(8	)
All other noninterest-earning assets	216,076				209,100				214,677				219,713				222,380				3			(3	)		214,867				224,564				(4	)
TOTAL ASSETS	$	2,511,444			$	2,454,872			$	2,420,636			$	2,402,704			$	2,407,601			2			4			$	2,447,733			$	2,380,104			3
LIABILITIES
Interest-bearing deposits	$	880,283			$	865,041			$	863,163			$	866,759			$	860,067			2			2			$	868,838			$	822,781			6
Federal funds purchased and securities loaned or
sold under repurchase agreements	206,671				213,975				212,555				200,918				207,747				(3	)		(1	)		208,560				238,551				(13	)
Commercial paper	61,833				59,359				59,760				58,682				54,098				4			14			59,916				53,717				12
Trading liabilities - debt, short-term and other liabilities (b)	224,967				219,666				221,001				214,810				211,414				2			6			220,137				202,894				8
Beneficial interests issued by consolidated VIEs	48,281				47,336				47,407				49,058				49,866				2			(3	)		48,017				54,832				(12	)
Long-term debt	273,829				266,639				271,194				269,403				265,676				3			3			270,269				264,083				2
Total interest-bearing liabilities	1,695,864				1,672,016				1,675,080				1,659,630				1,648,868				1			3			1,675,737				1,636,858				2
Noninterest-bearing deposits	418,313				404,634				380,836				377,520				381,242				3			10			395,463				366,361				8
Trading liabilities - equity instruments	15,659				17,385				15,505				16,432				15,209				(10	)		3			16,246				14,218				14
Trading liabilities - derivative payables	64,784				51,524				49,487				53,143				60,011				26			8			54,758				64,553				(15	)
All other noninterest-bearing liabilities	84,874				81,090				77,806				80,626				94,753				5			(10	)		81,111				90,745				(11	)
TOTAL LIABILITIES	2,279,494				2,226,649				2,198,714				2,187,351				2,200,083				2			4			2,223,315				2,172,735				2
Preferred stock	20,063				18,602				15,763				13,556				11,158				8			80			17,018				10,960				55
Common stockholders’ equity	211,887				209,621				206,159				201,797				196,360				1			8			207,400				196,409				6
TOTAL STOCKHOLDERS’ EQUITY	231,950				228,223				221,922				215,353				207,518				2			12			224,418				207,369				8
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,511,444			$	2,454,872			$	2,420,636			$	2,402,704			$	2,407,601			2			4			$	2,447,733			$	2,380,104			3

AVERAGE RATES (c)
INTEREST-EARNING ASSETS
Deposits with banks	0.31			%	0.33			%	0.33			%	0.33			%	0.32			%							0.32			%	0.34			%
Federal funds sold and securities purchased under
resale agreements	0.75				0.71				0.67				0.72				0.77										0.71				0.84
Securities borrowed (d)	(0.45		)		(0.50		)		(0.46		)		(0.30		)		(0.19		)								(0.43		)		(0.11		)
Trading assets - debt instruments (e)	3.35				3.49				3.62				3.59				3.60										3.51				3.60
Securities	2.77				2.73				2.79				2.77				2.61										2.77				2.32
Loans	4.32				4.33				4.40				4.49				4.54										4.38				4.63
Other assets (a)	1.61				1.63				1.66				1.58				1.62										1.62				1.33
Total interest-earning assets (e)	2.49				2.54				2.60				2.63				2.64										2.56				2.71

INTEREST-BEARING LIABILITIES
Interest-bearing deposits	0.18				0.18				0.19				0.20				0.22										0.19				0.25
Federal funds purchased and securities loaned or
sold under repurchase agreements	0.28				0.25				0.30				0.33				0.28										0.29				0.24
Commercial paper	0.22				0.22				0.23				0.23				0.21										0.22				0.21
Trading liabilities - debt, short-term and other liabilities (b)(d)(e)	0.26				0.12				0.48				0.44				0.56										0.32				0.54
Beneficial interests issued by consolidated VIEs	0.80				0.82				0.89				0.87				0.84										0.84				0.87
Long-term debt	1.55				1.61				1.61				1.76				1.81										1.63				1.90
Total interest-bearing liabilities (e)	0.44				0.43				0.49				0.52				0.54										0.47				0.57

INTEREST RATE SPREAD (e)	2.05			%	2.11			%	2.11			%	2.11			%	2.10			%							2.09			%	2.14			%
NET YIELD ON INTEREST-EARNING ASSETS	2.14			%	2.19			%	2.19			%	2.20			%	2.20			%							2.18			%	2.23			%


(a)	Includes margin loans.


(b)	Includes brokerage customer payables.


(c)	Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.


(d)	Negative yield is the result of increased client-driven demand for certain securities combined with the impact of low interest rates; the offset of this stock borrow activity is reflected as lower net interest expense reported within trading liabilities - debt, short-term and other liabilities.


(e)	Effective January 1, 2014, prior period amounts were reclassified to conform with current period presentation.

Page 7

JPMORGAN CHASE & CO.

CORE NET INTEREST INCOME

(in millions, except rates)

In addition to reviewing net interest income on a managed basis, management also reviews core net interest income to assess the performance of its core lending, investing (including asset-liability management) and deposit-raising activities. Core net interest income excludes the impact of Corporate & Investment Bank’s (“CIB’s”) market-based activities. Because of the exclusion of CIB’s market-based net interest income and the related assets, the core data presented below are non-GAAP financial measures. Management believes this exclusion provides investors and analysts another measure by which to analyze the non-market-related business trends of the Firm and provides a comparable measure to other financial institutions that are primarily focused on core lending, investing and deposit-raising activities. For a further discussion of these measures, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 82-83 of the Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 Annual Report”).



	QUARTERLY TRENDS																			FULL YEAR
																4Q14 Change										2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14		4Q13		2014			2013			2013
CORE NET INTEREST INCOME DATA (a)
Net interest income - managed basis (b)(c)	$	11,324		$	11,360		$	11,042		$	10,893		$	11,096		—		2	%	$	44,619		$	44,016		1	%
Less: Market-based net interest income (d)	1,450			1,542			1,291			1,269			1,214			(6	)	19		5,552			5,492			1
Core net interest income (b)(d)	$	9,874		$	9,818		$	9,751		$	9,624		$	9,882		1		—		$	39,067		$	38,524		1

Average interest-earning assets	$	2,103,779		$	2,061,785		$	2,023,945		$	2,005,646		$	2,005,461		2		5		$	2,049,093		$	1,970,231		4
Less: Average market-based earning assets	517,934			513,051			502,413			507,499			501,716			1		3		510,261			504,218			1
Core average interest-earning assets	$	1,585,845		$	1,548,734		$	1,521,532		$	1,498,147		$	1,503,745		2		5		$	1,538,832		$	1,466,013		5

Net interest yield on interest-earning assets -
managed basis	2.14		%	2.19		%	2.19		%	2.20		%	2.20		%					2.18		%	2.23		%
Net interest yield on market-based activities (d)	1.11			1.19			1.03			1.01			0.96							1.09			1.09
Core net interest yield on core average interest-earning assets (d)	2.47			2.52			2.57			2.61			2.61							2.54			2.63


(a)	Includes core lending, investing and deposit-raising activities on a managed basis across each of the business segments and Corporate/Private Equity; excludes the market-based activities within the CIB.


(b)	Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.


(c)	For a reconciliation of net interest income on a reported and managed basis, see Reconciliation from Reported to Managed Basis on page 9.


(d)	Effective with the fourth quarter of 2014, the Firm changed the methodology it uses to allocate preferred stock dividends to the lines of business. Prior period amounts were revised to conform with the current allocation methodology. The Firm’s Consolidated balance sheets and consolidated results of operations were not affected by this reporting change. For further discussion, see page 2.

Page 8



JPMORGAN CHASE & CO.
RECONCILIATION FROM REPORTED TO MANAGED BASIS
(in millions, except ratios)

The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the U.S. (“U.S. GAAP”). That presentation, which is referred to as “reported” basis, provides the reader with an understanding of the Firm’s results that can be tracked consistently from year-to-year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. For additional information on managed basis, refer to the notes on Non-GAAP Financial Measures on page 36.

The following summary table provides a reconciliation from reported U.S. GAAP results to managed basis.



	QUARTERLY TRENDS																					FULL YEAR
																4Q14 Change												2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13			2014			2013			2013
OTHER INCOME
Other income - reported	$	308		$	732		$	675		$	391		$	2,483		(58	)	%	(88	)	%	$	2,106		$	3,847		(45	)	%
Fully taxable-equivalent adjustments (a)	778			660			651			644			767			18			1			2,733			2,495			10
Other income - managed	$	1,086		$	1,392		$	1,326		$	1,035		$	3,250		(22	)		(67	)		$	4,839		$	6,342		(24	)

TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported	$	11,450		$	13,139		$	13,656		$	12,326		$	12,249		(13	)		(7	)		$	50,571		$	53,287		(5	)
Fully taxable-equivalent adjustments (a)	778			660			651			644			767			18			1			2,733			2,495			10
Total noninterest revenue - managed	$	12,228		$	13,799		$	14,307		$	12,970		$	13,016		(11	)		(6	)		$	53,304		$	55,782		(4	)

NET INTEREST INCOME
Net interest income - reported	$	11,062		$	11,107		$	10,798		$	10,667		$	10,907		—			1			$	43,634		$	43,319		1
Fully taxable-equivalent adjustments (a)	262			253			244			226			189			4			39			985			697			41
Net interest income - managed	$	11,324		$	11,360		$	11,042		$	10,893		$	11,096		—			2			$	44,619		$	44,016		1

TOTAL NET REVENUE
Total net revenue - reported	$	22,512		$	24,246		$	24,454		$	22,993		$	23,156		(7	)		(3	)		$	94,205		$	96,606		(2	)
Fully taxable-equivalent adjustments (a)	1,040			913			895			870			956			14			9			3,718			3,192			16
Total net revenue - managed	$	23,552		$	25,159		$	25,349		$	23,863		$	24,112		(6	)		(2	)		$	97,923		$	99,798		(2	)

PRE-PROVISION PROFIT
Pre-provision profit - reported	$	7,103		$	8,448		$	9,023		$	8,357		$	7,604		(16	)		(7	)		$	32,931		$	26,139		26
Fully taxable-equivalent adjustments (a)	1,040			913			895			870			956			14			9			3,718			3,192			16
Pre-provision profit - managed	$	8,143		$	9,361		$	9,918		$	9,227		$	8,560		(13	)		(5	)		$	36,649		$	29,331		25

INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported	$	6,263		$	7,691		$	8,331		$	7,507		$	7,500		(19	)		(16	)		$	29,792		$	25,914		15
Fully taxable-equivalent adjustments (a)	1,040			913			895			870			956			14			9			3,718			3,192			16
Income before income tax expense - managed	$	7,303		$	8,604		$	9,226		$	8,377		$	8,456		(15	)		(14	)		$	33,510		$	29,106		15

INCOME TAX EXPENSE
Income tax expense - reported	$	1,332		$	2,119		$	2,346		$	2,233		$	2,222		(37	)		(40	)		$	8,030		$	7,991		—
Fully taxable-equivalent adjustments (a)	1,040			913			895			870			956			14			9			3,718			3,192			16
Income tax expense - managed	$	2,372		$	3,032		$	3,241		$	3,103		$	3,178		(22	)		(25	)		$	11,748		$	11,183		5

OVERHEAD RATIO
Overhead ratio - reported	68		%	65		%	63		%	64		%	67		%							65		%	73		%
Overhead ratio - managed	65			63			61			61			64									63			71


(a)	Predominantly recognized in the CIB and Commercial Banking (“CB”) business segments and Corporate/Private Equity.

Page 9



JPMORGAN CHASE & CO.
SEGMENT RESULTS - MANAGED BASIS (a)
(in millions)


	QUARTERLY TRENDS																					FULL YEAR
																4Q14 Change												2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13			2014			2013			2013
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking	$	10,949		$	11,367		$	11,518		$	10,534		$	11,439		(4	)	%	(4	)	%	$	44,368		$	46,537		(5	)	%
Corporate & Investment Bank	7,386			9,118			9,277			8,852			6,157			(19	)		20			34,633			34,786			—
Commercial Banking	1,770			1,703			1,731			1,678			1,876			4			(6	)		6,882			7,092			(3	)
Asset Management	3,200			3,046			2,982			2,800			3,200			5			—			12,028			11,405			5
Corporate/Private Equity	247			(75		)	(159		)	(1		)	1,440			NM			(83	)		12			(22		)	NM
TOTAL NET REVENUE	$	23,552		$	25,159		$	25,349		$	23,863		$	24,112		(6	)		(2	)		$	97,923		$	99,798		(2	)

TOTAL NONINTEREST EXPENSE
Consumer & Community Banking	$	6,411		$	6,305		$	6,456		$	6,437		$	7,321		2			(12	)		$	25,609		$	27,842		(8	)
Corporate & Investment Bank	5,576			6,035			6,058			5,604			4,892			(8	)		14			23,273			21,744			7
Commercial Banking	666			668			675			686			653			—			2			2,695			2,610			3
Asset Management	2,320			2,081			2,062			2,075			2,245			11			3			8,538			8,016			7
Corporate/Private Equity	436			709			180			(166		)	441			(39	)		(1	)		1,159			10,255			(89	)
TOTAL NONINTEREST EXPENSE	$	15,409		$	15,798		$	15,431		$	14,636		$	15,552		(2	)		(1	)		$	61,274		$	70,467		(13	)

PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking	$	4,538		$	5,062		$	5,062		$	4,097		$	4,118		(10	)		10			$	18,759		$	18,695		—
Corporate & Investment Bank	1,810			3,083			3,219			3,248			1,265			(41	)		43			11,360			13,042			(13	)
Commercial Banking	1,104			1,035			1,056			992			1,223			7			(10	)		4,187			4,482			(7	)
Asset Management	880			965			920			725			955			(9	)		(8	)		3,490			3,389			3
Corporate/Private Equity	(189		)	(784		)	(339		)	165			999			76			NM			(1,147		)	(10,277		)	89
PRE-PROVISION PROFIT	$	8,143		$	9,361		$	9,918		$	9,227		$	8,560		(13	)		(5	)		$	36,649		$	29,331		25

PROVISION FOR CREDIT LOSSES
Consumer & Community Banking	$	950		$	902		$	852		$	816		$	72		5			NM			$	3,520		$	335		NM
Corporate & Investment Bank	(59		)	(67		)	(84		)	49			(19		)	(12	)		211			(161		)	(232		)	(31	)
Commercial Banking	(48		)	(79		)	(67		)	5			43			39			NM			(189		)	85			NM
Asset Management	3			9			1			(9		)	21			(67	)		(86	)		4			65			(94	)
Corporate/Private Equity	(6		)	(8		)	(10		)	(11		)	(13		)	25			54			(35		)	(28		)	(25	)
PROVISION FOR CREDIT LOSSES	$	840		$	757		$	692		$	850		$	104		11			NM			$	3,139		$	225		NM

NET INCOME/(LOSS)
Consumer & Community Banking	$	2,179		$	2,529		$	2,496		$	1,981		$	2,448		(14	)		(11	)		$	9,185		$	11,061		(17	)
Corporate & Investment Bank	972			1,687			2,136			2,130			941			(42	)		3			6,925			8,887			(22	)
Commercial Banking	693			671			677			594			711			3			(3	)		2,635			2,648			—
Asset Management	540			590			569			454			581			(8	)		(7	)		2,153			2,083			3
Corporate/Private Equity	547			95			107			115			597			476			(8	)		864			(6,756		)	NM
TOTAL NET INCOME	$	4,931		$	5,572		$	5,985		$	5,274		$	5,278		(12	)		(7	)		$	21,762		$	17,923		21

(a)

Effective with the fourth quarter of 2014, the Firm changed the methodology it uses to allocate preferred stock dividends to the lines of business. Prior period amounts for net revenue, pre-provision profit/(loss) and net income/(loss) for each of the business segments were revised to conform with the current allocation methodology. The Firm’s Consolidated balance sheets and consolidated results of operations were not affected by this reporting change. For further discussion, see page 2.

Page 10



JPMORGAN CHASE & CO.
CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS
(in millions, except ratio data)

																	Dec 31, 2014
																	Change						FULL YEAR
	Dec 31,				Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Dec 31,										2014 Change
	2014				2014			2014			2014			2013			2014			2013			2014				2013			2013
CAPITAL (a)
Transitional Standardized Approach
CET1 capital (b)	$	164,735	(f)		$	162,800		$	160,086		$	156,874		$	148,887		1		%	11		%	$	164,735	(f)		$	148,887		11		%
Tier 1 capital	186,483		(f)(g)		184,115			179,884			173,431			165,663			1			13			186,483		(f)(g)		165,663			13
Total capital	221,415		(f)		218,754			213,780			208,430			199,286			1			11			221,415		(f)		199,286			11
Risk-weighted assets	1,473,371		(f)		1,462,240			1,458,620			1,438,354			1,387,863			1			6			1,473,371		(f)		1,387,863			6
Adjusted average assets (c)	2,465,414		(f)		2,408,498			2,374,025			2,355,690			2,343,713			2			5			2,465,414		(f)		2,343,713			5
CET1 capital ratio (b)	11.2		(f)	%	11.1		%	11.0		%	10.9		%	10.7		%							11.2		(f)	%	10.7		%
Tier 1 capital ratio	12.7		(f)		12.6			12.3			12.1			11.9									12.7		(f)		11.9
Total capital ratio	15.0		(f)		15.0			14.7			14.5			14.4									15.0		(f)		14.4
Tier 1 leverage ratio	7.6		(f)		7.6			7.6			7.4			7.1									7.6		(f)		7.1

Transitional Advanced Approach
CET1 capital	$	164,735	(f)		162,800			160,086									1		%				$	164,735	(f)
Tier 1 capital	186,483		(f)(g)		184,115			179,884									1						186,483		(f)(g)
Total capital	210,859		(f)		204,573			203,076									3						210,859		(f)
Risk-weighted assets	1,613,423		(f)		1,598,788			1,626,427									1						1,613,423		(f)
Adjusted average assets (c)	2,465,414		(f)		2,408,498			2,374,025									2						2,465,414		(f)
CET1 capital ratio	10.2		(f)	%	10.2		%	9.8		%													10.2		(f)	%
Tier 1 capital ratio	11.6		(f)		11.5			11.1															11.6		(f)
Total capital ratio	13.1		(f)		12.8			12.5															13.1		(f)
Tier 1 leverage ratio	7.6		(f)		7.6			7.6															7.6		(f)

TANGIBLE COMMON EQUITY (period-end) (d)
Common stockholders’ equity	$	212,002			$	211,214		$	208,851		$	204,572		$	200,020		—			6			$	212,002			$	200,020		6
Less: Goodwill	47,647				47,970			48,110			48,065			48,081			(1	)		(1	)		47,647				48,081			(1	)
Less: Other intangible assets	1,192				1,274			1,339			1,489			1,618			(6	)		(26	)		1,192				1,618			(26	)
Add: Deferred tax liabilities (e)	2,853				2,991			2,969			2,935			2,953			(5	)		(3	)		2,853				2,953			(3	)
Total tangible common equity	$	166,016			$	164,961		$	162,371		$	157,953		$	153,274		1			8			$	166,016			$	153,274		8

TANGIBLE COMMON EQUITY (average) (d)
Common stockholders’ equity	$	211,887			$	209,621		$	206,159		$	201,797		$	196,360		1			8			$	207,400			$	196,409		6
Less: Goodwill	47,900				48,081			48,084			48,054			48,088			—			—			48,029				48,102			—
Less: Other intangible assets	1,241				1,308			1,416			1,548			1,741			(5	)		(29	)		1,378				1,950			(29	)
Add: Deferred tax liabilities (e)	2,922				2,980			2,952			2,944			2,937			(2	)		(1	)		2,950				2,885			2
Total tangible common equity	$	165,668			$	163,212		$	159,611		$	155,139		$	149,468		2			11			$	160,943			$	149,242		8

INTANGIBLE ASSETS (period-end)
Goodwill	$	47,647			$	47,970		$	48,110		$	48,065		$	48,081		(1	)		(1	)		$	47,647			$	48,081		(1	)
Mortgage servicing rights	7,436				8,236			8,347			8,552			9,614			(10	)		(23	)		7,436				9,614			(23	)
Other intangible assets	1,192				1,274			1,339			1,489			1,618			(6	)		(26	)		1,192				1,618			(26	)
Total intangible assets	$	56,275			$	57,480		$	57,796		$	58,106		$	59,313		(2	)		(5	)		$	56,275			$	59,313		(5	)

DEPOSITS (period-end)
U.S. offices:
Noninterest-bearing	$	437,558			$	440,067		$	417,607		$	384,503		$	389,863		(1	)		12			$	437,558			$	389,863		12
Interest-bearing	643,350				619,595			623,781			625,641			626,392			4			3			643,350				626,392			3
Non-U.S. offices:
Noninterest-bearing	19,078				19,134			17,757			13,590			17,611			—			8			19,078				17,611			8
Interest-bearing	263,441				255,738			260,606			258,971			253,899			3			4			263,441				253,899			4
Total deposits	$	1,363,427			$	1,334,534		$	1,319,751		$	1,282,705		$	1,287,765		2			6			$	1,363,427			$	1,287,765		6

(a)

Basel III Transitional rules became effective on January 1, 2014; all data prior to that date is based on Basel I rules. Basel III presents two comprehensive methodologies for calculating risk-weighted assets: a Standardized approach and an Advanced approach. On February 21, 2014, the Federal Reserve informed the Firm that it had satisfactorily completed the parallel run requirements and was approved to calculate, and publicly disclose commencing with the second quarter of 2014, capital under the transitional Advanced Approach, in addition to the transitional Standardized Approach. As required by the Collins Amendment of the Wall Street Reform and Consumer Protection Act, the capital adequacy of the Firm is evaluated against the Basel III approach (Standardized or Advanced) that results, for each quarter, in the lower ratio (the “Collins Floor”). For further discussion of the implementation of Basel III, see Regulatory capital on pages 73-77 of the Firm’s third quarter 2014 Form 10-Q.


(b)	CET1 capital under Basel III replaced Tier 1 common capital under Basel I. Prior to Basel III becoming effective on January 1, 2014, Tier 1 common capital was a non-GAAP financial measure. For further discussion of Tier 1 common capital, see page 36.


(c)	Adjusted average assets, for purposes of calculating the leverage ratio, includes total quarterly average assets adjusted for unrealized gains/(losses) on securities, less deductions for disallowed goodwill and other intangible assets, investments in certain subsidiaries, and the total adjusted carrying value of nonfinancial equity investments that are subject to deductions from Tier 1 capital.


(d)	For further discussion of TCE, see page 36.


(e)	Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted against goodwill and other intangibles when calculating TCE.


(f)	Estimated.


(g)	At December 31, 2014, TruPS included in Basel III Tier 1 capital were $2.7 billion.

Page 11



JPMORGAN CHASE & CO.
EARNINGS PER SHARE AND RELATED INFORMATION
(in millions, except per share and ratio data)

	QUARTERLY TRENDS																					FULL YEAR
																4Q14 Change												2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13			2014			2013			2013
EARNINGS PER SHARE
Basic earnings per share
Net income	$	4,931		$	5,572		$	5,985		$	5,274		$	5,278		(12	)	%	(7	)	%	$	21,762		$	17,923		21		%
Less: Preferred stock dividends	326			304			268			227			190			7			72			1,125			805			40
Net income applicable to common equity	4,605			5,268			5,717			5,047			5,088			(13	)		(9	)		20,637			17,118			21
Less: Dividends and undistributed earnings allocated to
participating securities	117			133			144			149			150			(12	)		(22	)		544			525			4
Net income applicable to common stockholders	$	4,488		$	5,135		$	5,573		$	4,898		$	4,938		(13	)		(9	)		$	20,093		$	16,593		21

Total weighted-average basic shares outstanding	3,730.9			3,755.4			3,780.6			3,787.2			3,762.1			(1	)		(1	)		3,763.5			3,782.4			—
Net income per share	$	1.20		$	1.37		$	1.47		$	1.29		$	1.31		(12	)		(8	)		$	5.34		$	4.39		22

Diluted earnings per share
Net income applicable to common stockholders	$	4,488		$	5,135		$	5,573		$	4,898		$	4,938		(13	)		(9	)		$	20,093		$	16,593		21
Total weighted-average basic shares outstanding	3,730.9			3,755.4			3,780.6			3,787.2			3,762.1			(1	)		(1	)		3,763.5			3,782.4			—
Add: Employee stock options, SARs and warrants (a)	34.3			33.3			31.9			36.4			35.0			3			(2	)		34.0			32.5			5
Total weighted-average diluted shares outstanding (b)	3,765.2			3,788.7			3,812.5			3,823.6			3,797.1			(1	)		(1	)		3,797.5			3,814.9			—
Net income per share	$	1.19		$	1.36		$	1.46		$	1.28		$	1.30		(13	)		(8	)		$	5.29		$	4.35		22

COMMON DIVIDENDS
Cash dividends declared per share	$	0.40		$	0.40		$	0.40	(f)	$	0.38		$	0.38		—			5			$	1.58	(f)	$	1.44	(f)	10
Dividend payout ratio	33		%	29		%	27		%	29		%	29		%							29		%	33		%

COMMON EQUITY REPURCHASE PROGRAM (c)
Total shares of common stock repurchased	25.3			25.5			24.8			6.7			5.5			(1	)		360			82.3			96.1			(14	)
Average price paid per share of common stock	$	59.80		$	58.37		$	55.53		$	57.31		$	54.27		2			10			$	57.87		$	49.83		16
Aggregate repurchases of common equity:
Settlement-date basis	$	1,509.7		$	1,488.7		$	1,375.4		$	385.9		$	298.7		1			405			$	4,759.7		$	4,788.6		(1	)
Trade-date basis	1,499.9			1,471.6			1,462.5			399.9			289.7			2			418			4,833.9			4,788.6			1

EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans (d)	1.8			2.4			1.4			35.3			2.5			(25	)		(28	)		40.9			48.3			(15	)
Net impact of employee issuances on stockholders’ equity (e)	$	294		$	288		$	335		$	325		$	377		2			(22	)		$	1,242		$	1,192		4

(a)

Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans. The aggregate number of shares issuable upon the exercise of such options was 1 million for each of the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, and 1 million and 6 million for full year 2014 and 2013, respectively.


(b)	Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.

(c)

On March 26, 2014, the Firm announced that following the Board of Governors of the Federal Reserve System (“Federal Reserve”) release of the 2014 CCAR results, JPMorgan Chase & Co. is authorized to repurchase $6.5 billion of common equity between April 1, 2014 and March 31, 2015. Such repurchases will be done pursuant to the $15.0 billion common equity (i.e., common stock and warrants) repurchase program previously authorized by the Firm’s Board of Directors on March 13, 2012.


(d)	Shares issued from treasury stock related to employee stock-based compensation awards and employee stock purchase plans are presented on a settlement-date basis.


(e)	The net impact of employee issuances on stockholders’ equity is driven by the cost of equity compensation awards that is recognized over the applicable vesting periods. The cost is partially offset by tax impacts related to the distribution of shares and the exercise of employee stock options and stock appreciation rights (“SARs”).


(f)	On May 20, 2014, the Board of Directors increased the quarterly common stock dividend from $0.38 to $0.40 per share. On May 21, 2013, the Board increased the quarterly common stock dividend from $0.30 to $0.38 per share.

Page 12



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																					FULL YEAR
																4Q14 Change												2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13			2014			2013			2013
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	782		$	804		$	750		$	703		$	753		(3	)	%	4		%	$	3,039		$	2,983		2		%
Asset management, administration and commissions	538			534			521			503			507			1			6			2,096			2,116			(1	)
Mortgage fees and related income	854			902			1,290			514			1,087			(5	)		(21	)		3,560			5,195			(31	)
Card income	1,467			1,478			1,486			1,348			1,518			(1	)		(3	)		5,779			5,785			—
All other income	180			496			421			366			399			(64	)		(55	)		1,463			1,473			(1	)
Noninterest revenue	3,821			4,214			4,468			3,434			4,264			(9	)		(10	)		15,937			17,552			(9	)
Net interest income	7,128			7,153			7,050			7,100			7,175			—			(1	)		28,431			28,985			(2	)
TOTAL NET REVENUE	10,949			11,367			11,518			10,534			11,439			(4	)		(4	)		44,368			46,537			(5	)

Provision for credit losses	950			902			852			816			72			5			NM			3,520			335			NM

NONINTEREST EXPENSE
Compensation expense	2,535			2,627			2,637			2,739			2,765			(4	)		(8	)		10,538			11,686			(10	)
Noncompensation expense	3,876			3,678			3,819			3,698			4,556			5			(15	)		15,071			16,156			(7	)
TOTAL NONINTEREST EXPENSE	6,411			6,305			6,456			6,437			7,321			2			(12	)		25,609			27,842			(8	)

Income before income tax expense	3,588			4,160			4,210			3,281			4,046			(14	)		(11	)		15,239			18,360			(17	)
Income tax expense	1,409			1,631			1,714			1,300			1,598			(14	)		(12	)		6,054			7,299			(17	)
NET INCOME	$	2,179		$	2,529		$	2,496		$	1,981		$	2,448		(14	)		(11	)		$	9,185		$	11,061		(17	)

FINANCIAL RATIOS
ROE (a)	16		%	19		%	19		%	15		%	20		%							18		%	23		%
Overhead ratio	59			55			56			61			64									58			60

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	455,634		$	448,033		$	447,277		$	441,502		$	452,929		2			1			$	455,634		$	452,929		1
Trading assets - loans (b)	8,423			10,750			7,409			6,869			6,832			(22	)		23			8,423			6,832			23
Loans:
Loans retained	396,288			390,709			390,211			386,314			393,351			1			1			396,288			393,351			1
Loans held-for-sale	3,416			876			1,472			542			940			290			263			3,416			940			263
Total loans	399,704			391,585			391,683			386,856			394,291			2			1			399,704			394,291			1
Deposits	502,520			493,249			488,681			487,674			464,412			2			8			502,520			464,412			8
Equity (c)	51,000			51,000			51,000			51,000			46,000			—			11			51,000			46,000			11

SELECTED BALANCE SHEET DATA (average)
Total assets	$	450,260		$	447,121		$	443,204		$	450,424		$	450,987		1			—			$	447,750		$	456,468		(2	)
Trading assets - loans (b)	8,746			9,346			6,593			7,446			9,297			(6	)		(6	)		8,040			15,603			(48	)
Loans:
Loans retained	392,764			390,129			388,252			388,678			390,368			1			1			389,967			392,797			(1	)
Loans held-for-sale	1,417			876			710			656			585			62			142			917			209			339
Total loans	394,181			391,005			388,962			389,334			390,953			1			1			390,884			393,006			(1	)
Deposits	497,667			492,022			486,064			471,581			461,097			1			8			486,919			453,304			7
Equity (c)	51,000			51,000			51,000			51,000			46,000			—			11			51,000			46,000			11

Headcount	137,186			138,686			141,688			145,651			151,333			(1	)		(9	)		137,186			151,333			(9	)


(a)	The calculation of ROE is based on net income adjusted for allocated preferred stock dividends. For further information please see page 2.


(b)	Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value.


(c)	2014 includes $3.0 billion of capital held at the CCB level related to legacy mortgage servicing matters.

Page 13



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
	QUARTERLY TRENDS																					FULL YEAR
																4Q14 Change												2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13			2014			2013			2013
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs (a)	$	1,197		$	1,102		$	1,208		$	1,266		$	1,316		9		%	(9	)	%	$	4,773		$	5,826		(18	)	%
Nonaccrual loans(b)(c)	6,401			6,639			7,003			7,301			7,455			(4	)		(14	)		6,401			7,455			(14	)
Nonperforming assets (b)(c)(d)	6,872			7,138			7,555			7,932			8,109			(4	)		(15	)		6,872			8,109			(15	)
Allowance for loan losses (a)	10,404			10,993			11,284			11,686			12,201			(5	)		(15	)		10,404			12,201			(15	)

Net charge-off rate (a)	1.21		%	1.12		%	1.25		%	1.32		%	1.34		%							1.22		%	1.48		%
Net charge-off rate, excluding purchased credit-impaired
(“PCI”) loans	1.38			1.28			1.44			1.53			1.55									1.40			1.73
Allowance for loan losses to period-end loans retained	2.63			2.81			2.89			3.03			3.10									2.63			3.10
Allowance for loan losses to period-end loans retained,
excluding PCI loans (e)	2.02			2.14			2.22			2.27			2.36									2.02			2.36
Allowance for loan losses to nonaccrual loans
retained, excluding credit card (b)(e)	58			57			58			55			57									58			57
Nonaccrual loans to total period-end loans, excluding
credit card (d)	2.38			2.51			2.64			2.75			2.80									2.38			2.80
Nonaccrual loans to total period-end loans, excluding
credit card and PCI loans (b)(d)	2.88			3.07			3.25			3.42			3.49									2.88			3.49

BUSINESS METRICS
Number of:
Branches	5,602			5,613			5,636			5,632			5,630			—			—			5,602			5,630			—
ATMs (f)	18,056			20,513			20,394			20,370			20,290			(12	)		(11	)		18,056			20,290			(11	)
Active online customers (in thousands)	36,396			35,957			35,105			35,038			33,742			1			8			36,396			33,742			8
Active mobile customers (in thousands)	19,084			18,351			17,201			16,405			15,629			4			22			19,084			15,629			22

Note: CCB provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, see page 36.

(a)

Net charge-offs and the net charge-off rates for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013 excluded $46 million, $87 million, $48 million, $61 million and $53 million, respectively, and $242 million and $53 million for full year 2014 and 2013, respectively, of write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans. During the fourth quarter of 2014, the Firm recorded a $291 million adjustment to reduce the PCI allowance. For further information, see summary of changes in the allowances on page 34.


(b)	Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.

(c)


(d)	Prior periods were revised to conform with the current presentation.


(e)	The allowance for loan losses for PCI loans was $3.3 billion at December 31, 2014, $3.7 billion at both September 30, 2014 and June 30, 2014, $4.1 billion at March 31, 2014 and $4.2 billion at December 31, 2013; these amounts were also excluded from the applicable ratios.


(f)	Includes eATMs, formerly Express Banking Kiosks (“EBK”). Effective January 1, 2014, prior periods were revised to conform with the current presentation.

Page 14



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
	QUARTERLY TRENDS																					FULL YEAR
																4Q14 Change												2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13			2014			2013			2013
CONSUMER & BUSINESS BANKING

INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	776		$	796		$	747		$	691		$	744		(3	)	%	4		%	$	3,010		$	2,942		2		%
Asset management, administration and commissions	513			522			507			483			470			(2	)		9			2,025			1,815			12
Card income	414			409			406			376			384			1			8			1,605			1,495			7
All other income	123			127			162			122			122			(3	)		1			534			492			9
Noninterest revenue	1,826			1,854			1,822			1,672			1,720			(2	)		6			7,174			6,744			6
Net interest income	2,733			2,807			2,786			2,726			2,723			(3	)		—			11,052			10,668			4
Total net revenue	4,559			4,661			4,608			4,398			4,443			(2	)		3			18,226			17,412			5
Provision for credit losses	88			75			66			76			108			17			(19	)		305			347			(12	)
Noninterest expense	3,026			3,032			3,026			3,065			3,029			—			—			12,149			12,162			—
Income before income tax expense	1,445			1,554			1,516			1,257			1,306			(7	)		11			5,772			4,903			18
Net income	$	861		$	927		$	904		$	751		$	796		(7	)		8			$	3,443		$	2,943		17

ROE (a)	31		%	33		%	33		%	27		%	28		%							31		%	26		%
Overhead ratio	66			65			66			70			68									67			70
Equity (period-end and average)	$	11,000		$	11,000		$	11,000		$	11,000		$	11,000		—			—			$	11,000		$	11,000		—

BUSINESS METRICS
Business banking origination volume	$	1,529		$	1,649		$	1,917		$	1,504		$	1,298		(7	)		18			$	6,599		$	5,148		28
Period-end loans	21,200			20,644			20,276			19,589			19,416			3			9			21,200			19,416			9
Period-end deposits:
Checking	213,049			203,839			200,560			199,717			187,182			5			14			213,049			187,182			14
Savings	255,148			251,661			249,175			250,292			238,223			1			7			255,148			238,223			7
Time and other	21,349			23,304			24,421			25,092			26,022			(8	)		(18	)		21,349			26,022			(18	)
Total period-end deposits	489,546			478,804			474,156			475,101			451,427			2			8			489,546			451,427			8
Average loans	20,830			20,382			19,928			19,450			19,021			2			10			20,152			18,844			7
Average deposits:
Checking	207,312			201,473			197,490			189,487			182,272			3			14			198,996			176,005			13
Savings	253,412			250,845			249,240			243,500			236,343			1			7			249,281			229,341			9
Time and other	22,113			23,845			24,832			25,478			27,354			(7	)		(19	)		24,057			29,227			(18	)
Total average deposits	482,837			476,163			471,562			458,465			445,969			1			8			472,334			434,573			9
Deposit margin	2.11		%	2.20		%	2.23		%	2.27		%	2.29		%							2.21		%	2.32		%
Average assets	$	39,163		$	38,089		$	37,810		$	38,121		$	37,818		3			4			$	38,298		$	37,174		3

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	85		$	75		$	69		$	76		$	102		13			(17	)		$	305		$	337		(9	)
Net charge-off rate	1.62		%	1.46		%	1.39		%	1.58		%	2.13		%							1.51		%	1.79		%
Allowance for loan losses	$	703		$	703		$	703		$	707		$	707		—			(1	)		$	703		$	707		(1	)
Nonperforming assets	286			304			335			365			391			(6	)		(27	)		286			391			(27	)

RETAIL BRANCH BUSINESS METRICS
Net new investment assets	$	3,254		$	4,269		$	4,324		$	4,241		$	3,606		(24	)		(10	)		$	16,088		$	16,006		1
Client investment assets	213,459			207,790			205,206			195,706			188,840			3			13			213,459			188,840			13
% managed accounts	39		%	39		%	38		%	37		%	36		%							39		%	36		%
Number of:
Chase Private Client locations	2,514			2,461			2,408			2,244			2,149			2			17			2,514			2,149			17
Personal bankers	21,039			20,965			21,728			22,654			23,588			—			(11	)		21,039			23,588			(11	)
Sales specialists	3,994			4,155			4,405			4,817			5,740			(4	)		(30	)		3,994			5,740			(30	)
Client advisors	3,090			3,099			3,075			3,062			3,044			—			2			3,090			3,044			2
Chase Private Clients	325,653			290,662			262,965			239,665			215,888			12			51			325,653			215,888			51
Accounts (in thousands) (b)	30,481			30,424			30,144			29,819			29,437			—			4			30,481			29,437			4


(a)	The calculation of ROE is based on net income adjusted for allocated preferred stock dividends. For further information please see page 2.


(b)	Includes checking accounts and Chase Liquid® cards.

Page 15



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
	QUARTERLY TRENDS																										FULL YEAR
																					4Q14 Change														2014 Change
	4Q14				3Q14				2Q14				1Q14				4Q13				3Q14			4Q13			2014				2013				2013
MORTGAGE BANKING

INCOME STATEMENT
REVENUE
Mortgage fees and related income	$	854			$	902			$	1,290			$	514			$	1,087			(5	)	%	(21	)	%	$	3,560			$	5,195			(31	)	%
All other income	(9		)		66				(17		)		(3		)		51				NM			NM			37				283				(87	)
Noninterest revenue	845				968				1,273				511				1,138				(13	)		(26	)		3,597				5,478				(34	)
Net interest income	1,030				1,059				1,053				1,087				1,142				(3	)		(10	)		4,229				4,758				(11	)
Total net revenue	1,875				2,027				2,326				1,598				2,280				(7	)		(18	)		7,826				10,236				(24	)
Provision for credit losses	13				(19		)		(188		)		(23		)		(782		)		NM			NM			(217		)		(2,681		)		92
Noninterest expense	1,296				1,279				1,306				1,403				2,062				1			(37	)		5,284				7,602				(30	)
Income before income tax expense	566				767				1,208				218				1,000				(26	)		(43	)		2,759				5,315				(48	)
Net income	$	338			$	465			$	733			$	132			$	593			(27	)		(43	)		$	1,668			$	3,211			(48	)

ROE (a)	7			%	10			%	16			%	3			%	11			%							9			%	16			%
Overhead ratio	69				63				56				88				90										68				74
Equity (period-end and average)	$	18,000			$	18,000			$	18,000			$	18,000			$	19,500			—			(8	)		$	18,000			$	19,500			(8	)

FUNCTIONAL RESULTS
Mortgage Production
Production revenue & other income (b)	$	332			$	275			$	251			$	202			$	383			21			(13	)		$	1,060			$	2,973			(64	)
Production-related net interest income (b)	115				123				91				93				117				(7	)		(2	)		422				635				(34	)
Production-related revenue, excluding repurchase
(losses)/benefits	447				398				342				295				500				12			(11	)		1,482				3,608				(59	)
Production expense (c)	374				381				413				478				989				(2	)		(62	)		1,646				3,088				(47	)
Income, excluding repurchase (losses)/benefits	73				17				(71		)		(183		)		(489		)		329			NM			(164		)		520				NM
Repurchase (losses)/benefits	131				62				137				128				221				111			(41	)		458				331				38
Income/(loss) before income tax expense/(benefit)	204				79				66				(55		)		(268		)		158			NM			294				851				(65	)

Mortgage Servicing
Loan servicing revenue & other income (b)	$	776			$	783			$	864			$	871			$	870			(1	)		(11	)		$	3,294			$	3,744			(12	)
Servicing-related net interest income (b)	57				81				79				97				95				(30	)		(40	)		314				253				24
Servicing-related revenue	833				864				943				968				965				(4	)		(14	)		3,608				3,997				(10	)
Changes in MSR asset fair value due to collection/realization
of expected cash flows	(209		)		(214		)		(237		)		(245		)		(267		)		2			22			(905		)		(1,094		)		17
Net servicing-related revenue	624				650				706				723				698				(4	)		(11	)		2,703				2,903				(7	)
Default servicing expense	353				349				340				364				474				1			(26	)		1,406				2,069				(32	)
Core servicing expense (c)	207				228				212				218				189				(9	)		10			865				904				(4	)
Servicing expense	560				577				552				582				663				(3	)		(16	)		2,271				2,973				(24	)
Income/(loss), excluding MSR risk management	64				73				154				141				35				(12	)		83			432				(70		)		NM
MSR risk management, including related net interest
income/(expense)	(41		)		76				338				(401		)		(24		)		NM			(71	)		(28		)		(268		)		90
Income/(loss) before income tax expense/(benefit)	23				149				492				(260		)		11				(85	)		109			404				(338		)		NM

Real Estate Portfolios
Noninterest revenue	$	(144	)		$	(14	)		$	(79	)		$	(45	)		$	(45	)		NM			(220	)		$	(282	)		$	(209	)		(35	)
Net interest income	858				855				882				898				930				-			(8	)		3,493				3,871				(10	)
Total net revenue	714				841				803				853				885				(15	)		(19	)		3,211				3,662				(12	)
Provision for credit losses	11				(19		)		(189		)		(26		)		(783		)		NM			NM			(223		)		(2,693		)		92
Noninterest expense	364				321				342				346				411				13			(11	)		1,373				1,553				(12	)
Income before income tax expense	339				539				650				533				1,257				(37	)		(73	)		2,061				4,802				(57	)
Mortgage Banking income before income tax
expense	$	566			$	767			$	1,208			$	218			$	1,000			(26	)		(43	)		$	2,759			$	5,315			(48	)
Mortgage Banking net income	$	338			$	465			$	733			$	132			$	593			(27	)		(43	)		$	1,668			$	3,211			(48	)

Overhead ratios
Mortgage Production	65			%	83			%	86			%	113			%	137			%							85			%	78			%
Mortgage Servicing	96				79				53				180				98										85				113
Real Estate Portfolios	51				38				43				41				46										43				42


(a)	The calculation of ROE is based on net income adjusted for allocated preferred stock dividends. For further information please see page 2.


(b)	Effective April 1, 2014, prior period amounts were revised to conform with the current presentation.


(c)	Includes provision for credit losses.

Page 16



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)	QUARTERLY TRENDS																										FULL YEAR
																					4Q14 Change														2014 Change
MORTGAGE BANKING (continued)	4Q14				3Q14				2Q14				1Q14				4Q13				3Q14			4Q13			2014				2013				2013
SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS
Net production revenue:
Production revenue	$	194			$	191			$	186			$	161			$	303			2		%	(36	)	%	$	732			$	2,673			(73	)	%
Repurchase (losses)/benefits	131				62				137				128				221				111			(41	)		458				331				38
Net production revenue	325				253				323				289				524				28			(38	)		1,190				3,004				(60	)
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue	779				787				867				870				854				(1	)		(9	)		3,303				3,552				(7	)
Changes in MSR asset fair value due to collection/
realization of expected cash flows	(209		)		(214		)		(237		)		(245		)		(267		)		2			22			(905		)		(1,094		)		17
Total operating revenue	570				573				630				625				587				(1	)		(3	)		2,398				2,458				(2	)
Risk management:
Changes in MSR asset fair value due to market interest
rates and other (a)	(775		)		(101		)		(368		)		(362		)		421				NM			NM			(1,606		)		2,119				NM
Other changes in MSR asset fair value due to other inputs
and assumptions in model (b)	(22		)		44				220				(460		)		(65		)		NM			66			(218		)		(511		)		57
Changes in derivative fair value and other	756				133				485				422				(380		)		468			NM			1,796				(1,875		)		NM
Total risk management	(41		)		76				337				(400		)		(24		)		NM			(71	)		(28		)		(267		)		90
Total net mortgage servicing revenue	529				649				967				225				563				(18	)		(6	)		2,370				2,191				8
Mortgage fees and related income	$	854			$	902			$	1,290			$	514			$	1,087			(5	)		(21	)		$	3,560			$	5,195			(31	)

MORTGAGE PRODUCTION AND MORTGAGE SERVICING
SELECTED BALANCE SHEET DATA (period-end)
Trading assets - loans (c)	$	8,423			$	10,750			$	7,409			$	6,869			$	6,832			(22	)		23			$	8,423			$	6,832			23
Loans:
Prime mortgage, including option ARMs (d)	13,557				14,625				14,964				15,290				15,136				(7	)		(10	)		13,557				15,136				(10	)
Loans held-for-sale	314				370				822				238				614				(15	)		(49	)		314				614				(49	)
SELECTED BALANCE SHEET DATA (average)
Trading assets - loans (c)	8,746				9,346				6,593				7,446				9,297				(6	)		(6	)		8,040				15,603				(48	)
Loans:
Prime mortgage, including option ARMs (d)	13,939				15,166				15,489				15,391				15,641				(8	)		(11	)		14,993				16,495				(9	)
Loans held-for-sale	407				525				301				341				274				(22	)		49			394				114				246
Average assets	40,145				42,750				41,101				45,890				49,742				(6	)		(19	)		42,456				57,131				(26	)
Repurchase liability (period-end)	249				362				406				534				651				(31	)		(62	)		249				651				(62	)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs:
Prime mortgage, including option ARMs	$	2			$	—			$	1			$	3			$	1			NM			100			$	6			$	12			(50	)
Net charge-off rate:
Prime mortgage, including option ARMs	0.06			%	—			%	0.03			%	0.08			%	0.03			%							0.04			%	0.07			%
30+ day delinquency rate (e)	2.06				2.06				2.16				2.34				2.75										2.06				2.75
Nonperforming assets (f)(g)	$	389			$	424			$	474			$	500			$	519			(8	)		(25	)		$	389			$	519			(25	)
BUSINESS METRICS (in billions)
Mortgage origination volume by channel
Retail	$	7.7			$	7.9			$	7.2			$	6.7			$	9.8			(3	)		(21	)		$	29.5			$	77.0			(62	)
Correspondent (h)	15.3				13.3				9.6				10.3				13.5				15			13			48.5				88.5				(45	)
Total mortgage origination volume (i)	$	23.0			$	21.2			$	16.8			$	17.0			$	23.3			8			(1	)		$	78.0			$	165.5			(53	)
Mortgage application volume by channel
Retail	$	12.5			$	12.8			$	15.7			$	14.6			$	15.8			(2	)		(21	)		$	55.6			$	108.0			(49	)
Correspondent (h)	20.2				17.1				14.4				11.5				15.5				18			30			63.2				89.2				(29	)
Total mortgage application volume	$	32.7			$	29.9			$	30.1			$	26.1			$	31.3			9			4			$	118.8			$	197.2			(40	)


(a)	Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.


(b)	Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices).


(c)	Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value.


(d)	Predominantly represents prime mortgage loans repurchased from Government National Mortgage Association (“Ginnie Mae”) pools, which are insured by U.S. government agencies.


(e)	At December 31, 2014, September 30, 2014, June 30, 2014, and December 31, 2013, excluded mortgage loans insured by U.S. government agencies of $9.7 billion, $9.6 billion, $9.6 billion, $8.8 billion and $9.6 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.

(f)


(g)	Prior periods were revised to conform with the current presentation.


(h)	Includes rural housing loans sourced through correspondents, and prior to November 2013, through both brokers and correspondents, which are underwritten and closed with pre-funding loan approval from the U.S. Department of Agriculture Rural Development, which acts as the guarantor in the transaction.


(i)	Firmwide mortgage origination volume was $24.4 billion, $22.7 billion, $18.0 billion, $18.2 billion and $25.1 billion for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively and $83.3 billion and $176.4 billion for the full year 2014 and 2013, respectively.

Page 17



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
	QUARTERLY TRENDS																										FULL YEAR
																					4Q14 Change														2014 Change
MORTGAGE BANKING (continued)	4Q14				3Q14				2Q14				1Q14				4Q13				3Q14			4Q13			2014				2013				2013

MORTGAGE PRODUCTION AND MORTGAGE SERVICING
(continued)
BUSINESS METRICS (in billions)(continued)
Third-party mortgage loans serviced (period-end)	$	751.5			$	766.3			$	786.2			$	803.1			$	815.5			(2	)	%	(8	)	%	$	751.5			$	815.5			(8	)	%
Third-party mortgage loans serviced (average)	758.9				776.3				794.7				809.3				823.3				(2	)		(8	)		784.6				837.3				(6	)
MSR carrying value (period-end)	7.4				8.2				8.3				8.5				9.6				(10	)		(23	)		7.4				9.6				(23	)
Ratio of MSR carrying value (period-end) to third-party mortgage
loans serviced (period-end)	0.98			%	1.07			%	1.06			%	1.06			%	1.18			%							0.98			%	1.18			%
Ratio of annualized loan servicing-related revenue to third-party
mortgage loans serviced (average)	0.35				0.35				0.36				0.37				0.38										0.36				0.40
MSR revenue multiple (a)	2.80		x		3.06		x		2.94		x		2.86		x		3.11		x								2.72		x		2.95		x

REAL ESTATE PORTFOLIOS
BUSINESS METRICS
Loans, excluding PCI loans
Period-end loans owned:
Home equity	$	50,899			$	52,679			$	54,485			$	56,131			$	57,863			(3	)		(12	)		$	50,899			$	57,863			(12	)
Prime mortgage, including option ARMs	66,543				59,343				54,709				51,520				49,463				12			35			66,543				49,463				35
Subprime mortgage	5,083				5,547				6,636				6,869				7,104				(8	)		(28	)		5,083				7,104				(28	)
Other	477				492				510				529				551				(3	)		(13	)		477				551				(13	)
Total period-end loans owned	$	123,002			$	118,061			$	116,340			$	115,049			$	114,981			4			7			$	123,002			$	114,981			7
Average loans owned:
Home equity	$	51,803			$	53,560			$	55,329			$	57,015			$	58,838			(3	)		(12	)		$	54,410			$	62,369			(13	)
Prime mortgage, including option ARMs	63,317				57,083				53,132				50,735				48,875				11			30			56,104				44,988				25
Subprime mortgage	5,365				5,922				6,754				7,007				7,248				(9	)		(26	)		6,257				7,687				(19	)
Other	484				502				520				540				560				(4	)		(14	)		511				588				(13	)
Total average loans owned	$	120,969			$	117,067			$	115,735			$	115,297			$	115,521			3			5			$	117,282			$	115,632			1

PCI loans
Period-end loans owned:
Home equity	$	17,095			$	17,572			$	18,070			$	18,525			$	18,927			(3	)		(10	)		$	17,095			$	18,927			(10	)
Prime mortgage	10,220				10,887				11,302				11,658				12,038				(6	)		(15	)		10,220				12,038				(15	)
Subprime mortgage	3,673				3,790				3,947				4,062				4,175				(3	)		(12	)		3,673				4,175				(12	)
Option ARMs	15,708				16,238				16,799				17,361				17,915				(3	)		(12	)		15,708				17,915				(12	)
Total period-end loans owned	$	46,696			$	48,487			$	50,118			$	51,606			$	53,055			(4	)		(12	)		$	46,696			$	53,055			(12	)
Average loans owned:
Home equity	$	17,319			$	17,806			$	18,295			$	18,719			$	19,152			(3	)		(10	)		$	18,030			$	19,950			(10	)
Prime mortgage	10,584				11,103				11,487				11,870				12,273				(5	)		(14	)		11,257				12,909				(13	)
Subprime mortgage	3,717				3,843				4,001				4,128				4,234				(3	)		(12	)		3,921				4,416				(11	)
Option ARMs	15,934				16,503				17,074				17,687				18,234				(3	)		(13	)		16,794				19,236				(13	)
Total average loans owned	$	47,554			$	49,255			$	50,857			$	52,404			$	53,893			(3	)		(12	)		$	50,002			$	56,511			(12	)

Total Real Estate Portfolios
Period-end loans owned:
Home equity	$	67,994			$	70,251			$	72,555			$	74,656			$	76,790			(3	)		(11	)		$	67,994			$	76,790			(11	)
Prime mortgage, including option ARMs	92,471				86,468				82,810				80,539				79,416				7			16			92,471				79,416				16
Subprime mortgage	8,756				9,337				10,583				10,931				11,279				(6	)		(22	)		8,756				11,279				(22	)
Other	477				492				510				529				551				(3	)		(13	)		477				551				(13	)
Total period-end loans owned	$	169,698			$	166,548			$	166,458			$	166,655			$	168,036			2			1			$	169,698			$	168,036			1
Average loans owned:
Home equity	$	69,122			$	71,366			$	73,624			$	75,734			$	77,990			(3	)		(11	)		$	72,440			$	82,319			(12	)
Prime mortgage, including option ARMs	89,835				84,689				81,693				80,292				79,382				6			13			84,155				77,133				9
Subprime mortgage	9,082				9,765				10,755				11,135				11,482				(7	)		(21	)		10,178				12,103				(16	)
Other	484				502				520				540				560				(4	)		(14	)		511				588				(13	)
Total average loans owned	$	168,523			$	166,322			$	166,592			$	167,701			$	169,414			1			(1	)		$	167,284			$	172,143			(3	)
Average assets	165,871				163,449				163,583				164,642				162,674				1			2			164,387				163,898				—
Home equity origination volume	856				789				802				655				643				8			33			3,102				2,124				46


(a)	Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average).

Page 18



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)


	QUARTERLY TRENDS																										FULL YEAR
																					4Q14 Change													2014 Change
MORTGAGE BANKING (continued)	4Q14				3Q14				2Q14				1Q14				4Q13				3Q14			4Q13			2014				2013			2013

REAL ESTATE PORTFOLIOS (continued)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries), excluding PCI loans (a)
Home equity	$	87			$	95			$	125			$	166			$	179			(8	)	%	(51	)	%	$	473			$	966		(51	)	%
Prime mortgage, including option ARMs	32				9				(12		)		(7		)		(8		)		256			NM			22				41			(46	)
Subprime mortgage	(10		)		(25		)		(5		)		13				(6		)		60			(67	)		(27		)		90			NM
Other	2				2				3				2				2				—			—			9				10			(10	)
Total net charge-offs/(recoveries), excluding PCI loans	$	111			$	81			$	111			$	174			$	167			37			(34	)		$	477			$	1,107		(57	)
Net charge-off/(recovery) rate, excluding PCI loans
Home equity	0.67			%	0.70			%	0.91			%	1.18			%	1.21			%							0.87			%	1.55		%
Prime mortgage, including option ARMs	0.20				0.06				(0.09		)		(0.06		)		(0.06		)								0.04				0.09
Subprime mortgage	(0.74		)		(1.68		)		(0.30		)		0.75				(0.33		)								(0.43		)		1.17
Other	1.64				1.58				2.31				1.50				1.42										1.76				1.70
Total net charge-off/(recovery) rate, excluding PCI loans	0.36				0.27				0.38				0.61				0.57										0.41				0.96
Net charge-off/(recovery) rate - reported (a)
Home equity	0.50			%	0.53			%	0.68			%	0.89			%	0.91			%							0.65			%	1.17		%
Prime mortgage, including option ARMs	0.14				0.04				(0.06		)		(0.04		)		(0.04		)								0.03				0.05
Subprime mortgage	(0.44		)		(1.02		)		(0.19		)		0.47				(0.21		)								(0.27		)		0.74
Other	1.64				1.58				2.31				1.50				1.42										1.76				1.70
Total net charge-off/(recovery) rate - reported	0.26				0.19				0.27				0.42				0.39										0.29				0.64

30+ day delinquency rate, excluding PCI loans (b)	2.67			%	2.85			%	3.04			%	3.33			%	3.66			%							2.67			%	3.66		%
Allowance for loan losses, excluding PCI loans	$	2,168			$	2,268			$	2,368			$	2,368			$	2,568			(4	)		(16	)		$	2,168			$	2,568		(16	)
Allowance for PCI loans (a)	3,325				3,662				3,749				4,097				4,158				(9	)		(20	)		3,325				4,158			(20	)
Allowance for loan losses	$	5,493			$	5,930			$	6,117			$	6,465			$	6,726			(7	)		(18	)		$	5,493			$	6,726		(18	)
Nonperforming assets (c)	5,786				6,031				6,445				6,796				6,919				(4	)		(16	)		5,786				6,919			(16	)
Allowance for loan losses to period-end loans retained	3.24			%	3.56			%	3.68			%	3.88			%	4.00			%							3.24			%	4.00		%
Allowance for loan losses to period-end loans retained,
excluding PCI loans	1.76				1.92				2.04				2.06				2.23										1.76				2.23

(a)


(b)	The 30+ day delinquency rate for PCI loans was 13.33%, 13.69%, 14.08%, 14.34% and 15.31%, at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively.


(c)	Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.

Page 19



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
	QUARTERLY TRENDS																					FULL YEAR
																4Q14 Change												2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13			2014			2013			2013
CARD, MERCHANT SERVICES & AUTO

INCOME STATEMENT
REVENUE
Card income	$	1,053		$	1,068		$	1,080		$	972		$	1,134		(1	)	%	(7	)	%	$	4,173		$	4,289		(3	)	%
All other income	97			324			293			279			272			(70	)		(64	)		993			1,041			(5	)
Noninterest revenue	1,150			1,392			1,373			1,251			1,406			(17	)		(18	)		5,166			5,330			(3	)
Net interest income	3,365			3,287			3,211			3,287			3,310			2			2			13,150			13,559			(3	)
Total net revenue	4,515			4,679			4,584			4,538			4,716			(4	)		(4	)		18,316			18,889			(3	)
Provision for credit losses	849			846			974			763			746			—			14			3,432			2,669			29
Noninterest expense(a)	2,089			1,994			2,124			1,969			2,230			5			(6	)		8,176			8,078			1
Income before income tax expense	1,577			1,839			1,486			1,806			1,740			(14	)		(9	)		6,708			8,142			(18	)
Net income	$	980		$	1,137		$	859		$	1,098		$	1,059		(14	)		(7	)		$	4,074		$	4,907		(17	)

ROE (b)	20		%	23		%	18		%	23		%	26		%							21		%	31		%
Overhead ratio	46			43			46			43			47									45			43
Equity (period-end and average)	$	19,000		$	19,000		$	19,000		$	19,000		$	15,500		—			23			$	19,000		$	15,500		23

SELECTED BALANCE SHEET DATA (period-end)
Loans:
Credit Card	$	131,048		$	126,959		$	126,129		$	121,816		$	127,791		3			3			$	131,048		$	127,791		3
Auto	54,536			52,778			53,042			52,952			52,757			3			3			54,536			52,757			3
Student	9,351			9,661			9,992			10,316			10,541			(3	)		(11	)		9,351			10,541			(11	)
Total loans	$	194,935		$	189,398		$	189,163		$	185,084		$	191,089		3			2			$	194,935		$	191,089		2

SELECTED BALANCE SHEET DATA (average)
Total assets	$	205,081		$	202,833		$	200,710		$	201,771		$	200,753		1			2			$	202,609		$	198,265		2
Loans:
Credit Card	127,351			126,107			123,679			123,261			124,111			1			3			125,113			123,613			1
Auto	53,612			52,666			52,818			52,741			51,824			2			3			52,961			50,748			4
Student	9,519			9,837			10,155			10,449			10,668			(3	)		(11	)		9,987			11,049			(10	)
Total loans	$	190,482		$	188,610		$	186,652		$	186,451		$	186,603		1			2			$	188,061		$	185,410		1

BUSINESS METRICS
Credit Card, excluding Commercial Card
Sales volume (in billions)	$	123.6		$	119.5		$	118.0		$	104.5		$	112.6		3			10			$	465.6		$	419.5		11
New accounts opened	2.4			2.2			2.1			2.1			2.4			9			—			8.8			7.3			21
Open accounts	64.6			65.5			65.8			65.5			65.3			(1	)		(1	)		64.6			65.3			(1	)
Accounts with sales activity	34.0			32.1			31.8			31.0			32.3			6			5			34.0			32.3			5
% of accounts acquired online	62		%	56		%	54		%	51		%	59		%							56		%	55		%

Merchant Services (Chase Paymentech Solutions)
Merchant processing volume (in billions)	$	230.2		$	213.3		$	209.0		$	195.4		$	203.4		8			13			$	847.9		$	750.1		13
Total transactions (in billions)	10.3			9.4			9.3			9.1			9.6			10			7			38.1			35.6			7

Auto
Origination volume (in billions)	$	6.9		$	6.8		$	7.1		$	6.7		$	6.4		1			8			$	27.5		$	26.1		5


(a)	Included operating lease depreciation expense of $303 million, $293 million, $284 million, $274 million and $257 million for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, and $1.2 billion and $972 million for full year 2014 and 2013, respectively.


(b)	The calculation of ROE is based on net income adjusted for allocated preferred stock dividends. For further information please see page 2.

Page 20



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)


	QUARTERLY TRENDS																					FULL YEAR
																4Q14 Change												2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13			2014			2013			2013
CARD, MERCHANT SERVICES & AUTO (continued)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs:
Credit Card	$	858		$	798		$	885		$	888		$	891		8		%	(4	)	%	$	3,429		$	3,879		(12	)	%
Auto	61			50			29			41			51			22			20			181			158			15
Student	80			98			113			84			104			(18	)		(23	)		375			333			13
Total net charge-offs	999			946			1,027			1,013			1,046			6			(4	)		3,985			4,370			(9	)
Net charge-off rate:
Credit Card (a)	2.69		%	2.52		%	2.88		%	2.93		%	2.86		%							2.75		%	3.14		%
Auto	0.45			0.38			0.22			0.32			0.39									0.34			0.31
Student	3.33			3.95			4.46			3.26			3.87									3.75			3.01
Total net charge-off rate	2.09			1.99			2.21			2.21			2.23									2.12			2.36

Delinquency rates
30+ day delinquency rate:
Credit Card (b)	1.44			1.43			1.41			1.61			1.67									1.44			1.67
Auto	1.23			0.97			0.93			0.92			1.15									1.23			1.15
Student (c)	2.35			2.43			2.67			2.75			2.56									2.35			2.56
Total 30+ day delinquency rate	1.42			1.35			1.34			1.47			1.58									1.42			1.58
90+ day delinquency rate - Credit Card (b)	0.70			0.67			0.69			0.80			0.80									0.70			0.80

Nonperforming assets (d)	$	411		$	379		$	301		$	271		$	280		8			47			$	411		$	280		47
Allowance for loan losses:
Credit Card	3,439			3,590			3,594			3,591			3,795			(4	)		(9	)		3,439			3,795			(9	)
Auto & Student	749			750			850			903			953			—			(21	)		749			953			(21	)
Total allowance for loan losses	4,188			4,340			4,444			4,494			4,748			(4	)		(12	)		4,188			4,748			(12	)
Allowance for loan losses to period-end loans:
Credit Card (b)	2.69		%	2.84		%	2.86		%	2.96		%	2.98		%							2.69		%	2.98		%
Auto & Student	1.17			1.20			1.35			1.43			1.51									1.17			1.51
Total allowance for loan losses to period-end loans	2.18			2.30			2.36			2.43			2.49									2.18			2.49

CARD SERVICES SUPPLEMENTAL INFORMATION
Noninterest revenue	$	736		$	991		$	982		$	884		$	1,051		(26	)		(30	)		$	3,593		$	3,977		(10	)
Net interest income	2,947			2,876			2,789			2,850			2,851			2			3			11,462			11,638			(2	)
Total net revenue	3,683			3,867			3,771			3,734			3,902			(5	)		(6	)		15,055			15,615			(4	)
Provision for credit losses	708			798			885			688			591			(11	)		20			3,079			2,179			41
Noninterest expense	1,568			1,494			1,625			1,465			1,749			5			(10	)		6,152			6,245			(1	)
Income before income tax expense	1,407			1,575			1,261			1,581			1,562			(11	)		(10	)		5,824			7,191			(19	)
Net income	$	879		$	979		$	724		$	965		$	953		(10	)		(8	)		$	3,547		$	4,340		(18	)

Percentage of average loans:
Noninterest revenue	2.29		%	3.12		%	3.18		%	2.91		%	3.36		%							2.87		%	3.22		%
Net interest income	9.18			9.05			9.04			9.38			9.11									9.16			9.41
Total net revenue	11.47			12.17			12.23			12.29			12.47									12.03			12.63


(a)	Average credit card loans included loans held-for-sale of $976 million, $335 million, $405 million, $315 million and $311 million for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, and $509 million and $95 million for full year 2014 and 2013, respectively. These amounts are excluded when calculating the net charge-off rate.


(b)	Period-end credit card loans included loans held-for-sale of $3.0 billion, $395 million, $508 million, $304 million and $326 million at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013, respectively. These amounts are excluded when calculating delinquency rates and the allowance for loan losses to period-end loans.


(c)	Excluded student loans insured by U.S. government agencies under the FFELP of $654 million, $640 million, $630 million, $687 million and $737 million at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.

(d)

Nonperforming assets excluded student loans insured by U.S. government agencies under the FFELP of $367 million, $354 million, $316 million, $387 million and $428 million at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, that are 90 or more days past due. These amounts have been excluded from nonaccrual loans based upon the government guarantee.

Page 21



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
	QUARTERLY TRENDS																										FULL YEAR
																					4Q14 Change														2014 Change
	4Q14				3Q14				2Q14				1Q14				4Q13				3Q14			4Q13			2014				2013				2013
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,811			$	1,542			$	1,773			$	1,444			$	1,671			17		%	8		%	$	6,570			$	6,331			4		%
Principal transactions (a)	712				2,567				2,782				2,886				(162		)		(72	)		NM			8,947				9,289				(4	)
Lending- and deposit-related fees	425				424				449				444				454				—			(6	)		1,742				1,884				(8	)
Asset management, administration and commissions	1,181				1,141				1,186				1,179				1,129				4			5			4,687				4,713				(1	)
All other income	420				468				341				283				487				(10	)		(14	)		1,512				1,593				(5	)
Noninterest revenue	4,549				6,142				6,531				6,236				3,579				(26	)		27			23,458				23,810				(1	)
Net interest income	2,837				2,976				2,746				2,616				2,578				(5	)		10			11,175				10,976				2
TOTAL NET REVENUE (b)	7,386				9,118				9,277				8,852				6,157				(19	)		20			34,633				34,786				—

Provision for credit losses	(59		)		(67		)		(84		)		49				(19		)		(12	)		211			(161		)		(232		)		(31	)

NONINTEREST EXPENSE
Compensation expense	2,017				2,805				2,757				2,870				2,141				(28	)		(6	)		10,449				10,835				(4	)
Noncompensation expense	3,559				3,230				3,301				2,734				2,751				10			29			12,824				10,909				18
TOTAL NONINTEREST EXPENSE	5,576				6,035				6,058				5,604				4,892				(8	)		14			23,273				21,744				7

Income before income tax expense	1,869				3,150				3,303				3,199				1,284				(41	)		46			11,521				13,274				(13	)
Income tax expense	897				1,463				1,167				1,069				343				(39	)		162			4,596				4,387				5
NET INCOME	$	972			$	1,687			$	2,136			$	2,130			$	941			(42	)		3			$	6,925			$	8,887			(22	)

FINANCIAL RATIOS
ROE (c)(d)	5			%	10			%	13			%	13			%	6			%							10			%	15			%
Overhead ratio (e)	75				66				65				63				79										67				63
Compensation expense as a percent of total net revenue (f)	27				31				30				32				35										30				31

REVENUE BY BUSINESS
Advisory	$	434			$	413			$	397			$	383			$	434			5			—			$	1,627			$	1,315			24
Equity underwriting	327				414				477				353				436				(21	)		(25	)		1,571				1,499				5
Debt underwriting	1,050				715				899				708				801				47			31			3,372				3,517				(4	)
Total investment banking fees	1,811				1,542				1,773				1,444				1,671				17			8			6,570				6,331				4
Treasury Services	1,031				1,054				1,028				1,032				998				(2	)		3			4,145				4,171				(1	)
Lending	264				199				342				325				393				33			(33	)		1,130				1,669				(32	)
Total Banking	3,106				2,795				3,143				2,801				3,062				11			1			11,845				12,171				(3	)
Fixed Income Markets	2,533				3,743				3,673				3,899				3,281				(32	)		(23	)		13,848				15,832				(13	)
Equity Markets	1,105				1,252				1,189				1,315				883				(12	)		25			4,861				4,803				1
Securities Services	1,094				1,088				1,147				1,022				1,031				1			6			4,351				4,100				6
Credit Adjustments & Other (g)	(452		)		240				125				(185		)		(2,100		)		NM			78			(272		)		(2,120		)		87
Total Markets & Investor Services	4,280				6,323				6,134				6,051				3,095				(32	)		38			22,788				22,615				1
TOTAL NET REVENUE	$	7,386			$	9,118			$	9,277			$	8,852			$	6,157			(19	)		20			$	34,633			$	34,786			—

(a)

Included FVA (effective fourth quarter 2013) and debt valuation adjustments (“DVA”) on OTC derivatives and structured notes, measured at fair value. FVA and DVA gains/(losses) were $(48) million, $373 million, $173 million, $(30) million and $(2.0) billion for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, and $468 million and $(1.9) billion for full year 2014 and 2013, respectively.

(b)

Included tax-equivalent adjustments, predominantly due to income tax credits related to affordable housing and alternative energy investments, as well as tax-exempt income from municipal bond investments of $694 million, $611 million, $606 million, $600 million and $681 million for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, and $2.5 billion and $2.3 billion for full year 2014 and 2013, respectively.


(c)	The calculation of ROE is based on net income adjusted for allocated preferred stock dividends. For further information please see page 2.


(d)	Return on equity excluding FVA (effective fourth quarter 2013) and DVA, a non-GAAP financial measure, was 15% for the three months ended December 31, 2013, and 17% for full year 2013. For additional information on this measure, see non-GAAP financial measures on page 36.


(e)	Overhead ratio excluding FVA (effective fourth quarter 2013) and DVA, a non-GAAP financial measure, was 60% for the three months ended December 31, 2013, and 59% for full year 2013. For additional information on this measure, see non-GAAP financial measures on page 36.


(f)	Compensation expense as a percentage of total net revenue excluding FVA (effective fourth quarter 2013) and DVA, a non-GAAP financial measure, was 26% for the three months ended December 31, 2013, and 30% for full year 2013. For additional information on this measure, see non-GAAP financial measures on page 36.


(g)	Consists primarily of credit valuation adjustments (“CVA”) managed by the credit portfolio group, and FVA (effective fourth quarter 2013) and DVA on OTC derivatives and structured notes. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.

Page 22



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
	QUARTERLY TRENDS																										FULL YEAR
																					4Q14 Change														2014 Change
	4Q14				3Q14				2Q14				1Q14				4Q13				3Q14			4Q13			2014				2013				2013
SELECTED BALANCE SHEET DATA (period-end)
Assets	$	861,819			$	874,321			$	873,288			$	879,992			$	843,577			(1	)	%	2		%	$	861,819			$	843,577			2		%
Loans:
Loans retained (a)	96,409				95,608				99,733				96,245				95,627				1			1			96,409				95,627				1
Loans held-for-sale and loans at fair value	5,567				6,724				9,048				8,421				11,913				(17	)		(53	)		5,567				11,913				(53	)
Total loans	101,976				102,332				108,781				104,666				107,540				—			(5	)		101,976				107,540				(5	)
Equity	61,000				61,000				61,000				61,000				56,500				—			8			61,000				56,500				8

SELECTED BALANCE SHEET DATA (average)
Assets	$	867,618			$	853,453			$	846,142			$	851,469			$	849,320			2			2			$	854,712			$	859,071			(1	)
Trading assets - debt and equity instruments	326,312				320,380				317,054				306,140				308,374				2			6			317,535				321,585				(1	)
Trading assets - derivative receivables	72,543				63,068				59,560				64,087				67,487				15			7			64,833				70,353				(8	)
Loans:
Loans retained (a)	95,146				95,373				96,750				95,798				101,901				—			(7	)		95,764				104,864				(9	)
Loans held-for-sale and loans at fair value	5,428				8,018				8,891				8,086				4,326				(32	)		25			7,599				5,158				47
Total loans	100,574				103,391				105,641				103,884				106,227				(3	)		(5	)		103,363				110,022				(6	)

Equity	61,000				61,000				61,000				61,000				56,500				—			8			61,000				56,500				8

Headcount	51,129				51,597				51,729				51,837				52,250				(1	)		(2	)		51,129				52,250				(2	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	(4	)		$	(3	)		$	(4	)		$	(1	)		$	(11	)		33			(64	)		$	(12	)		$	(78	)		(85	)
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)(b)	110				112				111				75				163				(2	)		(33	)		110				163				(33	)
Nonaccrual loans held-for-sale and loans at fair value	11				119				167				176				180				(91	)		(94	)		11				180				(94	)
Total nonaccrual loans	121				231				278				251				343				(48	)		(65	)		121				343				(65	)

Derivative receivables	275				312				361				392				415				(12	)		(34	)		275				415				(34	)
Assets acquired in loan satisfactions	67				67				106				110				80				—			(16	)		67				80				(16	)
Total nonperforming assets	463				610				745				753				838				(24	)		(45	)		463				838				(45	)
Allowance for credit losses:
Allowance for loan losses	1,034				1,083				1,112				1,187				1,096				(5	)		(6	)		1,034				1,096				(6	)
Allowance for lending-related commitments	439				445				479				484				525				(1	)		(16	)		439				525				(16	)
Total allowance for credit losses	1,473				1,528				1,591				1,671				1,621				(4	)		(9	)		1,473				1,621				(9	)


Net charge-off/(recovery) rate (a)	(0.02		)	%	(0.01		)	%	(0.02		)	%	—			%	(0.04		)	%							(0.01		)	%	(0.07		)	%
Allowance for loan losses to period-end loans retained (a)	1.07				1.13				1.11				1.23				1.15										1.07				1.15
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (c)	1.82				1.88				1.80				2.18				2.02										1.82				2.02
Allowance for loan losses to nonaccrual loans retained (a)(b)	940				967				1,002				1,583				672										940				672
Nonaccrual loans to total period-end loans	0.12				0.23				0.26				0.24				0.32										0.12				0.32


(a)	Loans retained includes credit portfolio loans, trade finance loans, other held-for-investment loans and overdrafts.


(b)	Allowance for loan losses of $18 million, $19 million, $22 million, $13 million and $51 million were held against these nonaccrual loans at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively.


(c)	Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB’s allowance coverage ratio.

Page 23



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except rankings data and where otherwise noted)
	QUARTERLY TRENDS																					FULL YEAR
																4Q14 Change												2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13			2014			2013			2013
BUSINESS METRICS
Assets under custody (“AUC”) (period-end) (in billions)	$	20,549		$	21,245		$	21,659		$	21,135		$	20,485		(3	)	%	—		%	$	20,549		$	20,485		—		%

Client deposits and other third-party liabilities (average)	433,822			419,576			403,268			412,551			421,615			3			3			417,369			383,667			9

Trade finance loans (period-end)	25,713			27,510			28,291			32,491			30,752			(7	)		(16	)		25,713			30,752			(16	)

95% Confidence Level - Total CIB VaR (average)

CIB trading VaR by risk type: (a)
Fixed income	$	33		$	28		$	38		$	36		$	39		18			(15	)		$	34		$	43		(21	)
Foreign exchange	8			8			8			7			7			—			14			8			7			14
Equities	16			14			14			14			13			14			23			15			13			15
Commodities and other	6			7			9			11			15			(14	)		(60	)		8			14			(43	)
Diversification benefit to CIB trading VaR (b)	(30		)	(26		)	(30		)	(32		)	(36		)	(15	)		17			(30		)	(34		)	12
CIB trading VaR (a)	33			31			39			36			38			6			(13	)		35			43			(19	)
Credit portfolio VaR (c)	17			10			10			13			11			70			55			13			13			—
Diversification benefit to CIB VaR (b)	(10		)	(6		)	(6		)	(7		)	(7		)	(67	)		(43	)		(8		)	(9		)	11
CIB VaR (a)	$	40		$	35		$	43		$	42		$	42		14			(5	)		$	40		$	47		(15	)


(a)	CIB trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in CIB, including credit spread sensitivity to CVA. For further information, see VaR measurement on pages 144-146 of the 2013 Annual Report and on pages 67-69 of the Firm’s third quarter 2014 Form 10-Q.


(b)	Average portfolio VaR was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated.


(c)	Credit portfolio VaR includes the derivative CVA, hedges of the CVA and hedges of the retained loan portfolio, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value.

Page 24



JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)


	QUARTERLY TRENDS																								FULL YEAR
																			4Q14 Change													2014 Change
	4Q14				3Q14				2Q14				1Q14			4Q13			3Q14			4Q13			2014				2013			2013
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	239			$	241			$	252			$	246		$	253		(1	)	%	(6	)	%	$	978			$	1,033		(5	)	%
Asset management, administration and commissions	22				21				26				23			26			5			(15	)		92				116			(21	)
All other income (a)	382				309				299				289			345			24			11			1,279				1,149			11
Noninterest revenue	643				571				577				558			624			13			3			2,349				2,298			2
Net interest income (b)	1,127				1,132				1,154				1,120			1,252			—			(10	)		4,533				4,794			(5	)
TOTAL NET REVENUE (c)	1,770				1,703				1,731				1,678			1,876			4			(6	)		6,882				7,092			(3	)

Provision for credit losses	(48		)		(79		)		(67		)		5			43			(39	)		NM			(189		)		85			NM

NONINTEREST EXPENSE
Compensation expense	303				301				292				307			252			1			20			1,203				1,115			8
Noncompensation expense	363				367				383				379			401			(1	)		(9	)		1,492				1,495			—
TOTAL NONINTEREST EXPENSE	666				668				675				686			653			—			2			2,695				2,610			3

Income before income tax expense	1,152				1,114				1,123				987			1,180			3			(2	)		4,376				4,397			—
Income tax expense	459				443				446				393			469			4			(2	)		1,741				1,749			—
NET INCOME	$	693			$	671			$	677			$	594		$	711		3			(3	)		$	2,635			$	2,648		—

Revenue by product:
Lending (b)	$	896			$	883			$	907			$	890		$	1,038		1			(14	)		$	3,576			$	3,945		(9	)
Treasury services	599				612				627				610			612			(2	)		(2	)		2,448				2,429			1
Investment banking	206				166				166				146			170			24			21			684				575			19
Other	69				42				31				32			56			64			23			174				143			22
Total Commercial Banking net revenue	$	1,770			$	1,703			$	1,731			$	1,678		$	1,876		4			(6	)		$	6,882			$	7,092		(3	)


Investment banking revenue, gross (d)	$	557			$	501			$	481			$	447		$	502		11			11			$	1,986			$	1,676		18

Revenue by client segment:
Middle Market Banking	$	705			$	699			$	724			$	710		$	758		1			(7	)		$	2,838			$	3,075		(8	)
Corporate Client Banking	511				489				483				452			494			4			3			1,935				1,851			5
Commercial Term Lending	313				312				313				314			304			—			3			1,252				1,239			1
Real Estate Banking (b)	120				124				132				119			209			(3	)		(43	)		495				561			(12	)
Other	121				79				79				83			111			53			9			362				366			(1	)
Total Commercial Banking net revenue	$	1,770			$	1,703			$	1,731			$	1,678		$	1,876		4			(6	)		$	6,882			$	7,092		(3	)

FINANCIAL RATIOS
ROE (e)	19			%	18			%	19			%	17		%	20		%							18			%	19		%
Overhead ratio	38				39				39				41			35									39				37


(a)	Includes revenue from investment banking products and commercial card transactions.


(b)	The fourth quarter of 2013 included proceeds of $98 million from a lending-related workout.

(c)

Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities, as well as tax-exempt income from municipal bond activity of $145 million, $108 million, $105 million, $104 million and $129 million for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, and $462 million and $407 million for the full year 2014 and 2013, respectively.


(d)	Represents the total revenue from investment banking products sold to CB clients.


(e)	The calculation of ROE is based on net income adjusted for allocated preferred stock dividends. For further information please see page 2.

Page 25



JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)
	QUARTERLY TRENDS																							FULL YEAR
																		4Q14 Change													2014 Change
	4Q14			3Q14			2Q14				1Q14				4Q13			3Q14			4Q13			2014				2013			2013
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	195,267		$	191,563		$	192,523			$	191,389			$	190,782		2		%	2		%	$	195,267			$	190,782		2		%
Loans:
Loans retained	147,661			143,490			141,181				138,088				135,750			3			9			147,661				135,750			9
Loans held-for-sale and loans at fair value	845			353			1,094				848				1,388			139			(39	)		845				1,388			(39	)
Total loans	$	148,506		$	143,843		$	142,275			$	138,936			$	137,138		3			8			$	148,506			$	137,138		8
Equity	14,000			14,000			14,000				14,000				13,500			—			4			14,000				13,500			4

Period-end loans by client segment:
Middle Market Banking	$	53,635		$	53,015		$	53,247			$	52,496			$	52,289		1			3			$	53,635			$	52,289		3
Corporate Client Banking	22,695			21,138			21,585				20,479				20,925			7			8			22,695				20,925			8
Commercial Term Lending	54,038			52,235			50,986				49,973				48,925			3			10			54,038				48,925			10
Real Estate Banking	13,298			12,818			11,903				11,615				11,024			4			21			13,298				11,024			21
Other	4,840			4,637			4,554				4,373				3,975			4			22			4,840				3,975			22
Total Commercial Banking loans	$	148,506		$	143,843		$	142,275			$	138,936			$	137,138		3			8			$	148,506			$	137,138		8

SELECTED BALANCE SHEET DATA (average)
Total assets	$	191,664		$	190,678		$	192,363			$	192,748			$	189,710		1			1			$	191,857			$	185,776		3
Loans:
Loans retained	145,184			142,139			139,848				136,651				134,490			2			8			140,982				131,100			8
Loans held-for-sale and loans at fair value	467			649			982				1,039				1,070			(28	)		(56	)		782				930			(16	)
Total loans	$	145,651		$	142,788		$	140,830			$	137,690			$	135,560		2			7			$	141,764			$	132,030		7
Client deposits and other third-party liabilities	208,424			204,654			199,979				202,944				205,335			2			2			204,017				198,356			3
Equity	14,000			14,000			14,000				14,000				13,500			—			4			14,000				13,500			4

Average loans by client segment:
Middle Market Banking	$	52,557		$	52,704		$	52,763			$	51,742			$	51,730		—			2			$	52,444			$	51,830		1
Corporate Client Banking	22,390			21,752			21,435				20,837				21,012			3			7			21,608				20,918			3
Commercial Term Lending	53,024			51,567			50,451				49,395				48,313			3			10			51,120				45,989			11
Real Estate Banking	12,901			12,268			11,724				11,408				10,675			5			21			12,080				9,582			26
Other	4,779			4,497			4,457				4,308				3,830			6			25			4,512				3,711			22
Total Commercial Banking loans	$	145,651		$	142,788		$	140,830			$	137,690			$	135,560		2			7			$	141,764			$	132,030		7

Headcount	7,262			7,253			7,155				6,976				6,848			—			6			7,262				6,848			6

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	28		$	5		$	(26	)		$	(14	)		$	25		460			12			$	(7	)		$	43		NM
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (a)	317			361			429				468				471			(12	)		(33	)		317				471			(33	)
Nonaccrual loans held-for-sale and loans
at fair value	14			14			17				17				43			—			(67	)		14				43			(67	)
Total nonaccrual loans	331			375			446				485				514			(12	)		(36	)		331				514			(36	)

Assets acquired in loan satisfactions	10			11			12				20				15			(9	)		(33	)		10				15			(33	)
Total nonperforming assets	341			386			458				505				529			(12	)		(36	)		341				529			(36	)
Allowance for credit losses:
Allowance for loan losses	2,466			2,529			2,637				2,690				2,669			(2	)		(8	)		2,466				2,669			(8	)
Allowance for lending-related commitments	165			178			155				141				142			(7	)		16			165				142			16
Total allowance for credit losses	2,631			2,707			2,792				2,831				2,811			(3	)		(6	)		2,631				2,811			(6	)

Net charge-off/(recovery) rate (b)	0.08		%	0.01		%	(0.07		)	%	(0.04		)	%	0.07		%							—			%	0.03		%
Allowance for loan losses to period-end loans retained	1.67			1.76			1.87				1.95				1.97									1.67				1.97
Allowance for loan losses to nonaccrual loans retained (a)	778			701			615				575				567									778				567
Nonaccrual loans to total period-end loans	0.22			0.26			0.31				0.35				0.37									0.22				0.37


(a)	Allowance for loan losses of $45 million, $71 million, $75 million, $86 million and $81 million was held against nonaccrual loans retained at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively.


(b)	Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.

Page 26



JPMORGAN CHASE & CO.
ASSET MANAGEMENT
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																						FULL YEAR
																	4Q14 Change												2014 Change
	4Q14			3Q14			2Q14			1Q14				4Q13			3Q14			4Q13			2014			2013			2013
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	2,419		$	2,263		$	2,242		$	2,100			$	2,314		7		%	5		%	$	9,024		$	8,232		10		%
All other income	149			159			138			118				280			(6	)		(47	)		564			797			(29	)
Noninterest revenue	2,568			2,422			2,380			2,218				2,594			6			(1	)		9,588			9,029			6
Net interest income	632			624			602			582				606			1			4			2,440			2,376			3
TOTAL NET REVENUE	3,200			3,046			2,982			2,800				3,200			5			—			12,028			11,405			5

Provision for credit losses	3			9			1			(9		)		21			(67	)		(86	)		4			65			(94	)

NONINTEREST EXPENSE
Compensation expense	1,317			1,278			1,231			1,256				1,343			3			(2	)		5,082			4,875			4
Noncompensation expense	1,003			803			831			819				902			25			11			3,456			3,141			10
TOTAL NONINTEREST EXPENSE	2,320			2,081			2,062			2,075				2,245			11			3			8,538			8,016			7

Income before income tax expense	877			956			919			734				934			(8	)		(6	)		3,486			3,324			5
Income tax expense	337			366			350			280				353			(8	)		(5	)		1,333			1,241			7
NET INCOME	$	540		$	590		$	569		$	454			$	581		(8	)		(7	)		$	2,153		$	2,083		3

REVENUE BY LINE OF BUSINESS
Global Investment Management	$	1,740		$	1,609		$	1,560		$	1,418			$	1,799		8			(3	)		$	6,327		$	5,951		6
Global Wealth Management	1,460			1,437			1,422			1,382				1,401			2			4			5,701			5,454			5
TOTAL NET REVENUE	$	3,200		$	3,046		$	2,982		$	2,800			$	3,200		5			—			$	12,028		$	11,405		5

FINANCIAL RATIOS
ROE (a)	23		%	25		%	25		%	20			%	25		%							23		%	23		%
Overhead ratio	73			68			69			74				70									71			70
Pretax margin ratio:
Global Investment Management	31			35			32			26				36									31			32
Global Wealth Management	24			27			29			26				20									27			26
Asset Management	27			31			31			26				29									29			29

Headcount	19,735			19,653			20,322			20,056				20,048			—			(2	)		19,735			20,048			(2	)

Number of client advisors	2,836			2,873			2,828			2,925				2,962			(1	)		(4	)		2,836			2,962			(4	)


(a)	The calculation of ROE is based on net income adjusted for allocated preferred stock dividends. For further information please see page 2.

Page 27



JPMORGAN CHASE & CO.
ASSET MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)

	QUARTERLY TRENDS																						FULL YEAR
																	4Q14 Change												2014 Change
	4Q14			3Q14			2Q14				1Q14			4Q13			3Q14			4Q13			2014			2013			2013
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	128,701		$	130,296		$	128,362			$	124,478		$	122,414		(1	)	%	5		%	$	128,701		$	122,414		5		%
Loans (a)	104,279			102,411			100,907				96,934			95,445			2			9			104,279			95,445			9
Deposits	155,247			150,268			145,655				147,760			146,183			3			6			155,247			146,183			6
Equity	9,000			9,000			9,000				9,000			9,000			—			—			9,000			9,000			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	129,029		$	128,477		$	125,492			$	122,668		$	119,041		—			8			$	126,440		$	113,198		12
Loans	103,336			101,427			98,695				95,661			92,712			2			11			99,805			86,066			16
Deposits	152,022			151,240			147,747				149,432			144,027			1			6			150,121			139,707			7
Equity	9,000			9,000			9,000				9,000			9,000			—			—			9,000			9,000			—

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	3		$	11		$	(13	)		$	5		$	4		(73	)		(25	)		$	6		$	40		(85	)
Nonaccrual loans	218			184			182				204			167			18			31			218			167			31
Allowance for credit losses:
Allowance for loan losses	271			273			276				263			278			(1	)		(3	)		271			278			(3	)
Allowance for lending-related commitments	5			4			5				5			5			25			—			5			5			—
Total allowance for credit losses	276			277			281				268			283			—			(2	)		276			283			(2	)
Net charge-off/(recovery) rate	0.01		%	0.04		%	(0.05		)	%	0.02		%	0.02		%							0.01		%	0.05		%
Allowance for loan losses to period-end loans	0.26			0.27			0.27				0.27			0.29									0.26			0.29
Allowance for loan losses to nonaccrual loans	124			148			152				129			166									124			166
Nonaccrual loans to period-end loans	0.21			0.18			0.18				0.21			0.17									0.21			0.17

(a)

Included $22.1 billion, $21.3 billion, $20.4 billion, $19.7 billion and $18.9 billion of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively. For the same periods, excluded $2.7 billion, $3.0 billion, $3.2 billion, $3.4 billion and $3.7 billion of prime mortgage loans reported in the CIO portfolio within the Corporate/Private Equity segment, respectively.

Page 28



JPMORGAN CHASE & CO.
ASSET MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)


															Dec 31, 2014
															Change					FULL YEAR
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,		Sep 30,		Dec 31,									2014 Change
CLIENT ASSETS	2014			2014			2014			2014			2013		2014		2013			2014			2013			2013
Assets by asset class
Liquidity	$	461		$	440		$	435		$	444		$	451	5	%	2		%	$	461		$	451		2		%
Fixed income	359			359			367			340			330		—		9			359			330			9
Equity	375			372			390			373			370		1		1			375			370			1
Multi-asset and alternatives	549			540			515			491			447		2		23			549			447			23
TOTAL ASSETS UNDER MANAGEMENT	1,744			1,711			1,707			1,648			1,598		2		9			1,744			1,598			9
Custody/brokerage/administration/deposits	643			633			766			746			745		2		(14	)		643			745			(14	)
TOTAL CLIENT ASSETS	$	2,387		$	2,344		$	2,473		$	2,394		$	2,343	2		2			$	2,387		$	2,343		2

MEMO:
Alternatives client assets (a)	$	166		$	166		$	163		$	160		$	158	—		5			$	166		$	158		5

Assets by client segment
Private Banking	$	428		$	429		$	383		$	377		$	361	—		19			$	428		$	361		19
Institutional	827			799			798			773			777		4		6			827			777			6
Retail	489			483			526			498			460		1		6			489			460			6
TOTAL ASSETS UNDER MANAGEMENT	$	1,744		$	1,711		$	1,707		$	1,648		$	1,598	2		9			$	1,744		$	1,598		9

Private Banking	$	1,057		$	1,052		$	1,012		$	992		$	977	—		8			$	1,057		$	977		8
Institutional	835			803			798			773			777		4		7			835			777			7
Retail	495			489			663			629			589		1		(16	)		495			589			(16	)
TOTAL CLIENT ASSETS	$	2,387		$	2,344		$	2,473		$	2,394		$	2,343	2		2			$	2,387		$	2,343		2

Assets under management rollforward
Beginning balance	$	1,711		$	1,707		$	1,648		$	1,598		$	1,540						$	1,598		$	1,426
Net asset flows:
Liquidity	27			8			(11		)	(6		)	7							18			(4		)
Fixed income	4			4			20			5			1							33			8
Equity	2			—			—			3			5							5			34
Multi-asset and alternatives	4			12			14			12			10							42			48
Market/performance/other impacts	(4		)	(20		)	36			36			35							48			86
Ending balance	$	1,744		$	1,711		$	1,707		$	1,648		$	1,598						$	1,744		$	1,598

Client assets rollforward
Beginning balance	$	2,344		$	2,473		$	2,394		$	2,343		$	2,246						$	2,343		$	2,095
Net asset flows	47			35			21			15			25							118			80
Market/performance/other impacts	(4		)	(164		)	58			36			72							(74		)	168
Ending balance	$	2,387		$	2,344		$	2,473		$	2,394		$	2,343						$	2,387		$	2,343


(a)	Represents assets under management, as well as client balances in brokerage accounts.

Page 29



JPMORGAN CHASE & CO.
CORPORATE/PRIVATE EQUITY
FINANCIAL HIGHLIGHTS
(in millions, except headcount data)

	QUARTERLY TRENDS																						FULL YEAR
																	4Q14 Change												2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13				3Q14			4Q13			2014			2013			2013
INCOME STATEMENT
REVENUE
Principal transactions	$	509		$	310		$	28		$	350		$	54			64		%	NM		%	$	1,197		$	563		113		%
Securities gains	28			6			11			26			7				367			300			71			666			(89	)
All other income	110			134			312			148			1,894			(c)	(18	)		(94	)		704			1,864			(62	)
Noninterest revenue	647			450			351			524			1,955				44			(67	)		1,972			3,093			(36	)
Net interest income	(400		)	(525		)	(510		)	(525		)	(515		)		24			22			(1,960		)	(3,115		)	37
TOTAL NET REVENUE (a)	247			(75		)	(159		)	(1		)	1,440				NM			(83	)		12			(22		)	NM

Provision for credit losses	(6		)	(8		)	(10		)	(11		)	(13		)		25			54			(35		)	(28		)	(25	)

NONINTEREST EXPENSE
Compensation expense	688			820			693			687			551				(16	)		25			2,888			2,299			26
Noncompensation expense (b)	1,347			1,468			1,091			683			1,331				(8	)		1			4,589			13,208			(65	)
Subtotal	2,035			2,288			1,784			1,370			1,882				(11	)		8			7,477			15,507			(52	)
Net expense allocated to other businesses	(1,599		)	(1,579		)	(1,604		)	(1,536		)	(1,441		)		(1	)		(11	)		(6,318		)	(5,252		)	(20	)
TOTAL NONINTEREST EXPENSE	436			709			180			(166		)	441				(39	)		(1	)		1,159			10,255			(89	)

Income/(loss) before income tax expense/(benefit)	(183		)	(776		)	(329		)	176			1,012				76			NM			(1,112		)	(10,249		)	89
Income tax expense/(benefit)	(730		)	(871		)	(436		)	61			415				16			NM			(1,976		)	(3,493		)	43
NET INCOME/(LOSS)	$	547		$	95		$	107		$	115		$	597			476			(8	)		$	864		$	(6,756	)	NM

MEMO:
TOTAL NET REVENUE
Private Equity	$	438		$	281		$	36		$	363		$	57			56			NM			$	1,118		$	589		90
Treasury and Chief Investment Office (“CIO”)	(243		)	(365		)	(342		)	(367		)	(337		)		33			28			(1,317		)	(2,068		)	36
Other Corporate	52			9			147			3			1,720				478			(97	)		211			1,457			(86	)
TOTAL NET REVENUE	$	247		$	(75	)	$	(159	)	$	(1	)	$	1,440			NM			(83	)		$	12		$	(22	)	NM

NET INCOME/(LOSS)
Private Equity	$	107		$	71		$	7		$	215		$	13			51			NM			$	400		$	285		40
Treasury and CIO	(205		)	(333		)	(308		)	(319		)	(268		)		38			24			(1,165		)	(1,454		)	20
Other Corporate	645			357			408			219			852				81			(24	)		1,629			(5,587		)	NM
TOTAL NET INCOME/(LOSS)	$	547		$	95		$	107		$	115		$	597			476			(8	)		$	864		$	(6,756	)	NM

TOTAL ASSETS (period-end)	$	931,705		$	882,792		$	878,886		$	839,625		$	805,987			6			16			$	931,705		$	805,987		16

Headcount	26,047			25,199			24,298			22,474			20,717				3			26			26,047			20,717			26


(a)	Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $196 million, $190 million, $180 million, $164 million and $144 million for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, and $730 million and $480 million for full year 2014 and 2013, respectively.


(b)	Included legal expense of $0.01 billion, $0.5 billion, $0.2 billion and $0.4 billion for the three months ended December 31, 2014, September 30, 2014, June 30, 2014 and December 31, 2013, respectively; legal expense for the three months ended March 31, 2014 was not material. Included legal expense of $0.8 billion and $10.2 billion for full year 2014 and 2013, respectively.


(c)	Included a $1.3 billion gain from the sale of Visa shares and a $493 million gain from the sale of One Chase Manhattan Plaza.

Page 30



JPMORGAN CHASE & CO.
CORPORATE/PRIVATE EQUITY
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions)


	QUARTERLY TRENDS																					FULL YEAR
																4Q14 Change											2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13			2014		2013			2013
SUPPLEMENTAL INFORMATION

TREASURY and CHIEF INVESTMENT OFFICE (“CIO”)
Securities gains	$	28		$	6		$	11		$	26		$	7		367		%	300		%	$	71	$	659		(89	)	%
Investment securities portfolio (average) (a)	347,480			355,577			348,841			345,147			344,949			(2	)		1			349,285		353,712			(1	)
Investment securities portfolio (period-end) (b)	343,146			358,516			353,989			345,021			347,562			(4	)		(1	)		343,146		347,562			(1	)
Mortgage loans (average)	2,962			3,183			3,425			3,670			3,980			(7	)		(26	)		3,308		5,145			(36	)
Mortgage loans (period-end)	2,834			3,048			3,295			3,522			3,779			(7	)		(25	)		2,834		3,779			(25	)

PRIVATE EQUITY
Private equity gains/(losses)
Direct investments
Realized gains/(losses)	$	262		$	(70	)	$	513		$	459		$	(116	)	NM			NM			$	1,164	$	(170	)	NM
Unrealized gains/(losses) (c)	205			365			(467		)	(60		)	199			(44	)		3			43		734			(94	)
Total direct investments	467			295			46			399			83			58			463			1,207		564			114
Third-party fund investments	(12		)	28			19			(1		)	10			NM			NM			34		137			(75	)
Total private equity gains/(losses) (d)	$	455		$	323		$	65		$	398		$	93		41			389			$	1,241	$	701		77

Private equity portfolio information
Direct investments
Publicly-held securities
Carrying value	$	878		$	617		$	657		$	1,291		$	1,035		42			(15	)		$	878	$	1,035		(15	)
Cost	583			479			373			612			672			22			(13	)		583		672			(13	)
Quoted public value	893			617			673			1,334			1,077			45			(17	)		893		1,077			(17	)
Privately-held direct securities
Carrying value	4,555			4,275			4,541			4,675			5,065			7			(10	)		4,555		5,065			(10	)
Cost	5,275			5,049			5,756			5,844			6,022			4			(12	)		5,275		6,022			(12	)
Third-party fund investments (e)
Carrying value	433			496			570			990			1,768			(13	)		(76	)		433		1,768			(76	)
Cost	423			484			605			1,033			1,797			(13	)		(76	)		423		1,797			(76	)
Total private equity portfolio
Carrying value	$	5,866		$	5,388		$	5,768		$	6,956		$	7,868		9			(25	)		$	5,866	$	7,868		(25	)
Cost	6,281			6,012			6,734			7,489			8,491			4			(26	)		6,281		8,491			(26	)


(a)	Average investment securities included held-to-maturity balances of $49.0 billion, $48.3 billion, $47.5 billion, $43.9 billion and $13.8 billion for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, and $47.2 billion for full year 2014. The held-to-maturity balance for full year 2013 was not material.


(b)	Period-end investment securities included held-to-maturity balances of $49.3 billion, $48.8 billion, $47.8 billion, $47.3 billion and $24.0 billion at December 31,2014, September 30, 2014, June, 30, 2014, March 31, 2014 and December 31, 2013, respectively.


(c)	Unrealized gains/(losses) contain reversals of unrealized gains and losses that were recognized in prior periods and have now been realized.


(d)	Included in principal transactions revenue in the Consolidated statements of income.


(e)	Unfunded commitments to third-party private equity funds were $110 million, $117 million, $130 million, $160 million and $215 million at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively.

Page 31



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
											Dec 31, 2014
											Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,			Dec 31,
	2014		2014		2014		2014		2013		2014			2013
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained, excluding PCI loans	$	248,283	$	239,892	$	238,096	$	236,324	$	235,394	3		%	5		%
Loans - PCI	46,696		48,487		50,118		51,606		53,055		(4	)		(12	)
Total loans retained	294,979		288,379		288,214		287,930		288,449		2			2
Loans held-for-sale	395		481		964		238		614		(18	)		(36	)
Total consumer, excluding credit card loans	295,374		288,860		289,178		288,168		289,063		2			2

Credit card loans
Loans retained (b)	128,027		126,564		125,621		121,512		127,465		1			—
Loans held-for-sale	3,021		395		508		304		326		NM			NM
Total credit card loans	131,048		126,959		126,129		121,816		127,791		3			3
Total consumer loans	426,422		415,819		415,307		409,984		416,854		3			2

Wholesale loans (c)
Loans retained	324,502		320,361		321,534		311,718		308,263		1			5
Loans held-for-sale and loans at fair value	6,412		7,077		10,142		9,269		13,301		(9	)		(52	)
Total wholesale loans	330,914		327,438		331,676		320,987		321,564		1			3

Total loans	757,336		743,257		746,983		730,971		738,418		2			3

Derivative receivables	78,975		72,453		62,378		59,272		65,759		9			20
Receivables from customers and other (d)	29,080		29,466		31,732		26,494		26,883		(1	)		8
Total credit-related assets	108,055		101,919		94,110		85,766		92,642		6			17

Lending-related commitments
Consumer, excluding credit card	58,153		54,912		56,410		56,541		56,057		6			4
Credit card	525,963		531,301		533,688		535,614		529,383		(1	)		(1	)
Wholesale	472,056		470,991		451,275		456,531		446,232		—			6
Total lending-related commitments	1,056,172		1,057,204		1,041,373		1,048,686		1,031,672		—			2

Total credit exposure	$	1,921,563	$	1,902,380	$	1,882,466	$	1,865,423	$	1,862,732	1			3

Memo: Total by category
Consumer exposure (e)	$	1,010,646	$	1,002,136	$	1,005,509	$	1,002,295	$	1,002,433	1			1
Wholesale exposures (f)	910,917		900,244		876,957		863,128		860,299		1			6
Total credit exposure	$	1,921,563	$	1,902,380	$	1,882,466	$	1,865,423	$	1,862,732	1			3

Note: The Firm provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, see page 36.


(a)	Includes loans reported in CCB, and prime mortgage loans reported in the AM business segment and in Corporate/Private Equity.


(b)	Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income.


(c)	Includes loans reported in CIB, CB and AM business segments and Corporate/Private Equity.


(d)	Predominantly includes receivables from customers, which represent margin loans to prime and retail brokerage customers; these are classified in accrued interest and accounts receivable on the Consolidated balance sheets.


(e)	Represents total consumer loans and lending-related commitments.


(f)	Represents total wholesale loans and lending-related commitments, derivative receivables and receivables from customers.

Page 32



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)

																Dec 31, 2014
																Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Dec 31,
	2014			2014			2014			2014			2013			2014			2013
NONPERFORMING ASSETS (a)
Consumer, excluding credit card loans (b)	$	6,509		$	6,702		$	7,070		$	7,370		$	7,496		(3	)	%	(13	)	%
Credit card loans	—			—			—			—			—			—			—
Total consumer nonaccrual loans (c)	6,509			6,702			7,070			7,370			7,496			(3	)		(13	)

Wholesale nonaccrual loans
Loans retained	599			659			727			753			821			(9	)		(27	)
Loans held-for-sale and loans at fair value	25			133			184			193			223			(81	)		(89	)
Total wholesale nonaccrual loans	624			792			911			946			1,044			(21	)		(40	)

Total nonaccrual loans	7,133			7,494			7,981			8,316			8,540			(5	)		(16	)

Derivative receivables	275			312			361			392			415			(12	)		(34	)
Assets acquired in loan satisfactions	559			584			675			765			751			(4	)		(26	)
Total nonperforming assets	7,967			8,390			9,017			9,473			9,706			(5	)		(18	)
Wholesale lending-related commitments (d)	103			134			122			95			206			(23	)		(50	)
Total nonperforming exposure	$	8,070		$	8,524		$	9,139		$	9,568		$	9,912		(5	)		(19	)

NONACCRUAL LOAN-RELATED RATIOS
Total nonaccrual loans to total loans	0.94		%	1.01		%	1.07		%	1.14		%	1.16		%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans	2.20			2.32			2.44			2.56			2.59
Total wholesale nonaccrual loans to total
wholesale loans	0.19			0.24			0.27			0.29			0.32

(a)

At December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.8 billion, $7.8 billion, $8.1 billion, $7.7 billion and $8.4 billion, respectively, that are 90 or more days past due; (2) student loans insured by U.S. government agencies under the FFELP of $367 million, $354 million, $316 million, $387 million and $428 million, respectively, that are 90 or more days past due; and (3) real estate owned (“REO”) insured by U.S. government agencies of $462 million, $464 million, $528 million, $618 million and $2.0 billion, respectively. These amounts have been excluded based upon the government guarantee. In accordance with new accounting guidance adopted in the third quarter of 2014, effective January 1, 2014, certain REO insured by U.S. government agencies are now being reported in accrued interest and accounts receivable. Adoption of this guidance resulted in the reclassification of $1.6 billion and $1.5 billion of government insured REO from other assets to accrued interest and accounts receivable at June 30, 2014 and March 31, 2014, respectively. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”). Under this guidance, nonmodified credit card loans are charged off by the end of the month in which the account becomes 180 days past due, while modified credit card loans are charged off when the account becomes 120 days past due. Moreover, all credit card loans must be charged off within 60 days of receiving notification about certain specified events (e.g., bankruptcy of the borrower).


(b)	Includes loans held-for-sale of $91 million, $120 million and $163 million at December 31, 2014, September 30, 2014 and June 30, 2014, respectively.


(c)	Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.


(d)	Represents commitments that are risk rated as nonaccrual.

Page 33



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions)


	QUARTERLY TRENDS																										FULL YEAR
																					4Q14 Change														2014 Change
	4Q14				3Q14				2Q14				1Q14				4Q13				3Q14			4Q13			2014				2013				2013
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	14,889			$	15,326			$	15,847			$	16,264			$	17,571			(3	)	%	(15	)	%	$	16,264			$	21,936			(26	)	%
Net charge-offs:
Gross charge-offs	1,513				1,458				1,511				1,632				1,687				4			(10	)		6,114				7,467				(18	)
Gross recoveries	(295		)		(344		)		(353		)		(363		)		(359		)		14			18			(1,355		)		(1,665		)		19
Net charge-offs	1,218				1,114				1,158				1,269				1,328				9			(8	)		4,759				5,802				(18	)
Write-offs of PCI loans and other (a)	337				87				48				61				53				287			NM			533				53				NM
Provision for loan losses	856				769				682				917				76				11			NM			3,224				188				NM
Other	(5		)		(5		)		3				(4		)		(2		)		—			(150	)		(11		)		(5		)		(120	)
Ending balance	$	14,185			$	14,889			$	15,326			$	15,847			$	16,264			(5	)		(13	)		$	14,185			$	16,264			(13	)

ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	637			$	648			$	638			$	705			$	677			(2	)		(6	)		$	705			$	668			6
Provision for lending-related commitments	(16		)		(12		)		10				(67		)		28				(33	)		NM			(85		)		37				NM
Other	1				1				—				—				—				—			NM			2				—				NM
Ending balance	$	622			$	637			$	648			$	638			$	705			(2	)		(12	)		$	622			$	705			(12	)

Total allowance for credit losses	$	14,807			$	15,526			$	15,974			$	16,485			$	16,969			(5	)		(13	)		$	14,807			$	16,969			(13	)


NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans (b)	0.45			%	0.41			%	0.44			%	0.52			%	0.57			%							0.46			%	0.66			%
Credit card retained loans	2.69				2.52				2.88				2.93				2.86										2.75				3.14
Total consumer retained loans	1.13				1.05				1.17				1.24				1.26										1.15				1.40
Wholesale retained loans	0.03				0.02				(0.06		)		0.02				0.03										—				0.01
Total retained loans	0.65				0.60				0.64				0.71				0.73										0.65				0.81
Consumer retained loans, excluding credit card and
PCI loans	0.54				0.50				0.54				0.63				0.70										0.55				0.82
Consumer retained loans, excluding PCI loans	1.28				1.19				1.34				1.42				1.44										1.30				1.62
Total retained, excluding PCI loans	0.70				0.65				0.69				0.77				0.79										0.70				0.87

Memo: Average retained loans
Consumer retained, excluding credit card loans	$	291,628			$	288,309			$	288,341			$	288,547			$	288,751			1			1			$	289,212			$	289,294			—
Credit card retained loans	126,375				125,772				123,274				122,946				123,800				—			2			124,604				123,518				1
Total average retained consumer loans	418,003				414,081				411,615				411,493				412,551				1			1			413,816				412,812				—
Wholesale retained loans	321,421				318,207				315,415				309,037				311,090				1			3			316,060				307,340				3
Total average retained loans	$	739,424			$	732,288			$	727,030			$	720,530			$	723,641			1			2			$	729,876			$	720,152			1

Consumer retained, excluding credit card and
PCI loans	$	244,074			$	239,054			$	237,484			$	236,143			$	234,858			2			4			$	239,210			$	232,784			3
Consumer retained, excluding PCI loans	370,449				364,826				360,758				359,089				358,658				2			3			363,814				356,301				2
Total retained, excluding PCI loans	691,865				683,028				676,168				668,120				669,738				1			3			679,869				663,629				2

(a)

Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool (e.g., upon liquidation). During the fourth quarter of 2014, the Firm recorded a $291 million adjustment to reduce the PCI allowance and the recorded investment in the Firm’s PCI loan portfolio, primarily reflecting the cumulative effect of interest forgiveness modifications. This adjustment had no impact to the Firm’s Consolidated statements of income.


(b)	The net charge-off rates exclude the write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans.

Page 34



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)

																Dec 31, 2014
																Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Dec 31,
	2014			2014			2014			2014			2013			2014			2013
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)	$	539		$	618		$	598		$	607		$	601		(13	)	%	(10	)	%
Formula-based	3,186			3,178			3,396			3,443			3,697			—			(14	)
PCI (b)	3,325			3,662			3,749			4,097			4,158			(9	)		(20	)
Total consumer, excluding credit card	7,050			7,458			7,743			8,147			8,456			(5	)		(17	)
Credit card
Asset-specific (a)(c)	500			500			583			606			971			—			(49	)
Formula-based	2,939			3,090			3,011			2,985			2,824			(5	)		4
Total credit card	3,439			3,590			3,594			3,591			3,795			(4	)		(9	)
Total consumer	10,489			11,048			11,337			11,738			12,251			(5	)		(14	)
Wholesale
Asset-specific (a)	87			124			138			144			181			(30	)		(52	)
Formula-based	3,609			3,717			3,851			3,965			3,832			(3	)		(6	)
Total wholesale	3,696			3,841			3,989			4,109			4,013			(4	)		(8	)
Total allowance for loan losses	14,185			14,889			15,326			15,847			16,264			(5	)		(13	)
Allowance for lending-related commitments	622			637			648			638			705			(2	)		(12	)
Total allowance for credit losses	$	14,807		$	15,526		$	15,974		$	16,485		$	16,969		(5	)		(13	)

CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	2.39		%	2.59		%	2.69		%	2.83		%	2.93		%
Credit card allowance to total credit card retained loans	2.69			2.84			2.86			2.96			2.98
Wholesale allowance to total wholesale retained loans	1.14			1.20			1.24			1.32			1.30
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (d)	1.29			1.35			1.40			1.51			1.50
Total allowance to total retained loans	1.90			2.02			2.08			2.20			2.25
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (e)	110			113			112			111			113
Total allowance, excluding credit card allowance, to retained
nonaccrual loans, excluding credit card nonaccrual loans (e)	153			156			154			151			150
Wholesale allowance to wholesale retained nonaccrual loans	617			583			549			546			489
Total allowance to total retained nonaccrual loans	202			206			201			195			196

CREDIT RATIOS, excluding PCI loans
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	1.50			1.58			1.68			1.71			1.83
Total allowance to total retained loans	1.55			1.63			1.69			1.75			1.80
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (e)	58			58			58			55			57
Allowance, excluding credit card allowance, to retained non-
accrual loans, excluding credit card nonaccrual loans (e)	106			105			105			100			100
Total allowance to total retained nonaccrual loans	155			155			152			145			146


(a)	Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a troubled debt restructuring (“TDR”).


(b)	During the fourth quarter of 2014, the Firm recorded a $291 million adjustment to reduce the PCI allowance. For further information, see summary of changes in the the allowances on page 34.


(c)	The asset-specific credit card allowance for loan losses is related to loans that have been modified in a TDR; such allowance is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.


(d)	Management uses allowance for loan losses to period-end loans retained, excluding CIB’s trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of the wholesale allowance coverage ratio.


(e)	For information on the Firm’s nonaccrual policy for credit card loans, see footnote (a) on page 33.

Page 35

JPMORGAN CHASE & CO.

NON-GAAP FINANCIAL MEASURES

The following are several of the non-GAAP financial measures that the Firm uses for various reasons, including: (i) to allow management to assess the comparability of revenue arising from both taxable and tax-exempt sources, (ii) to assess and compare the quality and composition of the Firm’s capital with the capital of other financial services companies, and (iii) more generally, to provide a more meaningful measure of certain metrics that enables comparability with prior periods, as well as with competitors.

(a)

In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s consolidated results and the results of the lines of business on a “managed” basis. The definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total consolidated net revenue for the Firm (and total net revenue for each of the business segments) on a FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. This non-GAAP financial measure allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on consolidated net income/(loss) as reported by the Firm or net income/(loss) as reported by the lines of business.

(b)

The ratios of the allowance for loan losses to period-end loans retained, the allowance for loan losses to nonaccrual loans retained, and nonaccrual loans to total period-end loans excluding credit card and PCI loans, exclude the following: loans accounted for at fair value and loans held-for-sale; PCI loans; and the allowance for loan losses related to PCI loans. Additionally, net charge-offs and net charge-off rates exclude the impact of PCI loans. The ratio of the wholesale allowance for loan losses to period-end loans retained, excluding trade finance and conduits, is calculated excluding loans accounted for at fair value, loans held-for-sale, CIB’s trade finance loans and consolidated Firm-administered multi-seller conduits, as well as their related allowances, to provide a more meaningful assessment of the wholesale allowance coverage ratio.

(c)

Tangible common equity (“TCE”), ROTCE, and Tangible book value per share (“TBVPS”). TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s earnings as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. TCE, ROTCE, and TBVPS are meaningful to the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.


(d)	Prior to Basel III becoming effective for the Firm on January 1, 2014, Tier 1 common capital and the Tier 1 common ratio under Basel I were non-GAAP financial measures. For additional information on Basel III, including the transitional provisions, see Regulatory capital on pages 73-77 of JPMorgan Chase’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014.


(e)	Corporate & Investment Bank provides certain non-GAAP financial measures, as such measures are used by management to assess the underlying performance of the business and for comparability with peers:


•	The ratio of the allowance for loan losses to end-of-period loans is calculated excluding the impact of consolidated Firm-administered multi-seller conduits and trade finance loans, to provide a more meaningful assessment of CIB’s allowance coverage ratio.

•

Prior to January 1, 2014, the CIB provided several non-GAAP financial measures excluding the impact of FVA (effective fourth quarter 2013) and DVA on: net revenue, net income, and compensation, overhead and return on equity ratios. Beginning in the first quarter 2014, the Firm does not exclude FVA and DVA from its assessment of business performance; however, the Firm continues to present these non-GAAP measures for the periods prior to January 1, 2014, as they reflected how management assessed the underlying business performance of the CIB in those prior periods.

Page 36