UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly report pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

For the quarterly period ended	Commission file
September 30, 2014	number 1-5805

JPMorgan Chase & Co.

(Exact name of registrant as specified in its charter)

Delaware	13-2624428
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification no.)
270 Park Avenue, New York, New York	10017
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 270-6000

Indicate by check mark whether the registrant (1) has filed all reportsrequired to be filed by Section 13 or 15(d) of the Securities Exchange Act of1934 during the preceding 12 months (or for such shorter period that theregistrant was required to file such reports), and (2) has been subject to suchfiling requirements for the past 90 days.

xYes oNo

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

xYes oNo

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x	Accelerated filer o
Non-accelerated filer (Do not check if a smaller reporting company)o	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

¨Yes xNo

Number of shares of common stock outstanding as of September 30, 2014: 3,738,188,746

FORM 10-Q

TABLE OF CONTENTS

Part I - Financial information		Page
Item 1	Consolidated Financial Statements – JPMorgan Chase & Co.:
	Consolidated statements of income (unaudited) for the three and nine months ended September 30, 2014 and 2013	90
	Consolidated statements of comprehensive income (unaudited) for the three and nine months ended September 30, 2014 and 2013	91
	Consolidated balance sheets (unaudited) at September 30, 2014, and December 31, 2013	92
	Consolidated statements of changes in stockholders’ equity (unaudited) for the nine months ended September 30, 2014 and 2013	93
	Consolidated statements of cash flows (unaudited) for the nine months ended September 30, 2014 and 2013	94
	Notes to Consolidated Financial Statements (unaudited)	95
	Report of Independent Registered Public Accounting Firm	179
	Consolidated Average Balance Sheets, Interest and Rates (unaudited) for the three and nine months ended September 30, 2014 and 2013	180
	Glossary of Terms and Line of Business Metrics	182
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations:
	Consolidated Financial Highlights	3
	Introduction	4
	Executive Overview	5
	Consolidated Results of Operations	8
	Consolidated Balance Sheets Analysis	11
	Off-Balance Sheet Arrangements	13
	Consolidated Cash Flows Analysis	14
	Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures	15
	Business Segment Results	17
	Enterprise-Wide Risk Management	48
	Credit Risk Management	49
	Market Risk Management	67
	Country Risk Management	70
	Operational Risk Management	71
	Capital Management	73
	Liquidity Risk Management	80
	Supervision and Regulation	84
	Critical Accounting Estimates Used by the Firm	85
	Accounting and Reporting Developments	88
	Forward-Looking Statements	89
Item 3	Quantitative and Qualitative Disclosures About Market Risk	187
Item 4	Controls and Procedures	187
Part II - Other information
Item 1	Legal Proceedings	188
Item 1A	Risk Factors	188
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	188
Item 3	Defaults Upon Senior Securities	190
Item 4	Mine Safety Disclosure	190
Item 5	Other Information	190
Item 6	Exhibits	190

2

JPMorgan Chase & Co.

Consolidated financial highlights

(unaudited) As of or for the period ended,																	Nine months ended September 30,
(in millions, except per share, ratio, headcount data and where  otherwise noted)		3Q14			2Q14			1Q14			4Q13			3Q13			2014			2013
Selected income statement data
Total net revenue		$	24,246		$	24,454		$	22,993		$	23,156		$	23,117		$	71,693		$	73,450
Total noninterest expense		15,798			15,431			14,636			15,552			23,626			45,865			54,915
Pre-provision profit/(loss)		8,448			9,023			8,357			7,604			(509		)	25,828			18,535
Provision for credit losses		757			692			850			104			(543		)	2,299			121
Income before income tax expense		7,691			8,331			7,507			7,500			34			23,529			18,414
Income tax expense		2,119			2,346			2,233			2,222			414			6,698			5,769
Net income/(loss)		$	5,572		$	5,985		$	5,274		$	5,278		$	(380	)	$	16,831		$	12,645
Earnings per share data
Net income/(loss):	Basic	$	1.37		$	1.47		$	1.29		$	1.31		$	(0.17	)	$	4.13		$	3.08
	Diluted	1.36			1.46			1.28			1.30			(0.17		)	4.10			3.05
Average shares:	Basic	3,755.4			3,780.6			3,787.2			3,762.1			3,767.0			3,774.4			3,789.2
	Diluted	3,788.7			3,812.5			3,823.6			3,797.1			3,767.0			3,808.3			3,820.9
Market and per common share data
Market capitalization		225,188			216,725			229,700			219,657			194,312			225,188			194,312
Common shares at period-end		3,738.2			3,761.3			3,784.7			3,756.1			3,759.2			3,738.2			3,759.2
Share price(a):
High		$	61.85		$	61.29		$	61.48		$	58.55		$	56.93		$	61.85		$	56.93
Low		54.96			52.97			54.20			50.25			50.06			52.97			44.20
Close		60.24			57.62			60.71			58.48			51.69			60.24			51.69
Book value per share		56.50			55.53			54.05			53.25			52.01			56.50			52.01
Tangible book value per share (“TBVPS”)(b)		44.13			43.17			41.73			40.81			39.51			44.13			39.51
Cash dividends declared per share		0.40			0.40			0.38			0.38			0.38			1.18			1.06
Selected ratios and metrics
Return on common equity (“ROE”)		10		%	11		%	10		%	10		%	(1		)%	10		%	8		%
Return on tangible common equity (“ROTCE”)(b)		13			14			13			14			(2		)	13			11
Return on assets (“ROA”)		0.90			0.99			0.89			0.87			(0.06		)	0.93			0.71
Overhead ratio		65			63			64			67			102			64			75
Loans-to-deposits ratio		56			57			57			57			57			56			57
High quality liquid assets (“HQLA”) (in billions)(c)		$	572		$	576		$	538		$	522		$	538		$	572		$	538
Common equity tier 1 (“CET1”) capital ratio(d)		10.2		%	9.8		%	10.9%			10.7		%	10.5		%	10.2		%	10.5		%
Tier 1 capital ratio(d)		11.5			11.1			12.1			11.9			11.7			11.5			11.7
Total capital ratio(d)		12.8			12.5			14.5			14.4			14.3			12.8			14.3
Tier 1 leverage ratio(d)		7.6			7.6			7.4			7.1			6.9			7.6			6.9
Selected balance sheet data (period-end)
Trading assets		$	410,657		$	392,543		$	375,204		$	374,664		$	383,348		$	410,657		$	383,348
Securities(e)		366,358			361,918			351,850			354,003			356,556			366,358			356,556
Loans		743,257			746,983			730,971			738,418			728,679			743,257			728,679
Total assets		2,527,005			2,520,336			2,476,986			2,415,689			2,463,309			2,527,005			2,463,309
Deposits		1,334,534			1,319,751			1,282,705			1,287,765			1,281,102			1,334,534			1,281,102
Long-term debt(f)		268,721			269,929			274,512			267,889			263,372			268,721			263,372
Common stockholders’ equity		211,214			208,851			204,572			200,020			195,512			211,214			195,512
Total stockholders’ equity		231,277			227,314			219,655			211,178			206,670			231,277			206,670
Headcount		242,388			245,192			246,994			251,196			255,041			242,388			255,041
Credit quality metrics
Allowance for credit losses		$	15,526		$	15,974		$	16,485		$	16,969		$	18,248		$	15,526		$	18,248
Allowance for loan losses to total retained loans		2.02%			2.08%			2.20%			2.25%			2.43%			2.02%			2.43%
Allowance for loan losses to retained loans excluding purchased credit-impaired loans(g)		1.63			1.69			1.75			1.80			1.89			1.63			1.89
Nonperforming assets		$	8,390		$	9,017		$	9,473		$	9,706		$	10,380		$	8,390		$	10,380
Net charge-offs		1,114			1,158			1,269			1,328			1,346			3,541			4,474
Net charge-off rate		0.60%			0.64%			0.71%			0.73%			0.74%			0.65%			0.83%

(a) Share price shown for JPMorgan Chase’s common stock is from the New York Stock Exchange. JPMorgan Chase’s common stock is also listed and traded on the London Stock Exchange and the Tokyo Stock Exchange.

(b) TBVPS and ROTCE are non-GAAP financial measures. TBVPS represents the Firm’s 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 Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 15–16.

(c) HQLA is the estimated amount of assets that qualify for inclusion in the final U.S. Liquidity Coverage Ratio (“U.S. LCR”) for 3Q14 and in the Basel III Liquidity Coverage Ratio (“Basel III LCR”) for prior periods; for additional information, see HQLA on page 83.

(d) Basel III Transitional rules became effective on January 1, 2014; prior period data is based on Basel I rules. As of 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. 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. See Regulatory capital on pages 73–77 for additional information on Basel III and non-GAAP financial measures of regulatory capital.

(e) Included held-to-maturity (“HTM”) securities of $48.8 billion, $47.8 billion, $47.3 billion, $24.0 billion and $4.5 billion at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, respectively.

(f) Included unsecured long-term debt of $204.7 billion, $205.6 billion, $206.1 billion, $199.4 billion and $199.2 billion at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, respectively.

(g) Excludes the impact of residential real estate purchased credit-impaired (“PCI”) loans. For further discussion, see Allowance for credit losses on pages 64–66.

3

INTRODUCTION

The following is management’s discussion and analysis (“MD&A”) of the financial condition and results of operations of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) in this Form 10-Q.

This Form 10-Q should be read in conjunction with JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the U.S. Securities and Exchange Commission (“2013 Annual Report” or “2013 Form 10-K”), to which reference is hereby made. See the Glossary of terms on pages 182–185 for definitions of terms used throughout this Form 10-Q.

The MD&A included in this Form 10-Q contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. For a discussion of those risks and uncertainties and the factors that could cause JPMorgan Chase’s actual results to differ materially from those risks and uncertainties, see Forward-looking Statements on page 89 of this Form 10-Q and Part I, Item 1A, Risk Factors, on pages 9–18 of JPMorgan Chase’s 2013 Annual Report.

JPMorgan Chase & Co., a financial holding company incorporated under Delaware law in 1968, is a leading global financial services firm and one of the largest banking institutions in the United States of America (“U.S.”), with operations worldwide; the Firm had $2.5 trillion in assets and $231.3 billion in stockholders’ equity as of September 30, 2014. The Firm is a leader in investment banking, financial services for consumers and small

businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S. and many of the world’s most prominent corporate, institutional and government clients.

JPMorgan Chase’s principal bank subsidiaries are JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank, N.A.”), a national bank with U.S. branches in 23 states, and Chase Bank USA, National Association (“Chase Bank USA, N.A.”), a national bank that is the Firm’s credit card–issuing bank. JPMorgan Chase’s principal nonbank subsidiary is J.P. Morgan Securities LLC (“JPMorgan Securities”), the Firm’s U.S. investment banking firm. The bank and nonbank subsidiaries of JPMorgan Chase operate nationally as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. One of the Firm’s principal operating subsidiaries in the United Kingdom (“U.K.”) is J.P. Morgan Securities plc, a subsidiary of JPMorgan Chase Bank, N.A.

JPMorgan Chase’s activities are organized, for management reporting purposes, into four major reportable business segments, as well as a Corporate/Private Equity segment. The Firm’s consumer business is the Consumer & Community Banking (“CCB”) segment. The Corporate & Investment Bank (“CIB”), Commercial Banking (“CB”), and Asset Management (“AM”) segments comprise the Firm’s wholesale businesses. For a description of the Firm’s business segments, and the products and services they provide to their respective client bases refer to Note 33 of JPMorgan Chase’s 2013 Annual Report.

4

EXECUTIVE OVERVIEW

This executive overview of the MD&A highlights selected information and may not contain all of the information that is important to readers of this Form 10-Q. For a complete description of the trends and uncertainties, as well as the

risks and critical accounting estimates affecting the Firm and its various lines of business, this Form 10-Q should be read in its entirety.

Financial performance of JPMorgan Chase
(unaudited) As of or for the period ended,	Three months ended September 30,								Nine months ended September 30,
(in millions, except per share data and ratios)	2014			2013			Change		2014			2013			Change
Selected income statement data
Total net revenue	$	24,246		$	23,117		5	%	$	71,693		$	73,450		(2	)%
Total noninterest expense	15,798			23,626			(33	)	45,865			54,915			(16	)
Pre-provision profit	8,448			(509		)	NM		25,828			18,535			39
Provision for credit losses	757			(543		)	NM		2,299			121			NM
Net income/(loss)	5,572			(380		)	NM		16,831			12,645			33
Diluted earnings per share	$	1.36		$	(0.17	)	NM		$	4.10		$	3.05		34	%
Return on common equity	10		%	(1		)%			10		%	8		%
Capital ratios(a)
CET1	10.2			10.5					10.2			10.5
Tier 1 capital	11.5			11.7					11.5			11.7

(a) Basel III Transitional rules became effective on January 1, 2014; prior period data is based on Basel I rules. As of September 30, 2014, the ratios presented are calculated under the Basel III Advanced Transitional Approach. 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. See Regulatory capital on pages 73–77 for additional information on Basel III and non-GAAP financial measures of regulatory capital.

Business Overview

JPMorgan Chase reported third-quarter 2014 net income of $5.6 billion, or $1.36 per share, on net revenue of $24.2 billion. Net income increased by $6.0 billion, to $5.6 billion, in the third quarter of 2014. Return on equity for the quarter was 10%, compared with (1)% for the prior-year quarter.

The Firm delivered strong underlying performance for the quarter. The increase in net income from the third quarter of 2013 was driven by lower noninterest expense and higher net revenue, partially offset by higher provision for credit losses.

Net revenue was $24.2 billion up $1.1 billion, or 5%, compared with the prior year. Noninterest revenue was $13.1 billion, up $797 million, or 6%, compared with the prior year. Net interest income was $11.1 billion, up $332 million, or 3%, compared with the prior year, reflecting lower interest expense, higher investment securities yields and higher loan balances, partially offset by lower loan yields.

The provision for credit losses for the three months ended September 30, 2014 increased from the prior year, reflecting an increase in the consumer provision for credit losses. The increase in the consumer provision for credit losses was the result of a lower benefit from reductions in the consumer allowance for loan losses, partially offset by lower net charge-offs. The current-quarter consumer provision reflected a $200 million reduction in the allowance for loan losses, compared to a $1.6 billion reduction in the prior year. The current-quarter consumer allowance release primarily reflects the continued improvement in home prices and delinquencies in the

residential real estate portfolio, the run-off of the student loan portfolio and lower estimated losses in auto loans.

Consumer net charge-offs were $1.1 billion, compared with $1.3 billion in the prior year, resulting in net charge-off rates, excluding PCI loans, of 1.19% and 1.47%, respectively.

The wholesale provision for credit losses reflected a generally favorable credit environment and stable credit quality trends. The wholesale provision for credit losses was a benefit of $140 million, compared with a benefit of $270 million in the prior year. Wholesale net charge-offs were $17 million, compared with $26 million in the prior year, resulting in net charge-rates of 0.02% and 0.03%, respectively.

The Firm’s allowance for loan losses to period-end loans retained, excluding PCI loans, was 1.63%, compared with 1.89% in the prior year. The Firm’s allowance for loan losses to retained nonaccrual loans, excluding PCI loans, was 155%, compared with 140% in the prior year. The Firm’s nonperforming assets totaled $8.4 billion, down from the prior quarter and prior year levels of $9.0 billion and $10.4 billion, respectively.

Noninterest expense was $15.8 billion, down $7.8 billion, or 33%, compared with the prior year, driven by lower legal expense. The current quarter noninterest expense included $1.1 billion of legal expense, compared with $9.3 billion of legal expense in the prior year.

Consumer & Business Banking (“CBB”) average deposits were up 9% and Business Banking loan originations were up 27%. Client investment assets were a record $207.8 billion, up 16%, and credit card sales volume was $119.5 billion, up 12% from the prior year. CIB maintained its #1

5

ranking for Global Investment Banking fees, and assets under custody were up 8% compared with the prior year. CB period-end loan balances were up 6%, and gross investment banking revenue from CB clients was up 12%. AM reported positive net long-term product flows for the twenty-second consecutive quarter, assets under management up 11% and record average loan balances of $101.4 billion.

Net income during the nine months ended September 30, 2014, was $16.8 billion, or $4.10 per share, compared with $12.6 billion, or $3.05 per share, during the nine months ended September 30, 2013. The increase was primarily driven by a decrease in noninterest expense, partially offset by an increase in provision for credit losses and lower revenue. Net revenue during the nine months of 2014 was $71.7 billion, down $1.8 billion, or 2%, compared with the prior year. Noninterest revenue was $39.1 billion, down $1.9 billion, or 5%, compared with the prior year. Net interest income was $32.6 billion, flat compared with the prior year, reflecting lower interest expense, higher investment securities yields and higher loan balances, partially offset by lower loan yields and lower average interest-earning trading asset balances. The higher provision for credit losses reflected a lower benefit from reductions in the consumer allowance for loan losses, partially offset by lower net charge-offs. The decrease in noninterest expense was driven by lower legal expense.

The Firm maintained its fortress balance sheet, ending the third quarter with estimated Basel III Advanced Fully Phased-in CET1 capital of $163.2 billion and a CET1 capital ratio of 10.1%. The Firm’s supplementary leverage ratio (“SLR”) was 5.5% and the Firm had $572 billion of high quality liquid assets (“HQLA”) as of September 30, 2014. Basel III Advanced Fully Phased-In measures and the SLR under the U.S. final SLR rule are non-GAAP financial measures. These measures are used by management, bank regulators, investors and analysts to assess and monitor the Firm’s capital position. For further discussion of Basel III Advanced Fully Phased-In measures and the SLR under the U.S. final SLR rule, see Regulatory capital on pages 73–77.

JPMorgan Chase continued to support consumers, businesses and communities around the globe. The Firm provided credit and raised capital of $1.6 trillion for commercial and consumer clients during the nine months ended September 30, 2014. This included $15 billion of credit provided to U.S. small businesses and $464 billion of credit provided to corporations. The Firm raised more than $881 billion of capital for clients. In addition, more than $55 billion of credit was provided to, and capital was raised for, nonprofit and government entities, including states, municipalities, hospitals and universities.

For a detailed discussion of results by Line of Business

refer to the Business Segment Results section beginning on page 17.

2014 Business outlook

These current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties. These risks and uncertainties could cause the Firm’s actual results to differ materially from those set forth in such forward-looking statements. See Forward-Looking Statements on page 89 of this Form 10-Q and Risk Factors on pages 9-18 of JPMorgan Chase’s 2013 Annual Report. There is no assurance that actual results for the fourth quarter or full year of 2014 will be in line with the outlook set forth below, and the Firm does not undertake to update any of these forward-looking statements to reflect the impact of circumstances or events that arise after the date hereof.

JPMorgan Chase’s outlook for the remainder of 2014 should be viewed against the backdrop of the global and U.S. economies, including the strength of consumers and businesses, U.S. housing prices, the unemployment rate, implied market interest rates, financial market levels and activity, the geopolitical environment, the competitive environment, client activity levels, and regulatory and legislative developments in the U.S. and other countries where the Firm does business. Each of these linked factors will affect the performance of the Firm and its lines of business, although each of these factors will affect each of the lines of business to a different degree.

The Firm expects full year 2014 adjusted expense to be above $58 billion; the amount of actual firmwide expense will be affected by performance-related compensation for 2014, driven by higher markets-related revenue. Management also expects firmwide net charge-offs for the full year 2014 to be less than $5 billion, below previous guidance.

In the Mortgage Banking (“MB”) business within CCB, pretax income in Mortgage Production is expected to be a small negative in the fourth quarter of 2014; the actual results will be market dependent. In Mortgage Servicing within Mortgage Banking, management expects servicing revenue to be at or slightly below $600 million in the fourth quarter of 2014, and to continue to decrease in 2015.

If current positive consumer credit trends continue, management expects CCB to have a reduction in the consumer allowance for loan losses by $1 billion or more over the next couple of years.

In CIB, Markets revenue in the fourth quarter of 2014 will be impacted by the Firm’s business simplification initiatives. These business simplification initiatives are expected to result in a decline of approximately $300 million, or 8%, in Markets revenue and a decline of approximately $200 million in expense, for the fourth quarter of 2014 compared to the prior-year quarter.

In AM, pretax margin and return on equity for the full year 2014 are expected to be below through-the-cycle targets.

6

Business events

Business simplification

The Firm has made substantial progress in completing its business simplification agenda to exit certain noncore businesses and activities. Recent examples include exiting the CIB’s business of providing transaction services for certain correspondent banking clients, the sale or substantial liquidation of all of the CIB’s physical commodities business and Global Special Opportunities Group investment portfolio, and the sale of AM’s Retirement Plan Services business.  The Firm expects the sale of a portion of the One Equity Partners (“OEP”) investment portfolio, and the formation by the OEP investment professionals of a new, independent management company, to occur by year-end. These actions will enable the Firm to focus on core activities for its core clients with an enhanced focus on its operational, regulatory, and litigation risks.

Regulatory developments

On September 2, 2014, the Office of the Comptroller of the Currency (“OCC”) released final regulations and guidelines establishing heightened standards for large banks. The guidelines establish minimum standards for the design and implementation of a risk governance framework for banks. JPMorgan Chase has three national bank subsidiaries that will be required to comply with the guidelines: JPMorgan Chase Bank, N.A., Chase Bank USA, N.A., and JPMorgan Bank & Trust Company, NA.

On September 3, 2014, the Federal Reserve and the OCC issued final rules for the Supplementary Leverage Ratio (“SLR”) and Liquidity Coverage Ratio (“LCR”).  For additional details on these ratios, see Regulatory capital and Liquidity risk management on pages 73–77 and pages 80–84, respectively. The Firm also anticipates that bank regulatory authorities will issue proposals with respect to the potential recalibration of the global systemically important bank (“GSIB”) framework and Total Loss Absorbing Capital (“TLAC”) in late 2014 or early 2015.

On October 11, 2014, the Firm, along with 17 other financial institutions, agreed in principle to adhere to the Resolution Stay Protocol developed by the International Swaps and Derivatives Association, Inc. in response to regulator concerns that the closeout of derivatives transactions during the resolution of a large cross-border financial institution could impede resolution efforts and potentially destabilize markets. The Resolution Stay Protocol provides for the contractual recognition of cross-border stays under various statutory resolution regimes and a contractual stay on certain cross-default rights. It is expected that the Firm and the other 17 financial institutions will formally adhere to the Resolution Stay Protocol once the text of the protocol is finalized in early November.

For additional Business events during the nine months ended September 30, 2014, and Subsequent events, see Note 2.

7

CONSOLIDATED RESULTS OF OPERATIONS

The following section of the MD&A provides a comparative discussion of JPMorgan Chase’s Consolidated Results of Operations on a reported basis for the three and nine months ended September 30, 2014 and 2013. Factors that relate primarily to a single business segment are discussed in more

detail within that business segment. For a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations, see pages 85–87 of this Form 10-Q and pages 174–178 of JPMorgan Chase’s 2013 Annual Report.

Revenue
	Three months ended September 30,						Nine months ended September 30,
(in millions)	2014		2013		Change		2014		2013		Change
Investment banking fees	$	1,538	$	1,507	2	%	$	4,709	$	4,669	1	%
Principal transactions	2,966		2,662		11		9,196		10,183		(10	)
Lending- and deposit-related fees	1,479		1,519		(3	)	4,347		4,476		(3	)
Asset management, administration and commissions	3,978		3,667		8		11,821		11,131		6
Securities gains	6		26		(77	)	48		659		(93	)
Mortgage fees and related income	903		841		7		2,708		4,116		(34	)
Card income	1,537		1,518		1		4,494		4,440		1
Other income(a)	732		602		22		1,798		1,364		32
Noninterest revenue	13,139		12,342		6		39,121		41,038		(5	)
Net interest income	11,107		10,775		3		32,572		32,412		—
Total net revenue	$	24,246	$	23,117	5	%	$	71,693	$	73,450	(2	)%

(a) Included operating lease income of $433 million and $376 million for the three months ended September 30, 2014 and 2013, respectively, and $1.3 billion and $1.1 billion for the nine months ended September 30, 2014 and 2013, respectively.

Total net revenue for the three months ended September 30, 2014, increased by $1.1 billion compared with the three months ended September 30, 2013. The increase was predominantly due to higher net interest income; higher asset management, administration and commissions revenue; and higher principal transactions revenue. For the nine months ended September 30, 2014, total net revenue decreased by $1.8 billion from the same period of the prior year. The decrease was predominantly due to lower mortgage fees and related income; lower principal transactions revenue; and lower securities gains; partially offset by higher asset management, administration and commissions revenue; and higher other income.

Investment banking fees for the three and nine months ended September 30, 2014, increased slightly compared with the prior year, due to higher advisory and equity underwriting fees, largely offset by lower debt underwriting fees. The increase in advisory and equity underwriting fees was driven by higher industry-wide fee levels, while the decrease in debt underwriting fees was primarily related to lower industry-wide loan fee levels. For additional information on investment banking fees, see CIB segment results on pages 32–37, CB segment results on pages 38–40, and Note 6.

Principal transactions revenue in the three months ended September 30, 2014, increased compared with the prior period due to higher market-making revenue in CIB on particularly strong performance in currencies and emerging markets. The increase in market-making revenue was partly offset by lower private equity gains due to lower net valuation gains on investments. For the nine months ended September 30, 2014, principal transactions revenue decreased from the prior year reflecting, in CIB, lower fixed income markets revenue on lower client activity across most products, as well as lower equity markets revenue on

lower derivatives revenue compared with a strong prior year. The decrease was partially offset by higher private equity gains as a result of higher net gains on sales. For additional information on principal transactions revenue, see CIB and Corporate/Private Equity segment results on pages 32–37 and pages 45–47, respectively, and Note 6.

Lending- and deposit-related fees decreased compared with the three and nine months ended September 30, 2013, reflecting the impact of business simplification initiatives and lower trade finance revenue in CIB.

Asset management, administration and commissions revenue increased compared with the three and nine months ended September 30, 2013, reflecting net client inflows and the effect of higher market levels in AM and CCB. The increase in the nine months ended September 30, 2014 was offset partially by lower revenue in CCB related to the exit of a non-core product in the second half of 2013. For additional information on these fees and commissions, see the segment discussions for CCB on pages 18–31, AM on pages 41–44, and Note 6.

Securities gains in the nine months ended September 30, 2014, decreased compared with the prior period, reflecting lower repositioning activity of the investment securities portfolio in the current period. For additional information, see the Corporate/Private Equity segment discussion on pages 45–47, and Note 11.

Mortgage fees and related income in the nine months ended September 30, 2014, decreased compared with the prior period. The decrease was predominantly related to lower net production revenue, driven by lower volumes. The lower net production revenue was partially offset by higher mortgage servicing rights (“MSR”) risk management results. For additional information, see pages 26–28, and Note 16.

8

Other income increased from the three months ended September 30, 2013, reflecting a nonrecurring gain in MB and higher auto lease income resulting from growth in auto lease volume. The increase in the nine months ended September 30, 2014 compared with the prior period was due to the aforementioned items, as well as a benefit from a franchise tax settlement recorded in the second quarter of 2014 and the absence of a modest loss on the redemption of trust preferred securities recorded in the second quarter of 2013. The increase was partially offset by lower all other revenue in CIB and lower valuations of seed capital investments in AM.

Net interest income increased in the three and nine months ended September 30, 2014, compared with the prior year. The increase from both 2013 periods predominantly reflected the impact of lower interest expense, higher yields

on investment securities, and higher average loan balances, partially offset by lower yields on loans due to the run-off of higher-yielding loans and new originations of lower-yielding loans. The increase from the nine months ended September 30, 2013, was also partially offset by lower average interest-earning trading asset balances. The Firm’s average interest-earning assets were $2.1 trillion for the three months ended September 30, 2014, and the net interest yield on those assets, on a fully taxable-equivalent (“FTE”) basis, was 2.19%, an increase of 1 basis point from the prior year. For the nine months ended September 30, 2014, the Firm’s average interest-earning assets were $2.0 trillion, and the net interest yield on those assets, on a FTE basis, was 2.19%, a decrease of 6 basis points from the prior year.

Provision for credit losses
	Three months ended September 30,								Nine months ended September 30,
(in millions)	2014			2013			Change		2014			2013			Change
Consumer, excluding credit card	$	99		$	(815	)	NM		$	181		$	(1,345	)	NM
Credit card	798			542			47	%	2,371			1,588			49	%
Total consumer	897			(273		)	NM		2,552			243			NM
Wholesale	(140		)	(270		)	48		(253		)	(122		)	(107	)
Total provision for credit losses	$	757		$	(543	)	NM		$	2,299		$	121		NM

The provision for credit losses for the three and nine months ended September 30, 2014 increased from the prior year, reflecting an increase in the consumer provision for credit losses. The increase in the consumer provision for credit losses was the result of a lower benefit from reductions in the consumer allowance for loan losses, partially offset by lower net charge-offs. The consumer allowance release was primarily related to the continued improvement in home prices and delinquencies in the

residential real estate portfolio, and the run-off of the student loan portfolio. The wholesale provision reflected a generally favorable credit environment and stable credit quality trends. For a more detailed discussion of the credit portfolio and the allowance for credit losses, see the segment discussions for CCB on pages 18–31, CIB on pages 32–37 and CB on pages 38–40, and the Allowance for credit losses section on pages 64–66.

Noninterest expense
	Three months ended September 30,						Nine months ended September 30,
(in millions)	2014		2013		Change		2014		2013		Change
Compensation expense	$	7,831	$	7,325	7	%	$	23,300	$	23,758	(2	)%
Noncompensation expense:
Occupancy	978		947		3		2,903		2,752		5
Technology, communications and equipment	1,465		1,356		8		4,309		4,049		6
Professional and outside services	1,907		1,897		1		5,625		5,532		2
Marketing	610		588		4		1,824		1,755		4
Other expense(a)(b)	2,956		11,373		(74	)	7,590		16,625		(54	)
Amortization of intangibles	51		140		(64	)	314		444		(29	)
Total noncompensation expense	7,967		16,301		(51	)	22,565		31,157		(28	)
Total noninterest expense	$	15,798	$	23,626	(33	)%	$	45,865	$	54,915	(16	)%

(a) Included Firmwide legal expense of $1.1 billion and $9.3 billion for the three months ended September 30, 2014 and 2013, respectively, and $1.8 billion and $10.3 billion for the nine months ended September 30, 2014 and 2013, respectively.

(b) Included Federal Deposit Insurance Corporation-related (“FDIC”) expense of $250 million and $362 million for the three months ended September 30, 2014 and 2013, respectively, and $809 million and $1.1 billion for the nine months ended September 30, 2014 and 2013, respectively.

9

Total noninterest expense for the three months ended September 30, 2014, decreased by $7.8 billion compared with the prior year. The decrease was driven by lower other expense, in particular, legal expense, partially offset by higher compensation expense. For the nine months ended September 30, 2014, total noninterest expense decreased by $9.1 billion from the prior year. The decrease was driven by the aforementioned decline in other expense, as well as lower compensation expense.

Compensation expense increased compared with the three months ended September 30, 2013, predominantly driven by the Firm’s investments in the businesses, including headcount for controls, and higher compensation expense in CIB. The increase was partially offset by lower headcount-related expense in MB, and lower postretirement benefit costs. For the nine months ended September 30, 2014, compensation expense decreased predominantly driven by lower headcount-related expense in MB, lower

performance-based compensation expense in CIB, and lower postretirement benefit costs. The decrease in compensation expense was partially offset by the Firm’s investments, including headcount for controls.

Noncompensation expense in the three and nine months ended September 30, 2014, decreased compared with the prior year. The decrease for both periods was due to lower other expense, predominantly as a result of lower legal expense (as the prior year third quarter included a $9.3 billion expense). Lower expense for foreclosure-related matters and lower production and servicing-related expense in Mortgage Banking, and lower FDIC-related assessments, also contributed to the decline for both periods. The decrease was offset partially by the Firm’s investments in the businesses, including for controls, and costs related to business simplification initiatives in CIB. For a further discussion of legal expense, see Note 23.

Income tax expense
(in millions, except rate)	Three months ended September 30,							Nine months ended September 30,
	2014			2013		Change		2014			2013			Change
Income before income tax expense	$	7,691		$	34	NM		$	23,529		$	18,414		28	%
Income tax expense	2,119			414		412	%	6,698			5,769			16
Effective tax rate	27.6		%	NM				28.5		%	31.3		%

The effective tax rate for the three months ended September 30, 2014, reflected benefits from tax adjustments and the settlement of tax audits; these benefits were partially offset by the impact of legal expense, which included nondeductible penalties. The effective tax rate for the three months ended September 30, 2013, was impacted by the substantial effect of that period’s legal expense, a portion of which included nondeductible penalties. The decrease in the effective tax rate from the nine months ended September 30, 2013, was largely attributable to the effect of the aforementioned nondeductible penalties, partially offset by higher reported pretax income in combination with changes in the mix of income and expense subject to U.S. federal, state and local income taxes, the write-down of deferred tax assets as a result of tax law changes enacted in New York State, comparably lower tax benefits associated with tax adjustments and the settlement of tax audits. For additional information on income taxes, see Critical Accounting Estimates Used by the Firm on pages 85–87.

10

CONSOLIDATED BALANCE SHEETS ANALYSIS

Selected Consolidated Balance Sheets data
(in millions)	Sep 30, 2014		Dec 31, 2013		Change
Assets
Cash and due from banks	$	25,372	$	39,771	(36	)%
Deposits with banks	414,312		316,051		31
Federal funds sold and securities purchased under resale agreements	214,336		248,116		(14	)
Securities borrowed	118,873		111,465		7
Trading assets:
Debt and equity instruments	338,204		308,905		9
Derivative receivables	72,453		65,759		10
Securities	366,358		354,003		3
Loans	743,257		738,418		1
Allowance for loan losses	14,889		16,264		(8	)
Loans, net of allowance for loan losses	728,368		722,154		1
Accrued interest and accounts receivable	75,504		65,160		16
Premises and equipment	15,177		14,891		2
Goodwill	47,970		48,081		—
Mortgage servicing rights	8,236		9,614		(14	)
Other intangible assets	1,274		1,618		(21	)
Other assets	100,568		110,101		(9	)
Total assets	$	2,527,005	$	2,415,689	5
Liabilities
Deposits	$	1,334,534	$	1,287,765	4
Federal funds purchased and securities loaned or sold under repurchase agreements	198,746		181,163		10
Commercial paper	59,960		57,848		4
Other borrowed funds	31,892		27,994		14
Trading liabilities:
Debt and equity instruments	84,305		80,430		5
Derivative payables	58,951		57,314		3
Accounts payable and other liabilities	211,055		194,491		9
Beneficial interests issued by consolidated VIEs	47,564		49,617		(4	)
Long-term debt	268,721		267,889		—
Total liabilities	2,295,728		2,204,511		4
Stockholders’ equity	231,277		211,178		10
Total liabilities and stockholders’ equity	$	2,527,005	$	2,415,689	5	%

Consolidated Balance Sheets overview

JPMorgan Chase’s total assets increased by $111.3 billion, and total liabilities increased by $91.2 billion from December 31, 2013.

The following is a discussion of the significant changes in the specific line item captions on the Consolidated Balance Sheets from December 31, 2013.

Cash and due from banks and deposits with banks

The net increase was attributable to higher levels of excess funds, which the Firm placed with various central banks, predominantly Federal Reserve Banks.

Federal funds sold and securities purchased under resale agreements; and securities borrowed

The decrease in federal funds sold and securities purchased under resale agreements was related to lower securities purchased under resale agreements, which was predominantly attributable to a shift in the deployment of the Firm’s excess cash by Treasury, and client activity in CIB. Securities borrowed increased due to a higher requirement for collateral to cover client-driven activities in CIB.

Trading assets and liabilities–debt and equity instruments

The increase in trading assets was predominantly related to client-driven market-making activities in CIB, which resulted in higher levels of debt and equity securities, and trading loans.

The increase in trading liabilities was predominantly related to client-driven market-making activities in CIB, which resulted in a higher level of short positions in debt securities. For additional information, refer to Note 3.

Trading assets and liabilities–derivative receivables and payables

The increase in both receivables and payables was predominantly due to client-driven market-making activities in CIB, specifically in foreign exchange derivatives, as a result of the appreciation of the U.S. dollar against certain currencies, and interest rate derivatives. The increase was partially offset by a decline in equity derivatives. For additional information, refer to Derivative contracts on pages 62–63, and Notes 3 and 5.

Securities

The increase was largely due to higher levels of obligations of U.S. states and municipalities, U.S. mortgage-backed securities and U.S. Treasuries, partially offset by a lower level of non-U.S. residential mortgage-backed securities. For additional information related to securities, refer to the discussion in the Corporate/Private Equity segment on pages 45–47, and Notes 3 and 11.

Loans and allowance for loan losses

The increase in loans was attributable to higher wholesale loans, partly offset by lower consumer loans. The increase in wholesale loans was driven by net new originations of commercial real estate loans in CB, and AM loans both in the U.S. and internationally, partially offset by lower balances in CIB. The decrease in consumer loans reflected paydowns and charge-off or liquidation of delinquent loans offset primarily by originations of prime mortgage loans.

The decrease in allowance for loan losses was driven by a reduction in the consumer allowance, predominantly as a result of continued improvement in home prices and delinquencies in the residential real estate portfolio, a reduction in the credit card allowance due to a decrease in

11

the asset-specific allowance resulting from increased granularity of the impairment estimates and lower balances related to credit card loans modified in troubled debt restructurings (“TDRs”), and the run-off of the student loan portfolio. The wholesale allowance was relatively unchanged, reflecting a generally favorable credit environment and stable credit quality trends. For a more detailed discussion of the loan portfolio and the allowance for loan losses, refer to Credit Risk Management on pages 49–66, and Notes 3, 4, 13 and 14.

Accrued interest and accounts receivable

The increase was due to higher receivables from security sales that did not settle, and higher client receivables, related to client-driven market-making activities in CIB.

Mortgage servicing rights

The decrease was predominantly due to the impact of total changes in valuation due to inputs and assumptions. For additional information on MSRs, see Note 16.

Other assets

The decrease was driven by several categories, including lower collateral pledged; lower deferred tax assets; and lower private equity investments due to sales.

Deposits

The increase was attributable to higher consumer and wholesale deposits. The increase in consumer deposits reflected a continuing positive growth trend, which was the result of strong customer retention, maturing of recent branch builds, and net new business. The increase in wholesale deposits was related to strong client deposit inflows toward the end of September 2014. For more information on consumer deposits, refer to the CCB segment discussion on pages 18–31; the Liquidity Risk Management discussion on pages 80–84; and Notes 3 and 17. For more information on wholesale client deposits, refer to the AM, CB and CIB segment discussions on pages 41–44, pages 38–40 and pages 32–37, respectively.

Federal funds purchased and securities loaned or sold under repurchase agreements

The increase in federal funds purchased and securities loaned or sold under repurchase agreements was related to higher securities sold under repurchase agreements, which was predominantly attributable to higher financing of the Firm’s trading assets-debt and equity instruments, and a change in the mix of the Firm’s funding sources. The increase was partially offset by client activity in CIB. For additional information on the Firm’s Liquidity Risk Management, see pages 80–84.

Accounts payable and other liabilities

The increase was attributable to higher client short positions and higher payables from security purchases that did not settle, both in CIB. Higher taxes payable was offset by lower legal-related reserve, largely reflecting the settlement of previously disclosed legal and regulatory matters.

Stockholders’ equity

The increase was due to net income, preferred stock issuances, and higher accumulated other comprehensive income (“AOCI”). The increase was partially offset by the declaration of cash dividends on common and preferred stock, and repurchases of common stock. For additional information on AOCI, see Note 19; for the Firm’s capital actions, see Capital actions on pages 78-79.

12

OFF-BALANCE SHEET ARRANGEMENTS

JPMorgan Chase is involved with several types of off–balance sheet arrangements, including through nonconsolidated special-purpose entities (“SPEs”), which are a type of variable interest entity (“VIE”), and through lending-related financial instruments (e.g., commitments and guarantees). For further discussion, see Note 21 of this Form 10-Q and Off–Balance Sheet Arrangements and Contractual Cash Obligations on pages 77–79 and Note 29 of JPMorgan Chase’s 2013 Annual Report.

Special-purpose entities

The most common type of VIE is an SPE. SPEs are commonly used in securitization transactions in order to isolate certain assets and distribute the cash flows from those assets to investors. SPEs are an important part of the financial markets, including the mortgage- and asset-backed securities and commercial paper markets, as they provide market liquidity by facilitating investors’ access to specific portfolios of assets and risks. The Firm holds capital, as deemed appropriate, against all SPE-related transactions and related exposures, such as derivative transactions and lending-related commitments and guarantees. For further information on the types of SPEs, see Note 15 of this Form 10-Q, and Note 1 and Note 16 of JPMorgan Chase’s 2013 Annual Report.

Implications of a credit rating downgrade to JPMorgan Chase Bank, N.A.

For certain liquidity commitments to SPEs, JPMorgan Chase Bank, N.A., could be required to provide funding if its short-term credit rating were downgraded below specific levels, primarily “P-1,” “A-1” and “F1” for Moody’s, Standard & Poor’s and Fitch, respectively. These liquidity commitments support the issuance of asset-backed commercial paper by Firm-administered consolidated SPEs. In the event of a short-term credit rating downgrade, JPMorgan Chase Bank, N.A., absent other solutions, would be required to provide funding to the SPE, if the commercial paper could not be reissued as it matured. The aggregate amounts of commercial paper outstanding held by third parties as of September 30, 2014, and December 31, 2013, was $8.4 billion and $15.5 billion, respectively. The aggregate amounts of commercial paper outstanding could increase in future periods should clients of the Firm-administered consolidated SPEs draw down on certain unfunded lending-related commitments. These unfunded lending-related commitments were $8.6 billion and $9.2 billion at September 30, 2014, and December 31, 2013, respectively. The Firm could facilitate the refinancing of some of the clients’ assets in order to reduce the funding obligation.

Off–balance sheet lending-related financial instruments, guarantees, and other commitments

JPMorgan Chase provides lending-related financial instruments (e.g., commitments and guarantees) to meet the financing needs of its customers. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the counterparty draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the counterparty subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees expire without being drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm’s view, representative of its actual future credit exposure or funding requirements. For further discussion of lending-related financial instruments, guarantees and other commitments, and the Firm’s accounting for them, see Lending-related commitments on page 62 and Note 21 (including the table that presents the related amounts by contractual maturity as of September 30, 2014). For a discussion of liabilities associated with loan sales- and securitization-related indemnifications, see Note 21.

13

CONSOLIDATED CASH FLOWS ANALYSIS

For a discussion of the activities affecting the Firm’s cash flows, see pages 80–81 of JPMorgan Chase’s 2013 Annual Report and Balance Sheet Analysis of this Form 10-Q.

(in millions)	Nine months ended September 30,
	2014			2013
Net cash provided by/(used in)
Operating activities	$	7,847		$	114,867
Investing activities	(95,630		)	(189,101		)
Financing activities	74,061			51,243
Effect of exchange rate changes on cash	(677		)	(68		)
Net decrease in cash and due from banks	$	(14,399	)	$	(23,059	)

Operating activities

Operating assets and liabilities can vary significantly in the normal course of business due to the amount and timing of cash flows, which are affected by client-driven and risk management activities, and market conditions. The Firm believes cash flows from operations, available cash balances and its ability to generate cash through short- and long-term borrowings are sufficient to fund the Firm’s operating liquidity needs.

Cash provided by operating activities in 2014 predominantly resulted from net income after noncash operating adjustments; and higher net proceeds from loan securitizations and sales activities, reflecting lower levels of activity over the prior year; partially offset by net cash outflows from higher trading assets, predominantly debt and equity instruments related to client-driven market-making activities in CIB. Cash provided during 2013 predominantly resulted from lower trading assets, largely debt and equity instruments, driven by client-driven market-making activities in CIB; and an increase in accounts payable and other liabilities predominantly due to higher CIB brokerage payables. Cash proceeds from sales and paydowns of loans were slightly higher than the cash used to acquire loans.

Investing activities

Cash used in investing activities during 2014 and 2013, predominantly resulted from increases in deposits with banks, attributable to higher levels of excess funds, which the Firm placed with various central banks, predominantly Federal Reserve banks; and increases in wholesale loans due to net originations. Partially offsetting these cash outflows in both periods was a net decline in securities purchased under resale agreements due to a shift in the deployment of the Firm’s excess cash by Treasury. Cash outflows in 2014 also reflected net purchases of investment securities, while 2013 reflected cash proceeds from net maturities and sales of investment securities.

Financing activities

Cash provided by financing activities in 2014 predominantly resulted from higher consumer and wholesale deposits. The increase in consumer deposits reflected a continuing positive growth trend resulting from strong customer retention, maturing of recent branch builds, and net new business; the increase in wholesale deposits reflected strong client deposit inflows. Cash provided also resulted from an increase in securities loaned or sold under repurchase agreements due to higher financing of the Firm’s trading assets–debt and equity instruments; and proceeds from preferred stock issuances. Further, issuances of long-term borrowings were predominantly offset by maturities and redemptions. Cash provided in 2013 was driven by growth in both wholesale and consumer deposits, net proceeds from long-term borrowings, and issuance of preferred stock; partially offset by a decrease in securities loaned or sold under repurchase agreements, predominantly due to changes in the mix of the Firm’s funding sources. In both periods these cash inflows were partially offset by repurchases of common stock and payments of dividends on common and preferred stock.

14

EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES

The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the U.S. (“U.S. GAAP”); these financial statements appear on pages 90–94. 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. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and 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 net income as reported by the Firm as a whole or by the lines of business.

Management also uses certain non-GAAP financial measures at the business-segment level, because it believes these other non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the particular business segment and, therefore, facilitate a comparison of the business segment with the performance of its competitors. Non-GAAP financial measures used by the Firm may not be comparable to similarly named non-GAAP financial measures used by other companies.

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

	Three months ended September 30,
	2014								2013
(in millions, except ratios)	Reported results			Fully taxable-equivalent adjustments(a)		Managed basis			Reported results			Fully taxable-equivalent adjustments(a)		Managed basis
Other income	$	732		$	660	$	1,392		$	602		$	582	$	1,184
Total noninterest revenue	13,139			660		13,799			12,342			582		12,924
Net interest income	11,107			253		11,360			10,775			181		10,956
Total net revenue	24,246			913		25,159			23,117			763		23,880
Pre-provision profit/(loss)	8,448			913		9,361			(509		)	763		254
Income before income tax expense	7,691			913		8,604			34			763		797
Income tax expense	$	2,119		$	913	$	3,032		$	414		$	763	$	1,177
Overhead ratio	65		%	NM		63		%	102		%	NM		99		%
	Nine months ended September 30,
	2014								2013
(in millions, except ratios)	Reported results			Fully taxable-equivalent adjustments(a)		Managed basis			Reported results			Fully taxable-equivalent adjustments(a)		Managed basis
Other income	$	1,798		$	1,955	$	3,753		$	1,364		$	1,728	$	3,092
Total noninterest revenue	39,121			1,955		41,076			41,038			1,728		42,766
Net interest income	32,572			723		33,295			32,412			508		32,920
Total net revenue	71,693			2,678		74,371			73,450			2,236		75,686
Pre-provision profit	25,828			2,678		28,506			18,535			2,236		20,771
Income before income tax expense	23,529			2,678		26,207			18,414			2,236		20,650
Income tax expense	$	6,698		$	2,678	$	9,376		$	5,769		$	2,236	$	8,005
Overhead ratio	64		%	NM		62		%	75		%	NM		73		%

(a) Predominantly recognized in CIB and CB business segments and Corporate/Private Equity.

Tangible common equity (“TCE”), ROTCE and TBVPS are each non-GAAP financial measures. 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 tangible common equity 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.

15

Tangible common equity
	Period-end				Average
					Three months ended September 30,						Nine months ended September 30,
(in millions, except per share and ratio data)	Sep 30, 2014		Dec 31, 2013
					2014			2013			2014			2013
Common stockholders’ equity	$	211,214	$	200,020	$	209,621		$	197,232		$	205,888		$	196,425
Less: Goodwill	47,970		48,081		48,081			48,073			48,073			48,106
Less: Certain identifiable intangible assets	1,274		1,618		1,308			1,878			1,423			2,021
Add: Deferred tax liabilities(a)	2,991		2,953		2,980			2,904			2,959			2,867
Tangible common equity	$	164,961	$	153,274	$	163,212		$	150,185		$	159,351		$	149,165
Return on tangible common equity	NM		NM		13		%	(2		)%	13		%	11		%
Tangible book value per share	$	44.13	$	40.81	NM			NM			NM			NM

(a) 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.

Additionally, certain capital ratios disclosed by the Firm

are non-GAAP measures. For additional information on these non-GAAP measures, see Regulatory capital on

pages 73–77.

Core net interest income

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

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.

Core net interest income data(a)
	Three months ended September 30,								Nine months ended September 30,
(in millions, except rates)	2014			2013			Change		2014			2013			Change
Net interest income – managed basis(b)(c)	$	11,360		$	10,956		4	%	$	33,295		$	32,920		1	%
Less: Market-based net interest income	1,239			1,109			12		3,325			3,886			(14	)
Core net interest income(b)	$	10,121		$	9,847		3		$	29,970		$	29,034		3
Average interest-earning assets	$	2,061,785		$	1,997,413		3		$	2,030,665		$	1,958,359		4
Less: Average market-based earning assets	513,051			493,780			4		507,675			505,062			1
Core average interest-earning assets	$	1,548,734		$	1,503,633		3	%	$	1,522,990		$	1,453,297		5	%
Net interest yield on interest-earning assets – managed basis	2.19		%	2.18		%			2.19		%	2.25		%
Net interest yield on market-basedactivities	0.96			0.89					0.88			1.03
Core net interest yield on core average interest-earning assets	2.59		%	2.60		%			2.63		%	2.67		%

(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 the Firm’s reported U.S. GAAP results to managed basis on

page 15.

Quarterly and year-to-date results

Core net interest income increased by $274 million to $10.1 billion and by $936 million to $30.0 billion for the three and nine months endedSeptember 30, 2014, respectively, compared with the prior year periods. Core average interest-earning assets increased by $45.1 billion to $1.5 trillion, and by $69.7 billion to $1.5 trillion for the three and nine months endedSeptember 30, 2014, respectively, compared with the prior year periods. The increase in net interest income predominantly reflected the impact of higher yields on investment securities, lower

interest expense, and higher average loan balances, partially offset by lower yields on loans due to run-off of higher yielding loans and new originations of lower yielding loans. The increase in average interest-earning assets largely reflected the impact of higher average balance of deposits with banks. These changes in net interest income and interest-earning assets resulted in the core net interest yield decreasing by 1 basis point to 2.59% for the three months endedSeptember 30, 2014, and 4 basis points to 2.63% for the nine months endedSeptember 30, 2014.

16

BUSINESS SEGMENT RESULTS

The Firm is managed on a line of business basis. 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 definition of managed basis, see Explanation and Reconciliation of the Firm’s use of non-GAAP financial measures, on pages 15–16.

Description of business segment reporting methodology

Results of the business segments are intended to reflect each segment as if it were essentially a stand-alone business. The management reporting process that derives business segment results allocates income and expense

using market-based methodologies. The Firm continues to assess the assumptions, methodologies and reporting classifications used for segment reporting, and further refinements may be implemented in future periods.

For a further discussion of those methodologies, see Business Segment Results – Description of business segment reporting methodology on pages 84–85 of JPMorgan Chase’s 2013 Annual Report.

Business segment capital allocation changes

Each business segment is allocated capital by taking into consideration stand-alone peer comparisons, regulatory capital requirements (as estimated under Basel III Advanced Fully Phased-In) and economic risk measures. The amount of capital assigned to each business is referred to as equity. Effective January 1, 2014, the Firm revised the capital allocated to certain businesses. For further information about these capital changes, see Line of business equity on pages 77–78.

Segment Results – Managed Basis

The following table summarizes the business segment results for the periods indicated.

Three months ended September 30,	Total net revenue						Total Noninterest expense						Pre-provision profit/(loss)
(in millions)	2014		2013		Change		2014		2013		Change		2014			2013			Change
Consumer & Community Banking	$	11,267	$	11,082	2	%	$	6,305	$	6,867	(8	)%	$	4,962		$	4,215		18	%
Corporate & Investment Bank	8,787		8,189		7		6,035		4,999		21		2,752			3,190			(14	)
Commercial Banking	1,667		1,725		(3	)	668		661		1		999			1,064			(6	)
Asset Management	3,016		2,763		9		2,081		2,003		4		935			760			23
Corporate/Private Equity	422		121		249		709		9,096		(92	)	(287		)	(8,975		)	97
Total	$	25,159	$	23,880	5	%	$	15,798	$	23,626	(33	)%	$	9,361		$	254		NM

Three months ended September 30,	Provision for credit losses								Net income/(loss)							Return on common equity
(in millions, except ratios)	2014			2013			Change		2014		2013			Change		2014		2013
Consumer & Community Banking	$	902		$	(267	)	NM		$	2,468	$	2,702		(9	)%	19	%	23	%
Corporate & Investment Bank	(67		)	(218		)	(69	)%	1,485		2,240			(34	)	10		16
Commercial Banking	(79		)	(41		)	93		649		665			(2	)	18		20
Asset Management	9			—			NM		572		476			20	%	25		21
Corporate/Private Equity	(8		)	(17		)	53	%	398		(6,463		)	NM		NM		NM
Total	$	757		$	(543	)	NM		$	5,572	$	(380	)	NM		10	%	(1	)%

Nine months ended September 30,	Total net revenue							Total Noninterest expense						Pre-provision profit/(loss)
(in millions)	2014		2013			Change		2014		2013		Change		2014		2013			Change
Consumer & Community Banking	$	33,158	$	34,712		(4	)%	$	19,198	$	20,521	(6	)%	$	13,960	$	14,191		(2	)%
Corporate & Investment Bank	26,384		28,205			(6	)	17,697		16,852		5		8,687		11,353			(23	)
Commercial Banking	5,019		5,126			(2	)	2,029		1,957		4		2,990		3,169			(6	)
Asset Management	8,750		8,141			7		6,218		5,771		8		2,532		2,370			7
Corporate/Private Equity	1,060		(498		)	NM		723		9,814		(93	)	337		(10,312		)	NM
Total	$	74,371	$	75,686		(2	)%	$	45,865	$	54,915	(16	)%	$	28,506	$	20,771		37	%

Nine months ended September 30,	Provision for credit losses								Net income/(loss)							Return on common equity
(in millions, except ratios)	2014			2013			Change		2014		2013			Change		2014		2013
Consumer & Community Banking	$	2,570		$	263		NM		$	6,847	$	8,377		(18	)%	18	%	24	%
Corporate & Investment Bank	(102		)	(213		)	(52	)%	5,427		7,688			(29	)	12		18
Commercial Banking	(141		)	42			NM		1,885		1,882			—		18		19
Asset Management	1			44			(98	)	1,565		1,463			7		23		22
Corporate/Private Equity	(29		)	(15		)	(93	)%	1,107		(6,765		)	NM		NM		NM
Total	$	2,299		$	121		NM		$	16,831	$	12,645		33	%	10	%	8	%

17

CONSUMER & COMMUNITY BANKING

For a discussion of the business profile of CCB, see pages 86–97 of JPMorgan Chase’s 2013 Annual Report.

Selected income statement data
	Three months ended September 30,								Nine months ended September 30,
(in millions, except ratios)	2014			2013			Change		2014			2013			Change
Revenue
Lending- and deposit-related fees	$	804		$	780		3	%	$	2,257		$	2,230		1	%
Asset management, administration and commissions	534			515			4		1,558			1,609			(3	)
Mortgage fees and related income	902			839			8		2,706			4,108			(34	)
Card income	1,478			1,460			1		4,312			4,267			1
All other income	496			367			35		1,283			1,074			19
Noninterest revenue	4,214			3,961			6		12,116			13,288			(9	)
Net interest income	7,053			7,121			(1	)	21,042			21,424			(2	)
Total net revenue	11,267			11,082			2		33,158			34,712			(4	)
Provision for credit losses	902			(267		)	NM		2,570			263			NM
Noninterest expense
Compensation expense	2,627			2,949			(11	)	8,003			8,921			(10	)
Noncompensation expense	3,656			3,817			(4	)	10,985			11,282			(3	)
Amortization of intangibles	22			101			(78	)	210			318			(34	)
Total noninterest expense	6,305			6,867			(8	)	19,198			20,521			(6	)
Income before income tax expense	4,060			4,482			(9	)	11,390			13,928			(18	)
Income tax expense	1,592			1,780			(11	)	4,543			5,551			(18	)
Net income	$	2,468		$	2,702		(9	)%	$	6,847		$	8,377		(18	)%
Financial ratios
Return on common equity	19		%	23		%			18		%	24		%
Overhead ratio	56			62					58			59

Note: In the discussion and the tables which follow, CCB presents certain financial measures which exclude the impact of PCI loans; these are non-GAAP financial measures.For additional information, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 15–16

Quarterly results

Consumer & Community Banking net income was $2.5 billion, a decrease of $234 million, or 9%, compared with the prior year, due to higher provision for credit losses, largely offset by lower noninterest expense and higher net revenue.

Net revenue was $11.3 billion, an increase of $185 million, or 2%, compared with the prior year. Net interest income was $7.1 billion, down $68 million, or 1%, driven by spread compression and lower mortgage warehouse balances, predominantly offset by higher deposit balances. Noninterest revenue was $4.2 billion, an increase of $253 million, or 6%, driven by a non-recurring gain in Mortgage Banking, higher mortgage fees and related income and higher investment revenue in Consumer & Business Banking.

The provision for credit losses was $902 million, compared with a benefit of $267 million in the prior year. The current-quarter provision reflected a $200 million reduction in the allowance for loan losses and total net charge-offs of $1.1 billion. The prior-year provision reflected a $1.6 billion reduction in the allowance for loan losses and total net charge-offs of $1.3 billion. For more information, including net charge-off amounts and rates, see Consumer Credit Portfolio on pages 50–57.

Noninterest expense was $6.3 billion, a decrease of $562 million, or 8%, from the prior year, driven by lower Mortgage Banking expense, partially offset by an accrual

related to Home Depot fraud and higher Auto lease depreciation expense.

Year-to-date results

Consumer & Community Banking net income was $6.8 billion, a decrease of $1.5 billion, or 18%, compared with the prior year, due to higher provision for credit losses and lower net revenue, partially offset by lower noninterest expense.

Net revenue was $33.2 billion, a decrease of $1.6 billion, or 4%, compared with the prior year. Net interest income was $21.0 billion, down $382 million, or 2%, driven by spread compression and lower mortgage warehouse balances, largely offset by higher deposit balances. Noninterest revenue was $12.1 billion, a decrease of $1.2 billion, or 9%, driven by lower mortgage fees and related income.

The provision for credit losses was $2.6 billion, compared with $263 million in the prior year. The current-year provision reflected a $1.0 billion reduction in the allowance for loan losses and total net charge-offs of $3.6 billion. The prior-year provision reflected a $4.2 billion reduction in the allowance for loan losses and total net charge-offs of $4.5 billion. For more information, including net charge-off amounts and rates, see Consumer Credit Portfolio on pages 50–57.

Noninterest expense was $19.2 billion, a decrease of $1.3 billion, or 6%, from the prior year, driven by lower Mortgage Banking expense, partially offset by higher Auto and Credit Card expense.

18

Selected metrics
	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(in millions, except headcount)	2014		2013		Change		2014		2013		Change
Selected balance sheet data (period-end)
Total assets	$	448,033	$	451,166	(1	)%	$	448,033	$	451,166	(1	)%
Trading assets - loans(a)	10,750		10,309		4		10,750		10,309		4
Loans:
Loans retained	390,709		390,345		—		390,709		390,345		—
Loans held-for-sale	876		449		95		876		449		95
Total loans	391,585		390,794		—		391,585		390,794		—
Deposits	493,249		458,867		7		493,249		458,867		7
Equity(b)	51,000		46,000		11		51,000		46,000		11
Selected balance sheet data (average)
Total assets	$	447,121	$	453,881	(1	)	$	446,904	$	458,315	(2	)
Trading assets - loans(a)	9,346		13,888		(33	)	7,802		17,727		(56	)
Loans:
Loans retained	390,129		390,865		—		389,024		393,616		(1	)
Loans held-for-sale	876		239		267		749		83		NM
Total loans	391,005		391,104		—		389,773		393,699		(1	)
Deposits	492,022		456,940		8		483,297		450,677		7
Equity(b)	51,000		46,000		11		51,000		46,000		11
Headcount	138,686		156,064		(11	)%	138,686		156,064		(11	)%

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

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

19

Selected metrics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ratios and where otherwise noted)	2014			2013			Change		2014			2013			Change
Credit data and quality statistics
Net charge-offs(a)	$	1,102		$	1,330		(17	)%	$	3,576		$	4,510		(21	)%
Nonaccrual loans(b)(c)	6,639			8,029			(17	)	6,639			8,029			(17	)
Nonperforming assets(b)(c)(d)	7,138			8,673			(18	)	7,138			8,673			(18	)
Allowance for loan losses(a)	10,993			13,500			(19	)	10,993			13,500			(19	)
Net charge-off rate(a)	1.12		%	1.35		%			1.23		%	1.53		%
Net charge-off rate,excluding PCI loans	1.28			1.57					1.41			1.79
Allowance for loan losses to period-end loans retained	2.81			3.46					2.81			3.46
Allowance for loan losses to period-end loans retained,excluding PCI loans(e)	2.14			2.54					2.14			2.54
Allowance for loan losses to nonaccrual loans retained, excluding credit card(b)(e)	57			55					57			55
Nonaccrual loans to total period-end loans, excluding credit card (d)	2.51			3.01					2.51			3.01
Nonaccrual loans to total period-end loans, excluding credit card and PCI loans (b)(d)	3.07			3.79					3.07			3.79
Business metrics
Number of:
Branches	5,613			5,652			(1	)	5,613			5,652			(1	)
ATMs(f)	20,513			20,041			2		20,513			20,041			2
Active online customers (in thousands)	35,957			32,916			9		35,957			32,916			9
Active mobile customers (in thousands)	18,351			14,993			22	%	18,351			14,993			22	%

(a) Net charge-offs and the net charge-off rates excluded $87 million and $196 million of write-offs in the PCI portfolio for the three and nine months ended September 30, 2014, respectively. These write-offs decreased the allowance for loan losses for PCI loans. For further information, see Consumer Credit Portfolio on pages 120–129 of JPMorgan Chase’s 2013 Annual Report.

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

(c) At September 30, 2014 and 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.8 billion and $8.9 billion, respectively, that are 90 or more days past due; (2) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $354 million and $456 million, respectively, that are 90 or more days past due; (3) real estate owned (“REO”) insured by U.S. government agencies of $464 million and $1.9 billion, respectively. These amounts have been excluded based upon the government guarantee. For further discussion, see Accounting and reporting developments on page 88 which summarizes the new accounting guidance for certain REO insured by U.S. government agencies.

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

(e) The allowance for loan losses for PCI loans was $3.7 billion and $5.0 billion at September 30, 2014 and 2013, respectively; these amounts were also excluded from the applicable ratios.

(f) Includes eATMs, formerly Express Banking Kiosks (“EBK”). Prior periods were revised to conform with the current presentation.

20

Consumer & Business Banking

Selected financial statement data
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ratios)	2014			2013			Change		2014			2013			Change
Revenue
Lending- and deposit-related fees	$	796		$	770		3	%	$	2,234		$	2,198		2	%
Asset management, administration and commissions	522			465			12		1,512			1,345			12
Card income	409			384			7		1,191			1,111			7
All other income	127			127			—		411			370			11
Noninterest revenue	1,854			1,746			6		5,348			5,024			6
Net interest income	2,786			2,684			4		8,264			7,870			5
Total net revenue	4,640			4,430			5		13,612			12,894			6
Provision for credit losses	75			104			(28	)	217			239			(9	)
Noninterest expense	3,032			3,050			(1	)	9,123			9,133			—
Income before income tax expense	1,533			1,276			20		4,272			3,522			21
Net income	$	914		$	762		20		$	2,548		$	2,101		21
Return on common equity	33		%	27		%			31		%	26		%
Overhead ratio	65			69					67			71
Equity (period-end and average)	$	11,000		$	11,000		—	%	$	11,000		$	11,000		—

Quarterly results

Consumer & Business Banking net income was $914 million, an increase of $152 million, or 20%, compared with the prior year, predominantly due to higher net revenue.

Net revenue was $4.6 billion, up 5% compared with the prior year. Net interest income was $2.8 billion, up 4% compared with the prior year, driven by higher deposit balances, largely offset by deposit spread compression. Noninterest revenue was $1.9 billion, an increase of 6%, driven by higher investment revenue, reflecting record client investment assets, higher deposit-related fees and higher debit card revenue.

Noninterest expense was $3.0 billion, down 1% from the prior year, reflecting lower costs driven by efficiencies implemented in the business, offset by increased cost of controls.

Year-to-date results

Consumer & Business Banking net income was $2.5 billion, an increase of $447 million, or 21%, compared with the prior year, due to higher net revenue.

Net revenue was $13.6 billion, up 6% compared with the prior year. Net interest income was $8.3 billion, up 5% compared with the prior year, driven by higher deposit balances, partially offset by deposit spread compression. Noninterest revenue was $5.3 billion, an increase of 6%, driven by higher investment revenue, reflecting record client investment assets and higher debit card revenue.

Noninterest expense was $9.1 billion, flat from the prior year, reflecting lower costs driven by efficiencies implemented in the business, offset by increased cost of controls.

21

Selected metrics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ratios and where otherwise noted)	2014			2013			Change		2014			2013			Change
Business metrics
Business banking origination volume	$	1,649		$	1,299		27	%	$	5,070		$	3,850		32	%
Period-end loans	20,644			19,029			8		20,644			19,029			8
Period-end deposits:
Checking	203,839			180,858			13		203,839			180,858			13
Savings	251,661			234,315			7		251,661			234,315			7
Time and other	23,304			28,277			(18	)	23,304			28,277			(18	)
Total period-end deposits	478,804			443,450			8		478,804			443,450			8
Average loans	20,382			18,884			8		19,923			18,785			6
Average deposits:
Checking	201,473			177,392			14		196,194			173,894			13
Savings	250,845			231,982			8		247,889			226,982			9
Time and other	23,845			28,728			(17	)	24,712			29,856			(17	)
Total average deposits	476,163			438,102			9		468,795			430,732			9
Deposit margin	2.20		%	2.32		%			2.24		%	2.33		%
Average assets	$	38,089		$	37,308		2		$	38,006		$	36,956		3
Credit data and quality statistics
Net charge-offs	$	75		$	100		(25	)	$	220		$	235		(6	)
Net charge-off rate	1.46		%	2.10		%			1.48		%	1.67		%
Allowance for loan losses	$	703		$	701		—		$	703		$	701		—
Nonperforming assets	304			419			(27	)	304			419			(27	)
Retail branch business metrics
Net new investment assets	$	4,269		$	3,199		33		$	12,834		$	12,400		4
Client investment assets	207,790			178,989			16		207,790			178,989			16
% managed accounts	39		%	34		%			39		%	34		%
Number of:
Chase Private Client locations	2,461			1,948			26		2,461			1,948			26
Personal bankers	20,965			22,961			(9	)	20,965			22,961			(9	)
Sales specialists	4,155			6,269			(34	)	4,155			6,269			(34	)
Client advisors	3,099			3,028			2		3,099			3,028			2
Chase Private Clients	290,662			192,358			51		290,662			192,358			51
Accounts (in thousands)(a)	30,424			29,301			4		30,424			29,301			4
Households (in millions)	25.6			24.9			3	%	25.6			24.9			3	%

(a) Includes checking accounts and Chase Liquid^® cards.

22

Mortgage Banking

Selected financial statement data
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ratios)	2014			2013			Change		2014			2013			Change
Revenue
Mortgage fees and related income	$	902		$	839		8	%	$	2,706		$	4,108		(34	)%
All other income	66			38			74		46			232			(80	)
Noninterest revenue	968			877			10		2,752			4,340			(37	)
Net interest income	1,016			1,143			(11	)	3,087			3,456			(11	)
Total net revenue	1,984			2,020			(2	)	5,839			7,796			(25	)
Provision for credit losses	(19		)	(1,044		)	98		(230		)	(1,899		)	88
Noninterest expense	1,279			1,900			(33	)	3,988			5,540			(28	)
Income before income tax expense	724			1,164			(38	)	2,081			4,155			(50	)
Net income	$	439		$	705		(38	)	$	1,262		$	2,520		(50	)
Return on common equity	10		%	14		%			9		%	17		%
Overhead ratio	64			94					68			71
Equity (period-end and average)	$	18,000		$	19,500		(8	)%	$	18,000		$	19,500		(8	)%

Quarterly results

Mortgage Banking net income was $439 million, a decrease of $266 million from the prior year, driven by a lower benefit from the provision for credit losses, largely offset by lower noninterest expense.

Net revenue was $2.0 billion, a decrease of $36 million compared with the prior year. Net interest income was $1.0 billion, a decrease of $127 million, or 11%, driven by lower warehouse balances, spread compression and lower loan balances due to portfolio runoff. Noninterest revenue was $968 million, an increase of $91 million, driven by a non-recurring gain and higher mortgage fees and related income, partially offset by lower revenue from an exited non-core product.

The provision for credit losses was a benefit of $19 million, compared with a benefit of $1.0 billion in the prior year. The current quarter reflected a $100 million reduction in the allowance for loan losses, reflecting continued improvement in home prices and delinquencies. The prior year included a $1.3 billion reduction in the allowance for loan losses. Net charge-offs were $81 million, compared with $206 million in the prior year.

Noninterest expense was $1.3 billion, a decrease of $621 million, or 33%, from the prior year, due to lower expense in production and servicing reflecting lower headcount.

Year-to-date results

Mortgage Banking net income was $1.3 billion, a decrease of $1.3 billion from the prior year, driven by lower net revenue, a lower benefit from the provision for credit losses, partially offset by lower noninterest expense.

Net revenue was $5.8 billion, a decrease of $2.0 billion compared with the prior year. Net interest income was $3.1 billion, a decrease of $369 million, or 11%, driven by lower warehouse balances. Noninterest revenue was $2.8 billion, a decrease of $1.6 billion, driven by lower mortgage fees and related income.

The provision for credit losses was a benefit of $230 million, compared with a benefit of $1.9 billion in the prior year. The current year reflected a $600 million reduction in the allowance for loan losses, reflecting continued improvement in home prices and delinquencies. The prior year included a $2.9 billion reduction in the allowance for loan losses. Net charge-offs were $370 million, compared with $951 million in the prior year.

Noninterest expense was $4.0 billion, a decrease of $1.6 billion, or 28%, from the prior year, due to lower expense in production and servicing reflecting lower headcount-related expense and lower expense for foreclosure related matters.

23

Functional results
	Three months ended September 30,								Nine months ended September 30,
(in millions, except ratios)	2014			2013			Change		2014			2013			Change
Mortgage Production
Production revenue and other income(a)	$	275		$	438		(37	)%	$	728		$	2,590		(72	)%
Production-related net interest income(a)	118			146			(19	)	296			498			(41	)
Production-related revenue, excluding repurchase (losses)/benefits	393			584			(33	)	1,024			3,088			(67	)
Production expense(b)	381			669			(43	)	1,272			2,099			(39	)
Income, excluding repurchase (losses)/benefits	12			(85		)	NM		(248		)	989			NM
Repurchase (losses)/benefits	62			175			(65	)	327			110			197
Income before income tax expense	74			90			(18	)	79			1,099			(93	)
Mortgage Servicing
Loan servicing revenue and other income(a)	783			841			(7	)	2,518			2,874			(12	)
Servicing-related net interest income(a)	70			75			(7	)	223			133			68
Servicing-related revenue	853			916			(7	)	2,741			3,007			(9	)
Changes in MSR asset fair value due to collection/realization of expected cash flows	(214		)	(284		)	25		(696		)	(827		)	16
Net servicing-related revenue	639			632			1		2,045			2,180			(6	)
Default servicing expense	349			623			(44	)	1,053			1,595			(34	)
Core servicing expense(b)	228			235			(3	)	658			715			(8	)
Servicing expense	577			858			(33	)	1,711			2,310			(26	)
Income/(loss), excluding MSR risk management	62			(226		)	NM		334			(130		)	NM
MSR risk management, including related net interest income/(expense)	76			(180		)	NM		13			(244		)	NM
Income/(loss) before income tax expense	138			(406		)	NM		347			(374		)	NM
Real Estate Portfolios
Noninterest revenue	(14		)	(113		)	88		(138		)	(164		)	16
Net interest income	828			922			(10	)	2,568			2,826			(9	)
Total net revenue	814			809			1		2,430			2,662			(9	)
Provision for credit losses	(19		)	(1,046		)	98		(234		)	(1,910		)	88
Noninterest expense	321			375			(14	)	1,009			1,142			(12	)
Income before income tax expense	512			1,480			(65	)	1,655			3,430			(52	)
Mortgage Banking income before income tax expense	$	724		$	1,164		(38	)	$	2,081		$	4,155		(50	)
Mortgage Banking net income	$	439		$	705		(38	)%	$	1,262		$	2,520		(50	)%
Overhead ratios
Mortgage Production	84		%	88		%			94		%	65		%
Mortgage Servicing	81			190					83			119
Real Estate Portfolios	39			46					42			43

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

(b) Includes provision for credit losses.

24

Quarterly results

Mortgage Production pretax income was $74 million, a decrease of $16 million from the prior year, reflecting lower revenue and lower benefit from repurchase losses, predominantly offset by lower expense. Mortgage production-related revenue, excluding repurchase losses, was $393 million, a decrease of $191 million, from the prior year, primarily on lower volumes. Production expense was $381 million, a decrease of $288 million from the prior year, largely due to lower headcount-related expense.

Mortgage Servicing pretax income was $138 million, compared with a loss of $406 million in the prior year, reflecting lower expenses and higher MSR risk management income. Mortgage net servicing-related revenue was $639 million, an increase of $7 million from the prior year. MSR risk management income was $76 million, compared with a loss of $180 million in the prior year. See Note 16 for further information regarding changes in value of the MSR asset and related hedges. Servicing expense was $577 million, a decrease of $281 million from the prior year due to lower expense for foreclosure related matters and lower headcount-related expense.

Real Estate Portfolios pretax income was $512 million, down $968 million from the prior year, driven by a lower benefit from the provision for credit losses. Net revenue was $814 million, an increase of $5 million from the prior year, driven by higher noninterest revenue resulting from a non-recurring gain, offset by lower net interest income resulting from spread compression and lower loan balances due to portfolio runoff. The provision for credit losses was a benefit of $19 million, compared with a benefit of $1.0 billion in the prior year. The current-quarter provision reflected a $100 million reduction in the non credit-impaired allowance for loan losses, reflecting continued improvement in home prices and delinquencies. The prior-year provision included a $750 million reduction in the purchased credit-impaired allowance for loan losses and $500 million reduction in the non credit-impaired allowance for loan losses. Net charge-offs were $81 million, compared with $204 million in the prior year. See Consumer Credit Portfolio on pages 50–57 for the net charge-off amounts and rates. Noninterest expense was $321 million, a decrease of $54 million, or 14%, compared with the prior year, driven by lower foreclosed asset expense and lower servicing expense on lower default volumes.

Year-to-date results

Mortgage Production pretax income was $79 million, a decrease of $1.0 billion from the prior year, reflecting lower revenue, largely offset by lower expense and higher benefit from repurchase losses. Mortgage production-related revenue, excluding repurchase losses, was $1.0 billion, a decrease of $2.1 billion, from the prior year, primarily on lower volumes. Production expense was $1.3 billion, a decrease of $827 million from the prior year, driven by lower headcount-related expense.

Mortgage Servicing pretax income was $347 million, compared with a loss of $374 million in the prior year, reflecting lower expenses and higher MSR risk management income, partially offset by lower net revenue. Mortgage net servicing-related revenue was $2.0 billion, a decrease of $135 million from the prior year, driven by lower average third-party loans serviced and lower revenue from an exited non-core product, largely offset by lower MSR asset amortization expense as a result of lower MSR asset value and higher gains on excess interest only securities. MSR risk management income was $13 million, compared with a loss of $244 million in the prior year. See Note 16 for further information regarding changes in value of the MSR asset and related hedges. Servicing expense was $1.7 billion, a decrease of $599 million from the prior year, reflecting lower headcount-related expense and lower expense for foreclosure related matters.

Real Estate Portfolios pretax income was $1.7 billion, down $1.8 billion from the prior year, due to a lower benefit from the provision for credit losses and lower net revenue. Net revenue was $2.4 billion, a decrease of $232 million, or 9%, from the prior year, driven by lower net interest income as a result of lower loan balances due to portfolio runoff and spread compression. The provision for credit losses was a benefit of $234 million, compared with a benefit of $1.9 billion in the prior year. The current-year provision reflected a $300 million reduction in the purchased credit-impaired allowance for loan losses and $300 million in the non credit-impaired allowance for loan losses, reflecting continued improvement in home prices and delinquencies. The prior-year provision included a $2.1 billion reduction in the non credit-impaired allowance for loan losses and $750 million reduction in the purchased credit-impaired allowance for loan losses. Net charge-offs were $366 million, compared with $940 million in the prior year. See Consumer Credit Portfolio on pages 50–57 for the net charge-off amounts and rates. Noninterest expense was $1.0 billion, a decrease of $133 million, or 12%, compared with the prior year, driven by lower foreclosed asset expense.

25

Mortgage Production and Mortgage Servicing
Selected metrics
	As of or for the three months ended September 30,							As of or for the nine months ended September 30,
(in millions, except ratios)	2014		2013			Change		2014			2013			Change
Selected balance sheet data (period-end)
Trading assets - loans(a)	$	10,750	$	10,309		4	%	$	10,750		$	10,309		4	%
Loans:
Prime mortgage, including option ARMs(b)	14,625		15,571			(6	)	14,625			15,571			(6	)
Loans held-for-sale	370		138			168		370			138			168
Selected balance sheet data (average)
Trading assets - loans(a)	9,346		13,888			(33	)	7,802			17,727			(56	)
Loans:
Prime mortgage, including option ARMs(b)	15,166		15,878			(4	)	15,347			16,782			(9	)
Loans held-for-sale	525		172			205		390			60			NM
Average assets	42,750		54,870			(22	)	43,236			59,622			(27	)
Repurchase liability (period-end)	362		1,945			(81	)	362			1,945			(81	)
Credit data and quality statistics
Net charge-offs:
Prime mortgage, including option ARMs	—		2			NM		4			11			(64	)
Net charge-off rate:
Prime mortgage, including option ARMs	—		0.05		%			0.03		%	0.09		%
30+ day delinquency rate(c)	2.06		3.16					2.06			3.16
Nonperforming assets(d)(e)	$	424	$	630		(33	)%	$	424		$	630		(33	)%

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

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

(c) At September 30, 2014 and 2013, excluded mortgage loans insured by U.S. government agencies of $9.6 billion and $10.0 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. For further discussion, see Note 13 which summarizes loan delinquency information.

(d) At September 30, 2014 and 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.8 billion and $8.9 billion, respectively, that are 90 or more days past due; and (2) real estate owned (“REO”) insured by U.S. government agencies of $464 million and $1.9 billion, respectively. These amounts have been excluded based upon the government guarantee. For further discussion, see Accounting and reporting developments on page 88 which summarizes the new accounting guidance for certain REO insured by U.S. government agencies and Note 13 which summarizes loan delinquency information.

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

Selected metrics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in billions, except ratios)	2014			2013			Change		2014			2013			Change
Business metrics
Mortgage origination volume by channel
Retail	$	7.9		$	17.7		(55	)%	$	21.8		$	67.2		(68	)%
Correspondent(a)	13.3			22.8			(42	)	33.2			75.0			(56	)
Total mortgage origination volume(b)	$	21.2		$	40.5		(48	)	$	55.0		$	142.2		(61	)
Mortgage application volume by channel
Retail	$	12.8		$	20.7		(38	)	$	43.1		$	92.2		(53	)
Correspondent(a)	17.1			19.7			(13	)	43.0			73.7			(42	)
Total mortgage application volume	$	29.9		$	40.4		(26	)	$	86.1		$	165.9		(48	)
Third-party mortgage loans serviced (period-end)	$	766.3		$	831.1		(8	)	$	766.3		$	831.1		(8	)
Third-party mortgage loans serviced (average)	776.3			831.5			(7	)	793.3			842.0			(6	)
MSR carrying value (period-end)	8.2			9.5			(14	)%	8.2			9.5			(14	)%
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)	1.07		%	1.14		%			1.07		%	1.14		%
Ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average)	0.34			0.38					0.36			0.40
MSR revenue multiple(c)	3.15		x	3.00		x			2.97		x	2.85		x

(a) 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.

26

(b) Firmwide mortgage origination volume was $22.7 billion and $44.2 billion for the three months ended September 30, 2014 and 2013, respectively, and $58.9 billion and $151.3 billion for the nine months ended September 30, 2014 and 2013, respectively.

(c) 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).

Real Estate Portfolios
Selected metrics
	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(in millions)	2014		2013		Change		2014		2013		Change
Loans, excluding PCI
Period-end loans owned:
Home equity	$	52,679	$	59,825	(12	)%	$	52,679	$	59,825	(12	)%
Prime mortgage, including option ARMs	59,343		47,958		24		59,343		47,958		24
Subprime mortgage	5,547		7,376		(25	)	5,547		7,376		(25	)
Other	492		568		(13	)	492		568		(13	)
Total period-end loans owned	$	118,061	$	115,727	2		$	118,061	$	115,727	2
Average loans owned:
Home equity	$	53,560	$	61,005	(12	)	$	55,288	$	63,558	(13	)
Prime mortgage, including option ARMs	57,083		46,177		24		53,673		43,680		23
Subprime mortgage	5,922		7,529		(21	)	6,558		7,834		(16	)
Other	502		579		(13	)	521		598		(13	)
Total average loans owned	$	117,067	$	115,290	2		$	116,040	$	115,670	—
PCI loans
Period-end loans owned:
Home equity	$	17,572	$	19,411	(9	)	$	17,572	$	19,411	(9	)
Prime mortgage	10,887		12,487		(13	)	10,887		12,487		(13	)
Subprime mortgage	3,790		4,297		(12	)	3,790		4,297		(12	)
Option ARMs	16,238		18,564		(13	)	16,238		18,564		(13	)
Total period-end loans owned	$	48,487	$	54,759	(11	)	$	48,487	$	54,759	(11	)
Average loans owned:
Home equity	$	17,806	$	19,677	(10	)	$	18,270	$	20,218	(10	)
Prime mortgage	11,103		12,705		(13	)	11,484		13,124		(12	)
Subprime mortgage	3,843		4,357		(12	)	3,989		4,478		(11	)
Option ARMs	16,503		18,890		(13	)	17,084		19,573		(13	)
Total average loans owned	$	49,255	$	55,629	(11	)	$	50,827	$	57,393	(11	)
Total Real Estate Portfolios
Period-end loans owned:
Home equity	$	70,251	$	79,236	(11	)	$	70,251	$	79,236	(11	)
Prime mortgage, including option ARMs	86,468		79,009		9		86,468		79,009		9
Subprime mortgage	9,337		11,673		(20	)	9,337		11,673		(20	)
Other	492		568		(13	)	492		568		(13	)
Total period-end loans owned	$	166,548	$	170,486	(2	)	$	166,548	$	170,486	(2	)
Average loans owned:
Home equity	$	71,366	$	80,682	(12	)	$	73,558	$	83,776	(12	)
Prime mortgage, including option ARMs	84,689		77,772		9		82,241		76,377		8
Subprime mortgage	9,765		11,886		(18	)	10,547		12,312		(14	)
Other	502		579		(13	)	521		598		(13	)
Total average loans owned	$	166,322	$	170,919	(3	)	$	166,867	$	173,063	(4	)
Average assets	$	163,449	$	163,001	—		$	163,887	$	164,310	—
Home equity origination volume	789		580		36	%	2,246		1,481		52	%

27

Credit data and quality statistics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ratios)	2014			2013			Change		2014			2013			Change
Net charge-offs/(recoveries), excluding PCI loans:(a)
Home equity	$	95		$	218		(56	)%	$	386		$	787		(51	)%
Prime mortgage, including option ARMs	9			(11		)	NM		(10		)	49			NM
Subprime mortgage	(25		)	(4		)	NM		(17		)	96			NM
Other	2			1			100		7			8			(13	)
Total net charge-offs/(recoveries), excluding PCI loans	$	81		$	204		(60	)	$	366		$	940		(61	)
Net charge-off/(recovery) rate, excluding PCI loans:
Home equity	0.70		%	1.42		%			0.93		%	1.66		%
Prime mortgage, including option ARMs	0.06			(0.09		)			(0.02		)	0.15
Subprime mortgage	(1.68		)	(0.21		)			(0.35		)	1.64
Other	1.58			0.69					1.80			1.79
Total net charge-off/(recovery) rate, excluding PCI loans	0.27			0.70					0.42			1.09
Net charge-off/(recovery) rate – reported:(a)
Home equity	0.53		%	1.07		%			0.70		%	1.26		%
Prime mortgage, including option ARMs	0.04			(0.06		)			(0.02		)	0.09
Subprime mortgage	(1.02		)	(0.13		)			(0.22		)	1.04
Other	1.58			0.69					1.80			1.79
Total net charge-off/(recovery) rate – reported	0.19			0.47					0.29			0.73
30+ day delinquency rate, excluding PCI loans(b)	2.85		%	3.81		%			2.85		%	3.81		%
Allowance for loan losses, excluding PCI loans	$	2,268		$	2,768		(18	)	$	2,268		$	2,768		(18	)
Allowance for PCI loans(a)	3,662			4,961			(26	)	3,662			4,961			(26	)
Allowance for loan losses	$	5,930		$	7,729		(23	)	$	5,930		$	7,729		(23	)
Nonperforming assets(c)	6,031			7,385			(18	)%	6,031			7,385			(18	)%
Allowance for loan losses to period-end loans retained	3.56		%	4.53		%			3.56		%	4.53		%
Allowance for loan losses to period-end loans retained, excluding PCI loans	1.92			2.39					1.92			2.39

(a) Net charge-offs and the net charge-off rates excluded $87 million and $196 million of write-offs in the PCI portfolio for the three and nine months ended September 30, 2014, respectively. These write-offs decreased the allowance for loan losses for PCI loans. For further information, see Consumer Credit Portfolio on pages 120–129 of JPMorgan Chase’s 2013 Annual Report.

(b) The 30+ day delinquency rate for PCI loans was 13.69% and 16.19% at September 30, 2014 and 2013, respectively.

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

Mortgage servicing-related matters

The financial crisis resulted in unprecedented levels of delinquencies and defaults of 1-4 family residential real estate loans. Such loans required varying degrees of loss mitigation activities. Foreclosure is usually a last resort, and accordingly, the Firm has made, and continues to make, significant efforts to help borrowers remain in their homes.

The Firm has entered into various Consent Orders and settlements with federal and state governmental agencies and private parties related to mortgage servicing, origination, and residential mortgage-backed securities activities. The requirements of these Consent Orders and settlements vary, but in the aggregate, include cash compensatory payments (in addition to fines) and/or “borrower relief”, that may include principal reductions, refinancing, short sale assistance, and other specified types of borrower relief. Other obligations required under certain Consent Orders and settlements, as well as under new

regulatory requirements, include enhanced mortgage servicing and foreclosure standards and processes. The Firm has satisfied or is committed to satisfying these obligations within the mandated timeframes.

The mortgage servicing Consent Orders and settlements are subject to ongoing oversight by the Mortgage Compliance Committee of the Firm’s Board of Directors. In addition, certain of the Consent Orders and settlements are the subject of ongoing reporting to various regulators and independent overseers.

The Firm’s compliance with the Global Settlement and the RMBS Settlement are detailed in periodic reports published by the independent overseers.

For further information on these settlements and Consent Orders, see Note 2 and Note 31 of JPMorgan Chase’s 2013Annual Report.

28

Card, Merchant Services & Auto (“Card”)

Selected financial statement data
	As of or for the three months ended September 30 ,								As of or for the nine months ended September 30,
(in millions, except ratios)	2014			2013			Change		2014			2013			Change
Revenue
Card income	$	1,068		$	1,075		(1	)%	$	3,120		$	3,155		(1	)%
All other income	324			263			23		896			769			17
Noninterest revenue	1,392			1,338			4		4,016			3,924			2
Net interest income	3,251			3,294			(1	)	9,691			10,098			(4	)
Total net revenue	4,643			4,632			—		13,707			14,022			(2	)
Provision for credit losses	846			673			26		2,583			1,923			34
Noninterest expense	1,994			1,917			4		6,087			5,848			4
Income before income tax expense	1,803			2,042			(12	)	5,037			6,251			(19	)
Net income	$	1,115		$	1,235		(10	)	$	3,037		$	3,756		(19	)
Return on common equity	23		%	32		%			21		%	32		%
Overhead ratio	43			41					44			42
Equity (period-end and average)	$	19,000		$	15,500		23	%	$	19,000		$	15,500		23	%

Quarterly results

Card net income was $1.1 billion, a decrease of $120 million, or 10%, compared with the prior year, predominantly driven by higher provision for credit losses.

Net revenue was $4.6 billion, flat compared with the prior year. Net interest income was $3.3 billion, down $43 million compared with the prior year, driven by spread compression, partially offset by higher loan balances. Noninterest revenue was $1.4 billion, up $54 million compared with the prior year, driven by higher Auto lease income, higher net interchange income and higher annual fee income, predominantly offset by higher amortization of new account origination costs.

The provision for credit losses was $846 million, compared with $673 million in the prior year. The current-quarter provision reflected lower net charge-offs and a $100 million reduction in the allowance for loan losses in Auto and Student. The prior-year provision reflected a $351 million reduction in the allowance for loan losses in Credit Card.

Noninterest expense was $2.0 billion, up $77 million, or 4%, from the prior year, predominantly driven by an accrual related to Home Depot fraud and higher Auto lease depreciation expense.

Year-to-date results

Card net income was $3.0 billion, a decrease of $719 million, or 19%, compared with the prior year, driven by higher provision for credit losses, lower net revenue and higher noninterest expense.

Net revenue was $13.7 billion, down $315 million, or 2%, compared with the prior year. Net interest income was $9.7 billion, down $407 million compared with the prior year, predominantly driven by spread compression. Noninterest revenue was $4.0 billion, up $92 million compared with the prior year, primarily driven by higher net interchange income, higher Auto lease income and higher annual fee income, predominately offset by higher amortization of new account origination costs and lower revenue from an exited non-core product.

The provision for credit losses was $2.6 billion, compared with $1.9 billion in the prior year. The current-year provision reflects lower net charge-offs and a $403 million reduction in the allowance for loan losses. The reduction in the allowance for loan losses is primarily related to a decrease in the asset-specific allowance resulting from increased granularity of the impairment estimates and lower balances related to credit card loans modified in TDRs, run-off in the student loan portfolio and lower estimated losses in auto loans. The prior-year provision included a $1.4 billion reduction in the allowance for loan losses.

Noninterest expense was $6.1 billion, up $239 million, or 4%, from the prior year primarily driven by higher Auto lease depreciation expense and investments in controls.

29

Selected metrics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ratios and where otherwise noted)	2014			2013			Change		2014			2013			Change
Selected balance sheet data (period-end)
Loans:
Credit Card	$	126,959		$	123,982		2	%	$	126,959		$	123,982		2	%
Auto	52,778			50,810			4		52,778			50,810			4
Student	9,661			10,777			(10	)	9,661			10,777			(10	)
Total loans	$	189,398		$	185,569		2		$	189,398		$	185,569		2
Selected balance sheet data (average)
Total assets	$	202,833		$	198,702		2		$	201,775		$	197,427		2
Loans:
Credit Card	126,107			123,912			2		124,360			123,445			1
Auto	52,666			50,432			4		52,741			50,386			5
Student	9,837			10,907			(10	)	10,145			11,178			(9	)
Total loans	$	188,610		$	185,251		2		$	187,246		$	185,009		1
Business metrics
Credit Card, excluding Commercial Card
Sales volume (in billions)	$	119.5		$	107.0		12		$	342.0		$	306.9		11
New accounts opened	2.2			1.7			29		6.4			4.9			31
Open accounts	65.5			65.0			1		65.5			65.0			1
Accounts with sales activity	32.1			30.0			7		32.1			30.0			7
% of accounts acquired online	56		%	53		%			54		%	53		%
Merchant Services (Chase Paymentech Solutions)
Merchant processing volume (in billions)	$	213.3		$	185.9		15		$	617.7		$	546.7		13
Total transactions (in billions)	9.4			8.9			6		27.8			26.0			7
Auto
Origination volume (in billions)	$	6.8		$	6.4		6	%	$	20.6		$	19.7		5	%

30

Selected metrics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ratios)	2014			2013			Change		2014			2013			Change
Credit data and quality statistics
Net charge-offs:
Credit Card	$	798		$	892		(11	)%	$	2,571		$	2,988		(14	)%
Auto	50			44			14		120			107			12
Student	98			88			11		295			229			29
Total net charge-offs	$	946		$	1,024		(8	)	$	2,986		$	3,324		(10	)
Net charge-off rate:
Credit Card(a)	2.52		%	2.86		%			2.77		%	3.24		%
Auto	0.38			0.35					0.30			0.28
Student	3.95			3.20					3.89			2.74
Total net charge-off rate	1.99			2.19					2.14			2.40
Delinquency rates
30+ day delinquency rate:
Credit Card(b)	1.43			1.69					1.43			1.69
Auto	0.97			0.93					0.97			0.93
Student(c)	2.43			2.60					2.43			2.60
Total 30+ day delinquency rate	1.35			1.53					1.35			1.53
90+ day delinquency rate – Credit Card(b)	0.67			0.79					0.67			0.79
Nonperforming assets(d)	$	379		$	239		59		$	379		$	239		59
Allowance for loan losses:
Credit Card	$	3,590		$	4,097		(12	)	$	3,590		$	4,097		(12	)
Auto & Student	750			953			(21	)	750			953			(21	)
Total allowance for loan losses	$	4,340		$	5,050		(14	)%	$	4,340		$	5,050		(14	)%
Allowance for loan losses to period-end loans:
Credit Card(b)	2.84		%	3.31		%			2.84		%	3.31		%
Auto & Student	1.20			1.55					1.20			1.55
Total allowance for loan losses to period-end loans	2.30			2.73					2.30			2.73

(a) Average credit card loans included loans held-for-sale of $335 million for the three months ended September 30, 2014 and $352 million for the nine months ended September 30, 2014. Average credit card loans included loans held-for-sale of $67 million for the three months ended September 30, 2013 and $23 million for the nine months ended September 30, 2013. These amounts are excluded when calculating the net charge-off rate.

(b) Period-end credit card loans included loans held-for-sale of $395 million and $310 million at September 30, 2014 and 2013, respectively. These amounts were 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 $640 million and $769 million at September 30, 2014 and 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 $354 million and $456 million at September 30, 2014 and 2013, respectively, that are 90 or more days past due. These amounts have been excluded from nonaccrual loans based upon the government guarantee.

Card Services supplemental information
	Three months ended September 30,								Nine months ended September 30,
(in millions, except ratios)	2014			2013			Change		2014			2013			Change
Revenue
Noninterest revenue	$	991		$	994		—		$	2,857		$	2,926		(2)%
Net interest income	2,846			2,824			1		8,439			8,657			(3)
Total net revenue	3,837			3,818			—		11,296			11,583			(2)
Provision for credit losses	798			542			47		2,371			1,588			49
Noninterest expense	1,494			1,458			2		4,584			4,496			2
Income before income tax expense	1,545			1,818			(15	)	4,341			5,499			(21)
Net income	$	961		$	1,102		(13	)%	$	2,622		$	3,308		(21)%
Percentage of average loans:
Noninterest revenue	3.12		%	3.18		%			3.07		%	3.17		%
Net interest income	8.95			9.04					9.07			9.38
Total net revenue	12.07			12.22					12.14			12.55

31

CORPORATE & INVESTMENT BANK

For a discussion of the business profile of CIB, see pages 98–102 of JPMorgan Chase’s 2013 Annual Report.

Selected income statement data
	Three months ended September 30,								Nine months ended September 30,
(in millions, except ratios)	2014			2013			Change		2014			2013			Change
Revenue
Investment banking fees	$	1,542		$	1,510		2	%	$	4,759		$	4,660		2	%
Principal transactions(a)	2,567			2,202			17		8,235			9,451			(13	)
Lending- and deposit-related fees	424			471			(10	)	1,317			1,430			(8	)
Asset management, administration and commissions	1,141			1,128			1		3,506			3,584			(2	)
All other income	468			392			19		1,092			1,106			(1	)
Noninterest revenue	6,142			5,703			8		18,909			20,231			(7	)
Net interest income	2,645			2,486			6		7,475			7,974			(6	)
Total net revenue(b)	8,787			8,189			7		26,384			28,205			(6	)
Provision for credit losses	(67		)	(218		)	(69)		(102		)	(213		)	(52)
Noninterest expense
Compensation expense	2,805			2,330			20		8,432			8,694			(3	)
Noncompensation expense	3,230			2,669			21		9,265			8,158			14
Total noninterest expense	6,035			4,999			21		17,697			16,852			5
Income before income tax expense	2,819			3,408			(17	)	8,789			11,566			(24	)
Income tax expense	1,334			1,168			14		3,362			3,878			(13	)
Net income	$	1,485		$	2,240		(34	)%	$	5,427		$	7,688		(29	)%
Financial ratios
Return on common equity(c)	10		%	16		%			12		%	18		%
Overhead ratio(d)	69			61					67			60
Compensation expense as a percentage of total net revenue(e)	32			28					32			31

(a) Included FVA (effective fourth quarter 2013) and debt valuation adjustments ("DVA") on OTC derivatives and structured notes, measured at fair value. Net FVA and DVA gains were $373 million for the three months ended September 30, 2014, and $516 million for the nine months ended September 30, 2014. DVA gains/(losses) were $(397) million for the three months ended September 30, 2013, and $84 million for the nine months ended September 30, 2013. Results are presented net of associated hedging activities.

(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 $611 million and $537 million for the three months ended September 30, 2014 and 2013, respectively, and $1.8 billion and $1.6 billion for the nine months ended September 30, 2014 and 2013, respectively.

(c) Return on equity excluding DVA, a non-GAAP financial measure, was 17% and 18% for the three and nine months ended September 30, 2013, respectively.

(d) Overhead ratio excluding DVA, a non-GAAP financial measure, was 58% and 60% for the three and nine months ended September 30, 2013, respectively.

(e) Compensation expense as a percentage of total net revenue excluding DVA, a non-GAAP financial measure, was 27% and 31% for the three and nine months ended September 30, 2013, respectively.

Note: Prior to January 1, 2014, CIB provided several non-GAAP financial measures excluding the impact of implementing the funding valuation adjustment (“FVA”) framework (effective fourth quarter 2013) and DVA on: net revenue, net income, overhead ratio, compensation ratio and return on equity. Beginning in the first quarter 2014, the Firm did 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.

32

Selected income statement data
	Three months ended September 30,							Nine months ended September 30,
(in millions)	2014		2013			Change		2014		2013			Change
Revenue by business
Advisory	$	413	$	322		28	%	$	1,193	$	881		35	%
Equity underwriting	414		333			24		1,244		1,063			17
Debt underwriting	715		855			(16	)	2,322		2,716			(15	)
Total investment banking fees	1,542		1,510			2		4,759		4,660			2
Treasury Services	1,037		1,053			(2	)	3,058		3,148			(3	)
Lending	147		351			(58	)	728		1,222			(40	)
Total Banking	2,726		2,914			(6	)	8,545		9,030			(5	)
Fixed Income Markets	3,512		3,439			2		10,754		12,269			(12	)
Equity Markets	1,231		1,249			(1	)	3,691		3,885			(5	)
Securities Services	1,078		996			8		3,226		3,057			6
Credit Adjustments & Other(a)	240		(409		)	NM		168		(36		)	NM
Total Markets & Investor Services	6,061		5,275			15		17,839		19,175			(7	)
Total net revenue	$	8,787	$	8,189		7	%	$	26,384	$	28,205		(6	)%

(a) 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.

Quarterly results

Net income was $1.5 billion, down 34%, compared with $2.2 billion in the prior year reflecting higher noninterest expense and a lower benefit from the provision for credit losses, largely offset by higher net revenue. Net revenue was $8.8 billion compared with $8.2 billion in the prior year. Excluding the impact of a DVA loss of $397 million in the prior year, net revenue was up 2% from $8.6 billion and net income was down 40% from $2.5 billion.

Banking revenue was $2.7 billion, down 6% from the prior year. Investment banking fees were $1.5 billion, up 2% from the prior year, driven by higher advisory fees of $413 million, up 28% from the prior year, and by higher equity underwriting fees of $414 million, up 24% from the prior year, on higher levels of industry-wide activity. These increases were predominantly offset by lower debt underwriting fees of $715 million, down 16% from a strong prior year. Treasury Services revenue was $1.0 billion, down 2% compared with the prior year, driven by lower trade finance revenue and the impact of business simplification initiatives, predominantly offset by higher net interest income on increased deposits. Lending revenue was $147 million, down from $351 million in the prior year, primarily driven by losses of over $100 million on securities received from restructured loans, compared to modest gains in the prior period.

Markets & Investor Services revenue was $6.1 billion, up 15% from the prior year. Fixed Income Markets revenue of $3.5 billion was up 2% from the prior year with particularly strong performance in currencies and emerging markets. Equity Markets revenue of $1.2 billion was down 1% compared with the prior year, primarily on lower derivatives revenue compared to a strong prior year largely offset by higher prime services revenue. Securities Services revenue was $1.1 billion, up 8% from the prior year primarily driven

by higher net interest income on increased deposits and higher fees and commissions. Credit Adjustments & Other revenue was a gain of $240 million, primarily driven by DVA/FVA as a result of credit spread widening and refinements to certain funding assumptions, compared with a loss of $409 million in the prior year which was primarily driven by DVA.

Noninterest expense was $6.0 billion, up 21% from the prior year, driven by higher legal expense and higher compensation expense. The ratio of compensation expense to total net revenue was 32%.

Return on equity was 10% on $61.0 billion of average allocated capital.

Year-to-date results

Net income was $5.4 billion, down 29% compared with $7.7 billion in the prior year. These results primarily reflected lower revenue, higher noninterest expense as well as a lower benefit from the provision for credit losses. Net revenue was $26.4 billion compared with $28.2 billion in the prior year.

Banking revenue was $8.5 billion, down 5% from the prior year. Investment banking fees were $4.8 billion, up 2% from the prior year. The increase was driven by higher advisory and equity underwriting fees, predominantly offset by lower debt underwriting fees. Advisory fees of $1.2 billion were up 35% on stronger revenue wallet share of completed transactions as well as growth in the industry-wide revenue wallet. Equity underwriting fees of $1.2 billion were up 17% on stronger industry-wide issuance. Debt underwriting fees were $2.3 billion, down 15%, primarily related to lower loan syndication fees on lower industry-wide revenue wallet levels and lower bond underwriting revenues compared with a stronger prior period. Treasury Services revenue was $3.1 billion, down

33

3% compared with the prior year, primarily driven by lower trade finance revenue as well as the impact of business simplification initiatives, partially offset by higher net interest income from increased deposits. Lending revenue was $728 million, down from $1.2 billion in the prior year, driven by losses on securities received from restructured loans compared to gains in the prior period, as well as lower net interest income.

Markets & Investor Services revenue was $17.8 billion, down 7% from the prior year. Fixed income Markets revenue of $10.8 billion was down 12% from the prior year on lower client activity across most products compared to a stronger prior period. Equity Markets revenue of $3.7 billion was down 5% primarily on lower derivatives revenue, partially offset by higher prime services revenue. Securities Services revenue was $3.2 billion, up 6% from

the prior year, primarily driven by higher net interest income on increased deposits and higher fees and commissions. Credit Adjustments & Other revenue was a gain of $168 million driven by gains, net of hedges, related to FVA/DVA, partially offset by net CVA losses, compared with a loss of $36 million in the prior year.

Noninterest expense was $17.7 billion, up 5% versus the prior year driven by higher noncompensation expense, predominantly driven by higher legal expense and investment in controls. This was partially offset by lower compensation expense. The compensation expense to net revenue ratio was 32%.

Return on equity was 12% on $61.0 billion of average allocated capital.

Selected metrics
	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(in millions, except headcount)	2014		2013		Change		2014		2013		Change
Selected balance sheet data (period-end)
Assets	$	874,321	$	867,474	1	%	$	874,321	$	867,474	1	%
Loans:
Loans retained(a)	95,608		104,269		(8	)	95,608		104,269		(8	)
Loans held-for-sale and loans at fair value	6,724		3,687		82		6,724		3,687		82
Total loans	102,332		107,956		(5	)	102,332		107,956		(5	)
Equity	61,000		56,500		8		61,000		56,500		8
Selected balance sheet data (average)
Assets	$	853,453	$	838,158	2		$	850,362	$	862,357	(1	)
Trading assets-debt and equity instruments	320,380		300,135		7		314,577		326,037		(4	)
Trading assets-derivative receivables	63,068		70,814		(11	)	62,235		71,319		(13	)
Loans:
Loans retained(a)	95,373		103,179		(8	)	95,972		105,862		(9	)
Loans held-for-sale and loans at fair value	8,018		5,113		57		8,331		5,438		53
Total loans	103,391		108,292		(5	)	104,303		111,300		(6	)
Equity	61,000		56,500		8		61,000		56,500		8
Headcount	51,597		52,445		(2	)%	51,597		52,445		(2	)%

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

34

Selected metrics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ratios and where otherwise noted)	2014			2013			Change		2014			2013			Change
Credit data and quality statistics
Net charge-offs/(recoveries)	$	(3	)	$	(4	)	25	%	$	(8	)	$	(67	)	88	%
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained(a)(b)	112			176			(36	)	112			176			(36	)
Nonaccrual loansheld-for-sale and loans at fair value	119			210			(43	)	119			210			(43	)
Total nonaccrual loans	231			386			(40	)	231			386			(40	)
Derivative receivables	312			431			(28	)	312			431			(28	)
Assets acquired in loan satisfactions	67			38			76		67			38			76
Total nonperforming assets	610			855			(29	)	610			855			(29	)
Allowance for credit losses:
Allowance for loan losses	1,083			1,138			(5	)	1,083			1,138			(5	)
Allowance for lending-related commitments	445			490			(9	)	445			490			(9	)
Total allowance for credit losses	1,528			1,628			(6	)	1,528			1,628			(6	)
Net charge-off/(recovery) rate(a)	(0.01		)%	(0.02		)%			(0.01		)%	(0.08		)%
Allowance for loan losses to period-end loans retained(a)	1.13			1.09					1.13			1.09
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits(c)	1.88			2.01					1.88			2.01
Allowance for loan losses to nonaccrual loans retained(a)(b)	967			647					967			647
Nonaccrual loans to total period-end loans	0.23			0.36					0.23			0.36
Business metrics
Assets under custody (“AUC”) by asset class (period-end)   (in billions):
Fixed Income	$	12,525		$	11,691		7		$	12,525		$	11,691		7
Equity	7,037			6,473			9		7,037			6,473			9
Other(d)	1,683			1,572			7		1,683			1,572			7
Total AUC	$	21,245		$	19,736		8		$	21,245		$	19,736		8
Client deposits and other third party liabilities (average)	$	419,576		$	385,952		9		$	411,824		$	370,879		11
Trade finance loans (period-end)	27,510			34,356			(20	)%	27,510			34,356			(20	)%

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

(b) Allowance for loan losses of $19 million and $56 million were held against these nonaccrual loans at September 30, 2014 and 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.

(d) Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts.

35

League table results – revenue wallet(a)
	Nine months ended September 30, 2014			Full-year 2013
	Share		Rank	Share		Rank
Debt, equity and equity-related
Global	7.5	%	1	8.3	%	#1
U.S.	10.5		1	11.5		1
Long-term debt(b)
Global	7.7		1	8.2		1
U.S.	11.3		2	11.6		1
Equity and equity-related
Global(c)	7.2		3	8.4		2
U.S.	9.7		2	11.3		1
M&A(d)
Global	8.1		2	7.6		2
U.S.	10.1		2	8.8		2
Loan syndications
Global	9.5		1	9.9		1
U.S.	13.2		1	13.8		1
Global investment banking revenue wallet(e)	8.0		1	8.5		1

League table results – volumes(f)
	Nine months ended September 30, 2014			Full-year 2013
	Share		Rank	Share		Rank
Debt, equity and equity-related
Global	6.7	%	1	7.3	%	#1
U.S.	11.4		1	11.9		1
Long-term debt(b)
Global	6.5		1	7.2		1
U.S.	10.9		1	11.7		1
Equity and equity-related
Global(c)	7.9		2	8.2		2
U.S.	11.3		2	12.1		2
M&A announced(d)
Global	20.8		4	23.2		2
U.S.	27.8		3	35.5		2
Loan syndications
Global	10.7		1	9.9		1
U.S.	19.6		1	17.6		1

(a) Source: Dealogic. Reflects the ranking of revenue wallet share.

(b) Long-term debt rankings include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, asset-backed securities (“ABS”) and mortgage-backed securities; and exclude money market, short-term debt, and U.S. municipal securities.

(c) Global equity and equity-related rankings include rights offerings and Chinese A-Shares.

(d) M&A and Announced M&A rankings reflect the removal of any withdrawn transactions. U.S. M&A revenue wallet represents wallet from client parents based in the U.S. U.S. announced M&A volumes represents any U.S. involvement ranking.

(e) Global investment banking revenue wallet rankings exclude money market, short-term debt and shelf deals.

(f) Source: Dealogic. Reflects transaction volume and market share. Global announced M&A is based on transaction value at announcement; because of joint M&A assignments, M&A market share of all participants will add up to more than 100%. All other transaction volume-based rankings are based on proceeds, with full credit to each book manager/equal if joint.

36

International metrics
	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(in millions, except where otherwise noted)	2014		2013		Change		2014		2013		Change
Total net revenue(a)
Europe/Middle East/Africa	$	2,955	$	2,550	16	%	$	9,309	$	8,888	5	%
Asia/Pacific	1,215		1,295		(6	)	3,346		3,863		(13	)
Latin America/Caribbean	333		264		26		887		1,061		(16	)
Total international net revenue	4,503		4,109		10		13,542		13,812		(2	)
North America	4,284		4,080		5		12,842		14,393		(11	)
Total net revenue	$	8,787	$	8,189	7		$	26,384	$	28,205	(6	)
Loans (period-end)(a)
Europe/Middle East/Africa	$	25,742	$	30,495	(16	)	$	25,742	$	30,495	(16	)
Asia/Pacific	22,960		26,653		(14	)	22,960		26,653		(14	)
Latin America/Caribbean	9,508		9,172		4		9,508		9,172		4
Total international loans	58,210		66,320		(12	)	58,210		66,320		(12	)
North America	37,398		37,949		(1	)	37,398		37,949		(1	)
Total loans	$	95,608	$	104,269	(8	)	$	95,608	$	104,269	(8	)
Client deposits and other third-party liabilities (average)(a)
Europe/Middle East/Africa	$	157,436	$	146,685	7		$	150,653	$	140,320	7
Asia/Pacific	70,840		51,895		37		65,751		51,852		27
Latin America/Caribbean	21,438		15,760		36		22,364		14,331		56
Total international	$	249,714	$	214,340	17		$	238,768	$	206,503	16
North America	169,862		171,612		(1	)	173,056		164,376		5
Total client deposits and other third-party liabilities	$	419,576	$	385,952	9		$	411,824	$	370,879	11
AUC (period-end) (in billions)(a)
North America	$	11,690	$	10,939	7		$	11,690	$	10,939	7
All other regions	9,555		8,797		9		9,555		8,797		9
Total AUC	$	21,245	$	19,736	8	%	$	21,245	$	19,736	8	%

(a) Total net revenue is based predominantly on the domicile of the client or location of the trading desk, as applicable. Loans outstanding (excluding loans held-for-sale and loans at fair value), client deposits and other third-party liabilities, and AUC are based predominantly on the domicile of the client.

37

COMMERCIAL BANKING

For a discussion of the business profile of CB, see pages 103–105 of JPMorgan Chase’s 2013 Annual Report.

Selected income statement data
	Three months ended September 30,								Nine months ended September 30,
(in millions, except ratios)	2014			2013			Change		2014			2013			Change
Revenue
Lending- and deposit-related fees	$	241		$	256		(6	)%	$	739		$	780		(5	)%
Asset management, administration and commissions	21			28			(25	)	70			90			(22	)
All other income(a)	309			304			2		897			804			12
Noninterest revenue	571			588			(3	)	1,706			1,674			2
Net interest income	1,096			1,137			(4	)	3,313			3,452			(4	)
Total net revenue(b)	1,667			1,725			(3	)	5,019			5,126			(2	)
Provision for credit losses	(79		)	(41		)	93		(141		)	42			NM
Noninterest expense
Compensation expense	301			288			5		900			863			4
Noncompensation expense	366			367			—		1,118			1,076			4
Amortization of intangibles	1			6			(83	)	11			18			(39	)
Total noninterest expense	668			661			1		2,029			1,957			4
Income before income tax expense	1,078			1,105			(2	)	3,131			3,127			—
Income tax expense	429			440			(3	)	1,246			1,245			—
Net income	$	649		$	665		(2	)	$	1,885		$	1,882		—
Revenue by product
Lending	$	847		$	922		(8	)	$	2,587		$	2,817		(8	)
Treasury services	612			605			1		1,849			1,817			2
Investment banking	166			155			7		478			405			18
Other	42			43			(2	)	105			87			21
Total Commercial Banking net revenue	$	1,667		$	1,725		(3	)	$	5,019		$	5,126		(2	)
Investment banking revenue, gross(c)	$	501		$	448		12		$	1,429		$	1,174		22
Revenue by client segment
Middle Market Banking	$	684		$	745		(8	)	$	2,091		$	2,275		(8	)
Corporate Client Banking	480			459			5		1,403			1,336			5
Commercial Term Lending	303			311			(3	)	918			917			—
Real Estate Banking	121			118			3		366			343			7
Other	79			92			(14	)	241			255			(5	)
Total Commercial Banking net revenue	$	1,667		$	1,725		(3	)%	$	5,019		$	5,126		(2	)%
Financial ratios
Return on common equity	18%			20		%			18		%	19		%
Overhead ratio	40			38					40			38

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

(b) 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 $108 million and $95 million for the three months endedSeptember 30, 2014 and 2013, respectively, and $317 million and $278 million for the nine months endedSeptember 30, 2014 and 2013, respectively.

(c) Represents the total revenue related to investment banking products sold to CB clients.

38

Quarterly results

Net income was $649 million, down 2% compared with the prior year, reflecting lower net revenue, largely offset by a lower provision for credit losses.

Net revenue was $1.7 billion, a decrease of $58 million, or 3%, compared with the prior year. Net interest income was $1.1 billion, a decrease of $41 million, or 4%, compared with the prior year, reflecting yield compression and lower purchase discounts recognized on loan repayments, largely offset by higher loan balances. Noninterest revenue was $571 million, a decrease of $17 million, or 3%, compared with the prior year, driven by business simplification and lower fees related to loans and deposits, partially offset by higher investment banking revenue.

Noninterest expense was $668 million, flat compared with the prior year.

Year-to-date results

Net income was $1.9 billion, flat compared with the prior year, reflecting lower net revenue and higher noninterest expense, offset by a lower provision for credit losses.

Net revenue was $5.0 billion, a decrease of $107 million, or 2%, compared with the prior year. Net interest income was $3.3 billion, a decrease of $139 million, or 4%, reflecting yield compression and lower purchase discounts recognized on loan repayments, partially offset by higher loan balances. Noninterest revenue was $1.7 billion, up $32 million, or 2%, reflecting higher investment banking revenue, largely offset by business simplification, and lower fees related to loans and deposits.

Noninterest expense was $2.0 billion, an increase of $72 million, or 4%, from the prior year, largely reflecting higher investments in controls.

Selected metrics
	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(in millions, except headcount)	2014		2013		Change		2014		2013		Change
Selected balance sheet data (period-end)
Total assets	$	191,563	$	192,194	—		$	191,563	$	192,194	—
Loans:
Loans retained	143,490		133,090		8		143,490		133,090		8
Loans held-for-sale and loans at fair value	353		2,071		(83	)	353		2,071		(83	)
Total loans	$	143,843	$	135,161	6		$	143,843	$	135,161	6
Equity	14,000		13,500		4		14,000		13,500		4
Period-end loans by client segment
Middle Market Banking	$	53,015	$	52,214	2		$	53,015	$	52,214	2
Corporate Client Banking	21,138		21,425		(1	)	21,138		21,425		(1	)
Commercial Term Lending	52,235		47,612		10		52,235		47,612		10
Real Estate Banking	12,818		10,057		27		12,818		10,057		27
Other	4,637		3,853		20		4,637		3,853		20
Total Commercial Banking loans	$	143,843	$	135,161	6		$	143,843	$	135,161	6
Selected balance sheet data (average)
Total assets	$	190,678	$	185,744	3		$	191,922	$	184,450	4
Loans:
Loans retained	142,139		131,019		8		139,566		129,958		7
Loans held-for-sale and loans at fair value	649		599		8		889		883		1
Total loans	$	142,788	$	131,618	8		$	140,455	$	130,841	7
Client deposits and other third-party liabilities	204,654		196,802		4		202,532		196,004		3
Equity	14,000		13,500		4		14,000		13,500		4
Average loans by client segment
Middle Market Banking	$	52,704	$	51,379	3		$	52,407	$	51,863	1
Corporate Client Banking	21,752		20,261		7		21,345		20,886		2
Commercial Term Lending	51,567		46,656		11		50,479		45,206		12
Real Estate Banking	12,268		9,675		27		11,803		9,213		28
Other	4,497		3,647		23		4,421		3,673		20
Total Commercial Banking loans	$	142,788	$	131,618	8		$	140,455	$	130,841	7
Headcount	7,253		6,761		7	%	7,253		6,761		7	%

39

Selected metrics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ratios)	2014			2013			Change		2014			2013			Change
Credit data and quality statistics
Net charge-offs/(recoveries)	$	5		$	16		(69	)%	$	(35	)	$	18		NM
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained(a)	361			558			(35	)	361			558			(35	)%
Nonaccrual loans held-for-sale and loans at fair value	14			8			75		14			8			75
Total nonaccrual loans	375			566			(34	)	375			566			(34	)
Assets acquired in loan satisfactions	11			19			(42	)	11			19			(42	)
Total nonperforming assets	386			585			(34	)	386			585			(34	)
Allowance for credit losses:
Allowance for loan losses	2,529			2,647			(4	)	2,529			2,647			(4	)
Allowance for lending-related commitments	178			171			4		178			171			4
Total allowance for credit losses	2,707			2,818			(4	)%	2,707			2,818			(4	)%
Net charge-off/(recovery) rate(b)	0.01		%	0.05		%			(0.03		)%	0.02		%
Allowance for loan losses to period-end loansretained	1.76			1.99					1.76			1.99
Allowance for loan losses to nonaccrual loans retained(a)	701			474					701			474
Nonaccrual loans to total period-end loans	0.26			0.42					0.26			0.42

(a) Allowance for loan losses of $71 million and $102 million was held against nonaccrual loans retained at September 30, 2014 and 2013, respectively.

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

40

ASSET MANAGEMENT

For a discussion of the business profile of AM, see pages 106–108 of JPMorgan Chase’s 2013 Annual Report.

Selected income statement data
	Three months ended September 30,								Nine months ended September 30,
(in millions, except ratios)	2014			2013			Change		2014			2013			Change
Revenue
Asset management, administration and commissions	$	2,263		$	2,017		12	%	$	6,605		$	5,918		12	%
All other income	159			168			(5	)	415			517			(20	)
Noninterest revenue	2,422			2,185			11		7,020			6,435			9
Net interest income	594			578			3		1,730			1,706			1
Total net revenue	3,016			2,763			9		8,750			8,141			7
Provision for credit losses	9			—			NM		1			44			(98	)
Noninterest expense
Compensation expense	1,278			1,207			6		3,765			3,532			7
Noncompensation expense	784			774			1		2,394			2,174			10
Amortization of intangibles	19			22			(14	)	59			65			(9	)
Total noninterest expense	2,081			2,003			4		6,218			5,771			8
Income before income tax expense	926			760			22		2,531			2,326			9
Income tax expense	354			284			25		966			863			12
Net income	$	572		$	476		20		$	1,565		$	1,463		7
Revenue by line of business
Global Investment Management	$	1,595		$	1,409		13		$	4,550		$	4,128		10
Global Wealth Management	1,421			1,354			5		4,200			4,013			5
Total net revenue	$	3,016		$	2,763		9	%	$	8,750		$	8,141		7	%
Financial ratios
Return on common equity	25		%	21		%			23		%	22		%
Overhead ratio	69			72					71			71
Pretax margin ratio:
Global Investment Management	35			30					31			30
Global Wealth Management	26			25					27			27
Asset Management	31			28					29			29

Quarterly results

Net income was $572 million, an increase of $96 million, or 20%, from the prior year, reflecting higher net revenue, partially offset by higher noninterest expense.

Net revenue was $3.0 billion, an increase of $253 million , or 9%, from the prior year. Noninterest revenue was $2.4 billion, up $237 million, or 11%, from the prior year, due to net client inflows and the effect of higher market levels. Net interest income was $594 million, up $16 million, or 3%, from the prior year, due to higher loan and deposit balances, partially offset by spread compression.

Noninterest expense was $2.1 billion, an increase of $78 million, or 4%, from the prior year, as the business continues to invest in both infrastructure and controls.

Year-to-date results

Net income was $1.6 billion, an increase of $102 million, or 7%, from the prior year, reflecting higher noninterest revenue and lower provision for credit losses, largely offset by higher noninterest expense.

Net revenue was $8.8 billion, an increase of $609 million, or 7%, from the prior year. Noninterest revenue was $7.0 billion, up $585 million, or 9%, from the prior year, due to net client inflows and the effect of higher market levels, partially offset by lower valuations of seed capital investments. Net interest income was $1.7 billion, up $24 million, or 1%, from the prior year, due to higher deposit and loan balances, largely offset by spread compression.

Noninterest expense was $6.2 billion, an increase of $447 million, or 8%, from the prior year, as the business continues to invest in both infrastructure and controls.

41

Selected metrics	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except headcount, ranking data and where otherwise noted)	2014			2013			Change		2014			2013			Change
Number of:
Client advisors	2,873			2,995			(4	)%	2,873			2,995			(4	)%
% of customer assets in 4 & 5 Star Funds(a)	49		%	55		%			49		%	55		%
% of AUM in 1st and 2nd quartiles:(b)
1 year	54			73					54			73
3 years	69			74					69			74
5 years	71			74					71			74
Selected balance sheet data (period-end)
Total assets	$	130,296		$	117,475		11		$	130,296		$	117,475		11
Loans(c)	102,411			90,538			13		102,411			90,538			13
Deposits	150,268			139,553			8		150,268			139,553			8
Equity	9,000			9,000			—		9,000			9,000			—
Selected balance sheet data (average)
Total assets	$	128,477		$	114,275		12		$	125,567		$	111,229		13
Loans	101,427			87,770			16		98,615			83,826			18
Deposits	151,240			138,742			9		149,480			138,251			8
Equity	9,000			9,000			—		9,000			9,000			—
Headcount	19,653			19,928			(1	)%	19,653			19,928			(1	)%

(a) Derived from Morningstar for the U.S., the U.K., Luxembourg, France, Hong Kong and Taiwan; and Nomura for Japan.

(b) Quartile ranking sourced from: Lipper for the U.S. and Taiwan; Morningstar for the U.K., Luxembourg, France and Hong Kong; and Nomura for Japan.

(c) Included $21.3 billion and $17.5 billion of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at September 30, 2014 and 2013, respectively. For the same periods, excluded $3.0 billion and $4.0 billion of prime mortgage loans reported in the Chief Investment Office (“CIO”) portfolio within the Corporate/Private Equity segment, respectively.

Selected metrics	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ratios and where otherwise noted)	2014			2013			Change		2014		2013			Change
Credit data and quality statistics
Net charge-offs	$	11		$	9		22	%	$	3	$	36		(92	)%
Nonaccrual loans	184			202			(9	)	184		202			(9	)
Allowance for credit losses:
Allowance for loan losses	273			260			5		273		260			5
Allowance for lending-related commitments	4			7			(43	)	4		7			(43	)
Total allowance for credit losses	277			267			4		277		267			4
Net charge-off rate	0.04		%	0.04		%			—		0.06		%
Allowance for loan losses to period-end loans	0.27			0.29					0.27		0.29
Allowance for loan losses to nonaccrual loans	148			129					148		129
Nonaccrual loans to period-end loans	0.18			0.22					0.18		0.22
AM firmwide disclosures(a)
Total net revenue	$	3,695		$	3,300		12		$	10,688	$	9,638		11
Client assets (in billions)(b)	2,554			2,423			5		2,554		2,423			5
Number of client advisors	5,972			6,023			(1	)%	5,972		6,023			(1	)%

(a) Includes Chase Wealth Management (“CWM”), which is a unit of Consumer & Business Banking. The firmwide metrics are presented in order to capture AM’s partnership with CWM.

(b) Excludes CWM client assets that are managed by AM.

42

Client assets

Client assets were $2.3 trillion, an increase of $98 billion, or 4%, compared with the prior year. Excluding the sale of Retirement Plan Services, client assets were up 10% compared with the prior year. Assets under management

were $1.7 trillion, an increase of $171 billion, or 11%, from the prior year, due to the effect of higher market levels and net inflows to long-term products.

Client assets	September 30,
(in billions)	2014		2013		Change
Assets by asset class
Liquidity	$	440	$	446	(1	)%
Fixed income	359		328		9
Equity	372		346		8
Multi-asset and alternatives	540		420		29
Total assets under management	1,711		1,540		11
Custody/brokerage/administration/deposits	633		706		(10	)
Total client assets	$	2,344	$	2,246	4
Memo:
Alternative client assets(a)	$	166	$	151	10
Assets by client segment
Private Banking	$	429	$	352	22
Institutional	799		752		6
Retail	483		436		11
Total assets under management	$	1,711	$	1,540	11
Private Banking	$	1,052	$	935	13
Institutional	803		752		7
Retail	489		559		(13	)
Total client assets	$	2,344	$	2,246	4
Mutual fund assets by asset class
Liquidity	$	382	$	396	(4	)
Fixed income	147		140		5
Equity	209		183		14
Multi-asset and alternatives	96		68		41
Total mutual fund assets	$	834	$	787	6	%

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

	Three months ended September 30,					Nine months ended September 30,
(in billions)	2014			2013		2014			2013
Assets under management rollforward
Beginning balance	$	1,707		$	1,470	$	1,598		$	1,426
Net asset flows:
Liquidity	8			13		(9		)	(11		)
Fixed income	4			1		29			7
Equity	—			7		3			29
Multi-asset and alternatives	12			11		38			38
Market/performance/other impacts	(20		)	38		52			51
Ending balance, September 30	$	1,711		$	1,540	$	1,711		$	1,540
Client assets rollforward
Beginning balance	$	2,473		$	2,157	$	2,343		$	2,095
Net asset flows	35			39		71			55
Market/performance/other impacts	(164		)	50		(70		)	96
Ending balance, September 30	$	2,344		$	2,246	$	2,344		$	2,246

43

International metrics	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(in billions, except where otherwise noted)	2014		2013		Change		2014		2013		Change
Total net revenue (in millions)(a)
Europe/Middle East/Africa	$	549	$	465	18	%	$	1,544	$	1,337	15	%
Asia/Pacific	296		295		—		861		863		—
Latin America/Caribbean	207		202		2		620		638		(3	)
North America	1,964		1,801		9		5,725		5,303		8
Total net revenue	$	3,016	$	2,763	9		$	8,750	$	8,141	7
Assets under management
Europe/Middle East/Africa	$	324	$	271	20		$	324	$	271	20
Asia/Pacific	132		132		—		132		132		—
Latin America/Caribbean	48		42		14		48		42		14
North America	1,207		1,095		10		1,207		1,095		10
Total assets under management	$	1,711	$	1,540	11		$	1,711	$	1,540	11
Client assets
Europe/Middle East/Africa	$	385	$	330	17		$	385	$	330	17
Asia/Pacific	181		179		1		181		179		1
Latin America/Caribbean	119		109		9		119		109		9
North America	1,659		1,628		2		1,659		1,628		2
Total client assets	$	2,344	$	2,246	4	%	$	2,344	$	2,246	4	%

(a) Regional revenue is based on the domicile of the client.

44

CORPORATE/PRIVATE EQUITY

For a discussion of Corporate/Private Equity, see pages 109–111 of JPMorgan Chase’s 2013 Annual Report.

Selected income statement data
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except headcount)	2014			2013			Change		2014			2013			Change
Revenue
Principal transactions	$	310		$	378		(18	)%	$	688		$	509		35	%
Securities gains	6			26			(77	)	43			659			(93	)
All other income	134			83			61		594			(30		)	NM
Noninterest revenue	450			487			(8	)	1,325			1,138			16
Net interest income	(28		)	(366		)	92		(265		)	(1,636		)	84
Total net revenue(a)	422			121			249		1,060			(498		)	NM
Provision for credit losses	(8		)	(17		)	53		(29		)	(15		)	(93	)
Noninterest expense
Compensation expense	820			551			49		2,200			1,748			26
Noncompensation expense(b)	1,468			9,890			(85	)	3,242			11,877			(73	)
Subtotal	2,288			10,441			(78	)	5,442			13,625			(60	)
Net expense allocated to other businesses	(1,579		)	(1,345		)	(17	)	(4,719		)	(3,811		)	(24	)
Total noninterest expense	709			9,096			(92	)	723			9,814			(93	)
Income/(loss) before income tax expense/(benefit)	(279		)	(8,958		)	97		366			(10,297		)	NM
Income tax expense/(benefit)	(677		)	(2,495		)	73		(741		)	(3,532		)	79
Net income/(loss)	$	398		$	(6,463	)	NM		$	1,107		$	(6,765	)	NM
Total net revenue
Private equity	$	281		$	398		(29	)	$	680		$	532		28
Treasury and CIO	132			(232		)	NM		221			(767		)	NM
Other Corporate	9			(45		)	NM		159			(263		)	NM
Total net revenue	$	422		$	121		249		$	1,060		$	(498	)	NM
Net income/(loss)
Private equity	$	71		$	242		(71	)	$	293		$	272		8
Treasury and CIO	(30		)	(193		)	84		(170		)	(598		)	72
Other Corporate	357			(6,512		)	NM		984			(6,439		)	NM
Total net income/(loss)	$	398		$	(6,463	)	NM		$	1,107		$	(6,765	)	NM
Total assets (period-end)	$	882,792		$	835,000		6		$	882,792		$	835,000		6
Headcount	25,199			19,843			27	%	25,199			19,843			27	%

(a) Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $190 million and $128 million for the three months ended September 30, 2014 and 2013, respectively, and $534 million and $336 million for the nine months ended September 30, 2014 and 2013, respectively.

(b) Included legal expense of $512 million and $9.15 billion for the three months ended September 30, 2014 and 2013, respectively, and $737 million and $9.8 billion for the nine months ended September 30, 2014 and 2013.

45

Quarterly results

Net income was $398 million, compared with a net loss of $6.5 billion in the prior year.

Private Equity reported net income of $71 million, compared with $242 million in the prior year, primarily due to lower net valuation gains on investments and higher expenses.

Treasury and CIO reported a net loss of $30 million, compared with a net loss of $193 million in the prior year. Net revenue was a gain of $132 million, compared with a loss of $232 million in the prior year. Net interest income was a gain of $36 million, compared with a loss of $261 million in the prior year, primarily reflecting the benefit of higher re-investment yields and higher investment securities balances.

Other Corporate reported net income of $357 million, compared with a net loss of $6.5 billion in the prior year. The current quarter included $512 million of legal expense, compared with $9.15 billion of legal expense, including reserves for litigation and regulatory proceedings in the prior year. The current quarter included an after-tax benefit of approximately $400 million for tax adjustments.

Year-to-date results

Net income was $1.1 billion, compared with a net loss of $6.8 billion in the prior year.

Private Equity reported net income of $293 million, compared with $272 million in the prior year, primarily due to higher net gains on sales largely offset by higher expenses.

Treasury and CIO reported a net loss of $170 million, compared with a net loss of $598 million in the prior year. Net revenue was a gain of $221 million, compared with a loss of $767 million in the prior year. Net interest income was a loss of $61 million compared with a loss of $1.3 billion in the prior year, primarily reflecting the benefit of higher re-investment yields. Securities gains were $43 million, compared to $652 million in the prior year, reflecting lower repositioning activity of the investment securities portfolio in the current period.

Other Corporate reported net income of $984 million, compared with a net loss of $6.4 billion in the prior year. The current year included $736 million of legal expense compared with $9.8 billion of legal expense, including reserves for litigation and regulatory proceedings, in the prior year. The current year included an after-tax benefit of approximately $550 million for tax adjustments.

Treasury and CIOoverview

Treasury and CIO are predominantly responsible for measuring, monitoring, reporting and managing the Firm’s liquidity, funding and structural interest rate and foreign exchange risks,as well as executing the Firm’s capital plan. For further discussion of Treasury and CIO, see page 110 of the Firm’s 2013 Annual Report.

At September 30, 2014, the total Treasury and CIO investment securities portfolio was $358.5 billion; the average credit rating of the securities comprising the Treasury and CIO investment securities portfolio was AA+ (based on external ratings where available and where not available, based primarily upon internal ratings that correspond to ratings as defined by S&P and Moody’s). See Note 11 for further information on the details of the Firm’s investment securities portfolio.

For further information on liquidity and funding risk, see Liquidity Risk Management onpages 80–84. For information on interest rate, foreign exchange and other risks, Treasury and CIO Value-at-risk (“VaR”) and the Firm’s structural interest rate-sensitive revenue at risk (“Earnings-at-risk”), see Market Risk Management onpages 67–69.

Selected income statement and balance sheet data
	As of or for the three  months ended September 30,						As of or for the nine months ended September 30,
(in millions)	2014		2013		Change		2014		2013		Change
Securities gains	$	6	$	26	(77	)%	$	43	$	652	(93	)%
Investment securities portfolio (average)(a)	355,577		348,622		2		349,893		356,665		(2	)
Investment securities portfolio (period-end)(b)	358,516		350,527		2		358,516		350,527		2
Mortgage loans (average)	3,183		4,562		(30	)	3,424		5,538		(38	)
Mortgage loans (period-end)	3,048		4,161		(27	)%	3,048		4,161		(27	)%

(a) Average investment securities included held-to-maturity balances of $48.3 billion for the three months ended September 30, 2014 and $46.6 billion for the nine months ended September 30, 2014. Held-to-maturity average balances for the three and nine months ended September 30, 2013 were not material.

(b) Period-end investment securities included held-to-maturity balance of $48.8 billion and $4.5 billion at September 30, 2014, and September 30, 2013, respectively.

46

Private Equity Portfolio
Selected income statement and balance sheet data
	Three months ended September 30,								Nine months ended September 30,
(in millions)	2014			2013			Change		2014			2013			Change
Private equity gains/(losses)
Realized gains/(losses)	$	(70	)	$	(142	)	51	%	$	902		$	(54	)	NM
Unrealized gains/(losses)(a)	365			487			(25	)	(162		)	535			NM
Total direct investments	295			345			(14	)	740			481			54	%
Third-party fund investments	28			83			(66	)	46			127			(64	)
Total private equity gains/(losses)(b)	$	323		$	428		(25	)%	$	786		$	608		29	%

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

(b) Included in principal transactions revenue in the Consolidated Statements of Income.

Private equity portfolio information(a)
(in millions)	September 30, 2014		December 31, 2013		Change
Publicly held securities
Carrying value	$	617	$	1,035	(40	)%
Cost	479		672		(29	)
Quoted public value	617		1,077		(43	)
Privately held direct securities
Carrying value	4,275		5,065		(16	)
Cost	5,049		6,022		(16	)
Third-party fund investments(b)
Carrying value	496		1,768		(72	)
Cost	484		1,797		(73	)
Total private equity portfolio
Carrying value	$	5,388	$	7,868	(32	)
Cost	6,012		8,491		(29)%

(a) For more information on the Firm’s methodologies regarding the valuation of the private equity portfolio, see Note 3 of JPMorgan Chase’s 2013 Annual Report.

(b) Unfunded commitments to third-party private equity funds were $117 million and $215 million at September 30, 2014, and December 31, 2013, respectively.

The carrying value of the private equity portfolio at September 30, 2014 was $5.4 billion, down from $7.9 billion at December 31, 2013. The decrease in the portfolio was predominantly driven by sales.

47

ENTERPRISE-WIDE RISK MANAGEMENT

Risk is an inherent part of JPMorgan Chase’s business activities. The Firm employs a holistic approach to risk management that is intended to ensure the broad spectrum of risk types inherent in the Firm’s business activities are considered in managing its business activities.

The Firm believes effective risk management requires:

• Personal responsibility for risk management, including identification and escalation of risk issues by all individuals within the Firm;

• Ownership of risk management within each line of business; and

• Firmwide structures for risk governance and oversight.

Firmwide Risk Management is overseen and managed on an enterprise-wide basis. The Firm’s Chief Executive Officer (“CEO”), Chief Financial Officer (“CFO”), Chief Risk Officer (“CRO”) and Chief Operating Officer (“COO”) develop and set the risk management framework and governance structure for the Firm, which is intended to provide comprehensive controls and ongoing management of the

major risks inherent in the Firm’s business activities. The Firm’s risk management framework is designed to create a culture of risk transparency and awareness and personal responsibility throughout the Firm where collaboration, discussion, escalation and sharing of information are encouraged. The CEO, CFO, CRO and COO are ultimately responsible and accountable to the Firm’s Board of Directors.

Employees are expected to operate with the highest standards of integrity and identify, escalate, and actively manage risk issues. The Firm’s risk culture strives for continual improvement through ongoing employee training and development, as well as talent retention. The Firm also approaches its incentive compensation arrangements through an integrated risk, compensation and financial management framework to encourage a culture of risk awareness and personal accountability. The Firm’s overall objective in managing risk is to protect the safety and soundness of the Firm, and avoid excessive risk taking.

The following provides an index of key risk management disclosures. For further information on these disclosures, refer to the page references noted below in both this Form 10-Q and JPMorgan Chase’s 2013 Annual Report.

Risk disclosure	Form 10-Q page reference	Annual Report page reference
Enterprise- Wide Risk Management	48	113–116
Risk governance		114–116
Credit Risk Management	49-66	117–141
Credit Portfolio		119
Consumer Credit Portfolio	50-57	120–129
Wholesale Credit Portfolio	58-63	130–138
Community Reinvestment Act Exposure	64	138
Allowance For Credit Losses	64-66	139–141
Market Risk Management	67-69	142–148
Risk identification and classification		142–143
Value-at-risk	67-69	144–146
Economic-value stress testing		147
Earnings-at-risk	69	147–148
Risk monitoring and control: Limits		148
Country Risk Management	70	149–152
Model risk		153
Principal Risk Management		154
Operational Risk Management	71-72	155–157
Operational Risk Capital Measurement	71
Cybersecurity	71-72	156
Business resiliency		157
Legal Risk, Regulatory Risk, and Compliance Risk Management		158
Fiduciary Risk management		159
Reputation Risk Management		159
Capital Management	73-79	160–167
Liquidity Risk Management	80-84	168–173
Funding	80-83	168–172
HQLA	83	172
Contingency funding plan	84	172
Credit ratings	84	173

48

CREDIT RISK MANAGEMENT

Credit risk is the risk of loss from obligor or counterparty default. The Firm provides credit to a variety of customers, ranging from large corporate and institutional clients to individual consumers and small businesses.

For a further discussion of the Firm’s Credit Risk Management framework and organization, and the identification, monitoring and management of credit risks, see Credit Risk Management on pages 117–141 of JPMorgan Chase’s 2013 Annual Report.

In the following tables, reported loans include loans retained (i.e., held-for-investment); loans held-for-sale (which are carried at the lower of cost or fair value, with valuation changes recorded in noninterest revenue); and certain loans accounted for at fair value. In addition, the Firm records certain loans accounted for at fair value in trading assets. For further information regarding these loans, see Note 3 of this Form 10-Q. For additional information on the Firm’s loans and derivative receivables, including the Firm’s accounting policies, see Note 13 and Note 5 of this Form 10-Q.

For further information regarding the credit risk inherent in the Firm’s investment securities portfolio, see Note 11 of this Form 10-Q and Note 12 of JPMorgan Chase’s 2013 Annual Report.

For information on the changes in the credit portfolio, see Consumer Credit Portfolio on pages 50–57, and Wholesale Credit Portfolio on pages 58–63 of this Form 10-Q.

Total credit portfolio
	Credit exposure						Nonperforming(b)(c)(d)
(in millions)	Sep 30, 2014			Dec 31, 2013			Sep 30, 2014		Dec 31, 2013
Loans retained	$	735,304		$	724,177		$	7,241	$	8,317
Loans held-for-sale	4,339			12,230			125		26
Loans at fair value	3,614			2,011			128		197
Total loans – reported	743,257			738,418			7,494		8,540
Derivative receivables	72,453			65,759			312		415
Receivables from customers and other	29,466			26,883			—		—
Total credit-related assets	845,176			831,060			7,806		8,955
Assets acquired in loan satisfactions
Real estate owned	NA			NA			545		710
Other	NA			NA			39		41
Totalassets acquired in loan satisfactions	NA			NA			584		751
Total assets	845,176			831,060			8,390		9,706
Lending-related commitments	1,057,204			1,031,672			134		206
Total credit portfolio	$	1,902,380		$	1,862,732		$	8,524	$	9,912
Credit portfolio management derivatives notional, net(a)	$	(30,526	)	$	(27,996	)	$	—	$	(5	)
Liquid securities and other cash collateral held against derivatives	(17,617		)	(14,435		)	NA		NA

(in millions, except ratios)	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Net charge-offs	$	1,114		$	1,346		$	3,541		$	4,474
Average retained loans
Loans – reported	732,288			717,582			726,659			718,976
Loans – reported, excluding residential real estate PCI loans	683,028			661,941			675,827			661,570
Net charge-off rates
Loans – reported	0.60		%	0.74		%	0.65		%	0.83		%
Loans – reported, excluding PCI	0.65			0.81			0.70			0.90

(a) Represents the net notional amount of protection purchased and sold through credit derivatives used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. For additional information, see Credit derivatives on page 63 and Note 5.

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

(c) At September 30, 2014, and December 31, 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.8 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 $354 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 $464 million and $2.0 billion, respectively. These amounts have been excluded based upon the government guarantee. For further discussion, see Accounting and reporting developments on page 88 which summarizes the new accounting guidance for certain REO insured by U.S. government agencies. 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”).

(d) At September 30, 2014, and December 31, 2013, total nonaccrual loans represented 1.01% and 1.16%, respectively, of total loans.

49

CONSUMER CREDIT PORTFOLIO

JPMorgan Chase’s consumer portfolio consists primarily of residential real estate loans, credit card loans, auto loans, business banking loans, and student loans. The Firm’s focus is on serving the prime segment of the consumer credit market. For further information on consumer loans, see Note 13 of this Form 10-Q and Consumer Credit Portfolio on pages 120–129 and Note 14 of JPMorgan Chase’s 2013 Annual Report.

The credit performance of the consumer portfolio continues to benefit from the improvement in the economy and home prices. Both early-stage delinquencies (30–89 days delinquent) and late-stage delinquencies (150+ days delinquent) for residential real estate, excluding government guaranteed loans, declined from December 31, 2013. Although late-stage delinquencies declined, they remain elevated due to loss mitigation activities and to elongated foreclosure processing timelines. Losses related to these loans continue to be recognized in accordance with the Firm’s standard charge-off practices, but some delinquent loans that would otherwise have been foreclosed upon remain in the mortgage and home equity loan portfolios. The Credit Card 30+ day delinquency rate remains near historic lows.

50

The following table presents consumer credit-related information with respect to the credit portfolio held by CCB as well as for prime mortgage loans held in the Asset Management and the Corporate/Private Equity segments for the dates indicated.

Consumer credit portfolio											Three months ended September 30,										Nine months ended September 30,
(in millions, except ratios)	Credit exposure						Nonaccrual loans(f)(g)				Net charge-offs/(recoveries)(h)						Average annual net charge-off/(recovery) rate(h)(i)				Net charge-offs/(recoveries)(h)					Average annual net charge-off/(recovery) rate(h)(i)
	Sep 30, 2014			Dec 31, 2013			Sep 30, 2014		Dec 31, 2013		2014			2013			2014		2013		2014			2013		2014		2013
Consumer, excluding credit card
Loans, excluding PCI loans and loans held-for-sale
Home equity – senior lien	$	15,760		$	17,113		$	910	$	932	$	19		$	29		0.47	%	0.64	%	$	65		$	104	0.53	%	0.74	%
Home equity – junior lien	36,919			40,750			1,585		1,876		76			189			0.80		1.74		321			683		1.11		2.04
Prime mortgage, including option ARMs	98,140			87,162			2,341		2,666		13			(7		)	0.05		(0.03	)	4			65		0.01		0.11
Subprime mortgage	5,498			7,104			1,100		1,390		(25		)	(4		)	(1.68	)	(0.21	)	(17		)	96		(0.35	)	1.64
Auto(a)	52,778			52,757			107		161		50			44			0.38		0.35		120			107		0.30		0.28
Business banking	19,648			18,951			297		385		75			100			1.53		2.13		220			235		1.53		1.68
Student and other	11,149			11,557			242		86		91			77			3.21		2.60		271			202		3.18		2.27
Total loans, excluding PCI loans and loans held-for-sale	239,892			235,394			6,582		7,496		299			428			0.50		0.73		984			1,492		0.55		0.86
Loans – PCI
Home equity	17,572			18,927			NA		NA		NA			NA			NA		NA		NA			NA		NA		NA
Prime mortgage	10,887			12,038			NA		NA		NA			NA			NA		NA		NA			NA		NA		NA
Subprime mortgage	3,790			4,175			NA		NA		NA			NA			NA		NA		NA			NA		NA		NA
Option ARMs	16,238			17,915			NA		NA		NA			NA			NA		NA		NA			NA		NA		NA
Total loans – PCI	48,487			53,055			NA		NA		NA			NA			NA		NA		NA			NA		NA		NA
Total loans – retained	288,379			288,449			6,582		7,496		299			428			0.41		0.59		984			1,492		0.46		0.69
Loans held-for-sale	481		(e)	614		(e)	120		—		—			—			—		—		—			—		—		—
Total consumer, excluding credit card loans	288,860			289,063			6,702		7,496		299			428			0.41		0.59		984			1,492		0.46		0.69
Lending-related commitments(b)	54,912			56,057
Receivables from customers(c)	104			139
Total consumer exposure, excluding credit card	343,876			345,259
Credit card
Loans retained(d)	126,564			127,465			—		—		798			892			2.52		2.86		2,571			2,988		2.77		3.24
Loans held-for-sale	395			326			—		—		—			—			—		—		—			—		—		—
Total credit card loans	126,959			127,791			—		—		798			892			2.52		2.86		2,571			2,988		2.77		3.24
Lending-related commitments(b)	531,301			529,383
Total credit card exposure	658,260			657,174
Total consumer credit portfolio	$	1,002,136		$	1,002,433		$	6,702	$	7,496	$	1,097		$	1,320		1.05	%	1.27	%	$	3,555		$	4,480	1.15	%	1.45	%
Memo: Total consumer credit portfolio, excluding PCI	$	953,649		$	949,378		$	6,702	$	7,496	$	1,097		$	1,320		1.19	%	1.47	%	$	3,555		$	4,480	1.31	%	1.68	%

(a) At September 30, 2014, and December 31, 2013, excluded operating lease-related assets of $6.4 billion and $5.5 billion, respectively.

(b) Credit card and home equity lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. For credit card and home equity commitments (if certain conditions are met), the Firm can reduce or cancel these lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice.

(c) Receivables from customers represent margin loans to retail brokerage customers, and are included in accrued interest and accounts receivable on the Consolidated Balance Sheets.

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

(e) Predominantly represents prime mortgage loans held-for-sale.

(f) At September 30, 2014, and December 31, 2013, nonaccrual loans excluded: (1) mortgage loans insured by U.S. government agencies of $7.8 billion and $8.4 billion, respectively, that are 90 or more days past due; and (2) student loans insured by U.S. government agencies under the FFELP of $354 million and $428 million, respectively, that are 90 or more days past due. These amounts have been excluded from nonaccrual loans based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

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

(h) Net charge-offs and the net charge-off rates excluded $87 million and $196 million of write-offs in the PCI portfolio for the three and nine months ended September 30, 2014, respectively. These write-offs decreased the allowance for loan losses for PCI loans. See Consumer Credit Portfolio on pages 120–129 of JPMorgan Chase’s 2013Annual Report for further details.

(i) Average consumer loans held-for-sale were $876 million and $239 million for the three months endedSeptember 30, 2014, and 2013, respectively, and $749 million and $83 million, for the nine months ended September 30, 2014, and 2013, respectively. These amounts were excluded when calculating net charge-off rates.

51

Consumer, excluding credit card

Portfolio analysis

Consumer loan balances decreased during the nine months endedSeptember 30, 2014, due to paydowns and the charge-off or liquidation of delinquent loans primarily offset by prime mortgage originations. Credit performance has improved across most portfolios but delinquent residential real estate loans and home equity charge-offs remain elevated compared with pre-recessionary levels.

In the following discussion of loan and lending-related categories, PCI loans are excluded from individual loan product discussions and are addressed separately below. For further information about the Firm’s consumer portfolio, including information about delinquencies, loan modifications and other credit quality indicators, see Note 14 of JPMorgan Chase’s 2013 Annual Report.

Home equity: The home equity portfolio declined from the 2013 year-end primarily reflecting loan paydowns and charge-offs. Early-stage delinquencies showed improvement from December 31, 2013. Late-stage delinquencies continue to be elevated as improvement in the number of loans becoming severely delinquent was offset by higher average carrying values on these delinquent loans, reflecting improving collateral values. Both senior and junior lien nonaccrual loans decreased from December 31, 2013. Net charge-offs for the three and nine months ended September 30, 2014 for both senior and junior lien home equity loans declined when compared with the same period of the prior year as a result of improvement in home prices and delinquencies.

Approximately 15% of the Firm’s home equity portfolio consists of home equity loans (“HELOANs”) and the remainder consists of home equity lines of credit (“HELOCs”). Approximately half of the HELOANs are senior liens and the remainder are junior liens. For further information on the Firm’s home equity portfolio, see Consumer Credit Portfolio on pages 120–129 of JPMorgan Chase’s 2013 Annual Report.

The unpaid principal balance of non-PCI HELOCs outstanding was $46 billion at September 30, 2014. Of the $46 billion, approximately $28 billion have recently recast or are scheduled to recast from interest-only to fully amortizing payments, with $4 billion recasting in 2014 and $6 billion, $7 billion, and $6 billion scheduled to recast in 2015, 2016, and 2017, respectively. However, of the total $28 billion, $3 billion have already recast in 2014 and $15 billion are expected to recast. The remaining $10 billion represents loans to borrowers who are expected either to pre-pay or charge-off prior to recast. In the third quarter of 2014, the Firm refined its approach for estimating the number of HELOCs expected to voluntarily pre-pay prior to recast, reducing the number of loans expected to pre-pay, resulting in an increase in the number of loans expected to recast. The Firm has considered this payment recast risk in its allowance for loan losses based upon the estimated amount of payment shock (i.e., the excess of the fully-amortizing payment over the interest-only payment in effect prior to recast) expected to occur at the payment recast date, along with the corresponding estimated probability of default and loss severity assumptions. Certain factors, such as future developments in both unemployment rates and home prices, could have a significant impact on the performance of these loans.

The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are exhibiting a material deterioration in their credit risk profile. The Firm will continue to evaluate both the near-term and longer-term repricing and recast risks inherent in its HELOC portfolio to ensure that changes in the Firm’s estimate of incurred losses are appropriately considered in the allowance for loan losses and that the Firm’s account management practices are appropriate given the portfolio’s risk profile.

52

High-risk second liens are loans where the borrower has a first mortgage loan that is either delinquent or has been modified. At September 30, 2014, the Firm estimated that its home equity portfolio contained approximately $1.8 billion of current junior lien loans that were considered high risk seconds, compared with $2.3 billion at December 31, 2013. Such loans are considered to pose a higher risk of default than junior lien loans for which the senior lien is neither delinquent nor modified. The Firm estimates the balance of its total exposure to high-risk seconds on a quarterly basis using internal data and loan level credit bureau data (which typically provides the delinquency status of the senior lien). The estimated balance of these high-risk seconds may vary from quarter to quarter for reasons such as the movement of related senior liens into and out of the 30+ day delinquency bucket.

Current high risk junior liens
(in billions)	September 30, 2014			December 31, 2013
Junior liens subordinate to:
Modified current senior lien		$	0.7		$	0.9
Senior lien 30 – 89 days delinquent		0.5			0.6
Senior lien 90 days or more delinquent(a)		0.6			0.8
Total current high risk junior liens		$	1.8		$	2.3

(a) Junior liens subordinate to senior liens that are 90 days or more past due are classified as nonaccrual loans. At September 30, 2014, and December 31, 2013, excluded approximately $50 million and approximately $100 million, respectively, of junior liens that are performing but not current, which were placed on nonaccrual status in accordance with the regulatory guidance.

Of the estimated $1.8 billion of high-risk junior liens at September 30, 2014, the Firm owns approximately 10% and services approximately 25% of the related senior lien loans to the same borrowers. The performance of the Firm’s junior lien loans is generally consistent regardless of whether the Firm owns, services or does not own or service the senior lien. The increased probability of default associated with these higher-risk junior lien loans was considered in estimating the allowance for loan losses.

Mortgage: Prime mortgages, including option adjustable-rate mortgages (“ARMs”) and loans held-for-sale, increased from December 31, 2013 as retained originations exceeded paydowns, the run-off of option ARM loans and the charge-off or liquidation of delinquent loans. Excluding loans insured by U.S. government agencies, both early-stage and late-stage delinquencies showed improvement from December 31, 2013. Nonaccrual loans decreased from the prior year but remain elevated primarily as a result of loss mitigation activities and to elongated foreclosure processing timelines. Net charge-offs remain low, reflecting continued improvement in home prices and delinquencies.

At September 30, 2014, and December 31, 2013, the Firm’s prime mortgage portfolio included $13.5 billion and $14.3 billion, respectively, of mortgage loans insured and/or guaranteed by U.S. government agencies, of which $9.6 billion were, at each such date, 30 days or more past due (of which $7.8 billion and $8.4 billion, respectively, were 90 days or more past due). The Firm has entered into a settlement regarding loans insured under federal mortgage insurance programs overseen by the FHA, HUD, and VA; the Firm will continue to monitor exposure on future claim payments for government insured loans, but any financial impact related to exposure on future claims is not expected to be significant and was considered in estimating the allowance for loan losses. For further discussion of the settlement, see Note 31 of JPMorgan Chase’s 2013 Annual Report.

At September 30, 2014, and December 31, 2013, the Firm’s prime mortgage portfolio included $16.0 billion and $15.6 billion, respectively, of interest-only loans, which represented 16% and 18%, respectively, of the prime mortgage portfolio. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers. To date, losses on this portfolio generally have been consistent with the broader prime mortgage portfolio and the Firm’s expectations. The Firm continues to monitor the risks associated with these loans.

Subprime mortgages continued to decrease due to portfolio runoff. Early-stage and late-stage delinquencies have improved from December 31, 2013, but remain at elevated levels. Net charge-offs continued to improve as a result of improvement in home prices and delinquencies.

Auto: Auto loans were flat compared to December 31, 2013 as new originations were largely offset by paydowns and payoffs. Nonaccrual loans improved compared with December 31, 2013. Net charge-offs for the three and nine months ended September 30, 2014 increased compared with the same periods of the prior year, but are consistent with expectations. The auto loan portfolio reflects a high concentration of prime-quality credits.

Business banking: Business banking loans increased compared with December 31, 2013 due to an increase in loan originations. Nonaccrual loans improved compared with December 31, 2013. Net charge-offs for the three and nine months ended September 30, 2014 decreased from the same periods of the prior year.

53

Student and other: Student and other loans decreased from December 31, 2013 due primarily to the run-off of the student loan portfolio. Student nonaccrual loans increased from December 31, 2013 due to a modification program the Firm began in May 2014 extending the deferment period for up to 24 months for certain student loans, which resulted in extending the maturity of the loans at their original contractual interest rates.

Purchased credit-impaired loans: PCI loans acquired in the Washington Mutual transaction decreased as the portfolio continues to run off.

As of September 30, 2014, approximately 17% of the option ARM PCI loans were delinquent and approximately 56% of the portfolio have been modified into fixed-rate, fully amortizing loans. Substantially all of the remaining loans are making amortizing payments, although such payments are not necessarily fully amortizing. This latter group of loans are subject to the risk of payment shock due to future payment recast. Default rates generally increase on option ARM loans when payment recast results in a payment increase. The expected increase in default rates is considered in the Firm’s quarterly impairment assessment.

The following table provides a summary of lifetime principal loss estimates included in either the nonaccretable difference or the allowance for loan losses.

Summary of lifetime principal loss estimates
	Lifetime loss  estimates(a)				LTD liquidation  losses(b)
(in billions)	Sep 30, 2014		Dec 31, 2013		Sep 30, 2014		Dec 31, 2013
Home equity	$	14.6	$	14.7	$	12.3	$	12.1
Prime mortgage	3.8		3.8		3.5		3.3
Subprime mortgage	3.3		3.3		2.8		2.6
Option ARMs	9.9		10.2		9.2		8.8
Total	$	31.6	$	32.0	$	27.8	$	26.8

(a) Includes the original nonaccretable difference established in purchase accounting of $30.5 billion for principal losses plus additional principal losses recognized subsequent to acquisition through the provision and allowance for loan losses. The remaining nonaccretable difference for principal losses was $2.9 billion and $3.8 billion at September 30, 2014, and December 31, 2013, respectively.

(b) Life-to-date (“LTD”) liquidation losses represent both realization of loss upon loan resolution and any principal forgiven upon modification. LTD liquidation losses included $249 million and $53 million of write-offs of prime mortgages at September 30, 2014, and December 31, 2013, respectively.

Current estimated LTVs of residential real estate loans

The current estimated average loan-to-value (“LTV”) ratio for residential real estate loans retained, excluding mortgage loans insured by U.S. government agencies and PCI loans, was 70% at September 30, 2014, compared with 75% at December 31, 2013.

The following table presents the current estimated LTV ratios for PCI loans, as well as the ratios of the carrying value of the underlying loans to the current estimated collateral value. Because such loans were initially measured at fair value, the ratios of the carrying value to the current estimated collateral value will be lower than the current estimated LTV ratios, which are based on the unpaid principal balances. The estimated collateral values used to calculate these ratios do not represent actual appraised loan-level collateral values; as such, the resulting ratios are necessarily imprecise and should therefore be viewed as estimates.

LTV ratios and ratios of carrying values to current estimated collateral values – PCI loans
	September 30, 2014									December 31, 2013
(in millions, except ratios)	Unpaid principal balance		Current estimated LTV ratio(a)			Net carrying value(c)		Ratio of net carrying value to current estimated collateral value(c)		Unpaid principal balance		Current estimated LTV ratio(a)			Net carrying value(c)		Ratio of net carrying value to current estimated collateral value(c)
Home equity	$	18,262	82	%	(b)	$	15,814	71	%	$	19,830	90	%	(b)	$	17,169	78	%
Prime mortgage	10,646		75			9,357		66		11,876		83			10,312		72
Subprime mortgage	4,832		82			3,610		61		5,471		91			3,995		66
Option ARMs	17,128		73			16,044		69		19,223		82			17,421		74

(a) Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated at least quarterly based on home valuation models that utilize nationally recognized home price index valuation estimates; such models incorporate actual data to the extent available and forecasted data where actual data is not available.

(b) Represents current estimated combined LTV for junior home equity liens, which considers all available lien positions, as well as unused lines, related to the property. All other products are presented without consideration of subordinate liens on the property.

(c) Net carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition and is also net of the allowance for loan losses at September 30, 2014, and December 31, 2013 of $1.5 billion and $1.7 billion for prime mortgage, respectively, $194 million and $494 million for option ARMs, respectively, and $1.8 billion for home equity and $180 million for subprime mortgage for both periods.

54

The current estimated average LTV ratios were 76% and 88% for California and Florida PCI loans, respectively, at September 30, 2014, compared with 85% and 103%, respectively, at December 31, 2013. Average LTV ratios have declined consistent with recent improvements in home prices. Although home prices have improved, home prices in most areas of California and Florida are still lower than at the peak of the housing market; this continues to negatively contribute to current estimated average LTV ratios and the ratio of net carrying value to current estimated collateral value for loans in the PCI portfolio.

For further information on current estimated LTVs of residential real estate loans, see Note 13.

Geographic composition of residential real estate loans

For information on the geographic composition of the Firm’s residential real estate loans, see Note 13.

Loan modification activities – residential real estate loans

The performance of modified loans generally differs by product type due to differences in both the credit quality and the types of modifications provided. Performance metrics for modifications to the residential real estate portfolio, excluding PCI loans, that have been seasoned more than six months show weighted-average redefault rates of 19% for senior lien home equity, 21% for junior lien home equity, 16% for prime mortgages including option ARMs, and 28% for subprime mortgages. The cumulative performance metrics for modifications to the PCI residential real estate portfolio seasoned more than six months show weighted average redefault rates of 19% for home equity, 17% for prime mortgages, 15% for option ARMs and 31% for subprime mortgages. The favorable performance of the PCI option ARM modifications is the result of a targeted proactive program which fixes the borrower’s payment at the current level. The cumulative redefault rates reflect the performance of modifications completed under both the Home Affordable Modification Program (“HAMP”) and the Firm’s proprietary modification programs from October 1, 2009, through September 30, 2014.

Certain loans that were modified under HAMP and the Firm’s proprietary modification programs (primarily the Firm’s modification program that was modeled after HAMP) have interest rate reset provisions (“step-rate modifications”). Interest rates on these loans will generally increase beginning in 2014 by 1% per year until the rate reaches a specified cap, typically at a prevailing market interest rate for a fixed-rate loan as of the modification date. The carrying value of non-PCI loans modified in step-rate modifications was $5 billion at September 30, 2014, with $1 billion scheduled to experience the initial interest rate increase in each of 2015 and 2016. The unpaid principal balance of PCI loans modified in step-rate modifications was $10 billion at September 30, 2014, with $2 billion and $3 billion scheduled to experience the initial interest rate increase in 2015 and 2016, respectively. The impact of these potential interest rate increases is

considered in the Firm’s allowance for loan losses. The Firm will continue to monitor this risk exposure to ensure that it is appropriately considered in the Firm’s allowance for loan losses.

The following table presents information as of September 30, 2014, and December 31, 2013, relating to modified retained residential real estate loans for which concessions have been granted to borrowers experiencing financial difficulty. For further information on modifications for the three and nine months ended September 30, 2014 and 2013, see Note 13.

Modified residential real estate loans
	September 30, 2014				December 31, 2013
(in millions)	Retained loans		Non-accrual retained  loans(d)		Retained loans		Non-accrual retained  loans(d)
Modified residential real estate loans, excluding    PCI loans(a)(b)
Home equity – senior lien	$	1,109	$	627	$	1,146	$	641
Home equity – junior lien	1,304		627		1,319		666
Prime mortgage, including option ARMs	6,570		1,626		7,004		1,737
Subprime mortgage	3,190		972		3,698		1,127
Total modified residential real estate loans, excluding PCI loans	$	12,173	$	3,852	$	13,167	$	4,171
Modified PCI loans(c)
Home equity	$	2,595	NA		$	2,619	NA
Prime mortgage	6,468		NA		6,977		NA
Subprime mortgage	3,764		NA		4,168		NA
Option ARMs	12,062		NA		13,131		NA
Total modified PCI loans	$	24,889	NA		$	26,895	NA

(a) Amounts represent the carrying value of modified residential real estate loans.

(b) At September 30, 2014, and December 31, 2013, $6.1 billion and $7.6 billion, respectively, of loans modified subsequent to repurchase from Ginnie Mae in accordance with the standards of the appropriate government agency (i.e., FHA, VA, RHS) are not included in the table above. When such loans perform subsequent to modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform become subject to foreclosure. For additional information about sales

of loans in securitization transactions with Ginnie Mae, see Note 15.

(c) Amounts represent the unpaid principal balance of modified PCI loans.

(d) As of both September 30, 2014, and December 31, 2013, nonaccrual loans included $3.0 billion of TDRs for which the borrowers were less than 90 days past due. For additional information about loans modified in a TDR that are on nonaccrual status, see Note 13.

55

Nonperforming assets

The following table presents information as of September 30, 2014, and December 31, 2013, about consumer, excluding credit card, nonperforming assets.

Nonperforming assets(a)
(in millions)	September 30, 2014		December 31, 2013
Nonaccrual loans(b)
Residential real estate	$	6,056	$	6,864
Other consumer	646		632
Total nonaccrual loans	6,702		7,496
Assets acquired in loan satisfactions
Real estate owned	460		614
Other	39		41
Total assets acquired in loan satisfactions	499		655
Total nonperforming assets	$	7,201	$	8,151

(a) At September 30, 2014, and December 31, 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.8 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 $354 million and $428 million, respectively, that are 90 or more days past due; and (3) REO insured by U.S. government agencies of $464 million and $2.0 billion, respectively. These amounts have been excluded based upon the government guarantee. For further discussion, see Accounting and reporting developments on page 88 which summarizes the new accounting guidance for certain REO insured by U.S. government agencies.

(b) Excludes PCI loans that were acquired as part of the Washington Mutual transaction, which are accounted for on a pool basis. Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of individual loans within the pools, is not meaningful. Because the Firm is recognizing interest income on each pool of loans, they are all considered to be performing.

Nonaccrual loans in the residential real estate portfolio totaled $6.1 billion at September 30, 2014, of which 32% were greater than 150 days past due, compared with nonaccrual residential real estate loans of $6.9 billion at December 31, 2013, of which 34% were greater than 150 days past due. In the aggregate, the unpaid principal balance of residential real estate loans greater than 150 days past due was charged down by approximately 50% to the estimated net realizable value of the collateral at both September 30, 2014, and December 31, 2013. Loss mitigation activities and the elongated foreclosure processing timelines are expected to continue to result in elevated levels of nonaccrual loans in the residential real estate portfolios.

Active and suspended foreclosure: For information on loans that were in the process of active or suspended foreclosure, see Note 13.

Nonaccrual loans: The following table presents changes in consumer, excluding credit card, nonaccrual loans for the nine months endedSeptember 30, 2014 and 2013.

Nonaccrual loans
Nine months ended September 30,
(in millions)	2014			2013
Beginning balance	$	7,496		$	9,174
Additions	3,811			5,481
Reductions:
Principal payments and other(a)	1,378			1,099
Charge-offs	1,061			1,465
Returned to performing status	1,691			3,162
Foreclosures and other liquidations	475			853
Total reductions	4,605			6,579
Net additions/(reductions)	(794		)	(1,098		)
Ending balance	$	6,702		$	8,076

(a) Other reductions includes loan sales.

56

Credit Card

Total credit card loans decreased from December 31, 2013 due to seasonality. The 30+ day delinquency rate decreased to 1.43% at September 30, 2014, from 1.67% at December 31, 2013. For the three months endedSeptember 30, 2014 and 2013, the net charge-off rates were 2.52% and 2.86%, respectively. For the nine months ended September 30, 2014 and 2013, the net charge-off rates were 2.77% and 3.24%, respectively. Charge-offs have improved compared with a year ago as a result of improvement in delinquent loans. The credit card portfolio continues to reflect a well-seasoned, largely rewards-based portfolio that has good U.S. geographic diversification. For information on the geographic composition of the Firm’s credit card loans, see Note 13.

Modifications of credit card loans

At September 30, 2014, and December 31, 2013, the Firm had $2.2 billion and $3.1 billion, respectively, of credit card loans outstanding that have been modified in TDRs. These balances included both credit card loans with modified payment terms and credit card loans that reverted back to their pre-modification payment terms because the cardholder did not comply with the modified payment terms. The decrease in modified credit card loans outstanding from December 31, 2013, was attributable to a reduction in new modifications as well as ongoing payments and charge-offs on previously modified credit card loans.

Consistent with the Firm’s policy, all credit card loans typically remain on accrual status until charged-off. However, the Firm establishes an allowance, which is offset against loans and charged to interest income, for the estimated uncollectible portion of accrued interest and fee income.

For additional information about loan modification programs to borrowers, see Consumer Credit Portfolio

on pages 50–57 and Note 13.

57

WHOLESALE CREDIT PORTFOLIO

The Firm’s wholesale businesses are exposed to credit risk through underwriting, lending and trading activities with and for clients and counterparties, as well as through various operating services such as cash management and clearing activities. A portion of the loans originated or acquired by the Firm’s wholesale businesses is generally retained on the balance sheet. The Firm distributes a significant percentage of the loans it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk.

As of September 30, 2014, wholesale credit exposure (primarily CIB, CB, and AM) continued to experience a generally favorable credit environment and stable credit quality trends with low levels of criticized exposure, nonaccrual loans and charge-offs.

Wholesale credit portfolio
	Credit exposure						Nonperforming(c)
(in millions)	Sep 30, 2014			Dec 31, 2013			Sep 30, 2014		Dec 31, 2013
Loans retained	$	320,361		$	308,263		$	659	$	821
Loans held-for-sale	3,463			11,290			5		26
Loans at fair value	3,614			2,011			128		197
Loans – reported	327,438			321,564			792		1,044
Derivative receivables	72,453			65,759			312		415
Receivables from customers and other(a)	29,362			26,744			—		—
Total wholesale credit-related assets	429,253			414,067			1,104		1,459
Lending-related commitments	470,991			446,232			134		206
Total wholesale credit exposure	$	900,244		$	860,299		$	1,238	$	1,665
Credit portfolio management derivatives notional, net(b)	$	(30,526	)	$	(27,996	)	$	—	$	(5	)
Liquid securities and other cash collateral held against derivatives	(17,617		)	(14,435		)	NA		NA

(a) Receivables from customers and other include $29.3 billion and $26.5 billion of margin loans at September 30, 2014, and December 31, 2013, respectively, to prime and retail brokerage customers; these are classified in accrued interest and accounts receivable on the Consolidated Balance Sheets.

(b) Represents the net notional amount of protection purchased and sold through credit derivatives used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. For additional information, see Credit derivatives on page 63, and Note 5.

(c) Excludes assets acquired in loan satisfactions.

58

The following tables present the maturity and ratings profiles of the wholesale credit portfolio as of September 30, 2014, and December 31, 2013. The ratings scale is based on the Firm’s internal risk ratings, which generally correspond to the ratings as defined by S&P and Moody’s.

Wholesale credit exposure – maturity and ratings profile
	Maturity profile(e)												Ratings profile
September 30, 2014	Due in 1 year or less			Due after 1 year through 5 years			Due after 5 years			Total			Investment-grade				Noninvestment-grade				Total			Total % of IG
(in millions, except ratios)													AAA/Aaa to BBB-/Baa3				BB+/Ba1 & below
Loans retained	$	114,326		$	128,529		$	77,506		$	320,361			$	235,911			$	84,450		$	320,361		74	%
Derivative receivables										72,453											72,453
Less: Liquid securities and other cash collateral held against derivatives										(17,617		)									(17,617		)
Total derivative receivables, net of all collateral	15,132			14,933			24,771			54,836				46,804				8,032			54,836			85
Lending-related commitments	189,366			270,128			11,497			470,991				367,049				103,942			470,991			78
Subtotal	318,824			413,590			113,774			846,188				649,764				196,424			846,188			77
Loans held-for-sale and loans at fair value(a)										7,077											7,077
Receivables from customers and other										29,362											29,362
Total exposure – net of liquid securities and other cash collateral held against derivatives										$	882,627										$	882,627
Credit Portfolio Management derivatives net notional by reference entity ratings profile(b)(c)(d)	$	(1,518	)	$	(22,927	)	$	(6,081	)	$	(30,526	)		$	(27,265	)		$	(3,261	)	$	(30,526	)	89	%

	Maturity profile(e)												Ratings profile
December 31, 2013	Due in 1 year or less			Due after 1 year through 5 years			Due after 5 years			Total			Investment-grade					Noninvestment-grade					Total			Total % of IG
(in millions, except ratios)													AAA/Aaa to BBB-/Baa3					BB+/Ba1 & below
Loans retained	$	108,392		$	124,111		$	75,760		$	308,263			$	226,070				$	82,193			$	308,263		73	%
Derivative receivables										65,759													65,759
Less: Liquid securities and other cash collateral held against derivatives										(14,435		)											(14,435		)
Total derivative receivables, net of all collateral	13,550			15,935			21,839			51,324				41,104			(f)		10,220			(f)	51,324			80
Lending-related commitments	179,301			255,426			11,505			446,232				353,974					92,258				446,232			79
Subtotal	301,243			395,472			109,104			805,819				621,148					184,671				805,819			77
Loans held-for-sale and loans at fair value(a)										13,301													13,301
Receivables from customers and other										26,744													26,744
Total exposure – net of liquid securities and other cash collateral held against derivatives										$	845,864												$	845,864
Credit Portfolio Management derivatives net notional by reference entity ratings profile(b)(c)(d)	$	(1,149	)	$	(19,516	)	$	(7,331	)	$	(27,996	)		$	(24,649	)			$	(3,347	)		$	(27,996	)	88	%

(a) Represents loans held-for-sale, primarily related to syndicated loans and loans transferred from the retained portfolio, and loans at fair value.

(b) These derivatives do not qualify for hedge accounting under U.S. GAAP.

(c) The notional amounts are presented on a net basis by underlying reference entity and the ratings profile shown is based on the ratings of the reference entity on which protection has been purchased.

(d) Predominantly all of the credit derivatives entered into by the Firm where it has purchased protection, including Credit Portfolio Management derivatives, are executed with investment grade counterparties.

(e) The maturity profile of retained loans, lending-related commitments and derivative receivables is based on the remaining contractual maturity. Derivative contracts that are in a receivable position at September 30, 2014, may become payable prior to maturity based on their cash flow profile or changes in market conditions.

(f) The prior period amounts have been revised to conform with the current period presentation.

Wholesale credit exposure – selected industry exposures

The Firm focuses on the management and diversification of its industry exposures, paying particular attention to industries with actual or potential credit concerns. Exposures deemed criticized align with the U.S. banking regulators’ definition of criticized exposures, which consist

of the special mention, substandard and doubtful categories. The total criticized component of the portfolio, excluding loans held-for-sale and loans at fair value, decreased by 13% to $10.6 billion at September 30, 2014, from $12.2 billion at December 31, 2013.

59

Below are summaries of the top 25 industry exposures as of September 30, 2014, and December 31, 2013. For additional information on industry concentrations, see Note 5 of JPMorgan Chase’s 2013 Annual Report.

											Selected metrics
											30 days or more past due and accruing loans		Year-to-date net charge-offs/ (recoveries)			Credit portfolio manage-ment credit derivative hedges(e)			Liquid securities and other cash collateral held against derivative receivables
					Noninvestment-grade
As of or for the nine months ended	Credit exposure(d)		Investment- grade		Noncriticized		Criticized performing		Criticized nonperforming
September 30, 2014
(in millions)
Top 25 industries(a)
Real Estate	$	94,816	$	69,506	$	23,455	$	1,596	$	259	$	244	$	(12	)	$	(32	)	$	(9	)
Banks & Finance Cos	62,800		53,338		8,817		580		65		41		(4		)	(1,826		)	(8,431		)
Healthcare	57,594		47,402		9,625		546		21		16		—			(92		)	(207		)
Oil & Gas	47,546		31,889		15,373		275		9		12		2			(165		)	(92		)
Asset Managers	39,773		33,635		6,072		66		—		35		(12		)	(9		)	(3,514		)
Consumer Products	37,597		24,714		12,293		567		23		34		(1		)	(20		)	(1		)
Retail & Consumer Services	36,832		19,897		15,824		1,080		31		34		4			(53		)	—
State & Municipal Govt(b)	32,317		31,470		746		101		—		20		24			(149		)	(98		)
Utilities	27,170		23,964		2,919		260		27		—		(1		)	(330		)	(195		)
Technology	22,707		13,302		8,832		553		20		1		—			(235		)	—
Central Govt	22,451		22,247		166		38		—		—		—			(11,525		)	(1,841		)
Machinery & Equipment Mfg	19,672		11,502		7,904		266		—		7		(2		)	(131		)	(5		)
Transportation	16,465		11,534		4,825		100		6		1		(3		)	(64		)	(107		)
Metals/Mining	15,980		8,246		7,178		555		1		8		18			(422		)	(16		)
Business Services	15,030		8,081		6,684		243		22		9		1			(9		)	—
Media	14,056		8,519		5,157		343		37		12		(5		)	(69		)	(6		)
Insurance	13,572		10,661		2,655		77		179		1		—			(76		)	(2,272		)
Building Materials/Construction	13,377		5,906		6,806		659		6		14		—			(136		)	—
Telecom Services	13,194		9,734		3,251		199		10		—		(1		)	(827		)	(74		)
Chemicals/Plastics	12,721		8,707		3,990		24		—		3		(2		)	(11		)	—
Automotive	12,588		8,019		4,431		138		—		27		(1		)	(188		)	—
Leisure	8,733		2,899		5,290		408		136		2		—			(5		)	(19		)
Securities Firms & Exchanges	7,996		5,871		2,111		12		2		23		4			(122		)	(228		)
Agriculture/Paper Mfg	7,265		4,846		2,272		144		3		27		—			(4		)	(4		)
Aerospace/Defense	5,888		5,007		857		24		—		—		—			(70		)	(4		)
All other(c)	205,665		185,016		19,784		617		248		1,392		(23		)	(13,956		)	(494		)
Subtotal	$	863,805	$	665,912	$	187,317	$	9,471	$	1,105	$	1,963	$	(14	)	$	(30,526	)	$	(17,617	)
Loans held-for-sale and loans at fair value	7,077
Receivables from customers and other	29,362
Total	$	900,244

60

													Selected metrics
													30 days or more past due and accruing loans		Full year net charge-offs/ (recoveries)			Credit portfolio manage- ment credit derivative hedges(e)			Liquid securities and other cash collateral held against derivative receivables
						Noninvestment-grade
As of or for the year ended	Credit exposure(d)		Investment- grade			Noncriticized			Criticized performing		Criticized nonperforming
December 31, 2013
(in millions)
Top 25 industries(a)
Real Estate	$	87,102	$	62,964		$	21,505		$	2,286	$	347	$	178	$	6		$	(66	)	$	(125	)
Banks & Finance Cos	66,881		56,675			9,707			431		68		14		(22		)	(2,692		)	(6,227		)
Healthcare	45,910		37,635			7,952			317		6		49		3			(198		)	(195		)
Oil & Gas	46,934		34,708			11,779			436		11		34		13			(227		)	(67		)
Asset Managers	33,506		26,991			6,477			38		—		217		(7		)	(5		)	(3,191		)
Consumer Products	34,145		21,100			12,505			537		3		4		11			(149		)	(1		)
Retail & Consumer Services	25,068		16,101			8,453			492		22		6		—			(91		)	—
State & Municipal Govt(b)	35,666		34,563			826			157		120		40		1			(161		)	(144		)
Utilities	28,983		25,521			3,045			411		6		2		28			(445		)	(306		)
Technology	21,403		13,787			6,771			825		20		—		—			(512		)	—
Central Govt	21,049		20,633			345			71		—		—		—			(10,088		)	(1,541		)
Machinery & Equipment Mfg	19,078		11,154			7,549			368		7		20		(18		)	(257		)	(8		)
Transportation	13,975		9,683			4,165			100		27		10		8			(68		)	—
Metals/Mining	17,434		9,266			7,508			594		66		1		16			(621		)	(36		)
Business Services	14,601		7,838			6,447			286		30		9		10			(10		)	(2		)
Media	13,858		7,783			5,658			315		102		6		36			(26		)	(5		)
Insurance	13,761		10,681			2,757			84		239		—		(2		)	(98		)	(1,935		)
Building Materials/Construction	12,901		5,701			6,354			839		7		15		3			(132		)	—
Telecom Services	13,906		9,130			4,284			482		10		—		7			(272		)	(8		)
Chemicals/Plastics	10,637		7,189			3,211			222		15		—		—			(13		)	(83		)
Automotive	12,532		7,881			4,490			159		2		3		(3		)	(472		)	—
Leisure	5,331		2,950			1,797			495		89		5		—			(10		)	(14		)
Securities Firms & Exchanges	10,035		4,208		(f)	5,806		(f)	14		7		1		(68		)	(4,169		)	(175		)
Agriculture/Paper Mfg	7,387		4,238			3,064			82		3		31		—			(4		)	(4		)
Aerospace/Defense	6,873		5,447			1,426			—		—		—		—			(142		)	(1		)
All other(c)	201,298		180,460			19,911			692		235		1,249		(6		)	(7,068		)	(367		)
Subtotal	$	820,254	$	634,287		$	173,792		$	10,733	$	1,442	$	1,894	$	16		$	(27,996	)	$	(14,435	)
Loans held-for-sale and loans at fair value	13,301
Receivables from customers and other	26,744
Total	$	860,299

(a) The industry rankings presented in the table as of December 31, 2013, are based on the industry rankings of the corresponding exposures at September 30, 2014, not actual rankings of such exposures at December 31, 2013.

(b) In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at September 30, 2014, and December 31, 2013, noted above, the Firm held: $9.0 billion and $7.9 billion, respectively, of trading securities; $29.5 billion of available-for-sale (“AFS”) securities at both periods; and $9.2 billion and $920 million, respectively, of HTM securities, issued by U.S. state and municipal governments. For further information, see Note 3 and Note 11.

(c) All other includes: individuals, private education and civic organizations; SPEs; and holding companies, representing approximately 66%, 20% and 5%, respectively, at September 30, 2014, and 64%, 22% and 5%, respectively, at December 31, 2013.

(d) Credit exposure is net of risk participations and excludes the benefit of “Credit Portfolio Management derivatives net notional” held against derivative receivables or loans and “Liquid securities and other cash collateral held against derivative receivables”.

(e) Represents the net notional amounts of protection purchased and sold through credit derivatives used to manage the credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. The all other category includes purchased credit protection on certain credit indices.

(f) The prior period amounts have been revised to conform with the current period presentation.

61

Loans

In the normal course of its wholesale business, the Firm provides loans to a variety of customers, ranging from large corporate and institutional clients to high-net-worth individuals. For further discussion on loans, including information on credit quality indicators, see Note 13.

The Firm actively manages its wholesale credit exposure. One way of managing credit risk is through secondary market sales of loans and lending-related commitments. During the nine months endedSeptember 30, 2014 and 2013, the Firm sold $19.1 billion and $11.5 billion, respectively, of loans and lending-related commitments.

The following table presents the change in the nonaccrual loan portfolio for the nine months endedSeptember 30, 2014 and 2013.

Wholesale nonaccrual loan activity
Nine months ended September 30,
(in millions)	2014			2013(a)
Beginning balance	$	1,044		$	1,717
Additions	633			1,039
Reductions:
Paydowns and other	557			911
Gross charge-offs	106			190
Returned to performing status	156			176
Sales	66			311
Total reductions	885			1,588
Net reductions	(252		)	(549		)
Ending balance	$	792		$	1,168

(a) During 2013, certain loans that resulted from restructurings that were previously classified as performing were reclassified as nonperforming loans. The prior period amounts have been revised to conform with the current period presentation.

The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the three and nine months ended September 30, 2014 and 2013. The amounts in the table below do not include gains or losses from sales of nonaccrual loans.

Wholesale net charge-offs
(in millions, except ratios)	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Loans – reported
Average loans retained	$	318,207		$	306,008		$	314,253		$	306,076
Gross   charge-offs	29			74			106			190
Gross recoveries	(12		)	(48		)	(120		)	(196		)
Net charge-offs/(recoveries)	17			26			(14		)	(6		)
Net charge-off/(recovery rate)	0.02		%	0.03		%	(0.01		)%	—		%

Lending-related commitments

JPMorgan Chase uses lending-related financial instruments, such as commitments (including revolving credit facilities) and guarantees, to meet the financing needs of its customers. The contractual amounts of these financial instruments represent the maximum possible credit risk should the counterparties draw down on these commitments or the Firm fulfills its obligations under these guarantees, and the counterparties subsequently fail to perform according to the terms of these contracts.

In the Firm’s view, the total contractual amount of these wholesale lending-related commitments is not representative of the Firm’s likely actual future credit exposure or funding requirements. In determining the amount of credit risk exposure the Firm has to wholesale lending-related commitments, which is used as the basis for allocating credit risk capital to these commitments, the Firm has established a “loan-equivalent” amount for each commitment; this amount represents the portion of the unused commitment or other contingent exposure that is expected, based on average portfolio historical experience, to become drawn upon in an event of a default by an obligor. The loan-equivalent amount of the Firm’s lending-related commitments was $230.7 billion and $218.9 billion as of September 30, 2014, and December 31, 2013, respectively.

Derivative contracts

In the normal course of business, the Firm uses derivative instruments predominantly for market-making activities. Derivatives enable clients to manage exposures to fluctuations in interest rates, currencies and other markets. The Firm also uses derivative instruments to manage its own credit exposure. For further discussion of derivative contracts, see Note 5.

The following table summarizes the net derivative receivables for the periods presented.

Derivative receivables
(in millions)	Derivative receivables
	September 30, 2014			December 31, 2013
Interest rate	$	30,749		$	25,782
Credit derivatives	1,239			1,516
Foreign exchange	21,730			16,790
Equity	9,465			12,227
Commodity	9,270			9,444
Total, net of cash collateral	72,453			65,759
Liquid securities and other cash collateral held against derivative receivables	(17,617		)	(14,435		)
Total, net of collateral	$	54,836		$	51,324

62

Derivative receivables reported on the Consolidated Balance Sheets were $72.5 billion and $65.8 billion at September 30, 2014, and December 31, 2013, respectively. These amounts represent the fair value of the derivative contracts after giving effect to legally enforceable master netting agreements and cash collateral held by the Firm. However, in management’s view, the appropriate measure of current credit risk should also take into consideration additional liquid securities (primarily U.S. government and agency securities and other G7 government bonds) and other cash collateral held by the Firm aggregating $17.6 billion and $14.4 billion at September 30, 2014, and December 31, 2013, respectively, that may be used as security when the fair value of the client’s exposure is in the Firm’s favor.

In addition to the collateral described in the preceding paragraph, the Firm also holds additional collateral

(primarily cash, G7 government securities, other liquid government-agency and guaranteed securities, and corporate debt and equity securities) delivered by clients at the initiation of transactions, as well as collateral related to contracts that have a non-daily call frequency and collateral that the Firm has agreed to return but has not yet settled as of the reporting date. Although this collateral does not reduce the balances and is not included in the table above, it is available as security against potential exposure that could arise should the fair value of the client’s derivative transactions move in the Firm’s favor. As of September 30, 2014, and December 31, 2013, the Firm held $31.1 billion and $29.0 billion, respectively, of this additional collateral. The derivative receivables fair value, net of all collateral, also does not include other credit enhancements, such as letters of credit. For additional information on the Firm’s use of collateral agreements, see Note 5.

The following table summarizes the ratings profile by derivative counterparty of the Firm’s derivative receivables, including credit derivatives, net of other liquid securities collateral, for the dates indicated.

Ratings profile of derivative receivables
Rating equivalent	September 30, 2014				December 31, 2013(a)
(in millions, except ratios)	Exposure net of collateral		% of exposure net of collateral		Exposure net of collateral		% of exposure net of collateral
AAA/Aaa to AA-/Aa3	$	15,529	28	%	$	12,953	25	%
A+/A1 to A-/A3	13,801		25		12,930		25
BBB+/Baa1 to BBB-/Baa3	17,474		32		15,220		30
BB+/Ba1 to B-/B3	7,164		13		6,806		13
CCC+/Caa1 and below	868		2		3,415		7
Total	$	54,836	100	%	$	51,324	100	%

(a) The prior period amounts have been revised to conform with the current period presentation.

As noted above, the Firm uses collateral agreements to mitigate counterparty credit risk. The percentage of the Firm’s derivatives transactions subject to collateral agreements – excluding foreign exchange spot trades, which are not typically covered by collateral agreements due to their short maturity – was 87% as of September 30, 2014, largely unchanged compared with 86% as of December 31, 2013.

Credit derivatives

The Firm uses credit derivatives for two primary purposes: first, in its capacity as a market-maker; and second, as an end-user, to manage the Firm’s own credit risk associated with various exposures. For a detailed description of credit derivatives, see Credit derivatives in Note 5 of this Form

10-Q, and Note 6 of JPMorgan Chase’s 2013 Annual Report.

Credit portfolio management activities

Included in the Firm’s end-user activities are credit derivatives used to mitigate the credit risk associated with traditional lending activities (loans and unfunded commitments) and derivatives counterparty exposure in the Firm’s wholesale businesses (collectively, “credit portfolio management” activities). Information on credit portfolio management activities is provided in the table below. For further information on derivatives used in credit portfolio

management activities, see Credit derivatives in Note 5 of this Form 10-Q, and Note 6 of JPMorgan Chase’s 2013 Annual Report.

Credit derivatives used in credit portfolio management activities
	Notional amount of protection purchased and sold (a)
(in millions)	September 30, 2014		December 31, 2013
Credit derivatives used to manage:
Loans and lending-related commitments	$	2,728	$	2,764
Derivative receivables	27,798		25,328
Total net protection purchased	30,526		28,092
Total net protection sold	—		96
Credit portfolio management derivatives notional, net	$	30,526	$	27,996

(a) Amounts are presented net, considering the Firm’s net protection purchased or sold with respect to each underlying reference entity or index.

63

COMMUNITY REINVESTMENT ACT EXPOSURE

The Community Reinvestment Act (“CRA”) encourages banks to meet the credit needs of borrowers in all segments of their communities, including neighborhoods with low or moderate incomes. The Firm is a national leader in community development by providing loans, investments and community development services in communities across the United States.

At September 30, 2014, and December 31, 2013, the Firm’s CRA loan portfolio was approximately $21 billion and $18 billion, respectively. At September 30, 2014, and December 31, 2013, 44% and 50%, respectively, of the CRA portfolio were residential mortgage loans; 33% and

26%, respectively, were commercial real estate loans; 14% and 16%, respectively, were business banking loans; and 9% and 8%, respectively, were other loans. CRA nonaccrual loans were 3% of the Firm’s total nonaccrual loans for both September 30, 2014, and December 31, 2013. As a percentage of the Firm’s net charge-offs, net charge-offs in the CRA portfolio were 2% and 1% for each of the three months endedSeptember 30, 2014 and 2013, and 1% and 2%, respectively, for the nine months endedSeptember 30, 2014 and 2013.

ALLOWANCE FOR CREDIT LOSSES

JPMorgan Chase’s allowance for loan losses covers both the consumer (primarily scored) portfolio and wholesale (risk-rated) portfolio. The allowance represents management’s estimate of probable credit losses inherent in the Firm’s loan portfolio. Management also determines an allowance for wholesale and certain consumer lending-related commitments.

For a further discussion of the components of the allowance for credit losses and related management judgments, see Critical Accounting Estimates Used by the Firm on pages 85–87 of this Form 10-Q and Note 15 of JPMorgan Chase’s 2013 Annual Report.

At least quarterly, the allowance for credit losses is reviewed by the CRO, the CFO and the Controller of the Firm, and discussed with the Risk Policy and Audit Committees of the Board of Directors of the Firm. As of September 30, 2014, JPMorgan Chase deemed the allowance for credit losses to be appropriate and sufficient to absorb probable credit losses inherent in the portfolio.

The consumer, excluding credit card, allowance for loan losses reflected a reduction from December 31, 2013, primarily due to the continued improvement in home prices and delinquencies in the residential real estate portfolio and the run-off of the student loan portfolio. For additional information about delinquencies and nonaccrual loans in the consumer, excluding credit card, loan portfolio, see Consumer Credit Portfolio on pages 50–57 and Note 13.

The credit card allowance for loan losses reflected a reduction from December 31, 2013, primarily related to a decrease in the asset-specific allowance resulting from increased granularity of the impairment estimates and lower balances related to credit card loans modified in TDRs. For additional information about delinquencies in the credit card loan portfolio, see Consumer Credit Portfolio on pages 50–57 and Note 13.

The wholesale allowance was relatively unchanged, reflecting a generally favorable credit environment and stable credit quality trends.

64

Summary of changes in the allowance for credit losses
	2014												2013
Nine months ended September 30,	Consumer, excluding credit card			Credit card			Wholesale			Total			Consumer, excluding credit card				Credit card			Wholesale			Total
(in millions, except ratios)
Allowance for loan losses
Beginning balance at January 1,	$	8,456		$	3,795		$	4,013		$	16,264		$	12,292			$	5,501		$	4,143		$	21,936
Gross charge-offs	1,613			2,882			106			4,601			2,129			(e)	3,461			190			5,780			(e)
Gross recoveries	(629		)	(311		)	(120		)	(1,060		)	(637		)	(e)	(473		)	(196		)	(1,306		)	(e)
Net charge-offs/(recoveries)	984			2,571			(14		)	3,541			1,492				2,988			(6		)	4,474
Write-offs of PCI loans(a)	196			—			—			196			—				—			—			—
Provision for loan losses	180			2,371			(183		)	2,368			(1,346		)		1,588			(130		)	112
Other	2			(5		)	(3		)	(6		)	(6		)		(4		)	7			(3		)
Ending balance at September 30,	$	7,458		$	3,590		$	3,841		$	14,889		$	9,448			$	4,097		$	4,026		$	17,571
Impairment methodology
Asset-specific(b)	$	618		$	500		$	124		$	1,242		$	689			$	1,080		$	209		$	1,978
Formula-based	3,178			3,090			3,717			9,985			3,798				3,017			3,817			10,632
PCI	3,662			—			—			3,662			4,961				—			—			4,961
Total allowance for loan losses	$	7,458		$	3,590		$	3,841		$	14,889		$	9,448			$	4,097		$	4,026		$	17,571
Allowance for lending-related commitments
Beginning balance at January 1,	$	8		$	—		$	697		$	705		$	7			$	—		$	661		$	668
Provision for lending-related commitments	1			—			(70		)	(69		)	1				—			8			9
Other	—			—			1			1			1				—			(1		)	—
Ending balance at September 30,	$	9		$	—		$	628		$	637		$	9			$	—		$	668		$	677
Impairment methodology
Asset-specific	$	—		$	—		$	68		$	68		$	—			$	—		$	71		$	71
Formula-based	9			—			560			569			9				—			597			606
Total allowance for lending-related commitments(c)	$	9		$	—		$	628		$	637		$	9			$	—		$	668		$	677
Total allowance for credit losses	$	7,467		$	3,590		$	4,469		$	15,526		$	9,457			$	4,097		$	4,694		$	18,248
Memo:
Retained loans, end of period	$	288,379		$	126,564		$	320,361		$	735,304		$	288,211			$	123,672		$	310,588		$	722,471
Retained loans, average	288,398			124,008			314,253			726,659			289,478				123,422			306,076			718,976
PCI loans, end of period	48,487			—			5			48,492			54,759				—			11			54,770
Credit ratios
Allowance for loan losses to retained loans	2.59		%	2.84		%	1.20		%	2.02		%	3.28		%		3.31		%	1.30		%	2.43		%
Allowance for loan losses to retained nonaccrual loans(d)	113			NM			583			206			117				NM			424			195
Allowance for loan losses to retained nonaccrual loans excluding credit card	113			NM			583			156			117				NM			424			149
Net charge-off/(recovery) rates	0.46			2.77			(0.01		)	0.65			0.69				3.24			—			0.83
Credit ratios, excluding residential real estate PCI loans
Allowance for loan losses to retained loans	1.58			2.84			1.20			1.63			1.92				3.31			1.30			1.89
Allowance for loan losses to retained nonaccrual loans(d)	58			NM			583			155			56				NM			424			140
Allowance for loan losses to retained nonaccrual loans excluding credit card	58			NM			583			105			56				NM			424			94
Net charge-off/(recovery) rates	0.55		%	2.77		%	(0.01		)%	0.70		%	0.86		%		3.24		%	—		%	0.90		%

Note: In the table above, the financial measures which exclude the impact of PCI loans are non-GAAP financial measures. For additional information, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 15–16.

(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 PCI loans is recognized when the underlying loan is removed from a pool (e.g., upon liquidation).

(b) Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a TDR.

(c) The allowance for lending-related commitments is reported in other liabilities on the Consolidated Balance Sheets.

(d) The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

(e) The prior period amounts have been revised to conform with the current period presentation.

65

Provision for credit losses

For the three and nine months ended September 30, 2014, the provision for credit losses was $757 million and $2.3 billion respectively, compared with a benefit of $543 million and an expense of $121 million respectively, in the prior year periods. The consumer provision for the nine months ended September 30, 2014 reflected a $1.0 billion reduction in the allowance for loan losses, compared with a

$4.2 billion reduction in the prior year period. The decrease in the consumer allowance for loan loss reduction from the prior year was partially offset by lower charge-offs. The wholesale provision for credit losses reflected a generally favorable credit environment and stable credit quality trends.

	Three months ended September 30,										Nine months ended September 30,
	Provision for loan losses					Provision for lending-related commitments			Total provision for credit losses		Provision for loan losses		Provision for lending-related commitments		Total provision for credit losses
(in millions)	2014		2013			2014		2013	2014	2013	2014	2013	2014	2013	2014	2013
Consumer, excluding credit card	$	99	$	(815	)	$	—