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 definition of managed basis, see Explanation and Reconciliation of the Firm’s use of non-GAAP financial measures, on pages 80–82. For a further discussion concerning JPMorgan Chase’s business segments, see Business Segment Results on pages 83–84.

The following is a description of each of the Firm’s business segments, and the products and services they provide to their respective client bases.

Consumer & Community Banking

Consumer & Community Banking (“CCB”) serves consumers and businesses through personal service at bank branches and through ATMs, online, mobile and telephone banking. CCB is organized into Consumer & Business Banking (including Consumer Banking/Chase Wealth Management and Business Banking), Mortgage Banking (including Mortgage Production, Mortgage Servicing and Real Estate Portfolios) and Card, Commerce Solutions & Auto (“Card”). Consumer & Business Banking offers deposit and investment products and services to consumers, and lending, deposit, and cash management and payment solutions to small businesses. Mortgage Banking includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card issues credit cards to consumers and small businesses, offers payment processing services to merchants, and provides auto loans and leases and student loan services.

Corporate & Investment Bank

The Corporate & Investment Bank (“CIB”), which consists of Banking and Markets & Investor Services, offers a broad suite of investment banking, market-making, prime brokerage, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, government and municipal entities. Banking offers a full range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, as well as loan origination and syndication. Banking also includes Treasury Services, which provides transaction services, consisting of cash management and liquidity solutions. Markets & Investor Services is a global market-maker in cash securities and derivative instruments, and also offers sophisticated risk management solutions, prime brokerage, and research. Markets & Investor Services also includes Securities Services, a leading global custodian which provides custody, fund accounting and administration, and securities lending products principally for asset managers, insurance companies and public and private investment funds.

Commercial Banking

Commercial Banking (“CB”) delivers extensive industry knowledge, local expertise and dedicated service to U.S. and U.S. multinational clients, including corporations, municipalities, financial institutions and nonprofit entities with annual revenue generally ranging from $20 million to $2 billion. In addition, CB provides financing to real estate investors and owners. Partnering with the Firm’s other businesses, CB provides comprehensive financial solutions, including lending, treasury services, investment banking and asset management to meet its clients’ domestic and international financial needs.

Asset Management

Asset Management (“AM”), with client assets of $2.4 trillion, is a global leader in investment and wealth management. AM clients include institutions, high-net-worth individuals and retail investors in many major markets throughout the world. AM offers investment management across most major asset classes including equities, fixed income, alternatives and money market funds. AM also offers multi-asset investment management, providing solutions for a broad range of clients’ investment needs. For Global Wealth Management clients, AM also provides retirement products and services, brokerage and banking services including trusts and estates, loans, mortgages and deposits. The majority of AM’s client assets are in actively managed portfolios.

Corporate

The Corporate segment consists of Treasury and Chief Investment Office (“CIO”) and Other Corporate, which includes corporate staff units and expense that is centrally managed. Treasury and CIO are predominantly responsible for measuring, monitoring, reporting and managing the Firm’s liquidity, funding and structural interest rate and foreign exchange risks, as well as executing the Firm’s capital plan. The major Other Corporate units include Real Estate, Enterprise Technology, Legal, Compliance, Finance, Human Resources, Internal Audit, Risk Management, Oversight & Control, Corporate Responsibility and various Other Corporate groups. Other centrally managed expense includes the Firm’s occupancy and pension-related expenses that are subject to allocation to the businesses.

Segment results

The following tables provide a summary of the Firm’s segment results as of or for the years ended December 31, 2015, 2014 and 2013 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).

Preferred stock dividend allocation

As part of its funds transfer pricing process, the Firm allocates substantially all of the cost of its outstanding preferred stock to its reportable business segments, while retaining the balance of the cost in Corporate. This cost is included as a reduction to net income applicable to common equity to be consistent with the presentation of firmwide results.

Business segment capital allocation changes

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. 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 rules) and economic risk. The amount of capital assigned to each business is referred to as equity.

Segment results and reconciliation



As of or for the year ended December 31, (in millions, except ratios)	Consumer & Community Banking									Corporate & Investment Bank									Commercial Banking
	2015			2014			2013			2015			2014			2013			2015			2014			2013
Noninterest revenue	$	15,592		$	15,937		$	17,552		$	23,693		$	23,420		$	23,736		$	2,365		$	2,349		$	2,298
Net interest income	28,228			28,431			28,985			9,849			11,175			10,976			4,520			4,533			4,794
Total net revenue	43,820			44,368			46,537			33,542			34,595			34,712			6,885			6,882			7,092
Provision for credit losses	3,059			3,520			335			332			(161		)	(232		)	442			(189		)	85
Noninterest expense	24,909			25,609			27,842			21,361			23,273			21,744			2,881			2,695			2,610
Income/(loss) before income tax expense/(benefit)	15,852			15,239			18,360			11,849			11,483			13,200			3,562			4,376			4,397
Income tax expense/(benefit)	6,063			6,054			7,299			3,759			4,575			4,350			1,371			1,741			1,749
Net income/(loss)	$	9,789		$	9,185		$	11,061		$	8,090		$	6,908		$	8,850		$	2,191		$	2,635		$	2,648
Average common equity	$	51,000		$	51,000		$	46,000		$	62,000		$	61,000		$	56,500		$	14,000		$	14,000		$	13,500
Total assets	502,652			455,634			452,929			748,691			861,466			843,248			200,700			195,267			190,782
Return on common equity	18		%	18		%	23		%	12		%	10		%	15		%	15		%	18		%	19		%
Overhead ratio	57			58			60			64			67			63			42			39			37


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



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Asset Management									Corporate									Reconciling Items^(a)									Total
2015			2014			2013			2015			2014			2013			2015			2014			2013			2015			2014			2013
$	9,563		$	9,588		$	9,029		$	800		$	1,972		$	3,093		$	(1,980	)	$	(1,788	)	$	(1,660	)	$	50,033		$	51,478		$	54,048
2,556			2,440			2,376			(533		)	(1,960		)	(3,115		)	(1,110		)	(985		)	(697		)	43,510			43,634			43,319
12,119			12,028			11,405			267			12			(22		)	(3,090		)	(2,773		)	(2,357		)	93,543			95,112			97,367
4			4			65			(10		)	(35		)	(28		)	—			—			—			3,827			3,139			225
8,886			8,538			8,016			977			1,159			10,255			—			—			—			59,014			61,274			70,467
3,229			3,486			3,324			(700		)	(1,112		)	(10,249		)	(3,090		)	(2,773		)	(2,357		)	30,702			30,699			26,675
1,294			1,333			1,241			(3,137		)	(1,976		)	(3,493		)	(3,090		)	(2,773		)	(2,357		)	6,260			8,954			8,789
$	1,935		$	2,153		$	2,083		$	2,437		$	864		$	(6,756	)	$	—		$	—		$	—		$	24,442		$	21,745		$	17,886
$	9,000		$	9,000		$	9,000		$	79,690		$	72,400		$	71,409		$	—		$	—		$	—		$	215,690		$	207,400		$	196,409
131,451			128,701			122,414			768,204			931,206			805,506			NA			NA			NA			2,351,698			2,572,274			2,414,879
21		%	23		%	23		%	NM			NM			NM			NM			NM			NM			11		%	10		%	9		%
73			71			70			NM			NM			NM			NM			NM			NM			63			64			72