Interest income and Interest expense

For a description of JPMorgan Chase’s accounting policies regarding interest income and interest expense, refer to Note 7 of JPMorgan Chase’s 2017 Annual Report.

The following table presents the components of interest income and interest expense.



	Three months ended June 30,					Six months ended June 30,
(in millions)	2018		2017			2018		2017
Interest income
Loans^(a)	$	11,634	$	9,995		$	22,708	$	19,746
Taxable securities	1,383		1,410			2,696		2,840
Non-taxable securities^(b)	395		479			805		937
Total investment securities^(a)	1,778		1,889			3,501		3,777
Trading assets	2,111		1,806			4,214		3,664
Federal funds sold and securities purchased under resale agreements	807		528			1,538		1,054
Securities borrowed^(c)	148		(21		)	210		(65		)
Deposits with banks	1,543		1,018			2,864		1,743
All other interest-earning assets^(d)	848		435			1,529		773
Total interest income	18,869		15,650			36,564		30,692
Interest expense
Interest-bearing deposits	1,340		629			2,400		1,112
Federal funds purchased and securities loaned or sold under repurchase agreements	759		387			1,337		680
Short-term borrowings^(e)	260		96			469		169
Trading liabilities – debt and all other interest-bearing liabilities^(f)	901		515			1,561		920
Long-term debt	2,003		1,687			3,756		3,276
Beneficial interest issued by consolidated VIEs	121		128			244		263
Total interest expense	5,384		3,442			9,767		6,420
Net interest income	13,485		12,208			26,797		24,272
Provision for credit losses	1,210		1,215			2,375		2,530
Net interest income after provision for credit losses	$	12,275	$	10,993		$	24,422	$	21,742


(a)	Includes the amortization/accretion of unearned income (e.g., purchase premiums/discounts, net deferred fees/costs, etc.).


(b)	Represents securities which are tax-exempt for U.S. federal income tax purposes.


(c)	Negative interest income is related to client-driven demand for certain securities combined with the impact of low interest rates. This is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense.


(d)	Includes held-for-investment margin loans, which are classified in accrued interest and accounts receivable, and all other interest-earning assets included in other assets on the Consolidated balance sheets.


(e)	Includes commercial paper.


(f)	Other interest-bearing liabilities include brokerage customer payables.