XML 27 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
Noninterest Revenue and Noninterest Expense
 9 Months Ended
Sep. 30, 2018
Noninterest Income (Expense) [Abstract]  
Noninterest Revenue and Noninterest Expense Noninterest revenue and noninterest
expense
Noninterest revenue
For a discussion of the components of and accounting policies for the Firm’s noninterest revenue, refer to Note 6 of JPMorgan Chase’s 2017 Annual Report.
The adoption of the revenue recognition guidance in the first quarter of 2018, required gross presentation of certain costs previously offset against revenue, predominantly associated with certain distribution costs (previously offset against asset management, administration and commissions), with the remainder associated with certain underwriting costs (previously offset against investment banking fees). Adoption of the guidance did not result in any material changes in the timing of revenue recognition. This guidance was adopted retrospectively and, accordingly, prior period amounts were revised, which resulted in an increase in both noninterest revenue and noninterest expense. For additional information, refer to Note 1.
Investment banking fees
The following table presents the components of investment banking fees.

Three months ended September 30,

Nine months ended September 30,
(in millions)
2018

 
2017


2018

2017
Underwriting







Equity
$
417


$
302


$
1,342


$
1,105

Debt
836


945


2,596


2,873

Total underwriting
1,253


1,247


3,938


3,978

Advisory
579


621


1,798


1,616

Total investment banking fees
$
1,832


$
1,868


$
5,736


$
5,594


Principal transactions
The following table presents all realized and unrealized gains and losses recorded in principal transactions revenue. This table excludes interest income and interest expense on trading assets and liabilities, which are an integral part of the overall performance of the Firm’s client-driven market-making activities. Refer to Note 6 for further information on interest income and interest expense. Trading revenue is presented primarily by instrument type. The Firm’s client-driven market-making businesses generally utilize a variety of instrument types in connection with their market-making and related risk-management activities; accordingly, the trading revenue presented in the table below is not representative of the total revenue of any individual line of busi
ness.
 
Three months ended September 30,
 
Nine months ended September 30,
(in millions)
2018

 
2017

 
2018
 
2017
Trading revenue by instrument type
 
 
 
 
 
 
 
Interest rate
$
338

 
$
649

 
$
1,784

 
$
2,032

Credit
202

 
330

 
1,230

 
1,288

Foreign exchange
937

 
681

 
2,706

 
2,363

Equity
1,363

 
915

 
4,376

 
3,153

Commodity
277

 
156

 
800

 
461

Total trading revenue
3,117

 
2,731

 
10,896

 
9,297

Private equity gains/(losses)(a)
(153
)
 
(10
)
 
(198
)
 
143

Principal transactions
$
2,964

 
$
2,721

 
$
10,698

 
$
9,440


(a)
The third quarter of 2018 included markdowns of approximately $220 million on certain private equity investments in Corporate, with $170 million recorded within principal transactions revenue and $50 million in other income.
Lending- and deposit-related fees
The following table presents the components of lending- and deposit-related fees.
 
Three months ended September 30,
 
Nine months ended September 30,
(in millions)
2018

 
2017

 
2018

 
2017
Lending-related fees
$
284

 
$
280

 
$
838

 
$
824

Deposit-related fees
1,258

 
1,217

 
3,676

 
3,603

Total lending- and deposit-related fees
$
1,542

 
$
1,497

 
$
4,514

 
$
4,427


Asset management, administration and commissions
The following table presents the components of Firmwide asset management, administration and commissions.
 
Three months ended September 30,
 
Nine months ended September 30,
(in millions)
2018

 
2017

 
2018
 
2017
Asset management fees
 
 
 
 
 
 
 
Investment management fees(a)
$
2,716

 
$
2,636

 
$
8,081

 
$
7,603

All other asset management fees(b)
79

 
63

 
211

 
226

Total asset management fees
2,795

 
2,699

 
8,292

 
7,829

 
 
 
 
 
 
 
 
Total administration fees(c)
533

 
514

 
1,651

 
1,500

 
 
 
 
 
 
 
 
Commission and other fees
 
 
 
 
 
 
 
Brokerage commissions
604

 
546

 
1,887

 
1,691

All other commissions and fees
378

 
313

 
1,093

 
976

Total commissions and fees
982

 
859

 
2,980

 
2,667

Total asset management, administration and commissions
$
4,310

 
$
4,072

 
$
12,923

 
$
11,996

(a)
Represents fees earned from managing assets on behalf of the Firm’s clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts.
(b)
Represents fees for services that are ancillary to investment management services, such as commissions earned on the sales or distribution of mutual funds to clients.
(c)
Predominantly includes fees for custody, securities lending, funds services and securities clearance.
Card income
The following table presents the components of card income:
 
Three months ended September 30,
 
Nine months ended September 30,
(in millions)
2018

 
2017

 
2018

 
2017

Interchange and merchant processing income
$
4,781

 
$
4,342

 
$
13,863

 
$
12,557

Rewards costs and partner payments
(3,276
)
 
(2,727
)
 
(9,687
)
(b) 
(7,941
)
Other card income(a)
(177
)
 
(373
)
 
(553
)
 
(1,293
)
Total card income
$
1,328

 
$
1,242

 
$
3,623

 
$
3,323

(a)
Predominantly represents annual fees and new account origination costs, which are deferred and recognized on a straight-line basis over a 12-month period.
(b)
Includes an adjustment to the credit card rewards liability of approximately $330 million, recorded in the second quarter of 2018.
Other income    
Other income on the Firm’s Consolidated statements of income included the following:
 
Three months ended September 30,
 
Nine months ended September 30,
(in millions)
2018

 
2017

 
2018

 
2017

Operating lease income
$
1,157

 
$
928

 
$
3,316

 
$
2,625


Noninterest expense
Other expense
Other expense on the Firm’s Consolidated statements of income included the following:
 
Three months ended September 30,
 
Nine months ended September 30,
(in millions)
2018

 
2017

 
2018

 
2017

Legal expense
$
20

 
$
(107
)
 
$
90

 
$
172

FDIC-related expense
349

 
353

 
1,100

 
1,110