Interest Income and Interest Expense

9 Months Ended

Sep. 30, 2018

Interest Income (Expense), Net [Abstract]

Interest Income and Interest Expense

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 September 30,				Nine months ended September 30,
(in millions)	2018		2017		2018		2017
Interest income
Loans(a)	$	12,207	$	10,519	$	34,915	$	30,265
Taxable securities	1,402		1,362		4,098		4,202
Non-taxable securities(b)	394		456		1,199		1,393
Total investment securities(a)	1,796		1,818		5,297		5,595
Trading assets	2,155		1,947		6,369		5,611
Federal funds sold and securities purchased under resale agreements	952		622		2,490		1,676
Securities borrowed(c)	200		—		410		(65		)
Deposits with banks	1,585		1,259		4,449		3,002
All other interest-earning assets(d)	945		522		2,474		1,295
Total interest income	19,840		16,687		56,404		47,379
Interest expense
Interest-bearing deposits	1,621		837		4,021		1,949
Federal funds purchased and securities loaned or sold under repurchase agreements	827		451		2,164		1,131
Short-term borrowings(e)	288		149		757		318
Trading liabilities – debt and all other interest-bearing liabilities(f)	1,018		570		2,579		1,490
Long-term debt	2,056		1,759		5,812		5,035
Beneficial interest issued by consolidated VIEs	122		123		366		386
Total interest expense	5,932		3,889		15,699		10,309
Net interest income	13,908		12,798		40,705		37,070
Provision for credit losses	948		1,452		3,323		3,982
Net interest income after provision for credit losses	$	12,960	$	11,346	$	37,382	$	33,088

(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.