Business segments

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Business segments

Business segments

The Firm is managed on a line of business basis. There are four major reportable business segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset Management. In addition, there is a Corporate segment. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by management. Results of these lines of business are presented on a managed basis. For a further discussion concerning JPMorgan Chase’s business segments, see Business Segment Results on page 17, and pages 79–80, and Note 33 of JPMorgan Chase’s 2014 Annual Report.

Segment results

The accompanying tables provide a summary of the Firm’s segment results for the three and nine months endedSeptember 30, 2015 and 2014, on a managed basis. Total net revenue (noninterest revenue and net interest income) for each of the segments is presented on a fully taxable-equivalent (“FTE”) basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. This non-GAAP financial measure allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense/(benefit).

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

Segment results and reconciliation(a)
As of or for the three months ended September 30, (in millions, except ratios)	Consumer & Community Banking				Corporate & Investment Bank					Commercial Banking					Asset Management
	2015		2014		2015		2014			2015		2014			2015			2014
Noninterest revenue	$	3,729	$	4,214	$	5,748	$	6,129		$	522	$	571		$	2,261		$	2,422
Net interest income	7,150		7,153		2,420		2,976			1,122		1,132			633			624
Total net revenue	10,879		11,367		8,168		9,105			1,644		1,703			2,894			3,046
Provision for credit losses	389		902		232		(67		)	82		(79		)	(17		)	9
Noninterest expense	6,237		6,305		6,131		6,035			719		668			2,109			2,081
Income before income tax expense	4,253		4,160		1,805		3,137			843		1,114			802			956
Income tax expense	1,623		1,631		341		1,457			325		443			327			366
Net income	$	2,630	$	2,529	$	1,464	$	1,680		$	518	$	671		$	475		$	590
Average common equity	$	51,000	$	51,000	$	62,000	$	61,000		$	14,000	$	14,000		$	9,000		$	9,000
Total assets	484,253		448,033		801,133		873,971			201,157		191,563			131,412			130,296
Return on common equity	20%		19%		8%		10%			14%		18%			20%			25%
Overhead ratio	57		55		75		66			44		39			73			68

As of or for the three months ended September 30, (in millions, except ratios)	Corporate						Reconciling Items(b)						Total
	2015			2014			2015			2014			2015			2014
Noninterest revenue	$	73		$	450		$	(477	)	$	(424	)	$	11,856		$	13,362
Net interest income	(123		)	(525		)	(278		)	$	(253	)	10,924			11,107
Total net revenue	(50		)	(75		)	(755		)	$	(677	)	22,780			24,469
Provision for credit losses	(4		)	(8		)	—			—			682			757
Noninterest expense	172			709			—			—			15,368			15,798
Income/(loss) before income tax expense/(benefit)	(218		)	(776		)	(755		)	(677		)	6,730			7,914
Income tax expense/(benefit)	(1,935		)	(871		)	(755		)	(677		)	(74		)	2,349
Net income	$	1,717		$	95		$	—		$	—		$	6,804		$	5,565
Average common equity	$	81,023		$	74,621		$	—		$	—		$	217,023		$	209,621
Total assets	799,166			882,792			NA			NA			2,417,121			2,526,655
Return on common equity	NM			NM			NM			NM			12		%	10		%
Overhead ratio	NM			NM			NM			NM			67			65

Segment results and reconciliation(a)
As of or for the nine months ended September 30, (in millions, except ratios)	Consumer & Community Banking					Corporate & Investment Bank					Commercial Banking					Asset Management
	2015		2014			2015		2014			2015		2014			2015			2014
Noninterest revenue	$	11,554	$	12,116		$	19,055	$	18,874		$	1,767	$	1,706		$	7,189		$	7,020
Net interest income	21,044		21,303			7,418		8,338			3,358		3,406			1,885			1,808
Total net revenue	32,598		33,419			26,473		27,212			5,125		5,112			9,074			8,828
Provision for credit losses	2,021		2,570			251		(102		)	325		(141		)	(13		)	1
Noninterest expense	18,637		19,198			16,925		17,697			2,131		2,029			6,690			6,218
Income/(loss) before income tax expense/(benefit)	11,940		11,651			9,297		9,617			2,669		3,224			2,397			2,609
Income tax expense/(benefit)	4,558		4,645			2,955		3,681			1,028		1,282			969			996
Net income	$	7,382	$	7,006		$	6,342	$	5,936		$	1,641	$	1,942		$	1,428		$	1,613
Average common equity	$	51,000	$	51,000		$	62,000	$	61,000		$	14,000	$	14,000		$	9,000		$	9,000
Total assets	484,253		448,033			801,133		873,971			201,157		191,563			131,412			130,296
Return on common equity	18%		18		%	13%		12		%	15%		18		%	20%			23		%
Overhead ratio	57		57			64		65			42		40			74			70

As of or for the nine months ended September 30, (in millions, except ratios)	Corporate						Reconciling Items(b)						Total
	2015			2014			2015			2014			2015		2014
Noninterest revenue	$	213		$	1,325		$	(1,405	)	$	(1,251	)	$	38,373	$	39,790
Net interest income	(597		)	(1,560		)	(823		)	(723		)	32,285		32,572
Total net revenue	(384		)	(235		)	(2,228		)	(1,974		)	70,658		72,362
Provision for credit losses	(8		)	(29		)	—			—			2,576		2,299
Noninterest expense	368			723			—			—			44,751		45,865
Income/(loss) before income tax expense/(benefit)	(744		)	(929		)	(2,228		)	(1,974		)	23,331		24,198
Income tax expense/(benefit)	(2,959		)	(1,246		)	(2,228		)	(1,974		)	4,323		7,384
Net income	$	2,215		$	317		$	—		$	—		$	19,008	$	16,814
Average common equity	$	78,389		$	70,888		$	—		$	—		$	214,389	$	205,888
Total assets	799,166			882,792			NA			NA			2,417,121		2,526,655
Return on common equity	NM			NM			NM			NM			11%		10		%
Overhead ratio	NM			NM			NM			NM			63		63

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

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