Business Segments

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

BUSINESS SEGMENTS

Business segments

The Firm is managed on a line of business basis. The business segment financial results presented reflect the current organization of JPMorgan Chase. There are four major reportable business segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset Management. In addition, there is a Corporate/Private Equity segment. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by management. Results of these lines of business are presented on a managed basis. For a further discussion concerning JPMorgan Chase’s business segments, see Business Segment Results on page 15 of this Form 10-Q, and pages 78–79 and Note 33 on pages 326–329 of JPMorgan Chase’s 2012 Annual Report.

Segment results

The following tables provide a summary of the Firm’s segment results for the three months ended March 31, 2013 and 2012, on a managed basis. Total net revenue (noninterest revenue and net interest income) for each of the segments is presented on a fully taxable-equivalent (“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/(benefit).

Effective January 1, 2013, the Firm further refined the capital allocation framework to align it with the revised line of business structure that became effective in the fourth quarter of 2012. The increase in equity levels for the lines of businesses is largely driven by the most current regulatory guidance on Basel III requirements (including the NPR), principally for CIB and CIO, and by anticipated business growth.

Segment results and reconciliation(a)
As of or for the three months ended March 31, (in millions, except ratios)	Consumer & Community Banking						Corporate & Investment Bank						Commercial Banking						Asset Management
	2013			2012			2013			2012			2013			2012			2013			2012
Noninterest revenue	$	4,406		$	4,975		$	7,357		$	6,488		$	535		$	557		$	2,094		$	1,887
Net interest income	7,209			7,388			2,783			2,850			1,138			1,100			559			483
Total net revenue	11,615			12,363			10,140			9,338			1,673			1,657			2,653			2,370
Provision for credit losses	549			642			11			(3		)	39			77			21			19
Noninterest expense	6,790			7,038			6,111			6,211			644			598			1,876			1,729
Income/(loss) before income tax expense/(benefit)	4,276			4,683			4,018			3,130			990			982			756			622
Income tax expense/(benefit)	1,690			1,747			1,408			1,097			394			391			269			236
Net income/(loss)	$	2,586		$	2,936		$	2,610		$	2,033		$	596		$	591		$	487		$	386
Average common equity	$	46,000		$	43,000		$	56,500		$	47,500		$	13,500		$	9,500		$	9,000		$	7,000
Total assets (period-end)	458,902			469,084			872,259			879,691			184,689			161,741			109,734			96,385
Return on common equity	23		%	27		%	19		%	17		%	18		%	25		%	22		%	22		%
Overhead ratio	58			57			60			67			38			36			71			73

As of or for the three months ended March 31, (in millions, except ratios)	Corporate/Private Equity						Reconciling Items(b)						Total
	2013			2012			2013			2012			2013			2012
Noninterest revenue	$	361		$	1,013		$	(564	)	$	(534	)	$	14,189		$	14,386
Net interest income	(594		)	16			(162		)	(171		)	10,933			11,666
Total net revenue	(233		)	1,029			(726		)	(705		)	25,122			26,052
Provision for credit losses	(3		)	(9		)	—			—			617			726
Noninterest expense	2			2,769			—			—			15,423			18,345
Income/(loss) before income tax expense/(benefit)	(232		)	(1,731		)	(726		)	(705		)	9,082			6,981
Income tax expense/(benefit)	(482		)	(709		)	(726		)	(705		)	2,553			2,057
Net income/(loss)	$	250		$	(1,022	)	$	—		$	—		$	6,529		$	4,924
Average common equity	$	69,733		$	70,711		$	—		$	—		$	194,733		$	177,711
Total assets	763,765			713,263			NA			NA			2,389,349			2,320,164
Return on average common equity	NM			NM			NM			NM			13		%	11		%
Overhead ratio	NM			NM			NM			NM			61			70

(a) Managed basis starts with the reported U.S. GAAP results and includes certain reclassifications as discussed below that do not have any impact on net income as reported by the lines of business or by the Firm as a whole.

(b) Segment managed results reflect revenue on a FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These FTE adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results.