Business Segments (Tables)

9 Months Ended

Sep. 30, 2018

The following table provides a summary of the Firm’s segment results as of or for the three and nine months ended September 30, 2018 and 2017, on a managed basis. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm

(and each of the reportable business segments) on an 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 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. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business.

Business segment capital allocation

The amount of capital assigned to each business is referred to as equity. 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. For additional information on business segment capital allocation, refer to Line of business equity on pages 88-89 of JPMorgan Chase’s 2017 Annual Report.

Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. For additional information, refer to Note 1.

Net income in 2018 for the business segments reflects the favorable impact of the reduction in the U.S. federal statutory income tax rate as a result of the TCJA.



Segment results and reconciliation^(a)
As of or for the three months ended September 30, (in millions, except ratios)	Consumer & Community Banking						Corporate & Investment Bank						Commercial Banking						Asset & Wealth Management
	2018			2017			2018			2017			2018			2017			2018			2017
Noninterest revenue	$	4,176		$	3,898		$	6,505		$	6,119		$	576		$	592		$	2,680		$	2,617
Net interest income	9,114			8,135			2,300			2,496			1,695			1,554			879			855
Total net revenue	13,290			12,033			8,805			8,615			2,271			2,146			3,559			3,472
Provision for credit losses	980			1,517			(42		)	(26		)	(15		)	(47		)	23			8
Noninterest expense	6,982			6,495			5,175			4,793			853			800			2,585			2,408
Income before income tax expense	5,328			4,021			3,672			3,848			1,433			1,393			951			1,056
Income tax expense	1,242			1,468			1,046			1,302			344			512			227			382
Net income	$	4,086		$	2,553		$	2,626		$	2,546		$	1,089		$	881		$	724		$	674
Average equity	$	51,000		$	51,000		$	70,000		$	70,000		$	20,000		$	20,000		$	9,000		$	9,000
Total assets	560,432			537,459			928,148			851,808			217,194			220,064			166,716			149,170
Return on equity	31		%	19		%	14		%	13		%	21		%	17		%	31		%	29		%
Overhead ratio	53			54			59			56			38			37			73			69



As of or for the three months ended September 30, (in millions, except ratios)	Corporate					Reconciling Items^(a)						Total
	2018			2017		2018			2017			2018			2017
Noninterest revenue	$	(177	)	$	109	$	(408	)	$	(555	)	$	13,352		$	12,780
Net interest income	74			77		(154		)	$	(319	)	13,908			12,798
Total net revenue	(103		)	186		(562		)	$	(874	)	27,260			25,578
Provision for credit losses	2			—		—			—			948			1,452
Noninterest expense	28			74		—			—			15,623			14,570
Income/(loss) before income tax expense/(benefit)	(133		)	112		(562		)	(874		)	10,689			9,556
Income tax expense/(benefit)	12			34		(562		)	(874		)	2,309			2,824
Net income/(loss)	$	(145	)	$	78	$	—		$	—		$	8,380		$	6,732
Average equity	$	80,439		$	81,861	$	—		$	—		$	230,439		$	231,861
Total assets	742,693			804,573		NA			NA			2,615,183			2,563,074
Return on equity	NM			NM		NM			NM			14		%	11		%
Overhead ratio	NM			NM		NM			NM			57			57


(a)	Segment managed results reflect revenue on an 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.



Segment results and reconciliation^(a)
As of or for the nine months ended September 30, (in millions, except ratios)	Consumer & Community Banking						Corporate & Investment Bank						Commercial Banking						Asset & Wealth Management
	2018			2017			2018			2017			2018			2017			2018			2017
Noninterest revenue	$	12,063		$	10,899		$	21,954		$	19,598		$	1,758		$	1,774		$	7,997		$	7,677
Net interest income	26,321			23,516			7,257			7,541			4,995			4,478			2,640			2,520
Total net revenue	38,384			34,415			29,211			27,139			6,753			6,252			10,637			10,197
Provision for credit losses	3,405			4,341			(142		)	(175		)	23			(214		)	40			30
Noninterest expense	20,770			19,390			16,237			14,854			2,541			2,415			7,732			7,606
Income before income tax expense	14,209			10,684			13,116			12,460			4,189			4,051			2,865			2,561
Income tax expense	3,385			3,920			3,318			3,963			988			1,469			616			878
Net income	$	10,824		$	6,764		$	9,798		$	8,497		$	3,201		$	2,582		$	2,249		$	1,683
Average equity	$	51,000		$	51,000		$	70,000		$	70,000		$	20,000		$	20,000		$	9,000		$	9,000
Total assets	560,432			537,459			928,148			851,808			217,194			220,064			166,716			149,170
Return on equity	27		%	17		%	18		%	15		%	20		%	16		%	32		%	24		%
Overhead ratio	54			56			56			55			38			39			73			75



As of or for the nine months ended September 30, (in millions, except ratios)	Corporate						Reconciling Items^(a)						Total
	2018			2017			2018			2017			2018			2017
Noninterest revenue	$	(220	)	$	963		$	(1,337	)	$	(1,733	)	$	42,215		$	39,178
Net interest income	(35		)	2			(473		)	$	(987	)	40,705			37,070
Total net revenue	(255		)	965			(1,810		)	$	(2,720	)	82,920			76,248
Provision for credit losses	(3		)	—			—			—			3,323			3,982
Noninterest expense	394			355			—			—			47,674			44,620
Income/(loss) before income tax expense/(benefit)	(646		)	610			(1,810		)	(2,720		)	31,923			27,646
Income tax expense/(benefit)	18			(73		)	(1,810		)	(2,720		)	6,515			7,437
Net income/(loss)	$	(664	)	$	683		$	—		$	—		$	25,408		$	20,209
Average equity	$	78,995		$	79,937		$	—		$	—		$	228,995		$	229,937
Total assets	742,693			804,573			NA			NA			2,615,183			2,563,074
Return on equity	NM			NM			NM			NM			14		%	11		%
Overhead ratio	NM			NM			NM			NM			57			59


(a)	Segment managed results reflect revenue on an 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.