Business Segments

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Business Segments

Business segments

The Firm is managed on a line of business basis. There are four major reportable business segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset Management. In addition, there is a Corporate segment. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by management. Results of these lines of business are presented on a managed basis. For a further discussion concerning JPMorgan Chase’s business segments, see Business Segment Results on page 16, and pages 83-84, and Note 33 of JPMorgan Chase’s 2015 Annual Report.

Segment results

The accompanying tables provide a summary of the Firm’s segment results for the three months ended March 31, 2016 and 2015, 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 from year-to-year 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. The line of business equity allocations are updated 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(a)
As of or for the three months ended March 31, (in millions, except ratios)	Consumer & Community Banking				Corporate & Investment Bank					Commercial Banking				Asset Management
	2016		2015		2016		2015			2016		2015		2016		2015
Noninterest revenue	$	3,806	$	3,736	$	5,534	$	7,074		$	556	$	636	$	2,245	$	2,384
Net interest income	7,311		6,968		2,601		2,508			1,247		1,106		727		621
Total net revenue	11,117		10,704		8,135		9,582			1,803		1,742		2,972		3,005
Provision for credit losses	1,050		930		459		(31		)	304		61		13		4
Noninterest expense	6,088		6,190		4,808		5,657			713		709		2,075		2,175
Income before income tax expense	3,979		3,584		2,868		3,956			786		972		884		826
Income tax expense	1,489		1,365		889		1,419			290		374		297		324
Net income	$	2,490	$	2,219	$	1,979	$	2,537		$	496	$	598	$	587	$	502
Average common equity	$	51,000	$	51,000	$	64,000	$	62,000		$	16,000	$	14,000	$	9,000	$	9,000
Total assets	505,071		455,624		801,053		854,275			204,602		197,931		131,276		126,233
Return on common equity	19%		17%		11%		16%			11%		17%		25%		22%
Overhead ratio	55		58		59		59			40		41		70		72

As of or for the three months ended March 31, (in millions, except ratios)	Corporate						Reconciling Items(a)						Total
	2016			2015			2016			2015			2016			2015
Noninterest revenue	$	269		$	40		$	(551	)	$	(481	)	$	11,859		$	13,389
Net interest income	(213		)	(253		)	(293		)	$	(273	)	11,380			10,677
Total net revenue	56			(213		)	(844		)	$	(754	)	23,239			24,066
Provision for credit losses	(2		)	(5		)	—			—			1,824			959
Noninterest expense	153			152			—			—			13,837			14,883
Income/(loss) before income tax expense/(benefit)	(95		)	(360		)	(844		)	(754		)	7,578			8,224
Income tax expense/(benefit)	(63		)	(418		)	(844		)	(754		)	2,058			2,310
Net income/(loss)	$	(32	)	$	58		$	—		$	—		$	5,520		$	5,914
Average common equity	$	81,561		$	76,352		$	—		$	—		$	221,561		$	212,352
Total assets	781,806			942,556			NA			NA			2,423,808			2,576,619
Return on common equity	NM			NM			NM			NM			9		%	11		%
Overhead ratio	NM			NM			NM			NM			60			62

(a) 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.