Business segments

6 Months Ended

Jun. 30, 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 16, 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 and six months ended June 30, 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 June 30, (in millions, except ratios)	Consumer & Community Banking				Corporate & Investment Bank					Commercial Banking					Asset Management
	2015		2014		2015		2014			2015		2014			2015		2014
Noninterest revenue	$	4,089	$	4,468	$	6,233	$	6,519		$	609	$	577		$	2,544	$	2,380
Net interest income	6,926		7,050		2,490		2,746			1,130		1,154			631		602
Total net revenue	11,015		11,518		8,723		9,265			1,739		1,731			3,175		2,982
Provision for credit losses	702		852		50		(84		)	182		(67		)	—		1
Noninterest expense	6,210		6,456		5,137		6,058			703		675			2,406		2,062
Income/(loss) before income tax expense/(benefit)	4,103		4,210		3,536		3,291			854		1,123			769		919
Income tax expense/(benefit)	1,570		1,714		1,195		1,160			329		446			318		350
Net income	$	2,533	$	2,496	$	2,341	$	2,131		$	525	$	677		$	451	$	569
Average common equity	$	51,000	$	51,000	$	62,000	$	61,000		$	14,000	$	14,000		$	9,000	$	9,000
Total assets	472,181		447,277		819,745		872,947			201,377		192,523			134,059		128,362
Return on common equity	19%		19%		14%		13%			14%		19%			19%		25%
Overhead ratio	56		56		59		65			40		39			76		69

As of or for the three months ended June 30, (in millions, except ratios)	Corporate						Reconciling Items(b)						Total
	2015			2014			2015			2014			2015			2014
Noninterest revenue	$	100		$	351		$	(447	)	$	(415	)	$	13,128		$	13,880
Net interest income	(221		)	(510		)	(272		)	$	(244	)	10,684			10,798
Total net revenue	(121		)	(159		)	(719		)	$	(659	)	23,812			24,678
Provision for credit losses	1			(10		)	—			—			935			692
Noninterest expense	44			180			—			—			14,500			15,431
Income/(loss) before income tax expense/(benefit)	(166		)	(329		)	(719		)	(659		)	8,377			8,555
Income tax expense/(benefit)	(606		)	(436		)	(719		)	(659		)	2,087			2,575
Net income	$	440		$	107		$	—		$	—		$	6,290		$	5,980
Average common equity	$	77,738		$	71,159		$	—		$	—		$	213,738		$	206,159
Total assets	822,237			878,886			NA			NA			2,449,599			2,519,995
Return on common equity	NM			NM			NM			NM			11		%	11		%
Overhead ratio	NM			NM			NM			NM			61			63

Segment results and reconciliation(a)
As of or for the six months ended June 30, (in millions, except ratios)	Consumer & Community Banking					Corporate & Investment Bank					Commercial Banking					Asset Management
	2015		2014			2015		2014			2015		2014			2015		2014
Noninterest revenue	$	7,825	$	7,902		$	13,307	$	12,745		$	1,245	$	1,135		$	4,928	$	4,598
Net interest income	13,894		14,150			4,998		5,362			2,236		2,274			1,252		1,184
Total net revenue	21,719		22,052			18,305		18,107			3,481		3,409			6,180		5,782
Provision for credit losses	1,632		1,668			19		(35		)	243		(62		)	4		(8		)
Noninterest expense	12,400		12,893			10,794		11,662			1,412		1,361			4,581		4,137
Income/(loss) before income tax expense/(benefit)	7,687		7,491			7,492		6,480			1,826		2,110			1,595		1,653
Income tax expense/(benefit)	2,935		3,014			2,614		2,224			703		839			642		630
Net income	$	4,752	$	4,477		$	4,878	$	4,256		$	1,123	$	1,271		$	953	$	1,023
Average common equity	$	51,000	$	51,000		$	62,000	$	61,000		$	14,000	$	14,000		$	9,000	$	9,000
Total assets	472,181		447,277			819,745		872,947			201,377		192,523			134,059		128,362
Return on common equity	18%		17		%	15%		13		%	15%		18		%	21%		22		%
Overhead ratio	57		58			59		64			41		40			74		72

As of or for the six months ended June 30, (in millions, except ratios)	Corporate						Reconciling Items(b)						Total
	2015			2014			2015			2014			2015		2014
Noninterest revenue	$	140		$	875		$	(928	)	$	(827	)	$	26,517	$	26,428
Net interest income	(474		)	(1,035		)	(545		)	(470		)	21,361		21,465
Total net revenue	(334		)	(160		)	(1,473		)	(1,297		)	47,878		47,893
Provision for credit losses	(4		)	(21		)	—			—			1,894		1,542
Noninterest expense	196			14			—			—			29,383		30,067
Income/(loss) before income tax expense/(benefit)	(526		)	(153		)	(1,473		)	(1,297		)	16,601		16,284
Income tax expense/(benefit)	(1,024		)	(375		)	(1,473		)	(1,297		)	4,397		5,035
Net income	$	498		$	222		$	—		$	—		$	12,204	$	11,249
Average common equity	$	77,049		$	68,989		$	—		$	—		$	213,049	$	203,989
Total assets	822,237			878,886			NA			NA			2,449,599		2,519,995
Return on common equity	NM			NM			NM			NM			11%		11		%
Overhead ratio	NM			NM			NM			NM			61		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 an 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.