Business Segments

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Business Segments

Business segments

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 segment. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by management. Results of these lines of business are presented on a managed basis. For a further discussion concerning JPMorgan Chase’s business segments, see Business Segment Results on page 15, and pages 79–80, and Note 33 of JPMorgan Chase’s 2014 Annual Report.

Segment results

The accompanying tables provide a summary of the Firm’s segment results for the three months ended March 31, 2015 and 2014, on a managed basis. Total net revenue (noninterest revenue and net interest income) for each of the segments is presented on a fully taxable-equivalent (“FTE”) basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. This non-GAAP financial measure allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense/(benefit).

On at least an annual basis, the Firm assesses the level of capital required for each line of business as well as the assumptions and methodologies used to allocate capital to its lines of business and updates equity allocations to its lines of business as refinements are implemented.

Segment results and reconciliation(a)
As of or for the three months ended March 31, (in millions, except ratios)	Consumer & Community Banking						Corporate & Investment Bank						Commercial Banking						Asset Management
	2015			2014			2015			2014			2015			2014			2015			2014
Noninterest revenue	$	3,736		$	3,434		$	7,074		$	6,226		$	636		$	558		$	2,384		$	2,218
Net interest income	6,968			7,100			2,508			2,616			1,106			1,120			621			582
Total net revenue	10,704			10,534			9,582			8,842			1,742			1,678			3,005			2,800
Provision for credit losses	930			816			(31		)	49			61			5			4			(9		)
Noninterest expense	6,190			6,437			5,657			5,604			709			686			2,175			2,075
Income/(loss) before income tax expense/(benefit)	3,584			3,281			3,956			3,189			972			987			826			734
Income tax expense/(benefit)	1,365			1,300			1,419			1,064			374			393			324			280
Net income	$	2,219		$	1,981		$	2,537		$	2,125		$	598		$	594		$	502		$	454
Average common equity	$	51,000		$	51,000		$	62,000		$	61,000		$	14,000		$	14,000		$	9,000		$	9,000
Total assets	455,624			441,502			854,275			879,656			197,931			191,389			126,233			124,478
Return on common equity	17		%	15		%	16		%	13		%	17		%	17		%	22		%	20		%
Overhead ratio	58			61			59			63			41			41			72			74

As of or for the three months ended March 31, (in millions, except ratios)	Corporate						Reconciling Items(b)						Total
	2015			2014			2015			2014			2015			2014
Noninterest revenue	$	40		$	524		$	(481	)	$	(412	)	$	13,389		$	12,548
Net interest income	(253		)	(525		)	(273		)	(226		)	10,677			10,667
Total net revenue	(213		)	(1		)	(754		)	(638		)	24,066			23,215
Provision for credit losses	(5		)	(11		)	—			—			959			850
Noninterest expense	152			(166		)	—			—			14,883			14,636
Income/(loss) before income tax expense/(benefit)	(360		)	176			(754		)	(638		)	8,224			7,729
Income tax expense/(benefit)	(418		)	61			(754		)	(638		)	2,310			2,460
Net income	$	58		$	115		$	—		$	—		$	5,914		$	5,269
Average common equity	$	76,352		$	66,797		$	—		$	—		$	212,352		$	201,797
Total assets	943,085			839,625			NA			NA			2,577,148			2,476,650
Return on common equity	NM			NM			NM			NM			11		%	10		%
Overhead ratio	NM			NM			NM			NM			62			63

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

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