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
June 30, 2015	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).

oYes xNo

Number of shares of common stock outstanding as of June 30, 2015: 3,698,067,361

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 six months ended June 30, 2015, and 2014	84
	Consolidated statements of comprehensive income (unaudited) for the three and six months ended June 30, 2015, and 2014	85
	Consolidated balance sheets (unaudited) at June 30, 2015, and December 31, 2014	86
	Consolidated statements of changes in stockholders’ equity (unaudited) for the six months ended June 30, 2015, and 2014	87
	Consolidated statements of cash flows (unaudited) for the six months ended June 30, 2015, and 2014	88
	Notes to Consolidated Financial Statements (unaudited)	89
	Report of Independent Registered Public Accounting Firm	173
	Consolidated Average Balance Sheets, Interest and Rates (unaudited) for the three and six months ended June 30, 2015, and 2014	174
	Glossary of Terms and Line of Business Metrics	176
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	7
	Consolidated Balance Sheets Analysis	10
	Off-Balance Sheet Arrangements	12
	Consolidated Cash Flows Analysis	13
	Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures	14
	Business Segment Results	16
	Enterprise-Wide Risk Management	44
	Credit Risk Management	45
	Market Risk Management	61
	Country Risk Management	65
	Operational Risk Management	66
	Capital Management	67
	Liquidity Risk Management	74
	Supervision and Regulation	78
	Critical Accounting Estimates Used by the Firm	79
	Accounting and Reporting Developments	82
	Forward-Looking Statements	83
Item 3	Quantitative and Qualitative Disclosures About Market Risk	183
Item 4	Controls and Procedures	183
Part II - Other information
Item 1	Legal Proceedings	183
Item 1A	Risk Factors	183
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	183
Item 3	Defaults Upon Senior Securities	184
Item 4	Mine Safety Disclosure	184
Item 5	Other Information	184
Item 6	Exhibits	184

2

JPMorgan Chase & Co.

Consolidated financial highlights

(unaudited) As of or for the period ended,																Six months ended June 30,
(in millions, except per share, ratio, headcount data and where  otherwise noted)	2Q15			1Q15			4Q14			3Q14			2Q14			2015			2014
Selected income statement data
Total net revenue	$	23,812		$	24,066		$	22,750		$	24,469		$	24,678		$	47,878		$	47,893
Total noninterest expense	14,500			14,883			15,409			15,798			15,431			29,383			30,067
Pre-provision profit	9,312			9,183			7,341			8,671			9,247			18,495			17,826
Provision for credit losses	935			959			840			757			692			1,894			1,542
Income before income tax expense	8,377			8,224			6,501			7,914			8,555			16,601			16,284
Income tax expense	2,087			2,310			1,570			2,349			2,575			4,397			5,035
Net income	$	6,290		$	5,914		$	4,931		$	5,565		$	5,980		$	12,204		$	11,249
Earnings per share data
Net income: Basic	$	1.56		$	1.46		$	1.20		$	1.37		$	1.47		$	3.02		$	2.76
Diluted	1.54			1.45			1.19			1.35			1.46			2.99			2.74
Average shares: Basic	3,707.8			3,725.3			3,730.9			3,755.4			3,780.6			3,716.6			3,783.9
Diluted	3,743.6			3,757.5			3,765.2			3,788.7			3,812.5			3,750.5			3,818.1
Market and per common share data
Market capitalization	250,581			224,818			232,472			225,188			216,725			250,581			216,725
Common shares at period-end	3,698.1			3,711.1			3,714.8			3,738.2			3,761.3			3,698.1			3,761.3
Share price(a):
High	$	69.82		$	62.96		$	63.49		$	61.85		$	61.29		$	69.82		$	61.48
Low	59.65			54.27			54.26			54.96			52.97			54.27			52.97
Close	67.76			60.58			62.58			60.24			57.62			67.76			57.62
Book value per share	58.49			57.77			56.98			56.41			55.44			58.49			55.44
Tangible book value per share (“TBVPS”)(b)	46.13			45.45			44.60			44.04			43.08			46.13			43.08
Cash dividends declared per share	0.44			0.40			0.40			0.40			0.40			0.84			0.78
Selected ratios and metrics
Return on common equity (“ROE”)	11		%	11		%	9		%	10		%	11		%	11		%	11		%
Return on tangible common equity (“ROTCE”)(b)	14			14			11			13			14			14			14
Return on assets (“ROA”)	1.01			0.94			0.78			0.90			0.99			0.97			0.94
Overhead ratio	61			62			68			65			63			61			63
Loans-to-deposits ratio	61			56			56			56			57			61			57
High quality liquid assets (“HQLA”) (in billions)(c)	$	532		$	614		$	600		$	572		$	576		$	532		$	576
Common equity Tier 1 (“CET1”) capital ratio(d)	11.2		%	10.7		%	10.2%			10.2		%	9.8		%	11.2		%	9.8		%
Tier 1 capital ratio(d)	12.8			12.1			11.6			11.5			11.0			12.8			11.0
Total capital ratio(d)	14.4			13.7			13.1			12.8			12.5			14.4			12.5
Tier 1 leverage ratio(d)	8.0			7.5			7.6			7.6			7.6			8.0			7.6
Selected balance sheet data (period-end)
Trading assets	$	377,870		$	398,981		$	398,988		$	410,657		$	392,543		$	377,870		$	392,543
Securities(e)	317,795			331,136			348,004			366,358			361,918			317,795			361,918
Loans	791,247			764,185			757,336			743,257			746,983			791,247			746,983
Core loans	674,767			641,285			628,785			607,617			603,440			674,767			603,440
Total assets	2,449,599			2,577,148			2,572,773			2,526,655			2,519,995			2,449,599			2,519,995
Deposits	1,287,332			1,367,887			1,363,427			1,334,534			1,319,751			1,287,332			1,319,751
Long-term debt(f)	286,693			280,608			276,836			268,721			269,929			286,693			269,929
Common stockholders’ equity	216,287			214,371			211,664			210,876			208,520			216,287			208,520
Total stockholders’ equity	241,205			235,864			231,727			230,939			226,983			241,205			226,983
Headcount	237,459			241,145			241,359			242,388			245,192			237,459			245,192
Credit quality metrics
Allowance for credit losses	$	14,535		$	14,658		$	14,807		$	15,526		$	15,974		$	14,535		$	15,974
Allowance for loan losses to total retained loans	1.78%			1.86%			1.90%			2.02%			2.08%			1.78		%	2.08		%
Allowance for loan losses to retained loans excluding purchased credit-impaired loans(g)	1.45			1.52			1.55			1.63			1.69			1.45			1.69
Nonperforming assets	$	7,588		$	7,714		$	7,967		$	8,390		$	9,017		$	7,588		$	9,017
Net charge-offs	1,007			1,052			1,218			1,114			1,158			2,059			2,427
Net charge-off rate	0.53%			0.57%			0.65%			0.60%			0.64%			0.55%			0.68%

Note: Effective January 1, 2015, the Firm adopted new accounting guidance for investments in affordable housing projects that qualify for the low-income housing tax credit. The guidance was required to be applied retrospectively and accordingly, certain prior period amounts have been revised to conform with the current period presentation. For additional information, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 14–15, as well as Accounting and Reporting Developments on page 82 and Note 1.

(a) Share prices shown for JPMorgan Chase’s common stock are from the New York Stock Exchange.

(b) TBVPS and ROTCE are non-GAAP financial measures. For further discussion of these measures, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 14–15.

(c) HQLA represents the amount of assets that qualify for inclusion in the liquidity coverage ratio under the final U.S. rule (“U.S. LCR”) for 2Q15 and 1Q15, the estimated amount as of 4Q14 and 3Q14, and the amount included under the Basel III Liquidity Coverage Ratio (“Basel III LCR”) for 2Q14; for additional information, see HQLA on page 74.

(d) The ratios presented are calculated under Basel III Advanced Transitional. See Regulatory capital on pages 67–71 for additional information on Basel III.

(e) Included held-to-maturity (“HTM”) securities of $51.6 billion, $49.3 billion, $49.3 billion, $48.8 billion, and $47.8 billion at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014, and June 30, 2014, respectively.

(f) Included unsecured long-term debt of $209.6 billion, $209.5 billion, $207.5 billion, $204.7 billion, and $205.6 billion at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014, and June 30, 2014, respectively.

(g) Excluded the impact of residential real estate PCI loans. For further discussion, see Allowance for credit losses on pages 58–60.

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”) for the second quarter of 2015.

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, 2014, filed with the U.S. Securities and Exchange Commission (“2014 Annual Report” or “2014 Form 10-K”), to which reference is hereby made. See the Glossary of terms on pages 176–179 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 because of those risks and uncertainties, see Forward-looking Statements on page 83 of this Form 10-Q and Part I, Item 1A, Risk Factors, on pages 8–17 of JPMorgan Chase’s 2014 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 $2.4 trillion in assets and $241.2 billion in stockholders’ equity as of June 30, 2015. 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 banking association with U.S. branches in 23 states, and Chase Bank USA, National Association (“Chase Bank USA, N.A.”), a national banking association 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.

For management reporting purposes, the Firm’s activities are organized into four major reportable business segments, as well as a Corporate 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 2014 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 June 30,								Six months ended June 30,
(in millions, except per share data and ratios)	2015			2014			Change		2015			2014			Change
Selected income statement data
Total net revenue	$	23,812		$	24,678		(4	)%	$	47,878		$	47,893		—
Total noninterest expense	14,500			15,431			(6	)	29,383			30,067			(2	)
Pre-provision profit	9,312			9,247			1		18,495			17,826			4
Provision for credit losses	935			692			35		1,894			1,542			23
Net income	6,290			5,980			5		12,204			11,249			8
Diluted earnings per share	$	1.54		$	1.46		5	%	$	2.99		$	2.74		9	%
Return on common equity	11		%	11		%			11		%	11		%
Capital ratios(a)
CET1	11.2			9.8					11.2			9.8
Tier 1 capital	12.8			11.0					12.8			11.0

(a) The ratios presented are calculated under Basel III Advanced Transitional. See Regulatory capital on pages 67–71 for additional information on Basel III.

Business Overview

JPMorgan Chase reported second-quarter 2015 net income of $6.3 billion, or $1.54 per share, on net revenue of $23.8 billion. The Firm delivered strong performance in the second quarter and reported a return on equity of 11%.

Net income increased 5% compared with the second quarter of 2014, reflecting lower noninterest expense and lower taxes, predominantly offset by lower net revenue and a higher provision for credit losses. Net revenue was $23.8 billion, down 4% compared with the prior year. Net interest income was $10.7 billion, relatively flat compared with the prior year, reflecting lower loan yields and lower investment securities balances, predominantly offset by higher average loan balances and lower deposit and long-term debt interest expense. Noninterest revenue was $13.1 billion, down 5% compared with the prior year, driven by lower Mortgage Banking revenue and lower CIB Markets revenue related to business simplification, partially offset by higher revenue in Asset Management.

The provision for credit losses was $935 million, up 35% compared with the prior year, as a result of higher wholesale provision for credit losses, reflecting the impact of select downgrades, including within the Oil & Gas portfolio. The consumer provision for credit losses decreased, driven by lower net charge-offs, partially offset by a lower reduction in the allowance for loan losses, reflecting stabilization of the credit environment. Consumer net charge-offs were $1.0 billion, compared with $1.2 billion in the prior year, resulting in net charge-off rates, excluding purchased credit-impaired (“PCI”) loans, of 1.06% and 1.34%, respectively.

The Firm’s allowance for loan losses to period-end loans retained, excluding PCI loans, was 1.45%, compared with

1.69% in the prior year. The Firm’s allowance for loan losses to retained nonaccrual loans, excluding PCI loans, was 161%, compared with 152% in the prior year. The Firm’s nonperforming assets totaled $7.6 billion, down from the prior quarter and prior year levels of $7.7 billion and $9.0 billion, respectively.

Noninterest expense was $14.5 billion, down 6% compared with the prior year, driven by business simplification, lower legal expense, and lower Mortgage Banking noninterest expense.

Firmwide core loans increased 12% compared with the prior year and 5% compared with the first quarter of 2015. Within Consumer & Community Banking, Consumer & Business Banking (“CBB”) average deposits were up 9%, client investment assets were a record $221.5 billion, up 8%, and credit card sales volume was $125.7 billion, up 7%, from the prior year. CIB maintained its #1 ranking for Global Investment Banking fees with an 8.2% fee share for the second quarter of 2015. CB average loan balances were up 11% from the prior year and up 4% from the first quarter of 2015. Gross investment banking revenue from CB clients was up 22% from the prior year. AM reported positive net long-term flows for the twenty-fifth consecutive quarter, assets under management were up 4%, and average loan balances were up 9% over the prior year.

For a detailed discussion of results by line of business,

refer to the Business Segment Results section beginning on page 16.

The Firm maintained its fortress balance sheet and added to its capital, ending the second quarter with estimated Basel III Advanced Fully Phased-In CET1 capital and ratio of $168.9 billion and 11.0%, respectively. The Firm’s supplementary leverage ratio (“SLR”) was 6.0% and

5

JPMorgan Chase Bank, N.A.’s SLR was 6.1%. The Firm also had $532 billion of high quality liquid assets (“HQLA”) as of June 30, 2015. The CET1 and SLR measures under the Basel III Advanced Fully Phased-In rules are each 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 67–71.

JPMorgan Chase continued to support consumers, businesses and communities around the globe. The Firm provided credit and raised capital of $1.0 trillion for commercial and consumer clients during the first six months of 2015. This included providing $314 billion of credit to corporations, $115 billion to consumers, and $11 billion to U.S. small businesses. During the first half of 2015, the Firm also raised $556 billion of capital for clients and $35 billion of credit was provided to, and capital was raised for, nonprofit and government entities, including states, municipalities, hospitals and universities.

2015 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 83 of this Form 10-Q and Risk Factors on pages 8-17 of JPMorgan Chase’s 2014 Annual Report. There is no assurance that actual results for the third quarter or full year of 2015 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 third quarter and for the remainder of 2015 should be viewed against the backdrop of the global and U.S. economies, financial markets 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 inter-related factors will affect the performance of the Firm and its lines of business.

Management expects core loan growth of approximately 10% in the second half of 2015. The Firm continues to experience charge-offs at levels lower than its through-the-cycle expectations; if stable credit quality trends continue, management expects the Firm’s total net charge-offs for the second half of 2015 to be consistent with the first half of 2015.

Firmwide adjusted expense in 2015 is expected to be approximately $57 billion, excluding firmwide legal expense.

In Mortgage Banking within CCB, management expects noninterest revenue for 2015 to decline by approximately $1 billion compared with 2014 driven by lower servicing revenue as well as lower repurchase benefits. In Card Services within CCB, management expects the revenue rate in 2015 to remain at the low end of the target range of 12% to 12.5% and the full year net charge-off rate to be slightly less than 2.5%.

In CIB, Markets revenue in the third quarter of 2015 is expected to be impacted by the Firm’s business simplification, which was completed in 2014, resulting in a decline of approximately 9%, as well as a decline in noninterest expense, compared with the prior year third quarter. In Treasury Services within CIB, management expects revenue to be approximately $875 million in each of the remaining quarters of 2015 which reflects the transfer of Trade Finance revenue to Lending. In Securities Services within CIB, management expects revenue to be in the range of $950 million to $1 billion in each of the remaining quarters of 2015, depending on seasonality.

In CB, management expects noninterest expense to be approximately $720 million in each of the remaining quarters of 2015.

In AM, management expects the 2015 pretax margin and ROE to be at the low end of the business’s through-the-cycle targets of 30-35%, and 25% or higher, respectively.

Business events and subsequent events

For a discussion of business events during the six months ended June 30, 2015, and subsequent events, see Note 2.

6

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 six months ended June 30, 2015 and 2014. 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 79–81 of this Form 10-Q and pages 161–165 of JPMorgan Chase’s 2014 Annual Report.

Revenue
	Three months ended June 30,						Six months ended June 30,
(in millions)	2015		2014		Change		2015		2014		Change
Investment banking fees	$	1,833	$	1,751	5	%	$	3,627	$	3,171	14	%
Principal transactions	2,834		2,908		(3	)	6,489		6,230		4
Lending- and deposit-related fees	1,418		1,463		(3	)	2,781		2,868		(3	)
Asset management, administration and commissions	4,015		4,007		—		7,822		7,843		—
Securities gains	44		12		267		96		42		129
Mortgage fees and related income	783		1,291		(39	)	1,488		1,805		(18	)
Card income	1,615		1,549		4		3,046		2,957		3
Other income(a)	586		899		(35	)	1,168		1,512		(23	)
Noninterest revenue	13,128		13,880		(5	)	26,517		26,428		—
Net interest income	10,684		10,798		(1	)	21,361		21,465		—
Total net revenue	$	23,812	$	24,678	(4)%		$	47,878	$	47,893	—

(a) Included operating lease income of $504 million and $422 million for the three months ended June 30, 2015 and 2014, respectively, and $973 million and $820 million for the six months ended June 30, 2015 and 2014, respectively.

Total net revenue for the three months ended June 30, 2015 was down by 4% compared with the prior year, predominantly due to lower revenues in Fixed Income Markets, lower mortgage-related revenue, the absence in the current period of a benefit recognized in the prior year from a franchise tax settlement, and certain losses in Corporate. These items were partially offset by higher revenues in Equity Markets, and higher asset management fees on continued net long-term inflows. For the six months ended June 30, 2015, total net revenue was flat compared with the prior year, predominantly reflecting the net reduction from the aforementioned factors, partially offset by higher investment banking fees.

Investment banking fees increased from the three months ended June 30, 2014, reflecting higher advisory and debt underwriting fees. For the six months ended June 30, 2015, investment banking fees increased across products due to strong relative performance and an increased share of fees compared with the prior year. The increase in advisory fees for both periods was driven by the combined impact of a greater share of fees for completed transactions and growth in industry-wide fee levels; the increase in debt underwriting fees for both periods was attributable to a higher share of fees for high grade bond issuance and growth in industry-wide fee levels; and the increase in equity underwriting fees for the six months ended June 30, 2015 was due to a greater share of fees. Investment banking fee share and industry-wide data are sourced from Dealogic. For additional information on investment banking fees, see CIB segment results on pages 29–33, CB segment results on pages 34–37, and Note 6.

Principal transactions revenue decreased in the three months ended June 30, 2015 compared with the prior year, largely reflecting CIB’s lower Fixed Income Markets revenue, driven by the impact of business simplification, continued weakness in Credit and Securitized Products and lower revenue in Currencies & Emerging Markets, partially offset by strength in Rates. The decline in Fixed Income Markets was partially offset by higher Equity Markets revenue, primarily on higher derivatives and cash revenue. For the six months ended June 30, 2015, principal transactions revenue increased compared with the prior year, due to higher Equity Markets revenue on higher derivative and cash revenue, partially offset by lower Fixed Income Markets revenue, as well as lower private equity gains in Corporate. The decline in Fixed Income Markets revenue was driven by the impact of business simplification and weakness in Credit and Securitized Products, largely offset by higher revenue in Rates and Currencies & Emerging Markets. For additional information on principal transactions revenue, see CIB and Corporate segment results on pages 29–33 and pages 42–43, respectively, and

Note 6.

Asset management, administration and commissions revenue for the three and six months ended June 30, 2015, was relatively flat compared with the prior year, with higher asset management fees in AM and CCB reflecting higher market levels and net client inflows, offset by lower commissions and other fees in CIB. For additional information on these fees and commissions, see the segment discussions of CCB on pages 17–28, AM on pages 38–41, and Note 6.

7

Mortgage fees and related income decreased compared with the three months ended June 30, 2014, driven by lower MSR risk management income, reflecting the absence in 2015 of a positive $220 million model assumption update in the prior year, lower servicing revenue and lower repurchase benefit. Compared with the six months ended June 30, 2014, mortgage fees and related income decreased, driven by lower servicing revenue and lower repurchase benefit. For further information on mortgage fees and related income, see the segment discussion of CCB on pages 17–28 and Note 16.

For additional information on lending- and deposit-related fees, see the segment results for CCB on pages 17–28, CIB on pages 29–33 and CB on pages 34–37; securities gains, see the Corporate segment discussion on pages 42–43 and Note 11; and card income, see CCB segment results on pages 17–28.

Other income for the three and six months ended June 30, 2015 decreased compared with the prior year, as a result of the absence in the current period of a benefit recognized in the second quarter of 2014 from a franchise tax settlement, the impact of business simplification in CIB, and a loss recognized on the early redemption of trust preferred securities in Corporate. These factors were partially offset

by higher auto lease income as a result of growth in auto operating lease assets in CCB. The decrease during the six months ended June 30, 2015, also reflected losses related to the accelerated amortization of cash flow hedges associated with the exit of certain non-operational deposits, and a loss recognized on the early redemption of long-term debt that was recognized in the first quarter of 2015 in Corporate.

Net interest income was relatively flat in the three and six months ended June 30, 2015 compared with the prior year, predominantly reflecting lower loan yields due to the runoff of higher-yielding loans, new originations of lower- yielding loans, and lower average investment securities balances, offset by higher average loan balances and the impact of lower deposit and long-term debt interest expense. The Firm’s average interest-earning assets were $2.1 trillion in the three months ended June 30, 2015, and the net interest yield on these assets, on a fully taxable-equivalent (“FTE”) basis, was 2.09%, a decrease of 10 basis points from the prior year. For the six months ended June 30, 2015, the Firm’s average interest-earning assets were $2.1 trillion, and the net interest yield on these assets, on a FTE basis, was 2.08%, a decrease of 12 basis points from the prior year.

Provision for credit losses
	Three months ended June 30,								Six months ended June 30,
(in millions)	2015			2014			Change		2015		2014			Change
Consumer, excluding credit card	$	(98	)	$	(37	)	(165	)%	$	44	$	82		(46	)%
Credit card	800			885			(10	)%	1,589		1,573			1	%
Total consumer	702			848			(17	)%	1,633		1,655			(1	)%
Wholesale	233			(156		)	NM		261		(113		)	NM
Total provision for credit losses	$	935		$	692		35	%	$	1,894	$	1,542		23	%

The provision for credit losses in the three and six months ended June 30, 2015 increased from the prior year as a result of higher wholesale provision for credit losses, reflecting the impact of select downgrades, including within the Oil & Gas portfolio. The total consumer provision for credit losses decreased in the three months ended June 30, 2015, driven by lower net charge-offs, partially offset by a lower reduction in the allowance for loan losses. For the six months ended June 30, 2015, the total consumer provision

for credit losses reflected lower net charge-offs offset by a lower reduction in the allowance for loan losses. The lower reduction in the allowance for loan losses reflected the stabilization of the credit environment compared with the prior year. For a more detailed discussion of the credit portfolio and the allowance for credit losses, see the segment discussions of CCB on pages 17–28, CIB on pages 29–33 and CB on pages 34–37, and the Allowance for credit losses on pages 58–60.

Noninterest expense
	Three months ended June 30,						Six months ended June 30,
(in millions)	2015		2014		Change		2015		2014		Change
Compensation expense	$	7,694	$	7,610	1	%	$	15,737	$	15,469	2	%
Noncompensation expense:
Occupancy	923		973		(5	)	1,856		1,925		(4	)
Technology, communications and equipment	1,499		1,433		5		2,990		2,844		5
Professional and outside services	1,768		1,932		(8	)	3,402		3,718		(8	)
Marketing	642		650		(1	)	1,233		1,214		2
Other expense(a)(b)	1,974		2,833		(30	)	4,165		4,897		(15	)
Total noncompensation expense	6,806		7,821		(13	)	13,646		14,598		(7	)
Total noninterest expense	$	14,500	$	15,431	(6	)%	$	29,383	$	30,067	(2	)%

(a) Included firmwide legal expense of $291 million and $669 million for the three months ended June 30, 2015 and 2014, respectively, and $978 million and $707 million for the six months ended June 30, 2015 and 2014, respectively

(b) Included Federal Deposit Insurance Corporation-related (“FDIC”) expense of $300 million and $266 million for the three months ended June 30, 2015, and 2014, respectively, and $618 million and $559 million for the six months ended June 30, 2015 and 2014, respectively.

8

Total noninterest expense for the three months ended June 30, 2015 decreased by 6% from the prior year, driven by the impact of business simplification, lower legal expense and lower professional services expense. For the six months ended June 30, 2015, total noninterest expense decreased by 2% reflecting the impact of business simplification and lower professional services expense, partially offset by higher legal expense.

Compensation expense increased compared with the three and six months ended June 30, 2014, predominantly driven by the impact of investments in the businesses, including headcount for controls, and higher postretirement benefit costs, partially offset by lower headcount in CCB.

Noncompensation expense in the three and six months ended June 30, 2015 decreased compared with the prior year, due to lower other expense, reflecting the impact of business simplification in CIB, and lower amortization of intangibles, partially offset by the impact of a loss from a held-for-sale asset in AM. Lower professional and outside services expense, largely reflecting lower legal services expense and the impact of a reduced number of contractors in several businesses, also contributed to the decrease in both periods. Legal expense (which is included in other expense) was lower in the three months ended June 30, 2015, but higher in the six months ended June 30, 2015, compared with the respective prior year periods. For a further discussion of legal expense, see Note 23.

Income tax expense
(in millions, except rate)	Three months ended June 30,								Six months ended June 30,
	2015			2014			Change		2015			2014			Change
Income before income tax expense	$	8,377		$	8,555		(2	)%	$	16,601		$	16,284		2	%
Income tax expense	2,087			2,575			(19	)	4,397			5,035			(13	)
Effective tax rate	24.9		%	30.1		%			26.5		%	30.9		%

The effective tax rate in the three and six months ended June 30, 2015 decreased compared with the respective prior year periods, predominantly due to higher tax benefits associated with the settlement of certain tax audits (which reduced the Firm’s gross unrecognized tax benefits), as well as due to lower nondeductible legal-related expense in the current period and the change in mix of income and expense subject to U.S. federal and state and local taxes. Tax audits of the Firm that were being conducted by a number of taxing authorities, most notably the Internal Revenue Service, New York State and City, and the State of California, continue to be resolved. Based upon the current status of such audits, it is reasonably possible that over the next three to six months the resolution of these audits could result in a further reduction in the gross balance of the Firm’s unrecognized tax benefits; the Firm currently estimates the expected reduction to be in the range of $0 to approximately $2 billion for full year 2015. For further information, see Note 26 of JPMorgan Chase’s 2014 Annual Report.

9

CONSOLIDATED BALANCE SHEETS ANALYSIS

Selected Consolidated Balance Sheets data
(in millions)	Jun 30, 2015			Dec 31, 2014			Change
Assets
Cash and due from banks	$	24,095		$	27,831		(13	)%
Deposits with banks	398,807			484,477			(18	)
Federal funds sold and securities purchased under resale agreements	212,850			215,803			(1	)
Securities borrowed	98,528			110,435			(11	)
Trading assets:
Debt and equity instruments	310,419			320,013			(3	)
Derivative receivables	67,451			78,975			(15	)
Securities	317,795			348,004			(9	)
Loans	791,247			757,336			4
Allowance for loan losses	(13,915		)	(14,185		)	(2	)
Loans, net of allowance for loan losses	777,332			743,151			5
Accrued interest and accounts receivable	69,642			70,079			(1	)
Premises and equipment	15,073			15,133			—
Goodwill	47,476			47,647			—
Mortgage servicing rights	7,571			7,436			2
Other intangible assets	1,091			1,192			(8	)
Other assets	101,469			102,597			(1	)
Total assets	$	2,449,599		$	2,572,773		(5	)
Liabilities
Deposits	$	1,287,332		$	1,363,427		(6	)
Federal funds purchased and securities loaned or sold under repurchase agreements	180,897			192,101			(6	)
Commercial paper	42,238			66,344			(36	)
Other borrowed funds	30,061			30,222			(1	)
Trading liabilities:
Debt and equity instruments	80,396			81,699			(2	)
Derivative payables	59,026			71,116			(17	)
Accounts payable and other liabilities	191,749			206,939			(7	)
Beneficial interests issued by consolidated VIEs	50,002			52,362			(5	)
Long-term debt	286,693			276,836			4
Total liabilities	2,208,394			2,341,046			(6	)
Stockholders’ equity	241,205			231,727			4
Total liabilities and stockholders’ equity	$	2,449,599		$	2,572,773		(5	)%

Consolidated Balance Sheets overview

JPMorgan Chase’s total assets and total liabilities decreased by 5% and 6%, respectively, compared with December 31, 2014.

The following is a discussion of the significant changes.

Cash and due from banks and deposits with banks

The net decrease was attributable to lower wholesale non-operating deposits. The Firm’s excess cash was placed with various central banks, predominantly Federal Reserve Banks.

Securities borrowed

The decrease was predominantly driven by lower demand for securities to cover customer short positions in CIB, and a shift in the deployment of excess cash from securities borrowed to deposits with banks.

Trading assets and liabilities–derivative receivables and payables

The decrease in both receivables and payables was predominantly due to client-driven market-making activities in CIB, as a result of market movements and maturities. For additional information, refer to Derivative contracts on pages 56–57, and Notes 3 and 5.

Securities

The decrease was largely due to paydowns and maturities

of non-U.S. residential mortgage-backed securities (“MBS”) and non-U.S. government debt securities. For additional information related to securities, refer to the discussion

in the Corporate segment on pages 42–43, and Notes 3

and 11.

Loans and allowance for loan losses

The increase in loans reflects higher consumer and wholesale balances. The increase in consumer loans was due to originations and retention of high-quality prime mortgages in Mortgage Banking (“MB”) and AM, partially offset by lower credit card loans due to seasonality and non-core loan portfolio sales. The increase in wholesale loans reflected higher originations and utilization of existing commitments, particularly in CB. For a more detailed discussion of loans and the allowance for loan losses, refer to Credit Risk Management on pages 45–60, and Notes 3, 4, 13 and 14.

Mortgage servicing rights

For additional information on MSRs, see Note 16.

Other assets

Other assets was relatively flat, due to lower private equity investments reflecting the sale of a portion of the One Equity Partners (“OEP”) portfolio and other portfolio sales, partially offset by higher auto operating lease assets from growth in business volume.

10

Deposits

The decrease was attributable to lower wholesale deposits, partially offset by higher consumer deposits. The decrease in wholesale deposits reflects the impact of the previously announced plan to reduce non-operating deposits, as well as the normalization of deposit levels from year-end seasonal inflows. 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. For more information on deposits, refer to the CCB segment discussion on pages 17–28; the Liquidity Risk Management discussion on pages 74–78; and Notes 3 and 17. For more information on wholesale client deposits, refer to the AM, CB and CIB segment discussions on pages 38–41, pages 34–37, and pages 29–33, respectively.

Federal funds purchased and securities loaned or sold under repurchase agreements

The decrease reflects lower secured financing of trading assets-debt and equity instruments and the investment securities portfolio. For additional information on the Firm’s Liquidity Risk Management, see pages 74–78.

Commercial paper

The decrease was due to the discontinuation of a cash management product, currently in process, that offered customers the option of sweeping their deposits into commercial paper (“customer sweeps”), and lower issuances in the wholesale markets consistent with Treasury’s liquidity and short-term funding plans. For additional information on the Firm’s other borrowed funds, see Liquidity Risk Management on pages 74–78.

Accounts payable and other liabilities

The decrease was due to lower brokerage customer payables related to client activity in CIB.

Beneficial interests issued by consolidated VIEs

For further information on Firm-sponsored variable interest entities (“VIEs”) and loan securitization trusts, see Off-Balance Sheet Arrangements on page 12 and Note 15.

Long-term debt

The increase was due to net issuances, consistent with Treasury’s long-term funding plans. For additional information on the Firm’s long-term debt activities, see Liquidity Risk Management on pages 74–78.

Stockholders’ equity

The increase was due to net income and preferred stock issuance, partially offset by the declaration of cash dividends on common and preferred stock, and repurchases of common stock. For additional information on accumulated other comprehensive income/(loss) (“AOCI”), see Note 19; for the Firm’s capital actions, see Capital actions on pages 72–73.

11

OFF-BALANCE SHEET ARRANGEMENTS

In the normal course of business, the Firm enters into various contractual obligations that may require future cash payments. Certain obligations are recognized on-balance sheet, while others are off-balance sheet under U.S. GAAP. The Firm is involved with several types of off–balance sheet arrangements, including through nonconsolidated special-purpose entities (“SPEs”), which are a type of 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 74–75 and Note 29 of JPMorgan Chase’s 2014 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 2014 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 June 30, 2015, and December 31, 2014, was $13.0 billion and $12.1 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 $9.9 billion at both June 30, 2015, and December 31, 2014. The Firm could facilitate the refinancing of some of the clients’ assets in order to reduce the funding obligation. For further information, see the discussion of Firm-administered multiseller conduits in

Note 15.

The Firm also acts as liquidity provider for certain municipal bond vehicles. The Firm’s obligation to perform as liquidity provider is conditional and is limited by certain termination events, which include bankruptcy or failure to pay by the municipal bond issuer or credit enhancement provider, an event of taxability on the municipal bonds or the immediate downgrade of the municipal bond to below investment grade. See Note 15 for additional information.

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 56 and Note 21 (including the table that presents the related amounts by contractual maturity as of June 30, 2015). For a discussion of liabilities associated with loan sales- and securitization-related indemnifications, see Note 21.

12

CONSOLIDATED CASH FLOWS ANALYSIS

For a discussion of the activities affecting the Firm’s cash flows, see Consolidated Balance Sheets Analysis on pages 10–11 of this Form 10-Q and page 76 of JPMorgan Chase’s 2014 Annual Report.

(in millions)	Six months ended June 30,
	2015			2014
Net cash provided by/(used in)
Operating activities	$	32,175		$	10,296
Investing activities	77,471			(97,938		)
Financing activities	(113,429		)	75,436
Effect of exchange rate changes on cash	47			(42		)
Net decrease in cash and due from banks	$	(3,736	)	$	(12,248	)

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 capacity to generate cash through secured and unsecured funding sources are sufficient to meet the Firm’s operating liquidity needs.

Cash provided by operating activities in 2015 and 2014 resulted from net income after noncash operating adjustments. Additionally in 2015, cash was provided by a decrease in trading assets which more than offset cash used by a decrease in trading liabilities predominantly due to client-driven market-making activities in CIB; and a decrease in securities borrowed resulting from lower demand for securities to cover customer short positions in CIB. In 2014, cash was provided by a decrease in other assets driven by lower cash margin balances placed with exchanges and clearing houses; and higher net proceeds from loan sales activities.

Investing activities

Cash provided by investing activities during 2015 predominantly resulted from a net decrease in deposits with banks which was attributable to lower wholesale non-operating deposits; and net proceeds from paydowns, maturities and sales of investment securities. Partially offsetting these inflows was cash used for net originations of consumer and wholesale loans. Cash used in investing activities during 2014 predominantly resulted from increases in deposits with banks, reflecting higher levels of excess funds; and net purchases of investment securities. Additionally in 2014, loans increased due to net originations of wholesale loans.

Financing activities

Cash used in financing activities in 2015 resulted from lower wholesale deposits, partially offset by higher consumer 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. Offsetting these outflows were net proceeds from long-term borrowings. Cash provided by financing activities in 2014 resulted predominantly from higher consumer and wholesale deposits and an increase in securities loaned or sold under repurchase agreements due to higher financing of the Firm’s trading assets-debt and equity instruments. For both periods, cash was provided by the issuance of preferred stock and used for repurchases of common stock and dividends on common and preferred stock.

* * *

For a further discussion of the activities affecting the Firm’s cash flows, see Balance Sheet Analysis on pages 10–11.

13

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 84–88. 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, including the overhead ratio, 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 reportable business segments) on an 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.

Effective January 1, 2015, the Firm adopted new accounting guidance for investments in affordable housing projects that qualify for the low-income housing tax credit, which impacted the CIB. As a result of the adoption of this new guidance, the Firm made an accounting policy election to amortize the initial cost of qualifying investments in proportion to the tax credits and other benefits received, and to present the amortization as a component of income tax expense; previously such amounts were predominantly presented in other income. The guidance was required to be applied retrospectively and, accordingly, certain prior period amounts have been revised to conform with the current period presentation. The adoption of the guidance did not materially change the Firm’s results of operations on a managed basis as the Firm had previously presented and will continue to present the revenue from such investments on an FTE basis for the purposes of managed basis reporting.

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 June 30,
	2015								2014
(in millions, except ratios)	Reported results			Fully taxable-equivalent adjustments(a)		Managed basis			Reported results			Fully taxable-equivalent adjustments(a)		Managed basis
Other income	$	586		$	447	$	1,033		$	899		$	415	$	1,314
Total noninterest revenue	13,128			447		13,575			13,880			415		14,295
Net interest income	10,684			272		10,956			10,798			244		11,042
Total net revenue	23,812			719		24,531			24,678			659		25,337
Pre-provision profit	9,312			719		10,031			9,247			659		9,906
Income before income tax expense	8,377			719		9,096			8,555			659		9,214
Income tax expense	$	2,087		$	719	$	2,806		$	2,575		$	659	$	3,234
Overhead ratio	61		%	NM		59		%	63		%	NM		61		%

	Six months ended June 30,
	2015								2014
(in millions, except ratios)	Reported results			Fully taxable-equivalent adjustments(a)		Managed basis			Reported results			Fully taxable-equivalent adjustments(a)		Managed basis
Other income	$	1,168		$	928	$	2,096		$	1,512		$	827	$	2,339
Total noninterest revenue	26,517			928		27,445			26,428			827		27,255
Net interest income	21,361			545		21,906			21,465			470		21,935
Total net revenue	47,878			1,473		49,351			47,893			1,297		49,190
Pre-provision profit	18,495			1,473		19,968			17,826			1,297		19,123
Income before income tax expense	16,601			1,473		18,074			16,284			1,297		17,581
Income tax expense	$	4,397		$	1,473	$	5,870		$	5,035		$	1,297	$	6,332
Overhead ratio	61		%	NM		60		%	63		%	NM		61		%

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

14

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 TCE

at period-end 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. 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 67–71.

Tangible common equity	Period-end				Average
					Three months ended June 30,						Six months ended June 30,
(in millions, except per share and ratio data)	Jun 30, 2015		Dec 31, 2014
					2015			2014			2015			2014
Common stockholders’ equity	$	216,287	$	211,664	$	213,738		$	206,159		$	213,049		$	203,989
Less: Goodwill	47,476		47,647		47,485			48,084			47,488			48,069
Less: Certain identifiable intangible assets	1,091		1,192		1,113			1,416			1,138			1,482
Add: Deferred tax liabilities(a)	2,876		2,853		2,873			2,952			2,868			2,948
Tangible common equity	$	170,596	$	165,678	$	168,013		$	159,611		$	167,291		$	157,386
Return on tangible common equity	NA		NA		14		%	14		%	14		%	14		%
Tangible book value per share	$	46.13	$	44.60	NA			NA			NA			NA

(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.

Net interest income excluding markets (formerly core net interest income)

In addition to reviewing net interest income on a managed basis, management also reviews net interest income excluding CIB’s markets-based activities to assess the performance of its lending, investing (including asset-liability management) and deposit-raising activities. The data presented below are non-GAAP financial measures due

to the exclusion of CIB’s markets-based net interest income and related assets. Management believes this exclusion provides investors and analysts with 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 lending, investing and deposit-raising activities.

Net interest income excluding CIB markets-based activities data
	Three months ended June 30,								Six months ended June 30,
(in millions, except rates)	2015			2014			Change		2015			2014			Change
Net interest income – managed basis(a)(b)	$	10,956		$	11,042		(1	)%	$	21,906		$	21,935		—
Less: Markets-based net interest income	1,238			1,291			(4	)	2,497			2,560			(2	)
Net interest income excluding markets(a)	$	9,718		$	9,751		—		$	19,409		$	19,375		—
Average interest-earning assets	$	2,097,637		$	2,023,945		4		$	2,123,078		$	2,014,846		5
Less: Average markets-based interest earning assets	500,915			502,413			—		505,290			504,942			—
Average interest-earning assets excluding markets	$	1,596,722		$	1,521,532		5	%	$	1,617,788		$	1,509,904		7	%
Net interest yield on interest-earning assets – managed basis	2.09		%	2.19		%			2.08		%	2.20		%
Net interest yield on markets-based activities	0.99			1.03					1.00			1.02
Net interest yield on average interest-earning assets excluding markets	2.44		%	2.57		%			2.42		%	2.59		%

(a) Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.

(b) 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 14.

Quarterly and year-to-date results

Net interest income excluding CIB’s markets-based activities was flat at $9.7 billion and $19.4 billion, respectively, for the three and six months ended June 30, 2015, when compared with the prior year periods. Results in 2015 reflected lower loan yields due to the runoff of higher yielding loans, new originations of lower yielding loans and lower average investment securities balances, offset by higher average loan balances and the impact of lower deposits and long-term debt interest expense. Average

interest-earning assets excluding assets related to CIB’s markets-based activities increased by $75.2 billion to $1.6 trillion and by $107.9 billion to $1.6 trillion, respectively, for the three and six months ended June 30, 2015, when compared with the prior year periods; these increases primarily reflected the impact of higher average deposits with banks. The net interest yield excluding CIB’s markets-based activities decreased by 13 basis points to 2.44% and by 17 basis points to 2.42%, respectively, for the three and six months ended June 30, 2015.

15

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 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 14–15.

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 79–80 of JPMorgan Chase’s 2014 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. 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 the equity allocations to its lines of business as refinements are implemented. For further information about these capital changes, see Line of business equity on page 72.

Segment Results – Managed basis

The following tables summarize the business segment results for the periods indicated.

Three months ended June 30,	Total net revenue								Total noninterest expense						Pre-provision profit/(loss)
(in millions)	2015			2014			Change		2015		2014		Change		2015			2014			Change
Consumer & Community Banking	$	11,015		$	11,518		(4)%		$	6,210	$	6,456	(4)%		$	4,805		$	5,062		(5)%
Corporate & Investment Bank	8,723			9,265			(6	)	5,137		6,058		(15	)	3,586			3,207			12
Commercial Banking	1,739			1,731			—		703		675		4		1,036			1,056			(2	)
Asset Management	3,175			2,982			6		2,406		2,062		17		769			920			(16	)
Corporate	(121		)	(159		)	24		44		180		(76	)	(165		)	(339		)	51
Total	$	24,531		$	25,337		(3)%		$	14,500	$	15,431	(6)%		$	10,031		$	9,906		1%

Three months ended June 30,	Provision for credit losses							Net income						Return on common equity
(in millions, except ratios)	2015		2014			Change		2015		2014		Change		2015		2014
Consumer & Community Banking	$	702	$	852		(18	)%	$	2,533	$	2,496	1%		19	%	19	%
Corporate & Investment Bank	50		(84		)	NM		2,341		2,131		10		14		13
Commercial Banking	182		(67		)	NM		525		677		(22	)	14		19
Asset Management	—		1			(100	)	451		569		(21	)	19		25
Corporate	1		(10		)	NM		440		107		311		NM		NM
Total	$	935	$	692		35	%	$	6,290	$	5,980	5%		11%		11	%

Six months ended June 30,	Total net revenue								Total noninterest expense						Pre-provision profit/(loss)
(in millions)	2015			2014			Change		2015		2014		Change		2015			2014			Change
Consumer & Community Banking	$	21,719		$	22,052		(2)%		$	12,400	$	12,893	(4	)%	$	9,319		$	9,159		2	%
Corporate & Investment Bank	18,305			18,107			1		10,794		11,662		(7	)	7,511			6,445			17
Commercial Banking	3,481			3,409			2		1,412		1,361		4		2,069			2,048			1
Asset Management	6,180			5,782			7		4,581		4,137		11		1,599			1,645			(3	)
Corporate	(334		)	(160		)	(109	)	196		14		NM		(530		)	(174		)	(205	)
Total	$	49,351		$	49,190		—		$	29,383	$	30,067	(2	)%	$	19,968		$	19,123		4	%

Six months ended June 30,	Provision for credit losses							Net income						Return on common equity
(in millions, except ratios)	2015			2014			Change	2015		2014		Change		2015		2014
Consumer & Community Banking	$	1,632		$	1,668		(2)%	$	4,752	$	4,477	6%		18	%	17	%
Corporate & Investment Bank	19			(35		)	NM	4,878		4,256		15		15		13
Commercial Banking	243			(62		)	NM	1,123		1,271		(12	)	15		18
Asset Management	4			(8		)	NM	953		1,023		(7	)	21		22
Corporate	(4		)	(21		)	81	498		222		124		NM		NM
Total	$	1,894		$	1,542		23%	$	12,204	$	11,249	8%		11%		11	%

16

CONSUMER & COMMUNITY BANKING

For a discussion of the business profile of CCB, see pages 81–91 of JPMorgan Chase’s 2014 Annual Report and Line of Business Metrics on page 180.

Selected income statement data
	Three months ended June 30,								Six months ended June 30,
(in millions, except ratios)	2015			2014			Change		2015			2014			Change
Revenue
Lending- and deposit-related fees	$	766		$	750		2	%	$	1,484		$	1,453		2	%
Asset management, administration and commissions	553			521			6		1,083			1,024			6
Mortgage fees and related income	782			1,290			(39	)	1,486			1,804			(18	)
Card income	1,506			1,486			1		2,830			2,834			—
All other income	482			421			14		942			787			20
Noninterest revenue	4,089			4,468			(8	)	7,825			7,902			(1	)
Net interest income	6,926			7,050			(2	)	13,894			14,150			(2	)
Total net revenue	11,015			11,518			(4	)	21,719			22,052			(2	)
Provision for credit losses	702			852			(18	)	1,632			1,668			(2	)
Noninterest expense
Compensation expense	2,478			2,637			(6	)	5,008			5,376			(7	)
Noncompensation expense	3,732			3,819			(2	)	7,392			7,517			(2	)
Total noninterest expense	6,210			6,456			(4	)	12,400			12,893			(4	)
Income before income tax expense	4,103			4,210			(3	)	7,687			7,491			3
Income tax expense	1,570			1,714			(8	)	2,935			3,014			(3	)
Net income	$	2,533		$	2,496		1	%	$	4,752		$	4,477		6	%
Financial ratios
Return on common equity	19		%	19		%			18		%	17		%
Overhead ratio	56			56					57			58

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 14–15.

Quarterly results

Consumer & Community Banking net income was $2.5 billion, an increase of 1% compared with the prior year.

Net revenue was $11.0 billion, a decrease of 4% compared with the prior year. Net interest income was $6.9 billion, down 2%, driven by spread compression, largely offset by higher deposit balances, higher loan balances and lower reversals of interest and fees due to lower net charge-offs in Credit Card. Noninterest revenue was $4.1 billion, down 8%, driven by lower mortgage fees and related income, partially offset by higher Auto lease income and higher net interchange income in Credit Card.

The provision for credit losses was $702 million, a decrease of 18% compared with the prior year, reflecting lower net charge-offs, partially offset by a lower reduction in the allowance for loan losses. The current-quarter provision reflected a $326 million reduction in the allowance for loan losses. The prior year included a $357 million reduction in the allowance for loan losses. For more information, including net charge-off amounts and rates, see Consumer Credit Portfolio on pages 46–51.

Noninterest expense was $6.2 billion, a decrease of 4% from the prior year, predominantly driven by lower Mortgage Banking expense.

Year-to-date results

Consumer & Community Banking net income was $4.8 billion, an increase of 6% compared with the prior year, driven by lower noninterest expense, largely offset by lower net revenue.

Net revenue was $21.7 billion, a decrease of 2% compared with the prior year. Net interest income was $13.9 billion, down 2%, driven by spread compression, largely offset by higher deposit and loan balances. Noninterest revenue was $7.8 billion, down 1%, driven by lower mortgage fees and related income, predominantly offset by higher Auto lease income and higher net interchange income in Credit Card.

The provision for credit losses was $1.6 billion, a decrease of 2% from the prior year, reflecting lower net charge-offs, predominantly offset by a lower reduction in the allowance for loan losses. The current-year provision reflected a $451 million reduction in the allowance for loan losses. The prior year included a $807 million reduction in the allowance for loan losses. For more information, including net charge-off amounts and rates, see Consumer Credit Portfolio on pages 46–51.

Noninterest expense was $12.4 billion, a decrease of 4% from the prior year, predominantly driven by lower Mortgage Banking expense.

17

Selected metrics
	As of or for the three months ended June 30,						As of or for the six months ended June 30,
(in millions, except headcount)	2015		2014		Change		2015		2014		Change
Selected balance sheet data (period-end)
Total assets	$	472,181	$	447,277	6	%	$	472,181	$	447,277	6	%
Trading assets – loans(a)	6,700		7,409		(10	)	6,700		7,409		(10	)
Loans:
Loans retained	413,363		390,211		6		413,363		390,211		6
Loans held-for-sale(b)	2,825		1,472		92		2,825		1,472		92
Total loans	416,188		391,683		6		416,188		391,683		6
Core loans	301,154		253,817		19		301,154		253,817		19
Deposits	530,767		488,681		9		530,767		488,681		9
Equity(c)	51,000		51,000		—		51,000		51,000		—
Selected balance sheet data (average)
Total assets	$	463,404	$	443,204	5		$	459,108	$	446,794	3
Trading assets – loans(a)	7,068		6,593		7		7,528		7,017		7
Loans:
Loans retained	406,029		388,252		5		400,587		388,464		3
Loans held-for-sale(d)	2,100		710		196		2,539		683		272
Total loans	408,129		388,962		5		403,126		389,147		4
Deposits	529,448		486,064		9		520,850		478,862		9
Equity(c)	51,000		51,000		—		51,000		51,000		—
Headcount	132,302		141,688		(7	)%	132,302		141,688		(7	)%

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

(b) Included period-end credit card loans held-for-sale of $1.3 billion and $508 million at June 30, 2015 and 2014, respectively. These amounts were excluded when calculating delinquency rates and the allowance for loan losses to period-end loans.

(c) Equity is allocated to the sub-business segments with $5.0 billion and $3.0 billion of capital in 2015 and 2014, respectively, held at the CCB level related to legacy mortgage servicing matters.

(d) Included average credit card loans held-for-sale of $1.8 billion and $405 million for the three months ended June 30, 2015 and 2014, respectively, and $2.2 billion and $360 million for the six months ended June 30, 2015 and 2014. These amounts are excluded when calculating the net charge-off rate.

18

Selected metrics
	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except ratios and where otherwise noted)	2015			2014			Change		2015			2014			Change
Credit data and quality statistics
Net charge-offs(a)	$	1,027		$	1,208		(15	)%	$	2,081		$	2,474		(16	)%
Nonaccrual loans(b)(c)	5,876			7,003			(16	)	5,876			7,003			(16	)
Nonperforming assets(b)(c)	6,250			7,555			(17	)	6,250			7,555			(17	)
Allowance for loan losses(a)	9,838			11,284			(13	)	9,838			11,284			(13	)
Net charge-off rate(a)	1.01		%	1.25		%			1.05		%	1.28		%
Net charge-off rate,excluding PCI loans	1.14			1.44					1.18			1.48
Allowance for loan losses to period-end loans retained	2.38			2.89					2.38			2.89
Allowance for loan losses to period-end loans retained,excluding PCI loans(d)	1.79			2.22					1.79			2.22
Allowance for loan losses to nonaccrual loans retained, excluding credit card(b)(d)	56			58					56			58
Nonaccrual loans to total period-end loans, excluding credit card	2.03			2.64					2.03			2.64
Nonaccrual loans to total period-end loans, excluding credit card and PCI loans (b)	2.39			3.25					2.39			3.25
Business metrics
Number of:
Branches	5,504			5,636			(2	)%	5,504			5,636			(2	)%
ATMs	18,050			20,394			(11	)	18,050			20,394			(11	)
Active online customers (in thousands)	37,878			35,105			8		37,878			35,105			8
Active mobile customers (in thousands)	21,001			17,201			22		21,001			17,201			22
CCB households (in millions)	57.8			57.2			1		57.8			57.2			1

(a) Net charge-offs and the net charge-off rates excluded $55 million and $48 million of write-offs in the PCI portfolio for the three months ended June 30, 2015 and 2014, respectively and $110 million and $109 million of write-offs in the PCI portfolio for the six months ended June 30, 2015 and 2014, respectively. These write-offs decreased the allowance for loan losses for PCI loans. For further information on PCI write-offs, see Allowance for Credit Losses on pages 58–60.

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

(c) At June 30, 2015 and 2014, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.0 billion and $8.1 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 $282 million and $316 million, respectively, that are 90 or more days past due; (3) real estate owned (“REO”) insured by U.S. government agencies of $384 million and $528 million, respectively. These amounts have been excluded based upon the government guarantee.

(d) The allowance for loan losses for PCI loans was $3.2 billion and $3.7 billion at June 30, 2015 and 2014, respectively; these amounts were also excluded from the applicable ratios.

19

Consumer & Business Banking

Selected financial statement data
	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except ratios)	2015			2014			Change		2015		2014			Change
Revenue
Lending- and deposit-related fees	$	760		$	747		2	%	$	1,471	$	1,438		2	%
Asset management, administration and commissions	534			507			5		1,046		990			6
Card income	435			406			7		839		782			7
All other income	135			162			(17	)	257		284			(10	)
Noninterest revenue	1,864			1,822			2		3,613		3,494			3
Net interest income	2,619			2,786			(6	)	5,228		5,512			(5	)
Total net revenue	4,483			4,608			(3	)	8,841		9,006			(2	)
Provision for credit losses	68			66			3		128		142			(10	)
Noninterest expense	3,056			3,026			1		6,014		6,091			(1	)
Income before income tax expense	1,359			1,516			(10	)	2,699		2,773			(3	)
Net income	$	831		$	904		(8	)	$	1,659	$	1,655		—
Return on common equity	28		%	33		%			28%		30		%
Overhead ratio	68			66					68		68
Equity (period-end and average)	$	11,500		$	11,000		5	%	$	11,500	$	11,000		5	%

Quarterly results

Consumer & Business Banking net income was $831 million, a decrease of 8% compared with the prior year, driven by lower net revenue.

Net revenue was $4.5 billion, down 3% compared with the prior year. Net interest income was $2.6 billion, down 6% due to deposit spread compression, largely offset by higher deposit balances. Noninterest revenue was $1.9 billion, up 2%, driven by higher debit card revenue, reflecting an increase in transaction volume, and higher investment revenue, reflecting record client investment assets.

Noninterest expense was $3.1 billion, an increase of 1% from the prior year, driven by higher legal expense, largely offset by branch efficiencies.

Year-to-date results

Consumer & Business Banking net income was $1.7 billion, flat compared with the prior year.

Net revenue was $8.8 billion, down 2% compared with the prior year. Net interest income was $5.2 billion, down 5% due to deposit spread compression, largely offset by higher deposit balances. Noninterest revenue was $3.6 billion, up 3%, driven by higher debit card revenue, reflecting an increase in transaction volume and higher investment revenue, reflecting record client investment assets.

Noninterest expense was $6.0 billion, a decrease of 1% from the prior year, driven by branch efficiencies, largely offset by higher legal expense.

20

Selected metrics
	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except ratios and where otherwise noted)	2015			2014			Change		2015			2014			Change
Business metrics
Business banking origination volume	$	1,911		$	1,917		—		$	3,451		$	3,421		1	%
Period-end loans	21,940			20,276			8		21,940			20,276			8
Period-end deposits:
Checking	226,888			200,560			13		226,888			200,560			13
Savings	268,777			249,175			8		268,777			249,175			8
Time and other	19,317			24,421			(21	)	19,317			24,421			(21	)
Total period-end deposits	514,982			474,156			9		514,982			474,156			9
Average loans	21,732			19,928			9		21,526			19,691			9
Average deposits:
Checking	225,803			197,490			14		221,084			193,511			14
Savings	267,212			249,240			7		263,855			246,386			7
Time and other	19,829			24,832			(20	)	20,330			25,153			(19	)
Total average deposits	512,844			471,562			9		505,269			465,050			9
Deposit margin	1.92		%	2.23		%			1.95		%	2.25		%
Average assets	$	41,290		$	37,810		9		$	41,531		$	37,964		9
Credit data and quality statistics
Net charge-offs	$	68		$	69		(1	)	$	127		$	145		(12	)
Net charge-off rate	1.26		%	1.39		%			1.19		%	1.48		%
Allowance for loan losses	$	703		$	703		—		$	703		$	703		—
Nonperforming assets	246			335			(27	)	246			335			(27	)
Retail branch business metrics
Net new investment assets	$	3,362		$	4,324		(22	)	$	7,183		$	8,565		(16	)
Client investment assets	221,490			205,206			8		221,490			205,206			8
% managed accounts	41		%	38		%			41		%	38		%
Number of:
Chase Private Client locations	2,661			2,408			11		2,661			2,408			11
Personal bankers	19,735			21,728			(9	)	19,735			21,728			(9	)
Sales specialists	3,763			4,405			(15	)	3,763			4,405			(15	)
Client advisors	2,996			3,075			(3	)	2,996			3,075			(3	)
Chase Private Clients	390,220			262,965			48		390,220			262,965			48
Accounts (in thousands)(a)	31,041			30,144			3	%	31,041			30,144			3	%

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

21

Mortgage Banking

Selected financial statement data
	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except ratios)	2015			2014			Change		2015			2014			Change
Revenue
Mortgage fees and related income(a)	$	782		$	1,290		(39	)%	$	1,486		$	1,804		(18	)%
All other income	(5		)	(17		)	71		(16		)	(20		)	20
Noninterest revenue	777			1,273			(39	)	1,470			1,784			(18	)
Net interest income	1,056			1,053			—		2,112			2,140			(1	)
Total net revenue	1,833			2,326			(21	)	3,582			3,924			(9	)
Provision for credit losses	(219		)	(188		)	(16	)	(215		)	(211		)	(2	)
Noninterest expense	1,110			1,306			(15	)	2,329			2,709			(14	)
Income before income tax expense	942			1,208			(22	)	1,468			1,426			3
Net income	$	584		$	733		(20	)	$	910		$	865		5
Return on common equity	14		%	16		%			11		%	9		%
Overhead ratio	61			56					65			69
Equity (period-end and average)	$	16,000		$	18,000		(11	)%	$	16,000		$	18,000		(11	)%

(a) For further information on mortgage fees and related income, see Note 16.

Quarterly results

Mortgage Banking net income was $584 million, a decrease of 20% from the prior year.

Net revenue was $1.8 billion, a decrease of 21% compared with the prior year. Noninterest revenue was $777 million, a decrease of 39% from the prior year. This decrease was driven by lower MSR risk management income, reflecting the absence of a positive $220 million model assumption update in the prior year, lower servicing revenue, largely driven by lower average third-party loans serviced and lower net production revenue, reflecting a lower repurchase benefit. See Note 16 for further information regarding changes in value of the MSR asset and related hedges.

The provision for credit losses was a benefit of $219 million, compared with a benefit of $188 million in the prior year, reflecting lower net charge-offs. The current-quarter provision reflected a $300 million reduction in the non credit-impaired allowance for loan losses, due to continued improvement in home prices and delinquencies. The prior-year included a $300 million reduction in the purchased credit-impaired allowance for loan losses. See Consumer Credit Portfolio on pages 46–51 for the net charge-off amounts and rates.

Noninterest expense was $1.1 billion, a decrease of 15% from the prior year, reflecting lower headcount-related expense and lower professional fees.

Year-to-date results

Mortgage Banking net income was $910 million, an increase of 5% from the prior year.

Net revenue was $3.6 billion, a decrease of 9% compared with the prior year. Noninterest revenue was $1.5 billion, a decrease of 18% from the prior year. This decrease was driven by lower servicing revenue, largely as a result of lower average third-party loans serviced and lower net production revenue, reflecting a lower repurchase benefit.

The provision for credit losses was a benefit of $215 million, compared with a benefit of $211 million in the prior year, reflecting lower net charge-offs, offset by a lower reduction in the allowance for loan losses. The current-year provision reflected a $400 million reduction in the non credit-impaired allowance for loan losses, due to continued improvement in home prices and delinquencies. The prior-year included a $500 million reduction allowance for loan losses, $300 million from the purchased credit-impaired allowance for loan losses and $200 million for the non credit-impaired allowance for loan losses. See Consumer Credit Portfolio on pages 46–51 for the net charge-off amounts and rates.

Noninterest expense was $2.3 billion, a decrease of 14% from the prior year, reflecting lower headcount-related expense and lower professional fees.

Supplemental information
	Three months ended June 30,						Six months ended June 30,
(in millions)	2015		2014		Change		2015		2014		Change
Net interest income:
Mortgage Production and Mortgage Servicing	$	139	$	171	(19	)%	$	297	$	360	(18	)%
Real Estate Portfolios	917		882		4		1,815		1,780		2
Total net interest income	$	1,056	$	1,053	—		$	2,112	$	2,140	(1	)
Noninterest expense:
Mortgage Production	$	360	$	414	(13	)	$	781	$	890	(12	)
Mortgage Servicing	466		550		(15	)	1,048		1,131		(7	)
Real Estate Portfolios	284		342		(17	)	500		688		(27	)
Total noninterest expense	$	1,110	$	1,306	(15	)%	$	2,329	$	2,709	(14	)%

22

Selected balance sheet data
	As of or for the three months ended June 30,						As of or for the six months ended June 30,
(in millions)	2015		2014		Change		2015		2014		Change
Trading assets – loans (period-end)(a)	$	6,700	$	7,409	(10	)%	$	6,700	$	7,409	(10	)%
Trading assets – loans (average)(a)	7,068		6,593		7		7,528		7,017		7
Loans, excluding PCI loans
Period-end loans owned
Home equity	47,228		54,485		(13	)	47,228		54,485		(13	)
Prime mortgage, including option ARMs	107,001		70,495		52		107,001		70,495		52
Subprime mortgage	4,660		6,636		(30	)	4,660		6,636		(30	)
Other	435		510		(15	)	435		510		(15	)
Total period-end loans owned	159,324		132,126		21		159,324		132,126		21
Average loans owned
Home equity	48,148		55,329		(13	)	49,072		56,167		(13	)
Prime mortgage, including option ARMs	99,315		68,922		44		92,749		67,701		37
Subprime mortgage	4,735		6,754		(30	)	4,851		6,880		(29	)
Other	445		520		(14	)	456		530		(14	)
Total average loans owned	152,643		131,525		16		147,128		131,278		12
PCI loans
Period-end loans owned
Home equity	16,088		18,070		(11	)	16,088		18,070		(11	)
Prime mortgage	9,553		11,302		(15	)	9,553		11,302		(15	)
Subprime mortgage	3,449		3,947		(13	)	3,449		3,947		(13	)
Option ARMs	14,716		16,799		(12	)	14,716		16,799		(12	)
Total period-end loans owned	43,806		50,118		(13	)	43,806		50,118		(13	)
Average loans owned
Home equity	16,354		18,295		(11	)	16,599		18,506		(10	)
Prime mortgage	9,724		11,487		(15	)	9,893		11,677		(15	)
Subprime mortgage	3,490		4,001		(13	)	3,546		4,064		(13	)
Option ARMs	14,940		17,074		(12	)	15,192		17,379		(13	)
Total average loans owned	44,508		50,857		(12	)	45,230		51,626		(12	)
Total Mortgage Banking
Period-end loans owned
Home equity	63,316		72,555		(13	)	63,316		72,555		(13	)
Prime mortgage, including option ARMs	131,270		98,596		33		131,270		98,596		33
Subprime mortgage	8,109		10,583		(23	)	8,109		10,583		(23	)
Other	435		510		(15	)	435		510		(15	)
Total period-end loans owned	203,130		182,244		11		203,130		182,244		11
Average loans owned
Home equity	64,502		73,624		(12	)	65,671		74,673		(12	)
Prime mortgage, including option ARMs	123,979		97,483		27		117,834		96,757		22
Subprime mortgage	8,225		10,755		(24	)	8,397		10,944		(23	)
Other	445		520		(14	)	456		530		(14	)
Total average loans owned	197,151		182,382		8%		192,358		182,904		5%

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

23

Credit data and quality statistics
	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except ratios)	2015			2014			Change		2015			2014			Change
Net charge-offs/(recoveries), excluding PCI loans(a)
Home equity	$	69		$	125		(45	)%	$	156		$	291		(46	)%
Prime mortgage, including option ARMs	11			(11		)	NM		25			(15		)	NM
Subprime mortgage	(1		)	(5		)	80		—			8			(100	)
Other	2			3			(33	)	4			5			(20	)
Total net charge-offs/(recoveries), excluding PCI loans	81			112			(28	)	185			289			(36	)
Net charge-off/(recovery) rate, excluding PCI loans
Home equity	0.57		%	0.91		%			0.64		%	1.04		%
Prime mortgage, including option ARMs	0.04			(0.06		)			0.05			(0.04		)
Subprime mortgage	(0.08		)	(0.30		)			—			0.23
Other	1.80			2.31					1.77			1.90
Total net charge-off/(recovery) rate, excluding PCI loans	0.21			0.34					0.25			0.45
Net charge-off/(recovery) rate – reported(a)
Home equity	0.43			0.68					0.48			0.79
Prime mortgage, including option ARMs	0.04			(0.05		)			0.04			(0.03		)
Subprime mortgage	(0.05		)	(0.19		)			—			0.15
Other	1.80			2.31					1.77			1.90
Total net charge-off/(recovery) rate – reported	0.17			0.25					0.19			0.32
30+ day delinquency rate, excluding PCI loans(b)(c)	1.95			2.94					1.95			2.94
Allowance for loan losses, excluding PCI loans	$	1,788		$	2,388		(25	)	$	1,788		$	2,388		(25	)
Allowance for PCI loans(a)	3,215			3,749			(14	)	3,215			3,749			(14	)
Allowance for loan losses	5,003			6,137			(18	)	5,003			6,137			(18	)
Nonperforming assets(d)(e)	5,630			6,919			(19	)%	5,630			6,919			(19	)%
Allowance for loan losses to period-end loans retained	2.48		%	3.39		%			2.48		%	3.39		%
Allowance for loan losses to period-end loans retained, excluding PCI loans	1.13			1.82					1.13			1.82

(a) Net charge-offs and the net charge-off rates excluded $55 million and $48 million, write-offs in the PCI portfolio for the three months ended June 30, 2015 and 2014, respectively, and $110 million and $109 million of write-offs in the PCI portfolio for the six months ended June 30, 2015 and 2014. These write-offs decreased the allowance for loan losses for PCI loans. For further information on PCI write-offs, see Allowance for Credit Losses on pages 58–60.

(b) At June 30, 2015 and 2014, excluded mortgage loans insured by U.S. government agencies of $8.8 billion and $9.6 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.

(c) The 30+ day delinquency rate for PCI loans was 11.65% and 14.08%, at June 30, 2015, and 2014, respectively.

(d) At June 30, 2015 and 2014, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.0 billion and $8.1 billion, respectively, that are 90 or more days past due and (2) real estate owned (“REO”) insured by U.S. government agencies of $384 million and $528 million, respectively. These amounts have been excluded based upon the government guarantee.

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

24

Business metrics
	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in billions, except ratios)	2015			2014			Change		2015			2014			Change
Mortgage origination volume by channel
Retail	$	9.8		$	7.2		36	%	$	17.9		$	13.9		29	%
Correspondent	19.5			9.6			103		36.1			19.9			81
Total mortgage origination volume(a)	29.3			16.8			74		54.0			33.8			60
Total loans serviced (period-end)	917.0			980.4			(6	)	917.0			980.4			(6	)
Third-party mortgage loans serviced (period-end)	723.4			786.2			(8	)	723.4			786.2			(8	)
Third-party mortgage loans serviced (average)	723.5			794.7			(9	)	730.5			802.0			(9	)
MSR carrying value (period-end)	7.6			8.3			(8)%		7.6			8.3			(8)%
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)	1.05		%	1.06		%			1.05		%	1.06		%
Ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average)	0.35			0.36					0.35			0.37
MSR revenue multiple(b)	3.00		x	2.94		x			3.00		x	2.86		x

(a) Firmwide mortgage origination volume was $31.7 billion and $18.0 billion for the three months ended June 30, 2015, and 2014, respectively, and $58.3 billion and $36.2 billion for the six months ended June 30, 2015, and 2014, respectively.

(b) 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).

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,” which may include principal reduction, 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.

On June 11, 2015, the Firm signed an Amended Mortgage Banking Consent Order focused on the subset of ten items that must be resolved to complete the requirements of the Consent Orders with the OCC and Federal Reserve. The Firm has completed its work on those items and is awaiting confirmation by the banking regulators of its satisfactory compliance with the items in the Amended Consent Order. The Amended Consent Order also requires a supervisory non-objection before the Firm may acquire new contracts to perform mortgage servicing rights; outsource or subservice new mortgage servicing activities; offshore new mortgage servicing activities; or appoint senior officers in mortgage servicing.

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 certain of these settlements is detailed in periodic reports published by the independent overseers.

25

Card, Commerce Solutions & Auto (“Card”)

Selected financial statement data
	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except ratios)	2015			2014			Change		2015			2014			Change
Revenue
Card income	$	1,070		$	1,080		(1)%		$	1,990		$	2,052		(3	)%
All other income	378			293			29		752			572			31
Noninterest revenue	1,448			1,373			5		2,742			2,624			4
Net interest income	3,251			3,211			1		6,554			6,498			1
Total net revenue	4,699			4,584			3		9,296			9,122			2
Provision for credit losses	853			974			(12	)	1,719			1,737			(1	)
Noninterest expense(a)	2,044			2,124			(4	)	4,057			4,093			(1	)
Income before income tax expense	1,802			1,486			21		3,520			3,292			7
Net income	$	1,118		$	859		30		$	2,183		$	1,957		12
Return on common equity	23		%	18		%			23		%	20		%
Overhead ratio	43			46					44			45
Equity (period-end and average)	$	18,500		$	19,000		(3	)%	$	18,500		$	19,000		(3	)%

Note: Chase Commerce Solutions, formerly known as Merchant Services, includes Chase Paymentech, ChaseNet and Chase Offers businesses.

(a) Included operating lease depreciation expense of $348 million and $284 million for the three months ended June 30, 2015 and 2014, respectively, and $674 million and $558 million for the six months ended June 30, 2015 and 2014, respectively.

Quarterly results

Card net income was $1.1 billion, an increase of 30% compared with the prior year, driven by lower provision for credit losses, higher net revenue and lower noninterest expense.

Net revenue was $4.7 billion, an increase of 3% compared with the prior year. Net interest income was $3.3 billion, up 1% from the prior year, driven by higher average loan balances and lower reversals of interest and fees due to lower net charge-offs in Credit Card, largely offset by spread compression. Noninterest revenue was $1.4 billion, up 5% compared with the prior year, driven by higher Auto lease income and net interchange income from higher sales volume, partially offset by higher amortization of new account origination costs.

The provision for credit losses was $853 million, compared with $974 million in the prior year, reflecting lower net charge-offs, partially offset by a lower reduction in the allowance for loan losses. The current-quarter provision reflected a $26 million reduction in the allowance for loan losses, primarily due to runoff in the student loan portfolio. The prior year included a $53 million reduction in the allowance for loan losses.

Noninterest expense was $2.0 billion, down 4% from the prior year, driven by lower legal and marketing expense, partially offset by higher auto lease depreciation.

Year-to-date results

Card net income was $2.2 billion, an increase of 12% compared with the prior year, driven by higher net revenue.

Net revenue was $9.3 billion, an increase of 2% compared with the prior year. Net interest income was $6.6 billion, up 1% from the prior year, driven by higher loan balances, predominantly offset by spread compression. Noninterest revenue was $2.7 billion, up 4% compared with the prior year, driven by higher Auto lease income and net interchange income from higher sales volume, partially offset by higher amortization of new account origination costs.

The provision for credit losses was $1.7 billion, down 1% compared with the prior year, reflecting lower net charge-offs, predominantly offset by a lower reduction in the allowance for loan losses. The current-year provision reflected a $51 million reduction in the allowance for loan losses, primarily due to runoff in the student loan portfolio. The prior year included a $303 million reduction in the allowance for loan losses.

Noninterest expense was $4.1 billion, down 1% from the prior year driven by lower legal expense, offset by higher auto lease depreciation.

26

Selected metrics
	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except ratios and where otherwise noted)	2015			2014			Change		2015			2014			Change
Selected balance sheet data (period-end)
Loans:
Credit Card	$	126,025		$	126,129		—		$	126,025		$	126,129		—
Auto	56,330			53,042			6		56,330			53,042			6
Student	8,763			9,992			(12	)	8,763			9,992			(12	)
Total loans	$	191,118		$	189,163		1		$	191,118		$	189,163		1
Auto operating lease assets	7,742			6,098			27		7,742			$	6,098		27
Selected balance sheet data (average)
Total assets	$	204,596		$	200,710		2		$	204,262		$	201,238		2
Loans:
Credit Card	124,539			123,679			1		124,780			123,471			1
Auto	55,800			52,818			6		55,405			52,780			5
Student	8,907			10,155			(12	)	9,057			10,301			(12	)
Total loans	$	189,246		$	186,652		1		$	189,242		$	186,552		1
Auto operating lease assets	7,437			5,939			25		7,170			5,796			24
Business metrics
Credit Card, excluding Commercial Card
Sales volume (in billions)	$	125.7		$	118.0		7		$	238.5		$	222.5		7
New accounts opened	2.1			2.1			—		4.2			4.2			—
Open accounts	62.8			65.8			(5	)	62.8			65.8			(5	)
Accounts with sales activity	32.6			31.8			3		32.6			31.8			3
% of accounts acquired online	62		%	54		%			62		%	53		%
Commerce Solutions (Chase Paymentech Solutions)
Merchant processing volume (in billions)	$	234.1		$	209.0		12		$	455.3		$	404.4		13
Total transactions (in billions)	10.1			9.3			9		19.9			18.4			8
Auto
Loan and lease origination volume (in billions)	$	7.8		$	7.1		10%		$	15.1		$	13.8		9%

27

Selected metrics
	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except ratios)	2015			2014			Change		2015			2014			Change
Credit data and quality statistics
Net charge-offs:
Credit Card	$	800		$	885		(10)%		$	1,589		$	1,773		(10)%
Auto	32			29			10		83			70			19
Student	46			113			(59	)	97			197			(51	)
Total net charge-offs	$	878		$	1,027		(15	)	$	1,769		$	2,040		(13	)
Net charge-off rate:
Credit Card(a)	2.61		%	2.88		%			2.61		%	2.90		%
Auto	0.23			0.22					0.30			0.27
Student	2.07			4.46					2.16			3.86
Total net charge-off rate	1.88			2.21					1.91			2.21
Delinquency rates
30+ day delinquency rate:
Credit Card(b)	1.29			1.41					1.29			1.41
Auto	0.95			0.93					0.95			0.93
Student(c)	2.00			2.67					2.00			2.67
Total 30+ day delinquency rate	1.22			1.34					1.22			1.34
90+ day delinquency rate – Credit Card(b)	0.63			0.69					0.63			0.69
Nonperforming assets(d)	$	374		$	301		24		$	374		$	301		24
Allowance for loan losses:
Credit Card	$	3,434		$	3,594		(4	)	$	3,434		$	3,594		(4	)
Auto & Student	698			850			(18	)	698			850			(18	)
Total allowance for loan losses	$	4,132		$	4,444		(7	)%	$	4,132		$	4,444		(7)%
Allowance for loan losses to period-end loans:
Credit Card(b)	2.75		%	2.86		%			2.75		%	2.86		%
Auto & Student	1.07			1.35					1.07			1.35
Total allowance for loan losses to period-end loans	2.18			2.36					2.18			2.36

(a) Average credit card loans included loans held-for-sale of $1.8 billion and $405 million for the three months ended June 30, 2015 and 2014, respectively, and $2.2 billion and $360 million for the six months ended June 30, 2015 and 2014, respectively. These amounts are excluded when calculating the net charge-off rate.

(b) Period-end credit card loans included loans held-for-sale of $1.3 billion and $508 million at June 30, 2015 and 2014, 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 $546 million and $630 million at June 30, 2015 and 2014, 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 $282 million and $316 million at June 30, 2015 and 2014, 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 June 30,								Six months ended June 30,
(in millions, except ratios)	2015			2014			Change		2015			2014			Change
Revenue
Noninterest revenue	$	980		$	982		—		$	1,838		$	1,866		(2	)%
Net interest income	2,855			2,789			2		5,756			5,639			2
Total net revenue	3,835			3,771			2		7,594			7,505			1
Provision for credit losses	800			885			(10	)	1,589			1,573			1
Noninterest expense	1,478			1,625			(9	)	2,940			3,090			(5	)
Income before income tax expense	1,557			1,261			23		3,065			2,842			8
Net income	$	965		$	724		33%		$	1,900		$	1,689		12	%
Percentage of average loans:
Noninterest revenue	3.16		%	3.18		%			2.97		%	3.05		%
Net interest income	9.20			9.04					9.30			9.21
Total net revenue	12.35			12.23					12.27			12.26

28

CORPORATE & INVESTMENT BANK

For a discussion of the business profile of CIB, see pages 92–96 of JPMorgan Chase’s 2014 Annual Report and Line of Business Metrics on pages 180–181.

Selected income statement data
	Three months ended June 30,								Six months ended June 30,
(in millions, except ratios)	2015			2014			Change		2015			2014			Change
Revenue
Investment banking fees	$	1,825		$	1,773		3	%	$	3,586		$	3,217		11	%
Principal transactions	2,657			2,782			(4	)	6,139			5,668			8
Lending- and deposit-related fees	400			449			(11	)	797			893			(11	)
Asset management, administration and commissions	1,181			1,186			—		2,335			2,365			(1	)
All other income	170			329			(48	)	450			602			(25	)
Noninterest revenue	6,233			6,519			(4	)	13,307			12,745			4
Net interest income	2,490			2,746			(9	)	4,998			5,362			(7	)
Total net revenue(a)	8,723			9,265			(6	)	18,305			18,107			1
Provision for credit losses	50			(84		)	NM		19			(35		)	NM
Noninterest expense
Compensation expense	2,656			2,757			(4	)	5,679			5,627			1
Noncompensation expense	2,481			3,301			(25	)	5,115			6,035			(15	)
Total noninterest expense	5,137			6,058			(15	)	10,794			11,662			(7	)
Income before income tax expense	3,536			3,291			7		7,492			6,480			16
Income tax expense	1,195			1,160			3		2,614			2,224			18
Net income	$	2,341		$	2,131		10	%	$	4,878		$	4,256		15	%
Financial ratios
Return on common equity	14		%	13		%			15		%	13		%
Overhead ratio	59			65					59			64		%
Compensation expense as a percentage of total net revenue	30			30					31			31

(a) Included tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; as well as tax-exempt income from municipal bond investments of $396 million and $371 million for the three months ended June 30, 2015 and 2014, respectively, and $828 million and $739 million for the six months ended June 30, 2015 and 2014, respectively.

Selected income statement data
	Three months ended June 30,						Six months ended June 30,
(in millions)	2015		2014		Change		2015		2014			Change
Revenue by business
Investment banking revenue(a)	$	1,746	$	1,676	4	%	$	3,376	$	3,021		12	%
Treasury Services(b)	901		924		(2	)	1,831		1,851			(1	)
Lending(b)	302		446		(32	)	737		876			(16	)
Total Banking(a)	2,949		3,046		(3	)	5,944		5,748			3
Fixed Income Markets(a)	2,931		3,704		(21	)	7,085		7,635			(7	)
Equity Markets(a)	1,576		1,243		27		3,227		2,615			23
Securities Services	995		1,147		(13	)	1,929		2,169			(11	)
Credit Adjustments & Other(c)	272		125		118		120		(60		)	NM
Total Markets & Investor Services(a)	5,774		6,219		(7	)	12,361		12,359			—
Total net revenue	$	8,723	$	9,265	(6	)%	$	18,305	$	18,107		1%

(a) Effective in the second quarter of 2015, Investment banking revenue (formerly Investment banking fees) incorporates all revenue associated with investment banking activities, and is reported net of investment banking revenue shared with other lines of business; previously such shared revenue had been reported in Fixed Income Markets and Equity Markets. Prior period amounts have been revised to conform with the current period presentation.

(b) Effective in the second quarter of 2015, Trade Finance revenue was transferred from Treasury Services to Lending. Prior period amounts have been revised to conform with the current period presentation.

(c) Consists primarily of credit valuation adjustments (“CVA”) managed by the credit portfolio group, and funding valuation adjustments (“FVA”) and debit valuation adjustments (“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.

29

Quarterly results

Net income was $2.3 billion, up 10%, compared with $2.1 billion in the prior year.

Banking revenue was $2.9 billion, down 3% from the prior year, on lower lending revenue. Investment banking revenue was up 4% compared with the prior year. Advisory fees were up 17% driven by a greater share of fees for completed transactions and growth in industry-wide fee levels. Debt underwriting fees were up 1% reflecting a higher share of fees for high grade bond issuance. Equity underwriting fees were down 5% as industry wide IPO volumes declined. Treasury Services revenue was $901 million, down 2% compared with the prior year, driven by lower net interest income largely offset by higher noninterest revenue. Lending revenue was $302 million, down 32% from the prior year, largely reflecting losses on securities received from restructurings.

Markets & Investor Services revenue was $5.8 billion, down 7% from the prior year. Fixed Income Markets revenue of $2.9 billion was down 21% from the prior year predominantly driven by the impact of business simplification, continued weakness in Credit and Securitized Products and lower revenue in Currencies & Emerging Markets, partially offset by strength in Rates. Equity Markets revenue of $1.6 billion was up 27% primarily on higher derivatives and cash revenue, with strong performance in Asia. Credit Adjustments & Other was a gain of $272 million, primarily driven by net FVA/DVA gains due to wider spreads.

Noninterest expense was $5.1 billion, down 15% from the prior year, driven by business simplification, lower legal expense and lower compensation expense.

The provision for credit losses was $50 million, compared with a benefit of $84 million from the prior year, reflecting higher allowance for loan losses, including the impact of select downgrades within the Oil & Gas portfolio.

Year-to-date results

Net income was $4.9 billion, up 15% compared with $4.3 billion in the prior year. These results reflected both lower noninterest expense of 7% and higher net revenue of 1%. Net revenue was $18.3 billion compared with $18.1 billion in the prior year.

Banking revenue was $5.9 billion, up 3% from the prior year. Investment banking revenue was $3.4 billion, up 12% from the prior year. The increase was primarily driven by higher advisory and debt underwriting fees. Advisory fees of $1.0 billion were up 29% driven by the combined impact of a greater share of fees for completed transactions and growth in industry-wide fee levels. Debt underwriting fees were $1.7 billion, up 7%, primarily driven by the combined impact of a higher share of fees for high grade bond issuance and growth in industry-wide fee levels. Equity underwriting fees of $851 million were up 3% on a higher share of fees compared with the prior year. Treasury Services revenue was $1.8 billion, down 1% compared with the prior year, primarily driven by lower net interest income. Lending revenue was $737 million, down from $876 million in the prior year, primarily driven by losses on securities received from restructurings, as well as lower trade finance revenue.

Markets & Investor Services revenue was $12.4 billion, flat compared with the prior year. Fixed Income Markets revenue of $7.1 billion was down 7% from the prior year driven by business simplification and weakness in Credit and Securitized Products, largely offset by higher revenue in Rates and Currencies & Emerging Markets. Equity Markets revenue of $3.2 billion was up 23% on higher derivatives and cash revenue. Credit Adjustments & Other was a gain of $120 million, primarily driven by net CVA gains, compared with a loss in the prior year.

Noninterest expense was $10.8 billion, down 7% from the prior year, primarily driven by business simplification and lower legal expense.

30

Selected metrics
	As of or for the three months ended June 30,						As of or for the six months ended June 30,
(in millions, except headcount)	2015		2014		Change		2015		2014		Change
Selected balance sheet data (period-end)
Assets	$	819,745	$	872,947	(6	)%	$	819,745	$	872,947	(6	)%
Loans:
Loans retained(a)	96,579		99,733		(3	)	96,579		99,733		(3	)
Loans held-for-sale and loans at fair value	7,211		9,048		(20	)	7,211		9,048		(20	)
Total loans	103,790		108,781		(5	)	103,790		108,781		(5	)
Core loans	103,235		104,520		(1	)	103,235		104,520		(1	)
Equity	62,000		61,000		2		62,000		61,000		2
Selected balance sheet data (average)
Assets	$	845,225	$	846,142	—		$	855,220	$	848,791	1
Trading assets-debt and equity instruments	317,385		317,054		—		314,837		311,627		1
Trading assets-derivative receivables	68,949		59,560		16		73,128		61,811		18
Loans:
Loans retained(a)	94,711		96,750		(2	)	96,900		96,277		1
Loans held-for-sale and loans at fair value	5,504		8,891		(38	)	4,786		8,491		(44	)
Total loans	100,215		105,641		(5	)	101,686		104,768		(3	)
Equity	62,000		61,000		2		62,000		61,000		2
Headcount(b)	49,367		51,554		(4	)%	49,367		51,554		(4	)%

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

(b) Effective in the second quarter of 2015, certain technology staff were transferred from CIB to CB; previously reported headcount has been revised to conform with the current presentation. As the related expense for these staff is not material, prior period expenses have not been revised. Prior to the second quarter of 2015 compensation expense related to this headcount was recorded in the CIB, with an allocation to CB (reported in noncompensation expense); commencing with the second quarter, such expense will be recorded as compensation expense in CB and accordingly total noninterest expense related to this headcount in both CB and CIB will remain unchanged.

Selected metrics
	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except ratios and where otherwise noted)	2015			2014			Change		2015			2014			Change
Credit data and quality statistics
Net charge-offs/(recoveries)	$	(15	)	$	(4	)	(275	)%	$	(26	)	$	(5	)	(420	)%
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained(a)(b)	324			111			192		324			111			192
Nonaccrual loansheld-for-sale and loans at fair value	12			167			(93	)	12			167			(93	)
Total nonaccrual loans	336			278			21		336			278			21
Derivative receivables	256			361			(29	)	256			361			(29	)
Assets acquired in loan satisfactions	60			106			(43	)	60			106			(43	)
Total nonperforming assets	652			745			(12	)	652			745			(12	)
Allowance for credit losses:
Allowance for loan losses	1,086			1,112			(2	)	1,086			1,112			(2	)
Allowance for lending-related commitments	437			479			(9	)	437			479			(9	)
Total allowance for credit losses	1,523			1,591			(4)%		1,523			1,591			(4)%
Net charge-off/(recovery) rate(a)	(0.06)%			(0.02		)%			(0.05)%			(0.01		)%
Allowance for loan losses to period-end loans retained(a)	1.12			1.11					1.12			1.11
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits(c)	1.73			1.80					1.73			1.80
Allowance for loan losses to nonaccrual loans retained(a)(b)	335			1,002					335			1,002
Nonaccrual loans to total period-end loans	0.32		%	0.26		%			0.32		%	0.26		%

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

(b) Allowance for loan losses of $64 million and $22 million were held against these nonaccrual loans at June 30, 2015 and 2014, 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.

31

Business metrics
	Three months ended June 30,						Six months ended June 30,
(in millions, except where otherwise noted)	2015		2014		Change		2015		2014		Change
Advisory	$	466	$	397	17%		$	1,008	$	780	29%
Equity underwriting	452		477		(5	)	851		830		3
Debt underwriting	907		899		1		1,727		1,607		7
Total investment banking fees	$	1,825	$	1,773	3%		$	3,586	$	3,217	11%

League table results – wallet share
	Six months ended June 30, 2015			Full-year 2014
	Share		Rank	Share		Rank
Based on fees(a)
Debt, equity and equity-related
Global	8.0	%	#1	7.6	%	#1
U.S.	11.8		1	10.7		1
Long-term debt(b)
Global	8.6		1	8.0		1
U.S.	11.7		1	11.6		1
Equity and equity-related
Global(c)	7.4		2	7.1		3
U.S.	12.0		1	9.6		2
M&A(d)
Global	8.9		2	8.0		2
U.S.	10.4		2	9.8		2
Loan syndications
Global	8.5		1	9.3		1
U.S.	11.2		1	13.1		1
Global investment banking fees(e)	8.3	%	#1	8.1	%	#1

League table results – volumes
	Six months ended June 30, 2015			Full-year 2014
	Share		Rank	Share		Rank
Based on volumes(f)
Debt, equity and equity-related
Global	7.3	%	#1	6.8	%	#1
U.S.	12.3		1	11.8		1
Long-term debt(b)
Global	7.3		1	6.7		1
U.S.	11.7		1	11.3		1
Equity and equity-related
Global(c)	7.6		2	7.5		3
U.S.	13.7		1	11.0		2
M&A announced(d)
Global	24.4		3	20.5		2
U.S.	29.6		3	25.2		3
Loan syndications
Global	11.1		1	12.3		1
U.S.	16.5	%	#1	19.0	%	#1

(a) Source: Dealogic. Reflects the ranking of revenue wallet and market 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 fees per Dealogic 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.

Business metrics
	As of or for the three months ended June 30,						As of or for the six months ended June 30,
(in millions, except where otherwise noted)	2015		2014		Change		2015		2014		Change
Assets under custody (“AUC”) by asset class (period-end) (in billions):
Fixed Income	$	12,134	$	12,579	(4)%		$	12,134	$	12,579	(4)%
Equity	6,652		7,275		(9	)	6,652		7,275		(9	)
Other(a)	1,711		1,805		(5	)	1,711		1,805		(5	)
Total AUC	$	20,497	$	21,659	(5	)	$	20,497	$	21,659	(5	)
Client deposits and other third party liabilities (average)	$	401,280	$	403,268	—		$	422,607	$	407,884	4
Trade finance loans (period-end)	21,195		28,291		(25	)%	21,195		28,291		(25	)%

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

32

International metrics
	As of or for the three months ended June 30,						As of or for the six months ended June 30,
(in millions, except where otherwise noted)	2015		2014		Change		2015		2014		Change
Total net revenue(a)
Europe/Middle East/Africa	$	2,685	$	3,410	(21	)%	$	6,181	$	6,446	(4	)%
Asia/Pacific	1,358		1,127		20		2,621		2,172		21
Latin America/Caribbean	220		290		(24	)	551		566		(3	)
Total international net revenue	4,263		4,827		(12	)	9,353		9,184		2
North America	4,460		4,438		—		8,952		8,923		—
Total net revenue	$	8,723	$	9,265	(6	)	$	18,305	$	18,107	1
Loans (period-end)(a)
Europe/Middle East/Africa	$	25,874	$	29,831	(13	)	$	25,874	$	29,831	(13	)
Asia/Pacific	17,430		25,004		(30	)	17,430		25,004		(30	)
Latin America/Caribbean	8,768		8,811		—		8,768		8,811		—
Total international loans	52,072		63,646		(18	)	52,072		63,646		(18	)
North America	44,507		36,087		23		44,507		36,087		23
Total loans	$	96,579	$	99,733	(3	)	$	96,579	$	99,733	(3	)
Client deposits and other third-party liabilities (average)(a)
Europe/Middle East/Africa	$	149,055	$	147,859	1		$	154,217	$	147,205	5
Asia/Pacific	64,860		65,387		(1	)	67,872		63,165		7
Latin America/Caribbean	23,518		23,619		—		23,480		22,834		3
Total international	$	237,433	$	236,865	—		$	245,569	$	233,204	5
North America	163,847		166,403		(2	)	177,038		174,680		1
Total client deposits and other third-party liabilities	$	401,280	$	403,268	—		$	422,607	$	407,884	4
AUC (period-end) (in billions)(a)
North America	$	12,068	$	11,764	3		$	12,068	$	11,764	3
All other regions	8,429		9,895		(15	)	8,429		9,895		(15	)
Total AUC	$	20,497	$	21,659	(5	)%	$	20,497	$	21,659	(5	)%

(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.

33

COMMERCIAL BANKING

For a discussion of the business profile of CB, see pages 97–99 of JPMorgan Chase’s 2014 Annual Report and Line of Business Metrics on page 181.

Selected income statement data
	Three months ended June 30,							Six months ended June 30,
(in millions)	2015		2014			Change		2015		2014			Change
Revenue
Lending- and deposit-related fees	$	242	$	252		(4	)%	$	479	$	498		(4	)%
Asset management, administration and commissions	22		26			(15	)	46		49			(6	)
All other income(a)	345		299			15		720		588			22
Noninterest revenue	609		577			6		1,245		1,135			10
Net interest income	1,130		1,154			(2	)	2,236		2,274			(2	)
Total net revenue(b)	1,739		1,731			—		3,481		3,409			2
Provision for credit losses	182		(67		)	NM		243		(62		)	NM
Noninterest expense
Compensation expense	308		292			5		617		599			3
Noncompensation expense	395		383			3		795		762			4
Total noninterest expense	703		675			4		1,412		1,361			4
Income before income tax expense	854		1,123			(24	)	1,826		2,110			(13	)
Income tax expense	329		446			(26	)	703		839			(16	)
Net income	$	525	$	677		(22	)%	$	1,123	$	1,271		(12	)%

(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 $115 million and $105 million for the three months endedJune 30, 2015 and 2014, respectively, and $228 million and $209 million for the six months ended June 30, 2015 and 2014, respectively.

Quarterly results

Net income was $525 million, a decrease of 22% compared with the prior year, driven by a higher provision for credit losses.

Net revenue was $1.7 billion, flat compared with the prior year. Net interest income was $1.1 billion, down 2% compared with the prior year, reflecting spread compression, largely offset by higher lending balances. Noninterest revenue was $609 million, up 6% compared with the prior year, driven by higher investment banking revenue.

Noninterest expense was $703 million, up 4% compared with the prior year, driven by higher investment in controls.

The provision for credit losses was $182 million, $249 million higher than the prior year, driven by an increase in the allowance for loan losses due to select downgrades.

Year-to-date results

Net income was $1.1 billion, a decrease of 12% compared with the prior year, driven by a higher provision for credit losses and higher noninterest expense, offset by higher investment banking revenue.

Net revenue was $3.5 billion, up 2% compared with prior year. Net interest income was $2.2 billion, down 2% compared with the prior year, reflecting spread compression, largely offset by higher lending and deposit balances.

Noninterest expense was $1.4 billion, up 4% compared with the prior year, driven by higher investment in controls.

The provision for credit losses was $243 million, $305 million higher than the prior year, predominantly related to an increase in the allowance for loan losses due to select downgrades.

34

Selected metrics
	Three months ended June 30,							Six months ended June 30,
(in millions, except ratios)	2015		2014			Change		2015			2014			Change
Revenue by product
Lending(a)	$	867	$	850		2	%	$	1,692		$	1,687		—	%
Treasury services(a)	646		687			(6	)	1,293			1,354			(5	)
Investment banking	196		166			18		444			312			42
Other(a)	30		28			7		52			56			(7	)
Total Commercial Banking net revenue	$	1,739	$	1,731		—		$	3,481		$	3,409		2
Investment banking revenue, gross(b)	$	589	$	481		22		$	1,342		$	928		45
Revenue by client segment
Middle Market Banking(c)	$	688	$	713		(4	)	$	1,365		$	1,413		(3	)
Corporate Client Banking(c)	532		494			8		1,096			956			15
Commercial Term Lending	318		313			2		626			627			—
Real Estate Banking	117		132			(11	)	233			251			(7	)
Other	84		79			6		161			162			(1	)
Total Commercial Banking net revenue	$	1,739	$	1,731		—	%	$	3,481		$	3,409		2	%
Financial ratios
Return on common equity	14%		19		%			15		%	18		%
Overhead ratio	40		39					41			40

(a) Effective in the second quarter of 2015, Commercial Card and Chase Commerce Solutions/Paymentech product revenue was reclassified from Lending and Other, respectively, to Treasury Services. Prior period amounts were revised to conform with the current period presentation.

(b) Represents the total revenue from investment banking products sold to CB clients.

(c) Effective in the first quarter of 2015, mortgage warehouse lending clients were transferred from Middle Market Banking to Corporate Client Banking. Prior period revenue, period-end loans, and average loans by client segment were revised to conform with the current period presentation.

35

Selected metrics (continued)
	As of or for the three months ended June 30,						As of or for the six months ended June 30,
(in millions, except headcount)	2015		2014		Change		2015		2014		Change
Selected balance sheet data (period-end)
Total assets	$	201,377	$	192,523	5	%	$	201,377	$	192,523	5	%
Loans:
Loans retained	157,947		141,181		12		157,947		141,181		12
Loans held-for-sale and loans at fair value	1,506		1,094		38		1,506		1,094		38
Total loans	$	159,453	$	142,275	12		$	159,453	$	142,275	12
Core loans	158,568		140,887		13		158,568		140,887		13
Equity	14,000		14,000		—		14,000		14,000		—
Period-end loans by client segment
Middle Market Banking(a)	$	51,713	$	51,435	1		$	51,713	$	51,435	1
Corporate Client Banking(a)	30,171		23,397		29		30,171		23,397		29
Commercial Term Lending	58,314		50,986		14		58,314		50,986		14
Real Estate Banking	14,231		11,903		20		14,231		11,903		20
Other	5,024		4,554		10		5,024		4,554		10
Total Commercial Banking loans	$	159,453	$	142,275	12		$	159,453	$	142,275	12
Selected balance sheet data (average)
Total assets	$	198,740	$	192,363	3		$	197,341	$	192,554	2
Loans:
Loans retained	155,110		139,848		11		152,435		138,259		10
Loans held-for-sale and loans at fair value	870		982		(11	)	715		1,010		(29	)
Total loans	$	155,980	$	140,830	11		$	153,150	$	139,269	10
Client deposits and other third-party liabilities	197,004		199,979		(1	)	203,489		201,453		1
Equity	14,000		14,000		—		14,000		14,000		—
Average loans by client segment
Middle Market Banking(a)	$	51,440	$	51,352	—		$	50,991	$	51,014	—
Corporate Client Banking(a)	28,986		22,846		27		27,826		22,379		24
Commercial Term Lending	56,814		50,451		13		55,790		49,926		12
Real Estate Banking	13,732		11,724		17		13,603		11,567		18
Other	5,008		4,457		12		4,940		4,383		13
Total Commercial Banking loans	$	155,980	$	140,830	11		$	153,150	$	139,269	10
Headcount(b)	7,568		7,330		3	%	7,568		7,330		3	%

(a) Effective in the first quarter of 2015, mortgage warehouse lending clients were transferred from Middle Market Banking to Corporate Client Banking. Prior period revenue, period-end loans, and average loans by client segment were revised to conform with the current period presentation.

(b) Effective in the second quarter of 2015, certain technology staff were transferred from CIB to CB; previously reported headcount has been revised to conform with the current presentation. As the related expense for these staff is not material, prior period expenses have not been revised. Prior to the second quarter of 2015, compensation expense related to this headcount was recorded in the CIB, with an allocation to CB (reported in noncompensation expense); commencing with the second quarter, such expense will be recorded as compensation expense in CB and accordingly total noninterest expense related to this headcount in both CB and CIB will remain unchanged.

36

Selected metrics (continued)
	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except ratios)	2015			2014			Change		2015			2014			Change
Credit data and quality statistics
Net charge-offs/(recoveries)	$	(4	)	$	(26	)	85	%	$	7		$	(40	)	NM
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained(a)	384			429			(10	)	384			429			(10	)%
Nonaccrual loans held-for-sale and loans at fair value	14			17			(18	)	14			17			(18	)
Total nonaccrual loans	398			446			(11	)	398			446			(11	)
Assets acquired in loan satisfactions	5			12			(58	)	5			12			(58	)
Total nonperforming assets	403			458			(12	)	403			458			(12	)
Allowance for credit losses:
Allowance for loan losses	2,705			2,637			3		2,705			2,637			3
Allowance for lending-related commitments	163			155			5		163			155			5
Total allowance for credit losses	2,868			2,792			3	%	2,868			2,792			3	%
Net charge-off/(recovery) rate(b)	(0.01		)%	(0.07		)%			0.01		%	(0.06		)%
Allowance for loan losses to period-end loansretained	1.71			1.87					1.71			1.87
Allowance for loan losses to nonaccrual loans retained(a)	704			615					704			615
Nonaccrual loans to period-end total loans	0.25			0.31					0.25			0.31

(a) Allowance for loan losses of $42 million and $75 million was held against nonaccrual loans retained at June 30, 2015 and 2014, respectively.

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

37

ASSET MANAGEMENT

For a discussion of the business profile of AM, see pages 100–102 of JPMorgan Chase’s 2014 Annual Report and Line of Business Metrics on pages 181–182.

Selected income statement data
(in millions, except ratios and headcount)	Three months ended June 30,								Six months ended June 30,
	2015			2014			Change		2015			2014			Change
Revenue
Asset management, administration and commissions	$	2,381		$	2,242		6	%	$	4,610		$	4,342		6	%
All other income	163			138			18		318			256			24
Noninterest revenue	2,544			2,380			7		4,928			4,598			7
Net interest income	631			602			5		1,252			1,184			6
Total net revenue	3,175			2,982			6		6,180			5,782			7
Provision for credit losses	—			1			(100	)	4			(8		)	NM
Noninterest expense
Compensation expense	1,299			1,231			6		2,588			2,487			4
Noncompensation expense	1,107			831			33		1,993			1,650			21
Total noninterest expense	2,406			2,062			17		4,581			4,137			11
Income before income tax expense	769			919			(16	)	1,595			1,653			(4	)
Income tax expense	318			350			(9	)	642			630			2
Net income	$	451		$	569		(21	)	$	953		$	1,023		(7	)
Revenue by line of business
Global Investment Management	$	1,670		$	1,560		7		$	3,203		$	2,978		8
Global Wealth Management	1,505			1,422			6		2,977			2,804			6
Total net revenue	$	3,175		$	2,982		6		$	6,180		$	5,782		7
Financial ratios
Return on common equity	19		%	25		%			21		%	22		%
Overhead ratio	76			69					74			72
Pretax margin ratio:
Global Investment Management	26			32					28			29
Global Wealth Management	22			29					24			28
Asset Management	24			31					26			29
Headcount	20,237			20,322			—		20,237			20,322			—
Number of client advisors	2,746			2,828			(3	)%	2,746			2,828			(3	)%

Quarterly results

Net income was $451 million, a decrease of 21%, reflecting higher noninterest expense, largely offset by higher revenue.

Net revenue was $3.2 billion, an increase of 6%. Net interest income was $631 million, up 5%, driven by higher loan and deposit balances. Noninterest revenue was $2.5 billion, up 7%, on higher market levels and net client inflows into assets under management.

Noninterest expense was $2.4 billion, an increase of 17%, due to higher legal expense, the impact of a loss from a held-for-sale asset and continued investment in both infrastructure and controls.

Year-to-date results

Net income was $1.0 billion, a decrease of 7%, reflecting higher noninterest expense, predominantly offset by higher revenue.

Net revenue was $6.2 billion, an increase of 7%. Net interest income was $1.3 billion, up 6%, driven by higher loan and deposit balances. Noninterest revenue was $4.9 billion, up 7%, on net client inflows into assets under management and higher market levels.

Noninterest expense was $4.6 billion, an increase of 11%, due to higher legal expense, the impact of a loss from a held-for-sale asset and continued investment in both infrastructure and controls.

38

Selected metrics	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except ranking data and ratios)	2015			2014			Change		2015			2014			Change
% of JPM mutual fund assets rated as 4- or 5-star(a)	54		%	51		%			54		%	51		%
% of JPM mutual fund assets ranked in 1st or 2nd quartile:(b)
1 year	78			48					78			48
3 years	64			67					64			67
5 years	78			69					78			69
Selected balance sheet data (period-end)
Total assets	$	134,059		$	128,362		4	%	$	134,059		$	128,362		4	%
Loans(c)	109,336			100,907			8		109,336			100,907			8
Core loans	109,336			100,907			8		109,336			100,907			8
Deposits	141,179			145,655			(3	)	141,179			145,655			(3	)
Equity	9,000			9,000			—		9,000			9,000			—
Selected balance sheet data (average)
Total assets	$	130,548		$	125,492		4		$	128,424		$	124,088		3
Loans	107,250			98,695			9		105,279			97,186			8
Deposits	152,563			147,747			3		155,386			148,585			5
Equity	9,000			9,000			—		9,000			9,000			—
Credit data and quality statistics
Net charge-offs	$	(1	)	$	(13	)	92		$	2		$	(8	)	NM
Nonaccrual loans	209			182			15		209			182			15
Allowance for credit losses:
Allowance for loan losses	273			276			(1	)	273			276			(1	)
Allowance for lending-related commitments	5			5			—		5			5			—
Total allowance for credit losses	278			281			(1	)%	278			281			(1	)%
Net charge-off rate	—			(0.05		)%			—			(0.02		)%
Allowance for loan losses to period-end loans	0.25			0.27					0.25			0.27
Allowance for loan losses to nonaccrual loans	131			152					131			152
Nonaccrual loans to period-end loans	0.19			0.18					0.19			0.18

(a) Represents the “overall star rating” derived from Morningstar for the U.S., the U.K., Luxembourg, Hong Kong and Taiwan domiciled funds; and Nomura “star rating” for Japan domiciled funds. Includes only Global Investment Management retail open ended mutual funds that have a rating. Excludes money market funds, Undiscovered Managers Fund, and Brazil and India domiciled funds.

(b) Quartile ranking sourced from: Lipper for the U.S. and Taiwan domiciled funds; Morningstar for the U.K., Luxembourg and Hong Kong domiciled funds; Nomura for Japan domiciled funds and FundDoctor for South Korea domiciled funds. Includes only Global Investment Management retail open ended mutual funds that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil and India domiciled funds.

(c) Included $24.0 billion and $20.4 billion of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at June 30, 2015 and 2014, respectively. For the same periods, excluded $2.4 billion and $3.2 billion, respectively, of prime mortgage loans reported in the Chief Investment Office (“CIO”) portfolio within the Corporate segment.

39

Client assets

Assets under management were $1.8 trillion, an increase of 4% from the prior year, due to net inflows to long-term products and liquidity products.

Client assets were $2.4 trillion, down 2% from the prior year. Excluding Retirement Plan Services, client assets were up 4% compared with the prior year.

Client assets	June 30,
(in billions)	2015		2014		Change
Assets by asset class
Liquidity	$	466	$	435	7	%
Fixed income	357		367		(3	)
Equity	380		390		(3	)
Multi-asset and alternatives	578		515		12
Total assets under management	1,781		1,707		4
Custody/brokerage/administration/deposits	642		766		(16	)
Total client assets	$	2,423	$	2,473	(2	)
Memo:
Alternatives client assets(a)	$	173	$	163	6
Assets by client segment
Private Banking	$	452	$	383	18
Institutional	830		798		4
Retail	499		526		(5	)
Total assets under management	$	1,781	$	1,707	4
Private Banking	$	1,080	$	1,012	7
Institutional	838		798		5
Retail	505		663		(24	)
Total client assets	$	2,423	$	2,473	(2	)%

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

40

Client assets (continued)	Three months ended June 30,						Six months ended June 30,
(in billions)	2015			2014			2015		2014
Assets under management rollforward
Beginning balance	$	1,759		$	1,648		$	1,744	$	1,598
Net asset flows:
Liquidity	6			(11		)	5		(17		)
Fixed income	3			20			5		25
Equity	(1		)	—			3		3
Multi-asset and alternatives	11			14			21		26
Market/performance/other impacts	3			36			3		72
Ending balance, June 30	$	1,781		$	1,707		$	1,781	$	1,707
Client assets rollforward
Beginning balance	$	2,405		$	2,394		$	2,387	$	2,343
Net asset flows	16			21			33		36
Market/performance/other impacts	2			58			3		94
Ending balance, June 30	$	2,423		$	2,473		$	2,423	$	2,473

International metrics	As of or for the three months ended June 30,						As of or for the six months ended June 30,
(in billions, except where otherwise noted)	2015		2014		Change		2015		2014		Change
Total net revenue (in millions)(a)
Europe/Middle East/Africa	$	524	$	522	—		$	995	$	1,013	(2	)%
Asia/Pacific	302		287		5		588		562		5
Latin America/Caribbean	211		217		(3	)	408		415		(2	)
Total international net revenue	1,037		1,026		1		1,991		1,990		—
North America	2,138		1,956		9		4,189		3,792		10
Total net revenue	$	3,175	$	2,982	6		$	6,180	$	5,782	7
Assets under management
Europe/Middle East/Africa	$	315	$	327	(4	)	$	315	$	327	(4	)
Asia/Pacific	132		138		(4	)	132		138		(4	)
Latin America/Caribbean	47		48		(2)		47		48		(2)
Total international assets under management	494		513		(4	)	494		513		(4	)
North America	1,287		1,194		8		1,287		1,194		8
Total assets under management	$	1,781	$	1,707	4		$	1,781	$	1,707	4
Client assets
Europe/Middle East/Africa	$	366	$	393	(7	)	$	366	$	393	(7	)
Asia/Pacific	183		186		(2	)	183		186		(2	)
Latin America/Caribbean	114		119		(4	)	114		119		(4	)
Total international client assets	663		698		(5	)	663		698		(5	)
North America	1,760		1,775		(1	)	1,760		1,775		(1	)
Total client assets	$	2,423	$	2,473	(2	)%	$	2,423	$	2,473	(2	)%

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

41

CORPORATE

For a discussion of Corporate, see pages 103–104 of JPMorgan Chase’s 2014 Annual Report.

Selected income statement data
	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except headcount)	2015			2014			Change		2015			2014			Change
Revenue
Principal transactions	$	67		$	28		139	%	$	167		$	378		(56	)%
Securities gains	40			11			264		93			37			151
All other income	(7		)	312			NM		(120		)	460			NM
Noninterest revenue	100			351			(72	)	140			875			(84	)
Net interest income	(221		)	(510		)	57		(474		)	(1,035		)	54
Total net revenue(a)	(121		)	(159		)	24		(334		)	(160		)	(109	)
Provision for credit losses	1			(10		)	NM		(4		)	(21		)	81
Noninterest expense
Compensation expense	953			693			38		1,845			1,380			34
Noncompensation expense(b)	791			1,091			(27	)	1,737			1,774			(2	)
Subtotal	1,744			1,784			(2	)	3,582			3,154			14
Net expense allocated to other businesses	(1,700		)	(1,604		)	(6	)	(3,386		)	(3,140		)	(8	)
Total noninterest expense	44			180			(76	)	196			14			NM
Income/(loss) before income tax expense/(benefit)	(166		)	(329		)	50		(526		)	(153		)	(244	)
Income tax expense/(benefit)	(606		)	(436		)	(39	)	(1,024		)	(375		)	(173	)
Net income/(loss)	$	440		$	107		311		$	498		$	222		124
Total net revenue
Treasury and CIO	(163		)	(342		)	52		(541		)	(709		)	24
Other Corporate (c)	42			183			(77	)	207			549			(62	)
Total net revenue	$	(121	)	$	(159	)	24		$	(334	)	$	(160	)	(109	)
Net income/(loss)
Treasury and CIO	(112		)	(308		)	64		(333		)	(627		)	47
Other Corporate (c)	552			415			33		831			849			(2	)
Total net income/(loss)	$	440		$	107		311		$	498		$	222		124
Selected balance sheet data (period-end)
Total assets	$	822,237		$	878,886		(6	)	$	822,237		$	878,886		(6	)
Loans	2,480			3,337			(26	)	2,480			3,337			(26	)
Core loans	2,474			3,309			(25	)	2,474			3,309			(25	)
Headcount	27,985			24,298			15	%	27,985			24,298			15	%

(a) Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $202 million and $180 million for the three months endedJune 30, 2015 and 2014, respectively, and $405 million and $344 million for the six months endedJune 30, 2015 and 2014, respectively.

(b) Included legal expense of $18 million and $227 million for the three months endedJune 30, 2015 and 2014, respectively, and $323 million and $225 million for the six months endedJune 30, 2015 and 2014, respectively.

(c) Effective with the first quarter of 2015, the Firm began including the results of Private Equity in the Other Corporate line within the Corporate segment. Prior period amounts have been revised to conform with the current period presentation. The Corporate segment’s balance sheets and results of operations were not impacted by this reporting change.

Quarterly results

Net Income was $440 million, compared with $107 million in the prior year. The current quarter reflected higher income tax benefits related to audit settlements and lower legal expenses.

Net revenue was a loss of $121 million compared with a loss of $159 million in the prior year. Noninterest revenue decreased compared with the prior year as a result of the absence in the current period of a benefit recognized in the second quarter of 2014 from a franchise tax settlement.

Noninterest expense was $44 million, a decrease of $136 million from the prior year driven by lower legal expense.

Year-to-date results

Net Income was $498 million, compared with $222 million in the prior year. Higher Income tax benefits related to audit settlements were partially offset by higher expense and lower revenue. Treasury & CIO was a net loss of $333 million, which included a $173 million pretax loss primarily related to the accelerated amortization of cash flow hedges associated with the exit of certain non-operational deposits.

Net revenue was a loss of $334 million, compared with a loss of $160 million in the prior year, driven by lower private equity gains.

42

Noninterest expense was $196 million, an increase of $182 million from the prior year, largely due to higher legal expense.

Treasury and CIO overview

For a discussion of Treasury and CIO, see page 104 of the Firm’s 2014 Annual Report.

At June 30, 2015, the total Treasury and CIO investment securities portfolio was $314.0 billion, and the average credit rating of the securities comprising the portfolio was AA+ (based upon 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 Firm’s investment securities portfolio.

For further information on liquidity and funding risk, see Liquidity Risk Management on pages 74–78. For information on interest rate, foreign exchange and other risks, Treasury and CIO value-at-risk (“VaR”) and the Firm’s earnings-at-risk, see Market Risk Management on pages 61–64.

Selected income statement and balance sheet data
	As of or for the three months ended June 30,						As of or for the six months ended June 30,
(in millions)	2015		2014		Change		2015		2014		Change
Securities gains	$	40	$	11	264	%	$	93	$	37	151	%
Investment securities portfolio (average)(a)	322,954		348,841		(7	)	328,293		347,004		(5	)
Investment securities portfolio (period-end)(b)	314,048		353,989		(11	)	314,048		353,989		(11	)
Mortgage loans (average)	2,599		3,425		(24	)	2,694		3,547		(24	)
Mortgage loans (period-end)	2,455		3,295		(25	)%	2,455		3,295		(25	)%

(a) Average investment securities included held-to-maturity balances of $50.7 billion and $47.5 billion for the three months endedJune 30, 2015 and 2014, respectively, and $50.0 billion and $45.7 billion for the six months endedJune 30, 2015 and 2014, respectively.

(b) Period-end investment securities included held-to-maturity balance of $51.6 billion and $47.8 billion at June 30, 2015 and 2014, respectively.

Private equity portfolio information(a)(b)
(in millions)	June 30, 2015		December 31, 2014		Change
Carrying value	$	2,718	$	5,866	(54)%
Cost	4,252		6,281		(32)%

(a) For more information on the Firm’s methodologies regarding the valuation of the private equity portfolio, see Note 3 of JPMorgan Chase’s 2014 Annual Report.

(b) The sale of a portion of the Private Equity business was completed on January 9, 2015.

43

ENTERPRISE-WIDE RISK MANAGEMENT

Risk is an inherent part of JPMorgan Chase’s business activities. When the Firm extends a consumer or wholesale loan, advises customers on their investment decisions, makes markets in securities, or conducts any number of other services or activities, the Firm takes on some degree of risk. The Firm’s overall objective in managing risk is to protect the safety and soundness of the Firm, avoid excessive risk taking, and manage and balance risk in a manner that serves the interest of its clients, customers and shareholders.

The Firm’s approach to risk management covers a broad spectrum of risk areas, such as credit, market, liquidity, model, structural interest rate, principal, country, operational, fiduciary and reputation risk.

The Firm believes that effective risk management requires:

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

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

• Firmwide structures for risk governance.

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 intended to create a culture of transparency, awareness and personal responsibility through reporting, collaboration, discussion, escalation and sharing of information. The CEO, CFO, CRO and COO are ultimately responsible and accountable to the Firm’s Board of Directors.

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 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 2014 Annual Report.

Risk disclosure	Form 10-Q page reference	Annual Report page reference
Enterprise-Wide Risk Management	44–78	105–160
Risk governance		106–109
Credit Risk Management	45–60	110–130
Credit Portfolio		112
Consumer Credit Portfolio	46–51	113–119
Wholesale Credit Portfolio	52–57	120–127
Allowance For Credit Losses	58–60	128–130
Market Risk Management	61–64	131–136
Risk identification and classification		132
Value-at-risk	61–63	133–135
Economic-value stress testing		135
Earnings-at-risk	64	136
Country Risk Management	65	137–138
Model Risk Management		139
Principal Risk Management		140
Operational Risk Management	66	141–143
Operational Risk Capital Measurement		141–142
Cybersecurity	66	142
Business and Technology resiliency		142–143
Legal Risk Management		144
Compliance Risk Management		144
Fiduciary Risk management		145
Reputation Risk Management		145
Capital Management	67–73	146–155
Liquidity Risk Management	74–78	156–160
HQLA	74	157
Funding	74–75	157–160
Credit ratings	77–78	160

44

CREDIT RISK MANAGEMENT

Credit risk is the risk of loss arising from the default of a customer, client or counterparty. 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 110–130 of JPMorgan Chase’s 2014 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. For additional information on the Firm’s loans and derivative receivables, including the Firm’s accounting policies, see Note 13 and Note 5, respectively.

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 2014 Annual Report.

For information on the changes in the credit portfolio, see Consumer Credit Portfolio on pages 46–51, and Wholesale Credit Portfolio on pages 52–57 of this Form 10-Q.

Effective January 1, 2015, the Firm no longer includes within its disclosure of wholesale lending-related commitments the unused amount of advised uncommitted lines of credit as it is within the Firm’s discretion whether or not to make a loan under these lines, and the Firm’s approval is generally required prior to funding. Prior period amounts have been revised to conform with the current period presentation.

Total credit portfolio
	Credit exposure						Nonperforming(b)(c)(d)
(in millions)	Jun 30, 2015			Dec 31, 2014			Jun 30, 2015			Dec 31, 2014
Loans retained	$	779,705		$	747,508		$	6,645		$	7,017
Loans held-for-sale	9,111			7,217			217			95
Loans at fair value	2,431			2,611			21			21
Total loans – reported	791,247			757,336			6,883			7,133
Derivative receivables	67,451			78,975			256			275
Receivables from customers and other	22,591			29,080			—			—
Total credit-related assets	881,289			865,391			7,139			7,408
Assets acquired in loan satisfactions
Real estate owned	NA			NA			408			515
Other	NA			NA			41			44
Totalassets acquired in loan satisfactions	NA			NA			449			559
Total assets	881,289			865,391			7,588			7,967
Lending-related commitments	935,582			950,997			133			103
Total credit portfolio	$	1,816,871		$	1,816,388		$	7,721		$	8,070
Credit portfolio management derivatives notional, net(a)	$	(23,548	)	$	(26,703	)	$	(12	)	$	—
Liquid securities and other cash collateral held against derivatives	(18,440		)	(19,604		)	NA			NA

(in millions, except ratios)	Three months ended June 30,						Six months ended June 30,
	2015			2014			2015			2014
Net charge-offs	$	1,007		$	1,158		$	2,059		$	2,427
Average retained loans
Loans – reported	765,730			727,030			757,926			723,798
Loans – reported, excluding residential real estate PCI loans	721,219			676,168			712,693			672,166
Net charge-off rates
Loans – reported	0.53		%	0.64		%	0.55		%	0.68		%
Loans – reported, excluding PCI	0.56			0.69			0.58			0.73

(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 57 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 June 30, 2015, and December 31, 2014, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.0 billion and $7.8 billion, respectively, that are 90 or more days past due; (2) student loans insured by U.S. government agencies under the FFELP of $282 million and $367 million, respectively, that are 90 or more days past due; and (3) real estate owned (“REO”) insured by U.S. government agencies of $384 million and $462 million, respectively. These amounts have been excluded 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 issued by the Federal Financial Institutions Examination Council (“FFIEC”).

(d) At June 30, 2015, and December 31, 2014, total nonaccrual loans represented 0.87% and 0.94%, respectively, of total loans.

45

CONSUMER CREDIT PORTFOLIO

The Firm’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 113–119 and Note 14 of JPMorgan Chase’s 2014 Annual Report.

The following table presents consumer credit-related information with respect to the credit portfolio held by CCB, prime mortgage and home equity loans held by AM, and prime mortgage loans held by Corporate.

Consumer credit portfolio											Three months ended June 30,										Six months ended June 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)
	Jun 30, 2015			Dec 31, 2014			Jun 30, 2015		Dec 31, 2014		2015			2014			2015		2014		2015		2014			2015		2014
Consumer, excluding credit card
Loans, excluding PCI loans and loans held-for-sale
Home equity – senior lien	$	15,541		$	16,367		$	907	$	938	$	15		$	19		0.38	%	0.46	%	$	35	$	46		0.44	%	0.55	%
Home equity – junior lien	33,434			36,375			1,461		1,590		56			106			0.66		1.09		127		245			0.74		1.25
Prime mortgage, including option ARMs	132,556			104,921			1,960		2,190		13			(6		)	0.04		(0.03	)	27		(9		)	0.05		(0.02	)
Subprime mortgage	3,976			5,056			855		1,036		(1		)	(5		)	(0.08	)	(0.30	)	—		8			—		0.23
Auto(a)	56,330			54,536			97		115		32			29			0.23		0.22		83		70			0.30		0.27
Business banking	20,564			20,058			239		279		68			69			1.34		1.44		127		145			1.26		1.53
Student and other	10,574			10,970			253		270		43			105			1.62		3.70		91		180			1.70		3.17
Total loans, excluding PCI loans and loans held-for-sale	272,975			248,283			5,772		6,418		226			317			0.34		0.54		490		685			0.38		0.58
Loans – PCI
Home equity	16,088			17,095			NA		NA		NA			NA			NA		NA		NA		NA			NA		NA
Prime mortgage	9,553			10,220			NA		NA		NA			NA			NA		NA		NA		NA			NA		NA
Subprime mortgage	3,449			3,673			NA		NA		NA			NA			NA		NA		NA		NA			NA		NA
Option ARMs	14,716			15,708			NA		NA		NA			NA			NA		NA		NA		NA			NA		NA
Total loans – PCI	43,806			46,696			NA		NA		NA			NA			NA		NA		NA		NA			NA		NA
Total loans – retained	316,781			294,979			5,772		6,418		226			317			0.29		0.44		490		685			0.32		0.48
Loans held-for-sale	1,505		(e)	395		(e)	212		91		—			—			—		—		—		—			—		—
Total consumer, excluding credit card loans	318,286			295,374			5,984		6,509		226			317			0.29		0.44		490		685			0.32		0.48
Lending-related commitments(b)	59,817			58,153
Receivables from customers(c)	113			108
Total consumer exposure, excluding credit card	378,216			353,635
Credit card
Loans retained(d)	124,705			128,027			—		—		800			885			2.61		2.88		1,589		1,773			2.61		2.90
Loans held-for-sale	1,320			3,021			—		—		—			—			—		—		—		—			—		—
Total credit card loans	126,025			131,048			—		—		800			885			2.61		2.88		1,589		1,773			2.61		2.90
Lending-related commitments(b)	523,717			525,963
Total credit card exposure	649,742			657,011
Total consumer credit portfolio	$	1,027,958		$	1,010,646		$	5,984	$	6,509	$	1,026		$	1,202		0.95	%	1.17	%	$	2,079	$	2,458		0.98	%	1.20	%
Memo: Total consumer credit portfolio, excluding PCI	$	984,152		$	963,950		$	5,984	$	6,509	$	1,026		$	1,202		1.06	%	1.34	%	$	2,079	$	2,458		1.10	%	1.38	%

(a) At June 30, 2015, and December 31, 2014, excluded operating lease assets of $7.7 billion and $6.7 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.

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(f) At June 30, 2015, and December 31, 2014, nonaccrual loans excluded: (1) mortgage loans insured by U.S. government agencies of $7.0 billion and $7.8 billion, respectively, that are 90 or more days past due; and (2) student loans insured by U.S. government agencies under the FFELP of $282 million and $367 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, credit card loans are generally exempt 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 write-offs in the PCI portfolio of $55 million and $48 million for the three months ended June 30, 2015 and 2014, respectively, and $110 million and $109 million for the six months ended June 30, 2015 and 2014, respectively. These write-offs decreased the allowance for loan losses for PCI loans. See Consumer Credit Portfolio on pages 113–119 of JPMorgan Chase’s 2014Annual Report for further details.

(i) Average consumer loans held-for-sale were $2.1 billion and $710 million for the three months endedJune 30, 2015 and 2014, respectively, and $2.5 billion and $683 million for the six months ended June 30, 2015 and 2014, respectively. These amounts were excluded when calculating net charge-off rates.

Consumer, excluding credit card

Portfolio analysis

Consumer loan balances increased during the six months endedJune 30, 2015, predominantly due to originations of high-quality prime mortgage loans that have been retained, partially offset by paydowns and the charge-off or liquidation of delinquent loans. Credit performance has improved across most portfolios as the economy strengthened and home prices increased.

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 2014 Annual Report.

Home equity: The home equity portfolio declined from 2014 year-end primarily reflecting loan paydowns and charge-offs. Early-stage delinquencies showed improvement from December 31, 2014. Late-stage delinquencies continue to be elevated as improvement in the number of loans becoming severely delinquent was offset by lower write-downs on these delinquent loans, reflecting higher collateral values. Both senior and junior lien nonaccrual loans decreased from December 31, 2014. Net charge-offs for the three and six months ended June 30, 2015 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, but charge-offs remain elevated compared with pre-recessionary levels.

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 113–119 of JPMorgan Chase’s 2014 Annual Report.

The unpaid principal balance of HELOCs outstanding was $44 billion at June 30, 2015. Of this $44 billion, approximately $5 billion has recently recast from interest-only to fully amortizing payments and based upon contractual terms, approximately $21 billion is scheduled to recast, comprised of $3 billion during the remainder of 2015, $7 billion in 2016, $6 billion in 2017 and $5 billion in 2018 and beyond. However, of the total $21 billion scheduled to recast, $14 billion is expected to actually recast; and the remaining $7 billion represents loans to borrowers who are expected either to pre-pay or charge-off prior 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.

High-risk seconds are junior lien loans where the borrower has a senior lien loan that is either delinquent or has been modified. 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. At June 30, 2015, the Firm estimated that its home equity portfolio contained approximately $1.5 billion of current junior lien loans that were considered high risk seconds, compared with $1.8 billion at December 31, 2014. 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.

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Current high-risk seconds
(in billions)	June 30, 2015			December 31, 2014
Junior liens subordinate to:
Modified current senior lien		$	0.6		$	0.7
Senior lien 30 – 89 days delinquent		0.4			0.5
Senior lien 90 days or more delinquent(a)		0.5			0.6
Total current high-risk seconds		$	1.5		$	1.8

(a) Junior liens subordinate to senior liens that are 90 days or more past due are classified as nonaccrual loans. At June 30, 2015 and December 31, 2014, excluded approximately $40 million and approximately $50 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 $1.5 billion of high-risk junior liens at June 30, 2015, 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 or 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, 2014 as originations of high-quality loans that have been retained were partially offset by paydowns, the runoff 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, 2014. Nonaccrual loans decreased from December 31, 2014, but remain elevated primarily as a result of loss mitigation activities. Net charge-offs for the three and six months ended June 30, 2015 remain low, reflecting continued improvement in home prices and delinquencies.

At June 30, 2015, and December 31, 2014, the Firm’s prime mortgage portfolio included $11.7 billion and $12.4 billion, respectively, of mortgage loans insured and/or guaranteed by U.S. government agencies, of which $8.8 billion and $9.7 billion, respectively, were 30 days or more past due (of these past due loans, $7.0 billion and $7.8 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 2014 Annual Report.

At June 30, 2015, and December 31, 2014, the Firm’s prime mortgage portfolio included $16.8 billion and $16.3 billion, respectively, of interest-only loans, which represented 12% and 15%, 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, 2014. Net charge-offs for the three and six months ended June 30, 2015 have benefited from improvement in home prices and delinquencies compared with the prior year.

Auto: Auto loans increased compared with December 31, 2014 as new originations outpaced paydowns and payoffs. Nonaccrual loans improved compared with December 31, 2014. Net charge-offs for the three and six months ended June 30, 2015 increased compared with the same periods of the prior year, reflecting higher average loss per default as new car prices have increased but used car valuations remained essentially flat. The auto loan portfolio predominantly consists of prime-quality credits.

Business banking: Business banking loans increased compared with December 31, 2014 as new originations outpaced paydowns and payoffs. Nonaccrual loans improved compared with December 31, 2014. Net charge-offs for the three and six months ended June 30, 2015 decreased from the same periods of the prior year.

Student and other: Student and other loans decreased from December 31, 2014, due primarily to the runoff of the student loan portfolio. Student nonaccrual loans decreased from December 31, 2014. Net charge-offs for the three and six months ended June 30, 2015 decreased from the same periods of the prior year.

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

As of June 30, 2015, approximately 15% of the option ARM PCI loans were delinquent and approximately 64% of the portfolio has 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 is 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.

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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 PCI loans lifetime principal loss estimates
	Lifetime loss  estimates(a)				LTD liquidation  losses(b)
(in billions)	Jun 30, 2015		Dec 31, 2014		Jun 30, 2015		Dec 31, 2014
Home equity	$	14.6	$	14.6	$	12.6	$	12.4
Prime mortgage	3.8		3.8		3.6		3.5
Subprime mortgage	3.4		3.3		3.0		2.8
Option ARMs	9.9		9.9		9.4		9.3
Total	$	31.7	$	31.6	$	28.6	$	28.0

(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 $1.8 billion and $2.3 billion at June 30, 2015, and December 31, 2014, respectively.

(b) Life-to-date (“LTD”) liquidation losses represent both realization of loss upon loan resolution and any principal forgiven upon modification.

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 61% at both June 30, 2015 and December 31, 2014.

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
	June 30, 2015									December 31, 2014
(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	$	16,496	80	%	(b)	$	14,330	70	%	$	17,740	83	%	(b)	$	15,337	72	%
Prime mortgage	9,580		73			8,470		64		10,249		76			9,027		67
Subprime mortgage	4,331		79			3,269		59		4,652		82			3,493		62
Option ARMs	15,338		71			14,522		67		16,496		74			15,514		70

(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 June 30, 2015, and December 31, 2014 of $1.1 billion and $1.2 billion for prime mortgage, respectively, and $194 million for option ARMs, $1.8 billion for home equity, and $180 million for subprime mortgage for both periods.

The current estimated average LTV ratios were 74% and 83% for California and Florida PCI loans, respectively, at June 30, 2015, compared with 77% and 88%, respectively, at December 31, 2014. 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 on 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, 22% for junior lien home equity, 17% for prime mortgages including option ARMs, and 29% for subprime mortgages. The cumulative performance metrics for modifications to the PCI residential real estate portfolio that have been seasoned more than six months show weighted average redefault rates of 20% for home equity, 18% for prime mortgages, 16% for option ARMs and 32% for subprime mortgages. The favorable performance of the PCI option ARM

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modifications is the result of a targeted proactive program which fixed the borrower’s payment to the amount at the point of modification. 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 (primarily the Firm’s modification program that was modeled after HAMP) from October 1, 2009, through June 30, 2015.

Certain loans that were modified under HAMP and the Firm’s proprietary modification programs have interest rate reset provisions (“step-rate modifications”). Interest rates on these loans generally began to 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 $4 billion at June 30, 2015, with $1 billion that have recently experienced or are scheduled to experience the initial interest rate increase in 2015 and $1 billion that are scheduled to experience the initial rate increase in both 2016 and 2017. The unpaid principal balance of PCI loans modified in step-rate modifications was $10 billion at June 30, 2015, with $2 billion that have recently experienced or are scheduled to experience the initial interest rate increase in 2015, and $3 billion, and $2 billion scheduled to experience the initial interest rate increase in 2016 and 2017, 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 June 30, 2015, and December 31, 2014, 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 six months ended June 30, 2015 and 2014, see

Note 13.

Modified residential real estate loans
	June 30, 2015				December 31, 2014
(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	$	1,077	$	609	$	1,101	$	628
Home equity – junior lien	1,279		609		1,304		632
Prime mortgage, including option ARMs	5,093		1,433		6,145		1,559
Subprime mortgage	1,951		752		2,878		931
Total modified residential real estate loans, excluding PCI loans	$	9,400	$	3,403	$	11,428	$	3,750
Modified PCI loans(c)
Home equity	$	2,524	NA		$	2,580	NA
Prime mortgage	5,991		NA		6,309		NA
Subprime mortgage	3,432		NA		3,647		NA
Option ARMs	11,029		NA		11,711		NA
Total modified PCI loans	$	22,976	NA		$	24,247	NA

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

(b) At June 30, 2015, and December 31, 2014, $4.5 billion and $4.9 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 June 30, 2015, and December 31, 2014, nonaccrual loans included $2.6 billion and $2.9 billion, respectively, of troubled debt restructurings (“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.

Nonperforming assets

The following table presents information as of June 30, 2015, and December 31, 2014, about consumer, excluding credit card, nonperforming assets.

Nonperforming assets(a)
(in millions)	June 30, 2015		December 31, 2014
Nonaccrual loans(b)
Residential real estate	$	5,395	$	5,845
Other consumer	589		664
Total nonaccrual loans	5,984		6,509
Assets acquired in loan satisfactions
Real estate owned	342		437
Other	34		36
Total assets acquired in loan satisfactions	376		473
Total nonperforming assets	$	6,360	$	6,982

(a) At June 30, 2015, and December 31, 2014, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.0 billion and $7.8 billion, respectively, that are 90 or more days

50

past due; (2) student loans insured by U.S. government agencies under the FFELP of $282 million and $367 million, respectively, that are 90 or more days past due; and (3) real estate owned insured by U.S. government agencies of $384 million and $462 million, respectively. These amounts have been excluded based upon the government guarantee.

(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 $5.4 billion at June 30, 2015, of which 31% were greater than 150 days past due, compared with nonaccrual residential real estate loans of $5.8 billion at December 31, 2014, of which 32% 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 46% and 50% to the estimated net realizable value of the collateral at June 30, 2015, and December 31, 2014, respectively.

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 six months endedJune 30, 2015 and 2014.

Nonaccrual loans
Six months ended June 30,
(in millions)	2015			2014
Beginning balance	$	6,509		$	7,496
Additions	1,805			2,656
Reductions:
Principal payments and other(a)	784			780
Charge-offs	395			752
Returned to performing status	872			1,227
Foreclosures and other liquidations	279			323
Total reductions	2,330			3,082
Net additions/(reductions)	(525		)	(426		)
Ending balance	$	5,984		$	7,070

(a) Other reductions includes loan sales.

Credit Card

Total credit card loans decreased from December 31, 2014 due to seasonality, sales of non-core loans and the transfer of commercial card loans to the CIB. The 30+ day delinquency rate decreased to 1.29% at June 30, 2015, from 1.44% at December 31, 2014, and remains near record lows. For the three months endedJune 30, 2015 and 2014, the net charge-off rates were 2.61% and 2.88%, respectively. For the six months ended June 30, 2015 and 2014, the net charge-off rates were 2.61% and 2.90%, respectively. Charge-offs improved compared with a year ago, as a result of lower 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 June 30, 2015, and December 31, 2014, the Firm had $1.7 billion and $2.0 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, 2014, 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 46–51 and Note 13.

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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 June 30, 2015, wholesale credit exposure (primarily CIB, CB and AM), excluding select downgrades within the Oil & Gas portfolio, continued to experience a generally favorable credit environment. This favorable environment includes stable credit quality trends with low levels of criticized exposure, nonaccrual loans and charge-offs. 

Wholesale credit portfolio
	Credit exposure						Nonperforming(c)
(in millions)	Jun 30, 2015			Dec 31, 2014			Jun 30, 2015			Dec 31, 2014
Loans retained	$	338,219		$	324,502		$	873		$	599
Loans held-for-sale	6,286			3,801			5			4
Loans at fair value	2,431			2,611			21			21
Loans – reported	346,936			330,914			899			624
Derivative receivables	67,451			78,975			256			275
Receivables from customers and other(a)	22,478			28,972			—			—
Total wholesale credit-related assets	436,865			438,861			1,155			899
Lending-related commitments	352,048			366,881			133			103
Total wholesale credit exposure	$	788,913		$	805,742		$	1,288		$	1,002
Credit portfolio management derivatives notional, net(b)	$	(23,548	)	$	(26,703	)	$	(12	)	$	—
Liquid securities and other cash collateral held against derivatives	(18,440		)	(19,604		)	NA			NA

(a) Receivables from customers and other include $22.1 billion and $28.8 billion of margin loans at June 30, 2015, and December 31, 2014, 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 57, and Note 5.

(c) Excludes assets acquired in loan satisfactions.

52

The following tables present the maturity and ratings profiles of the wholesale credit portfolio as of June 30, 2015, and December 31, 2014. 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
June 30, 2015	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	$	113,790		$	142,542		$	81,887		$	338,219			$	254,149			$	84,070		$	338,219		75	%
Derivative receivables										67,451											67,451
Less: Liquid securities and other cash collateral held against derivatives										(18,440		)									(18,440		)
Total derivative receivables, net of all collateral	13,343			14,471			21,197			49,011				41,012				7,999			49,011			84
Lending-related commitments	82,046			259,999			10,003			352,048				263,997				88,051			352,048			75
Subtotal	209,179			417,012			113,087			739,278				559,158				180,120			739,278			76
Loans held-for-sale and loans at fair value(a)										8,717											8,717
Receivables from customers and other										22,478											22,478
Total exposure – net of liquid securities and other cash collateral held against derivatives										$	770,473										$	770,473
Credit portfolio management derivatives net notional by reference entity ratings profile(b)(c)(d)	$	(2,292	)	$	(15,885	)	$	(5,371	)	$	(23,548	)		$	(20,556	)		$	(2,992	)	$	(23,548	)	87	%

	Maturity profile(e)												Ratings profile
December 31, 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	$	112,411		$	134,277		$	77,814		$	324,502			$	241,666			$	82,836		$	324,502		74	%
Derivative receivables										78,975											78,975
Less: Liquid securities and other cash collateral held against derivatives										(19,604		)									(19,604		)
Total derivative receivables, net of all collateral	20,032			16,130			23,209			59,371				52,150				7,221			59,371			88
Lending-related commitments	94,635			262,572			9,674			366,881				284,288				82,593			366,881			77
Subtotal	227,078			412,979			110,697			750,754				578,104				172,650			750,754			77
Loans held-for-sale and loans at fair value(a)										6,412											6,412
Receivables from customers and other										28,972											28,972
Total exposure – net of liquid securities and other cash collateral held against derivatives										$	786,138										$	786,138
Credit portfolio management derivatives net notional by reference entity ratings profile(b)(c)(d)	$	(2,050	)	$	(18,653	)	$	(6,000	)	$	(26,703	)		$	(23,571	)		$	(3,132	)	$	(26,703	)	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 June 30, 2015, may become payable prior to maturity based on their cash flow profile or changes in market conditions.

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, was $11.6 billion at June 30, 2015, compared with $10.1 billion at December 31, 2014, driven by select downgrades across the wholesale portfolio, including within the Oil & Gas portfolio.

53

Below are summaries of the top 25 industry exposures as of June 30, 2015, and December 31, 2014. For additional information on industry concentrations, see Note 5 of JPMorgan Chase’s 2014 Annual Report.

											Selected metrics
											30 days or more past due and accruing loans		Net charge-offs/ (recoveries)			Credit derivative hedges(e)			Liquid securities and other cash collateral held against derivative receivables
					Noninvestment-grade
As of or for the six months ended	Credit exposure(d)		Investment- grade		Noncriticized		Criticized performing		Criticized nonperforming
June 30, 2015
(in millions)
Top 25 industries(a)
Real Estate	$	105,722	$	78,473	$	25,382	$	1,617	$	250	$	134	$	(11	)	$	(47	)	$	(42	)
Banks & Finance Cos	54,290		45,588		7,877		762		63		30		(2		)	(1,216		)	(7,749		)
Healthcare	44,296		35,195		8,650		403		48		8		(3		)	(319		)	(226		)
Oil & Gas	43,581		29,011		12,901		1,488		181		107		—			(462		)	(162		)
Consumer Products	34,172		22,612		10,976		583		1		5		(1		)	(19		)	(9		)
State & Municipal Govt(b)	29,660		28,827		773		8		52		15		(6		)	(147		)	(91		)
Utilities	26,999		22,666		4,188		129		16		—		—			(162		)	(132		)
Retail & Consumer Services	26,225		18,271		7,383		466		105		8		10			(143		)	—
Asset Managers	22,686		19,574		3,090		22		—		4		—			(6		)	(3,635		)
Telecom Services	20,586		7,158		12,503		925		—		—		—			(670		)	—
Technology	20,195		13,384		6,230		580		1		—		—			(159		)	—
Machinery & Equipment Mfg	19,570		11,840		7,329		384		17		2		—			(144		)	(32		)
Chemicals/Plastics	15,711		11,162		4,469		80		—		—		—			(16		)	—
Central Govt	15,550		15,475		73		2		—		—		—			(10,551		)	(2,122		)
Transportation	15,462		10,990		4,335		134		3		8		—			(54		)	(245		)
Business Services	14,559		8,258		5,833		437		31		8		(8		)	(9		)	—
Metals/Mining	14,466		8,251		5,493		669		53		—		—			(447		)	(2		)
Media	14,350		9,264		4,780		282		24		2		(1		)	(71		)	—
Automotive	13,886		9,444		4,383		58		1		6		(2		)	(477		)	—
Insurance	12,202		9,755		2,262		56		129		1		—			(74		)	(1,691		)
Building Materials/Construction	11,581		5,697		5,599		264		21		2		—			(94		)	—
Securities Firms & Exchanges	9,878		6,609		3,257		12		—		—		—			(101		)	(1,018		)
Aerospace/Defense	7,441		6,547		855		39		—		—		—			(129		)	—
Agriculture/Paper Mfg	6,947		4,633		2,193		120		1		19		—			(16		)	(12		)
Leisure	5,169		2,683		1,928		450		108		2		8			(25		)	(21		)
All other(c)	152,534		134,130		17,849		398		157		1,207		(4		)	(7,990		)	(1,251		)
Subtotal	$	757,718	$	575,497	$	170,591	$	10,368	$	1,262	$	1,568	$	(20	)	$	(23,548	)	$	(18,440	)
Loans held-for-sale and loans at fair value	8,717
Receivables from customers and other	22,478
Total	$	788,913

54

											Selected metrics
											30 days or more past due and accruing loans		Net charge-offs/ (recoveries)			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, 2014
(in millions)
Top 25 industries(a)
Real Estate	$	105,981	$	79,000	$	25,372	$	1,356	$	253	$	309	$	(9	)	$	(36	)	$	(27	)
Banks & Finance Cos	64,248		54,639		9,032		508		69		46		(4		)	(1,232		)	(9,369		)
Healthcare	56,604		48,475		7,599		488		42		193		17			(94		)	(244		)
Oil & Gas	43,184		29,284		13,843		56		1		15		2			(144		)	(161		)
Consumer Products	35,632		24,788		10,184		643		17		21		—			(20		)	(2		)
State & Municipal Govt(b)	31,145		30,220		823		102		—		69		24			(148		)	(130		)
Utilities	27,485		23,572		3,658		255		—		198		(3		)	(155		)	(193		)
Retail & Consumer Services	27,463		17,562		8,900		970		31		56		4			(47		)	(1		)
Asset Managers	27,671		24,221		3,392		57		1		38		(12		)	(9		)	(4,545		)
Telecom Services	12,954		8,105		4,293		546		10		—		(2		)	(813		)	(6		)
Technology	19,634		12,835		6,145		634		20		24		(3		)	(225		)	—
Machinery & Equipment Mfg	19,374		11,360		7,766		248		—		5		(2		)	(157		)	(19		)
Chemicals/Plastics	12,620		9,263		3,328		29		—		1		(2		)	(14		)	—
Central Govt	15,978		15,766		154		58		—		—		—			(11,297		)	(1,071		)
Transportation	15,853		11,061		4,708		84		—		5		(3		)	(34		)	(107		)
Business Services	15,146		7,696		7,212		223		15		10		5			(9		)	—
Metals/Mining	14,980		8,311		6,165		504		—		—		18			(377		)	(19		)
Media	14,109		8,880		4,933		266		30		1		(1		)	(69		)	(6		)
Automotive	12,769		8,081		4,527		161		—		1		(1		)	(140		)	—
Insurance	13,417		10,602		2,573		80		162		—		—			(52		)	(2,372		)
Building Materials/Construction	12,444		6,047		5,723		668		6		12		2			(104		)	—
Securities Firms & Exchanges	8,077		5,728		2,337		10		2		20		4			(102		)	(216		)
Aerospace/Defense	5,868		4,930		914		24		—		—		—			(71		)	—
Agriculture/Paper Mfg	6,457		4,264		2,071		116		6		36		(1		)	(4		)	(4		)
Leisure	5,459		2,845		2,012		478		124		6		—			(5		)	(23		)
All other(c)	145,806		128,260		16,780		578		188		1,235		(21		)	(11,345		)	(1,089		)
Subtotal	$	770,358	$	595,795	$	164,444	$	9,142	$	977	$	2,301	$	12		$	(26,703	)	$	(19,604	)
Loans held-for-sale and loans at fair value	6,412
Receivables from customers and other	28,972
Total	$	805,742

(a) The industry rankings presented in the table as of December 31, 2014, are based on the industry rankings of the corresponding exposures at June 30, 2015, not actual rankings of such exposures at December 31, 2014.

(b) In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at June 30, 2015, and December 31, 2014, noted above, the Firm held: $8.0 billion and $10.6 billion, respectively, of trading securities; $31.4 billion and $30.1 billion, respectively, of available-for-sale (“AFS”) securities; and $12.4 billion and $10.2 billion, 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 57%, 30% and 5%, respectively, at June 30, 2015, and 56%, 30% and 5%, respectively, at December 31, 2014.

(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.

The Firm is actively monitoring significant exposures and/or industries that present actual or potential credit concerns. Exposure to the Oil & Gas industry was approximately 5.5% and 5.4% of the Firm’s total wholesale exposure as of June 30, 2015 and December 31, 2014, respectively. Exposure to the Oil & Gas industry increased by $397 million during the six months endedJune 30, 2015 to

$43.6 billion, of which $14.5 billion was drawn. The portfolio largely consisted of exposure in North America, and was concentrated in the Exploration and Production sub-sector. Approximately 67% and 68% of the exposure in the Oil & Gas portfolio was investment-grade as of June 30, 2015 and December 31, 2014, respectively.

55

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. 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. For further discussion on loans, including information on credit quality indicators and sales of loans, see Note 13.

The following table presents the change in the nonaccrual loan portfolio for the six months endedJune 30, 2015 and 2014.

Wholesale nonaccrual loan activity
Six months ended June 30,
(in millions)	2015		2014
Beginning balance	$	624	$	1,044
Additions	792		450
Reductions:
Paydowns and other	284		357
Gross charge-offs	31		77
Returned to performing status	199		92
Sales	3		57
Total reductions	517		583
Net additions/(reductions)	275		(133		)
Ending balance	$	899	$	911

The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the six months endedJune 30, 2015 and 2014. The amounts in the table below do not include gains or losses from sales of nonaccrual loans.

Wholesale net charge-offs/(recoveries)
(in millions, except ratios)	Three months ended June 30,						Six months ended June 30,
	2015			2014			2015			2014
Loans – reported
Average loans retained	$	331,924		$	315,415		$	329,921		$	312,244
Gross charge-offs	4			9			33			77
Gross recoveries	(23		)	(53		)	(53		)	(108		)
Net recoveries	(19		)	(44		)	(20		)	(31		)
Net recovery rate	(0.02		)%	(0.06		)%	(0.01		)%	(0.02		)%

Lending-related commitments

The Firm 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 wholesale lending-related commitments was $205.7 billion and $216.5 billion as of June 30, 2015, and December 31, 2014, 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 and other market risk 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
	June 30, 2015			December 31, 2014
Interest rate	$	31,323		$	33,725
Credit derivatives	1,321			1,838
Foreign exchange	18,340			21,253
Equity	6,058			8,177
Commodity	10,409			13,982
Total, net of cash collateral	67,451			78,975
Liquid securities and other cash collateral held against derivative receivables	(18,440		)	(19,604		)
Total, net of collateral	$	49,011		$	59,371

Derivative receivables reported on the Consolidated Balance Sheets were $67.5 billion and $79.0 billion at June 30, 2015, and December 31, 2014, 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 $18.4 billion and $19.6 billion at June 30, 2015, and December 31, 2014, respectively, that may be used as security when the fair value of the client’s exposure is in the Firm’s favor.

56

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 June 30, 2015, and December 31, 2014, the Firm held $43.5 billion and $48.6 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. The ratings scale is based on the Firm’s internal ratings, which generally correspond to the ratings as defined by S&P and Moody’s.

Ratings profile of derivative receivables
Rating equivalent	June 30, 2015				December 31, 2014
(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	$	14,088	29	%	$	19,202	32	%
A+/A1 to A-/A3	11,945		24		13,940		24
BBB+/Baa1 to BBB-/Baa3	14,979		31		19,008		32
BB+/Ba1 to B-/B3	7,442		15		6,384		11
CCC+/Caa1 and below	557		1		837		1
Total	$	49,011	100	%	$	59,371	100	%

As previously noted, 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 88% for both June 30, 2015, and December 31, 2014.

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 2014 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 2014 Annual Report.

Credit derivatives used in credit portfolio management activities
	Notional amount of protection purchased and sold (a)
(in millions)	June 30, 2015		December 31, 2014
Credit derivatives used to manage:
Loans and lending-related commitments	$	2,349	$	2,047
Derivative receivables	21,199		24,656
Total net protection purchased	23,548		26,703
Total net protection sold	—		—
Credit portfolio management derivatives notional, net	$	23,548	$	26,703

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

57

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 79–81 and Note 14 of this Form 10-Q, and Critical Accounting Estimates Used by the Firm on pages 161–165 and Note 15 of JPMorgan Chase’s 2014 Annual Report.

At least quarterly, the allowance for credit losses is reviewed by the Chief Risk Officer, the Chief Financial Officer and the Controller of the Firm, and discussed with the Directors’ Risk Policy Committee and Audit Committee of the Board of Directors of the Firm. As of June 30, 2015, 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 decreased from December 31, 2014, primarily due to a reduction in the non-PCI residential real estate portfolio allowance, reflecting continued improvement in home prices and delinquencies, and the runoff 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 46–51 and Note 13.

The credit card allowance for loan losses was relatively unchanged from December 31, 2014, reflecting stable credit quality trends. For additional information about credit trends in the credit card loan portfolio, see Consumer Credit Portfolio on pages 46–51 and Note 13.

The wholesale allowance for credit losses reflected an increase from December 31, 2014, which included the impact of select downgrades, including within the Oil & Gas portfolio. Excluding the Oil & Gas portfolio, the credit environment continued to be generally favorable as evidenced by low charge-off rates and stable credit quality trends.

58

Summary of changes in the allowance for credit losses
	2015												2014
Six months ended June 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,	$	7,050		$	3,439		$	3,696		$	14,185		$	8,456		$	3,795		$	4,013		$	16,264
Gross charge-offs	827			1,776			33			2,636			1,084			1,982			77			3,143
Gross recoveries	(337		)	(187		)	(53		)	(577		)	(399		)	(209		)	(108		)	(716		)
Net charge-offs/(recoveries)	490			1,589			(20		)	2,059			685			1,773			(31		)	2,427
Write-offs of PCI loans(a)	110			—			—			110			109			—			—			109
Provision for loan losses	42			1,589			265			1,896			81			1,573			(55		)	1,599
Other	—			(5		)	8			3			—			(1		)	—			(1		)
Ending balance at June 30,	$	6,492		$	3,434		$	3,989		$	13,915		$	7,743		$	3,594		$	3,989		$	15,326
Impairment methodology
Asset-specific(b)	$	436		$	518		$	147		$	1,101		$	598		$	583		$	138		$	1,319
Formula-based	2,841			2,916			3,842			9,599			3,396			3,011			3,851			10,258
PCI	3,215			—			—			3,215			3,749			—			—			3,749
Total allowance for loan losses	$	6,492		$	3,434		$	3,989		$	13,915		$	7,743		$	3,594		$	3,989		$	15,326
Allowance for lending-related commitments
Beginning balance at January 1,	$	13		$	—		$	609		$	622		$	8		$	—		$	697		$	705
Provision for lending-related commitments	2			—			(4		)	(2		)	1			—			(58		)	(57		)
Ending balance at June 30,	$	15		$	—		$	605		$	620		$	9		$	—		$	639		$	648
Impairment methodology
Asset-specific	$	—		$	—		$	55		$	55		$	—		$	—		$	43		$	43
Formula-based	15			—			550			565			9			—			596			605
Total allowance for lending-related commitments(c)	$	15		$	—		$	605		$	620		$	9		$	—		$	639		$	648
Total allowance for credit losses	$	6,507		$	3,434		$	4,594		$	14,535		$	7,752		$	3,594		$	4,628		$	15,974
Memo:
Retained loans, end of period	$	316,781		$	124,705		$	338,219		$	779,705		$	288,214		$	125,621		$	321,534		$	735,369
Retained loans, average	305,463			122,542			329,921			757,926			288,443			123,111			312,244			723,798
PCI loans, end of period	43,806			—			4			43,810			50,118			—			5			50,123
Credit ratios
Allowance for loan losses to retained loans	2.05		%	2.75		%	1.18		%	1.78		%	2.69		%	2.86		%	1.24		%	2.08		%
Allowance for loan losses to retained nonaccrual loans(d)	112			NM			457			209			112			NM			549			201
Allowance for loan losses to retained nonaccrual loans excluding credit card	112			NM			457			158			112			NM			549			154
Net charge-off/(recovery) rates	0.32			2.61			(0.01		)	0.55			0.48			2.90			(0.02		)	0.68
Credit ratios, excluding residential real estate PCI loans
Allowance for loan losses to retained loans	1.20			2.75			1.18			1.45			1.68			2.86			1.24			1.69
Allowance for loan losses to retained nonaccrual loans(d)	57			NM			457			161			58			NM			549			152
Allowance for loan losses to retained nonaccrual loans excluding credit card	57			NM			457			109			58			NM			549			105
Net charge-off/(recovery) rates	0.38		%	2.61		%	(0.01		)%	0.58		%	0.58		%	2.90		%	(0.02		)%	0.73		%

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 14–15.

(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 a PCI loan 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. The asset-specific credit card allowance for loan losses modified in a TDR is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.

(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.

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Provision for credit losses

For the three and six months ended June 30, 2015, the provision for credit losses was $935 million and $1.9 billion, respectively, compared with $692 million and $1.5 billion, respectively, in the prior year periods.

The total consumer provision for credit losses for the three months ended June 30, 2015 reflected lower net charge-offs in the current year period partially offset by a lower reduction in the allowance for loan losses. The total

consumer provision for credit losses for the six months endedJune 30, 2015 reflected lower net charge-offs in the current year period offset by a lower reduction in the allowance for loan losses. The lower reduction in the allowance for loan losses was due to stabilization of the credit environment compared with the prior year period.

The wholesale provision for credit losses for the three and six months endedJune 30, 2015 reflected the impact of select downgrades, including within the Oil & Gas portfolio.

	Three months ended June 30,																Six months ended June 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)	2015			2014			2015		2014		2015			2014			2015		2014			2015			2014			2015		2014
Consumer, excluding credit card	$	(99	)	$	(38	)	$	1	$	1	$	(98	)	$	(37	)	$	42	$	81		$	2		$	1		$	44	$	82
Credit card	800			885			—		—		800			885			1,589		1,573			—			—			1,589		1,573
Total consumer	701			847			1		1		702			848			1,631		1,654			2			1			1,633		1,655
Wholesale	207			(165		)	26		9		233			(156		)	265		(55		)	(4		)	(58		)	261		(113		)
Total provision for credit losses	$	908		$	682		$	27	$	10	$	935		$	692		$	1,896	$	1,599		$	(2	)	$	(57	)	$	1,894	$	1,542

60

MARKET RISK MANAGEMENT

Market risk is the potential for adverse changes in the value of the Firm’s assets and liabilities resulting from changes in market variables such as interest rates, foreign exchange rates, equity prices, commodity prices, implied volatilities or credit spreads. For a discussion of the Firm’s market risk management organization; risk identification and classification; tools used to measure risk; and risk monitoring and control, see Market Risk Management on pages 131–136 of JPMorgan Chase’s 2014 Annual Report.

Value-at-risk

JPMorgan Chase utilizes VaR, a statistical risk measure, to estimate the potential loss from adverse market moves in a normal market environment. The Firm has a single overarching VaR model framework used for calculating Risk Management VaR and Regulatory VaR.

Since VaR is based on historical data, it is an imperfect measure of market risk exposure and potential losses, and it is not used to estimate the impact of stressed market conditions or to manage any impact from potential stress events. In addition, based on their reliance on available historical data, limited time horizons, and other factors, VaR measures are inherently limited in their ability to measure certain risks and to predict losses, particularly those associated with market illiquidity and sudden or severe shifts in market conditions. The Firm therefore considers other measures in addition to VaR, such as stress testing, to capture and manage its market risk positions.

In addition, for certain products, specific risk parameters are not captured in VaR due to the lack of inherent liquidity and availability of appropriate historical data. The Firm uses proxies to estimate the VaR for these and other products when daily time series are not available. It is likely that using an actual price-based time series for these products, if available, would affect the VaR results presented.

The Firm uses alternative methods to capture and measure those risk parameters that are not otherwise captured in VaR, including economic-value stress testing and nonstatistical measures. For further information, see Market Risk Management on pages 131–136 of the 2014 Annual Report.

The Firm’s VaR model calculations are periodically evaluated and enhanced in response to changes in the composition of the Firm’s portfolios, changes in market conditions, improvements in the Firm’s modeling techniques and other factors. Such changes will also affect historical comparisons of VaR results. Model changes go through a review and approval process by the Model Review Group prior to implementation into the operating environment. For further information, see Model risk on page 139 of the 2014 Annual Report.

The Firm’s Risk Management VaR is calculated assuming a one-day holding period and an expected tail-loss methodology which approximates a 95% confidence level. For risk management purposes, the Firm believes this methodology provides a stable measure of VaR that closely aligns to the day-to-day risk management decisions made by the lines of business and provides the necessary and appropriate information to respond to risk events on a daily basis. Separately, the Firm calculates a daily aggregated VaR in accordance with regulatory rules (“Regulatory VaR”), which is used to derive the Firm’s regulatory VaR-based capital requirements under Basel III. For further information regarding the key differences between Risk Management VaR and Regulatory VaR, see page 133 of the 2014 Annual Report. For additional information on Regulatory VaR and the other components of market risk regulatory capital for the Firm (e.g. VaR-based measure, stressed VaR-based measure and the respective backtesting), see JPMorgan Chase’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website:

(http://investor.shareholder.com/jpmorganchase/basel.cfm).

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The table below shows the results of the Firm’s Risk Management VaR measure using a 95% confidence level.

Total VaR	Three months ended June 30,																												Six months ended June 30,
	2015										2014										At June 30,								Average
(in millions)	Avg.				Min			Max			Avg.				Min			Max			2015				2014				2015				2014
CIB trading VaR by risk type
Fixed income	$	41			$	31		$	52		$	38			$	31		$	45		$	45			$	34			$	38			$	37
Foreign exchange	9				6			13			8				5			13			9				6				9				7
Equities	16				11			25			14				10			21			23				15				17				14
Commodities and other	9				8			13			9				7			14			9				9				9				10
Diversification benefit to CIB trading VaR	(37		)	(a)	NM		(b)	NM		(b)	(30		)	(a)	NM		(b)	NM		(b)	(35		)	(a)	(30		)	(a)	(37		)	(a)	(30		)	(a)
CIB trading VaR	38				28			51			39				28			49			51				34				36				38
Credit portfolio VaR	15				12			19			10				8			12			13				9				16				12
Diversification benefit to CIB VaR	(10		)	(a)	NM		(b)	NM		(b)	(6		)	(a)	NM		(b)	NM		(b)	(11		)	(a)	(5		)	(a)	(9		)	(a)	(7		)	(a)
CIB VaR	43				35			53			43				34			56			53				38				43				43
Mortgage Banking VaR	4				3			7			20				3			28			5				3				4				13
Treasury and CIO VaR	4				3			4			5				4			5			4				5				4				5
Asset Management VaR	3				2			3			3				3			4			3				4				3				3
Diversification benefit to other VaR	(4		)	(a)	NM		(b)	NM		(b)	(8		)	(a)	NM		(b)	NM		(b)	(3		)	(a)	(5		)	(a)	(4		)	(a)	(7		)	(a)
Other VaR	7				6			10			20				7			27			9				7				7				14
Diversification benefit to CIB and other VaR	(8		)	(a)	NM		(b)	NM		(b)	(8		)	(a)	NM		(b)	NM		(b)	(11		)	(a)	(5		)	(a)	(7		)	(a)	(8		)	(a)
Total VaR	$	42			$	35		$	51		$	55			$	38		$	70		$	51			$	40			$	43			$	49

(a) Average portfolio VaR and period-end portfolio VaR were less than the sum of the VaR of the components described above, due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated.

(b) Designated as not meaningful (“NM”), because the minimum and maximum may occur on different days for different risk components, and hence it is not meaningful to compute a portfolio-diversification effect.

As presented in the table above, average Total VaR decreased for the three months ended June 30, 2015, compared with the prior year period. The decrease was primarily due to Mortgage Banking VaR, which was elevated in the three months ended June 30, 2014 due to a change in the mortgage servicing rights (“MSR”) hedge position made in advance of an anticipated update to certain MSR model assumptions. When such updates were implemented late in the second quarter of 2014, the MSR VaR decreased to prior levels. CIB average VaR was unchanged in the current quarter compared with the prior year period, as increases in Credit portfolio VaR due to higher volatility on certain idiosyncratic positions and higher Fixed income VaR due to higher risk exposures were offset by increased diversification benefit.

The average total VaR for the six months ended June 30, 2015 decreased from the prior year. The decrease was primarily driven by Mortgage Banking VaR due to a change in the MSR hedge position, partially offset by an increase in Credit Portfolio VaR due to higher volatility on certain idiosyncratic positions. 

As part of the Firm’s continuous evaluation and periodic enhancement of its VaR model calculations, during the second quarter of 2015 the Firm refined the historical proxy time series inputs to certain VaR models to more appropriately reflect the risk exposure from certain asset-backed products. Had these new time series been used as inputs into these VaR models in the first quarter of 2015, the Firm estimates they would have resulted in a reduction to average Fixed income VaR of $3 million, average CIB VaR of $2 million, and average total VaR of $3 million, as well as an insignificant reduction to Mortgage Banking VaR. The impact of this refinement on all other periods presented was not material. The Firm expects in subsequent quarters to continue to refine the VaR model calculations and times series inputs related to these products.

The Firm’s average total VaR diversification benefit was $8 million, or 19% of the sum, for the three months ended June 30, 2015, compared with $8 million, or 15% of the sum, for the comparable 2014 period. In general, over the course of the year, VaR exposure can vary significantly as positions change, market volatility fluctuates and diversification benefits change.

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VaR back-testing

The Firm evaluates the effectiveness of its VaR methodology by back-testing, which compares the daily Risk Management VaR results with the daily gains and losses recognized on market-risk related revenue.

The Firm’s definition of market risk-related gains and losses is consistent with the definition used by the banking regulators under Basel III. Under this definition market risk-related gains and losses are defined as: profits and losses on the Firm’s Risk Management positions, excluding fees, commissions, certain valuation adjustments (e.g., liquidity and DVA), net interest income, and gains and losses arising from intraday trading.

The following chart presents the daily market risk-related gains and losses on the Firm’s Risk Management positions for the six months ended June 30, 2015. As the chart presents market risk-related gains and losses related to those positions included in the Firm’s Risk Management VaR, the results in the table below differ from the results of back-testing disclosed in the Market Risk section of the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are based on Regulatory VaR applied to covered positions. The chart shows that for the six months ended June 30, 2015, the Firm observed 2 VaR band breaks and posted gains on 67 of the 128 days. The Firm observed 2 VaR band breaks and posted gains on 26 of the 65 days for the three months ended June 30, 2015.

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Earnings-at-risk

The VaR and stress-test measures described above illustrate the total economic sensitivity of the Firm’s Consolidated balance sheets to changes in market variables. The effect of interest rate exposure on the Firm’s reported net income is also important as interest rate risk represents one of the Firm’s significant market risks. Interest rate risk arises not only from trading activities but also from the Firm’s traditional banking activities, which include extension of loans and credit facilities, taking deposits and issuing debt.

The Firm conducts simulations of changes in structural interest rate-sensitive revenue under a variety of instantaneous interest rate shock scenarios for interest rate-sensitive assets and liabilities denominated in U.S. dollar and other currencies (“non-U.S. dollar” currencies). Earnings-at-risk scenarios estimate the potential change in this revenue, and the corresponding impact to the Firm’s pretax net interest income excluding markets over the following 12 months utilizing multiple assumptions as described below. These scenarios may consider the impact on exposures as a result of changes in interest rates, as well as pricing sensitivities of deposits, optionality and changes in product mix. The scenarios include forecasted balance sheet changes, as well as modeled prepayment and reinvestment behavior, but do not include assumptions about actions which could be taken by the Firm in response to any such instantaneous rate changes. Mortgage prepayment assumptions are based on current interest rates compared with underlying contractual rates, the time since origination, and other factors which are updated periodically based on historical experience. The Firm’s earnings-at-risk scenarios are periodically evaluated and enhanced in response to changes in the composition of the Firm’s balance sheet, changes in market conditions, improvements in the Firm’s simulation and other factors.

Effective January 1, 2015, the Firm conducts earnings-at-risk simulations for assets and liabilities denominated

in U.S. dollars separately from assets and liabilities denominated in non-U.S. dollar currencies, and incorporates more granular assumptions used to estimate the pricing behavior associated with non-U.S. dollar assets and liabilities, in order to enhance the Firm’s ability to monitor structural interest rate risk from non-U.S. dollar exposures.

The Firm’s U.S. dollar sensitivity is presented in the table below. The result of the non-U.S. dollar sensitivity scenario was not material to the Firm’s earnings-at-risk at June 30, 2015.

JPMorgan Chase’s 12-month pretax net interest income excluding markets sensitivity profiles
(Excludes the impact of trading activities and MSRs)
(in billions)	Instantaneous change in rates
June 30, 2015	+200bps		+100bps		-100bps		-200bps
U.S. dollar	$	4.5	$	2.7	NM	(a)	NM	(a)

(a) Downward 100- and 200-basis-points parallel shocks result in a federal funds target rate of zero and negative three- and six-month U.S. Treasury rates. The earnings-at-risk results of such a low probability scenario are not meaningful.

The Firm’s benefit to rising rates on U.S. dollar assets and liabilities is largely a result of reinvesting at higher yields and assets re-pricing at a faster pace than deposits.

Additionally, another U.S. dollar interest rate scenario used by the Firm — involving a steeper yield curve with long-term rates rising by 100 basis points and short-term rates staying at current levels — results in a 12-month pretax benefit to net interest income excluding markets of approximately $600 million. The increase in net interest income excluding markets under this scenario reflects the Firm reinvesting at the higher long-term rates, with funding costs remaining unchanged. The result of the comparable non-U.S. dollar analysis is not material to the Firm.

64

COUNTRY RISK MANAGEMENT

Country risk is the risk that a sovereign event or action alters the value or terms of contractual obligations of obligors, counterparties and issuers or adversely affects markets related to a particular country. The Firm has a comprehensive country risk management framework for assessing country risks, determining risk tolerance, and measuring and monitoring direct country exposures in the Firm. The Country Risk Management group is responsible for developing guidelines and policies for managing country risk in both emerging and developed countries. The Country Risk Management group actively monitors the various portfolios giving rise to country risk to ensure the Firm’s country risk exposures are diversified and that exposure levels are appropriate given the Firm’s strategy and risk tolerance relative to a country.

For a discussion of the Firm’s Country Risk Management organization, and country risk identification, measurement, monitoring and control, see pages 137–138 of JPMorgan Chase’s 2014 Annual Report.

The following table presents the Firm’s top 20 exposures by country (excluding the U.S.) as of June 30, 2015. The selection of countries is based solely on the Firm’s largest total exposures by country, based on the Firm’s internal country risk management approach, and does not represent the Firm’s view of any actual or potentially adverse credit conditions. Country exposures may fluctuate from period-to-period due to normal client activity and market flows.

Top 20 country exposures
	June 30, 2015
(in billions)	Lending(a)		Trading and investing(b)(c)		Other(d)		Total exposure
United Kingdom	$	25.5	$	25.9	$	1.8	$	53.2
Germany	15.3		25.1		0.3		40.7
France	14.7		15.5		0.2		30.4
Japan	15.4		7.1		0.4		22.9
China	9.4		7.6		0.7		17.7
Netherlands	4.9		11.1		1.3		17.3
Canada	11.8		4.2		0.5		16.5
Australia	6.1		8.6		—		14.7
Brazil	6.6		7.6		—		14.2
Switzerland	8.6		1.8		2.8		13.2
India	5.2		5.8		0.3		11.3
Korea	5.1		2.6		—		7.7
Hong Kong	2.4		3.2		1.8		7.4
Belgium	2.3		3.1		0.1		5.5
Singapore	2.9		1.8		0.7		5.4
Mexico	2.4		3.0		—		5.4
Italy	3.7		1.4		0.3		5.4
Spain	2.9		2.1		0.2		5.2
Luxembourg	3.9		0.4		—		4.3
Sweden	1.9		2.3		—		4.2

(a) Lending includes loans and accrued interest receivable, net of collateral and the allowance for loan losses, deposits with banks, acceptances, other monetary assets, issued letters of credit net of participations, and undrawn commitments to extend credit. Excludes intra-day and operating exposures, such as from settlement and clearing activities.

(b) Includes market-making inventory, AFS securities, counterparty exposure on derivative and securities financings net of collateral and hedging.

(c) Includes single-name and index and tranched credit derivatives for which one or more of the underlying reference entities is in a country listed in the above table.

(d) Includes capital invested in local entities and physical commodity inventory.

The Firm’s exposure to Greece was not material as of June 30, 2015. However, given ongoing pressure on the sovereign and banking sectors, with the potentially broader implications to the Eurozone, the Firm is actively monitoring events and assessing the impact of different possible outcomes.

65

OPERATIONAL RISK MANAGEMENT

Operational risk is the risk of loss resulting from inadequate or failed processes or systems or due to external events that are neither market nor credit-related. For a discussion of JPMorgan Chase’s Operational Risk Management, see pages 141–143 of JPMorgan Chase’s 2014 Annual report.

Cybersecurity

The Firm devotes significant resources to maintain and regularly update its systems and processes that are designed to protect the security of the Firm’s computer systems, software, networks and other technology assets against attempts by unauthorized parties to obtain access to confidential information, destroy data, disrupt or degrade service, sabotage systems or cause other damage. Third parties with which the Firm does business or that facilitate the Firm’s business activities (e.g., vendors, exchanges, clearing houses, central depositories, and financial intermediaries) could also be sources of cybersecurity risk to the Firm, including with respect to breakdowns or failures of their systems, misconduct by the employees of such parties, or cyberattacks which could affect their ability to deliver a product or service to the Firm or result in lost or compromised information of the Firm or its clients. In addition, customers with which or whom the Firm does business can also be sources of cybersecurity risk to the Firm, particularly when their activities and systems are beyond the Firm’s own security and control systems. Customers will generally be responsible for losses incurred due to their own failure to maintain the security of their own systems and processes.

The Firm and several other U.S. financial institutions have experienced significant distributed denial-of-service attacks from technically sophisticated and well-resourced unauthorized parties which are intended to disrupt online banking services. The Firm and its clients are also regularly

targeted by unauthorized parties using malicious code and viruses. On September 10, 2014, the Firm disclosed that a cyberattack against the Firm had occurred, as a result of which certain user contact information and internal JPMorgan Chase information relating to such users had been compromised. No account information for such affected customers — account numbers, passwords, user IDs, dates of birth or Social Security numbers — was compromised during the attack. The Firm is cooperating with government and law enforcement agencies in connection with their continuing investigation of the incident. The cyberattacks experienced to date have not resulted in any material disruption to the Firm’s operations nor have they had a material adverse effect on the Firm’s results of operations. The Firm’s Board of Directors and the Audit Committee are regularly apprised regarding the cybersecurity policies and practices of the Firm as well as the Firm’s efforts regarding significant cybersecurity events.

Cybersecurity attacks, like the one experienced by the Firm, highlight the need for continued and increased cooperation among businesses and the government, and the Firm continues to work to strengthen its partnerships with the appropriate government and law enforcement agencies and other businesses, including the Firm’s third-party service providers, in order to understand the full spectrum of cybersecurity risks in the environment, enhance defenses and improve resiliency against cybersecurity threats.

The Firm has established, and continues to establish, defenses to mitigate other possible future attacks. In each of 2015 and 2016, the Firm expects its annual cybersecurity spending to be nearly double what it was in 2014 in order to enhance its defense capabilities. These enhancements will include more robust testing, advanced analytics and improved technology coverage.

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CAPITAL MANAGEMENT

The following discussion of JPMorgan Chase’s capital management highlights developments since December 31, 2014, and should be read in conjunction with the Capital Management section on pages 146–155 of JPMorgan Chase’s 2014 Annual Report.

A strong capital position is essential to the Firm’s business strategy and competitive position. The Firm’s capital strategy focuses on long-term stability, which enables the

Firm to build and invest in market-leading businesses, even in a highly stressed environment.

In its capital management, the Firm uses three primary disciplines, which are further described below:

• Regulatory capital

• Economic risk capital

• Line of business equity

Regulatory capital

The following tables present the Firm’s Transitional and Fully Phased-In risk-based and leverage-based capital metrics under both the Basel III Standardized and Advanced Approaches.

	Transitional											Fully Phased-In
June 30, 2015 (in millions, except ratios)	Standardized				Advanced			Minimum capital ratios (c)		Well-capitalized ratios (d)		Standardized			Advanced			Minimum capital ratios (e)			Well-capitalized ratios(g)
Risk-based capital metrics:
CET1 capital	$	169,769			$	169,769						$	168,949		$	168,949
Tier 1 capital	194,725				194,725							193,828			193,828
Total capital	228,390				218,811							224,589			215,010
Risk-weighted assets	1,499,638			(b)	1,520,140							1,510,650			1,531,813
CET1 capital ratio	11.3		%		11.2		%	4.5	%	6.5	%	11.2		%	11.0		%	11.5	%		6.5	%
Tier 1 capital ratio	13.0				12.8			6.0		8.0		12.8			12.7			13.0			8.0
Total capital ratio	15.2				14.4			8.0		10.0		14.9			14.0			15.0			10.0
Leverage-based capital metrics
Tier 1 capital	$	194,725			$	194,725						$	193,828		$	193,828
Adjusted average assets	2,448,357				2,448,357							2,447,634			2,447,634
Tier 1 leverage ratio(a)	8.0		%		8.0		%	4.0		5.0		7.9		%	7.9		%	4.0			5.0
SLR leverage exposure	NA				$	3,223,844						NA			$	3,223,121
SLR	NA				6.0		%	NA		NA		NA			6.0		%	5.0		(f)	NA

	Transitional											Fully Phased-In
December 31, 2014 (in millions, except ratios)	Standardized				Advanced			Minimum capital ratios (c)		Well-capitalized ratios (d)		Standardized			Advanced			Minimum capital ratios (e)		Well-capitalized ratios(g)
Risk-based capital metrics:
CET1 capital	$	164,426			$	164,426						$	164,514		$	164,514
Tier 1 capital	186,294				186,294							184,572			184,572
Total capital	221,225				210,684							216,796			206,256
Risk-weighted assets	1,472,602			(b)	1,608,240							1,561,145			1,619,287
CET1 capital ratio	11.2		%		10.2		%	4.5	%	6.5	%	10.5		%	10.2		%	9.5	%	6.5	%
Tier 1 capital ratio	12.7				11.6			6.0		8.0		11.8			11.4			11.0		8.0
Total capital ratio	15.0				13.1			8.0		10.0		13.9			12.7			13.0		10.0
Leverage-based capital metrics
Tier 1 capital	$	186,294			$	186,294						$	184,572