Interest Income and Interest Expense

9 Months Ended

Sep. 30, 2011

Interest Income (Expense), Net [Abstract]

INTEREST INCOME AND INTEREST EXPENSE

INTEREST INCOME AND INTEREST EXPENSE

For a description of JPMorgan Chase’s accounting policies regarding interest income and interest expense, see Note 8 on page 200 of JPMorgan Chase’s 2010Annual Report.

Details of interest income and interest expense were as follows.

	Three months ended September 30,				Nine months ended September 30,
(in millions)	2011		2010		2011		2010
Interest income
Loans	$	9,193	$	9,955	$	27,840	$	30,481
Securities	2,156		2,157		6,962		7,578
Trading assets	2,768		2,752		8,619		8,086
Federal funds sold and securities purchased under resale agreements	683		448		1,830		1,253
Securities borrowed	18		66		95		127
Deposits with banks	184		82		429		269
Other assets(a)	158		146		464		376
Total interest income	15,160		15,606		46,239		48,170
Interest expense
Interest-bearing deposits	993		846		3,038		2,573
Short-term and other liabilities(b)(c)	697		420		2,405		1,478
Long-term debt(c)	1,477		1,551		4,646		4,297
Beneficial interests issued by consolidated VIEs	176		287		592		923
Total interest expense	3,343		3,104		10,681		9,271
Net interest income	11,817		12,502		35,558		38,899
Provision for credit losses	2,411		3,223		5,390		13,596
Net interest income after provision for credit losses	$	9,406	$	9,279	$	30,168	$	25,303

(a) Predominantly margin loans.

(b) Includes brokerage customer payables.

(c) Effective January 1, 2011, the long-term portion of advances from FHLBs was reclassified from other borrowed funds to long-term debt. The related interest expense for the prior-year period has also been reclassified to conform with the current presentation.