EX-99.2 3 a4q18erfexhibit992suppleme.htm EXHIBIT 99.2 Exhibit


                            
                            
                            


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EARNINGS RELEASE FINANCIAL SUPPLEMENT

FOURTH QUARTER 2018

















JPMORGAN CHASE & CO.
 
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TABLE OF CONTENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page(s)
 
Consolidated Results
 
 
 
 
 
 
 
 
Consolidated Financial Highlights
 
 
 
 
 
 
2–3
 
Consolidated Statements of Income
 
 
 
 
 
 
4
 
Consolidated Balance Sheets
 
 
 
 
 
 
5
 
Condensed Average Balance Sheets and Annualized Yields
 
 
 
 
 
 
6
 
Reconciliation from Reported to Managed Basis
 
 
 
 
 
 
7
 
Segment Results - Managed Basis
 
 
 
 
 
 
8
 
Capital and Other Selected Balance Sheet Items
 
 
 
 
 
 
9
 
Earnings Per Share and Related Information
 
 
 
 
 
 
10
 
 
 
 
 
 
 
 
 
 
Business Segment Results
 
 
 
 
 
 
 
 
Consumer & Community Banking
 
 
 
 
 
 
11–14
 
Corporate & Investment Bank
 
 
 
 
 
 
15–17
 
Commercial Banking
 
 
 
 
 
 
18–19
 
Asset & Wealth Management
 
 
 
 
 
 
20–22
 
Corporate
 
 
 
 
 
 
23
 
 
 
 
 
 
 
 
 
 
Credit-Related Information
 
 
 
 
 
 
24–27
 
 
 
 
 
 
 
 
 
 
Notes Including Non-GAAP Financial Measures and Key Performance Measures
 
 
 
 
 
 
28–29
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Glossary of Terms and Acronyms (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Refer to the Glossary of Terms and Acronyms on pages 283–289 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Form 10-K”) and the Glossary of Terms and Acronyms and Line of Business Metrics on Pages 175–179 and pages 180–182, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018.





JPMORGAN CHASE & CO.
 
 
 
 
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CONSOLIDATED FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except per share and ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
SELECTED INCOME STATEMENT DATA
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
Reported Basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
$
26,109

 
$
27,260

 
$
27,753

 
$
27,907

 
$
24,457

 
(4
)%

7
 %

 
$
109,029

 
$
100,705

 
8
 %

Total noninterest expense
15,720

 
15,623

 
15,971

 
16,080

 
14,895

 
1

 
6

 
 
63,394

 
59,515

 
7

 
Pre-provision profit
10,389

 
11,637

 
11,782

 
11,827

 
9,562

 
(11
)
 
9

 
 
45,635

 
41,190

 
11

 
Provision for credit losses
1,548

 
948

 
1,210

 
1,165

 
1,308

 
63

 
18

 
 
4,871

 
5,290

 
(8
)
 
NET INCOME
7,066

 
8,380

 
8,316

 
8,712

 
4,232

 
(16
)
 
67

 
 
32,474

 
24,441

 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Managed Basis (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
26,804

 
27,822

 
28,388

 
28,520

 
25,754

 
(4
)
 
4

 
 
111,534

 
104,722

 
7

 
Total noninterest expense
15,720

 
15,623

 
15,971

 
16,080

 
14,895

 
1

 
6

 
 
63,394

 
59,515

 
7

 
Pre-provision profit
11,084

 
12,199

 
12,417

 
12,440

 
10,859

 
(9
)
 
2

 
 
48,140

 
45,207

 
6

 
Provision for credit losses
1,548

 
948

 
1,210

 
1,165

 
1,308

 
63

 
18

 
 
4,871

 
5,290

 
(8
)
 
NET INCOME
7,066

 
8,380

 
8,316

 
8,712

 
4,232

 
(16
)
 
67

 
 
32,474

 
24,441

 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income: Basic
$
1.99

 
$
2.35

 
$
2.31

 
$
2.38

 
$
1.08

 
(15
)
 
84

 
 
$
9.04

 
$
6.35

 
42

 
Diluted
1.98

 
2.34

 
2.29

 
2.37

 
1.07

 
(15
)
 
85

 
 
9.00

 
6.31

 
43

 
Average shares: Basic
3,335.8

 
3,376.1

 
3,415.2

 
3,458.3

 
3,489.7

 
(1
)
 
(4
)
 
 
3,396.4

 
3,551.6

 
(4
)
 
Diluted
3,347.3

 
3,394.3

 
3,434.7

 
3,479.5

 
3,512.2

 
(1
)
 
(5
)
 
 
3,414.0

 
3,576.8

 
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MARKET AND PER COMMON SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market capitalization
$
319,780

 
$
375,239

 
$
350,204

 
$
374,423

 
$
366,301

 
(15
)
 
(13
)
 
 
$
319,780

 
$
366,301

 
(13
)
 
Common shares at period-end
3,275.8

 
3,325.4

 
3,360.9

 
3,404.8

 
3,425.3

 
(1
)
 
(4
)
 
 
3,275.8

 
3,425.3

 
(4
)
 
Book value per share
70.35

 
69.52

 
68.85

 
67.59

 
67.04

 
1

 
5

 
 
70.35

 
67.04

 
5

 
Tangible book value per share (“TBVPS”) (b)
56.33

 
55.68

 
55.14

 
54.05

 
53.56

 
1

 
5

 
 
56.33

 
53.56

 
5

 
Cash dividends declared per share
0.80

 
0.80

 
0.56

 
0.56

 
0.56

 

 
43

 
 
2.72

 
2.12

 
28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on common equity (“ROE”)
12
%

14
%

14
%

15
%
 
7
%
 
 
 
 
 
 
13
%

10
%

 
 
Return on tangible common equity (“ROTCE”) (b)
14

 
17

 
17

 
19

 
8

 
 
 
 
 
 
17

 
12

 
 
 
Return on assets
1.06

 
1.28

 
1.28

 
1.37

 
0.66

 
 
 
 
 
 
1.24

 
0.96

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 (“CET1”) capital ratio (d)
12.0
%
(f)
12.0
%
 
12.0
%
 
11.8
%
 
12.2
%
 
 
 
 
 
 
12.0
%
(f)
12.2
%
 
 
 
Tier 1 capital ratio (d)
13.7

(f)
13.6

 
13.6

 
13.5

 
13.9

 
 
 
 
 
 
13.7

(f)
13.9

 
 
 
Total capital ratio (d)
15.5

(f)
15.4

 
15.5

 
15.3

 
15.9

 
 
 
 
 
 
15.5

(f)
15.9

 
 
 
Tier 1 leverage ratio (d)
8.1

(f)
8.2

 
8.2

 
8.2

 
8.3

 
 
 
 
 
 
8.1

(f)
8.3

 
 
 
Supplementary leverage ratio (“SLR”) (e)
6.4
%
(f)
6.5

 
6.5

 
6.5

 
6.5

 
 
 
 
 
 
6.4

(f)
6.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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. Refer to page 29 for a further discussion.

(a)
For a further discussion of managed basis, refer to Reconciliation from Reported to Managed Basis on page 7.
(b)
TBVPS and ROTCE are each non-GAAP financial measures. TBVPS represents tangible common equity (“TCE”) divided by common shares at period-end. ROTCE measures the Firm’s annualized earnings as a percentage of average TCE. TCE is also a non-GAAP financial measure; for a reconciliation of common stockholders’ equity to TCE, refer to page 9. For a further discussion of these measures, refer to pages 28–29.
(c)
Quarterly ratios are based upon annualized amounts.
(d)
Ratios presented are calculated under the Basel III Transitional capital rules and for the capital ratios represent the lower of Standardized or Advanced approach. As of December 31, 2018, and September 30, 2018, the Firm’s capital ratios were equivalent whether calculated on a transitional basis or on a fully phased-in basis. Refer to footnote (a) on page 9 for additional information on Basel III.
(e)
Effective January 1, 2018, the SLR was fully phased-in under Basel III. The SLR is defined as Tier 1 capital divided by the Firm’s total leverage exposure. Ratios prior to March 31, 2018 were calculated under the Basel III Transitional rules.
(f)
Estimated.


Page 2



JPMORGAN CHASE & CO.
 
 
 
 
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CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
(in millions, except ratio and headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
2,622,532

 
$
2,615,183

 
$
2,590,050

 
$
2,609,785

 
$
2,533,600

 
 %
 
4
 %
 
 
$
2,622,532

 
$
2,533,600

 
4
 %
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card loans
373,732

 
376,062

 
374,697

 
373,395

 
372,681

 
(1
)
 

 
 
373,732

 
372,681

 

 
Credit card loans
156,632

 
147,881

 
145,255

 
140,414

 
149,511

 
6

 
5

 
 
156,632

 
149,511

 
5

 
Wholesale loans
454,190

 
430,375

 
428,462

 
420,615

 
408,505

 
6

 
11

 
 
454,190

 
408,505

 
11

 
Total Loans
984,554

 
954,318

 
948,414

 
934,424

 
930,697

 
3

 
6

 
 
984,554

 
930,697

 
6

 
Core loans (a)
931,856

 
899,006

 
889,433

 
870,536

 
863,683

 
4

 
8

 
 
931,856

 
863,683

 
8

 
Core loans (average) (a)
907,271

 
894,279

 
877,640

 
861,089

 
850,166

 
1

 
7

 
 
885,221

 
829,558

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. offices:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing
369,505

 
374,603

 
385,741

 
397,856

 
393,645

 
(1
)
 
(6
)
 
 
369,505

 
393,645

 
(6
)
 
Interest-bearing
831,085

 
814,988

 
819,454

 
825,223

 
793,618

 
2

 
5

 
 
831,085

 
793,618

 
5

 
Non-U.S. offices:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing
19,092

 
19,127

 
16,602

 
17,019

 
15,576

 

 
23

 
 
19,092

 
15,576

 
23

 
Interest-bearing
250,984

 
250,044

 
230,325

 
246,863

 
241,143

 

 
4

 
 
250,984

 
241,143

 
4

 
Total deposits
1,470,666

 
1,458,762

 
1,452,122

 
1,486,961

 
1,443,982

 
1

 
2

 
 
1,470,666

 
1,443,982

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
282,031

 
270,124

 
273,114

 
274,449

 
284,080

 
4

 
(1
)
 
 
282,031

 
284,080

 
(1
)
 
Common stockholders’ equity
230,447

 
231,192

 
231,390

 
230,133

 
229,625

 

 

 
 
230,447

 
229,625

 

 
Total stockholders’ equity
256,515

 
258,956

 
257,458

 
256,201

 
255,693

 
(1
)
 

 
 
256,515

 
255,693

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans-to-deposits ratio
67
%

65
%

65
%
 
63
%
 
64
%

 
 
 
 
 
67
%

64
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount
256,105

 
255,313

 
252,942

 
253,707

 
252,539

 

 
1

 
 
256,105

 
252,539

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
95% CONFIDENCE LEVEL - TOTAL VaR
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average VaR
$
51

 
$
35

 
$
35

 
$
43

 
$
34

 
46

 
50

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LINE OF BUSINESS NET REVENUE (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
13,695

 
$
13,290

 
$
12,497

 
$
12,597

 
$
12,070

 
3

 
13

 
 
$
52,079

 
$
46,485

 
12

 
Corporate & Investment Bank
7,237

 
8,805

 
9,923

 
10,483

 
7,518

 
(18
)
 
(4
)
 
 
36,448

 
34,657

 
5

 
Commercial Banking
2,306

 
2,271

 
2,316

 
2,166

 
2,353

 
2

 
(2
)
 
 
9,059

 
8,605

 
5

 
Asset & Wealth Management
3,439

 
3,559

 
3,572

 
3,506

 
3,638

 
(3
)
 
(5
)
 
 
14,076

 
13,835

 
2

 
Corporate
127

 
(103
)
 
80

 
(232
)
 
175

 
NM

 
(27
)
 
 
(128
)
 
1,140

 
NM

 
TOTAL NET REVENUE
$
26,804

 
$
27,822

 
$
28,388

 
$
28,520

 
$
25,754

 
(4
)
 
4

 
 
$
111,534

 
$
104,722

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LINE OF BUSINESS NET INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
4,028

 
$
4,086

 
$
3,412

 
$
3,326

 
$
2,631

 
(1
)
 
53

 
 
$
14,852

 
$
9,395

 
58

 
Corporate & Investment Bank
1,975

 
2,626

 
3,198

 
3,974

 
2,316

 
(25
)
 
(15
)
 
 
11,773

 
10,813

 
9

 
Commercial Banking
1,036

 
1,089

 
1,087

 
1,025

 
957

 
(5
)
 
8

 
 
4,237

 
3,539

 
20

 
Asset & Wealth Management
604

 
724

 
755

 
770

 
654

 
(17
)
 
(8
)
 
 
2,853

 
2,337

 
22

 
Corporate
(577
)
 
(145
)
 
(136
)
 
(383
)
 
(2,326
)
 
(298
)
 
75

 
 
(1,241
)
 
(1,643
)
 
24

 
NET INCOME
$
7,066

 
$
8,380

 
$
8,316

 
$
8,712

 
$
4,232

 
(16
)
 
67

 
 
$
32,474

 
$
24,441

 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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. Refer to page 29 for a further discussion.

(a)
Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, refer to pages 28–29.
(b)
For a further discussion of managed basis, refer to Reconciliation from Reported to Managed Basis on page 7.





Page 3



JPMORGAN CHASE & CO.
 
 
 
 
jpmclogoa05.gif
CONSOLIDATED STATEMENTS OF INCOME
 
 
 
 
(in millions, except per share and ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
REVENUE
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
Investment banking fees
$
1,814

 
$
1,832

 
$
2,168

 
$
1,736

 
$
1,818

 
(1
)%
 
 %
 
 
$
7,550

 
$
7,412

 
2
 %
 
Principal transactions
1,361

 
2,964

 
3,782

 
3,952

 
1,907

 
(54
)
 
(29
)
 
 
12,059

 
11,347

 
6

 
Lending- and deposit-related fees
1,538

 
1,542

 
1,495

 
1,477

 
1,506

 

 
2

 
 
6,052

 
5,933

 
2

 
Asset management, administration and commissions
4,195

 
4,310

 
4,304

 
4,309

 
4,291

 
(3
)
 
(2
)
 
 
17,118

 
16,287

 
5

 
Investment securities gains/(losses)
(24
)
 
(46
)
 
(80
)
 
(245
)
 
(28
)
 
48

 
14

 
 
(395
)
 
(66
)
 
(498
)
 
Mortgage fees and related income
203

 
262

 
324

 
465

 
377

 
(23
)
 
(46
)
 
 
1,254

 
1,616

 
(22
)
 
Card income
1,366

 
1,328

 
1,020

 
1,275

 
1,110

 
3

 
23

 
 
4,989

 
4,433

 
13

 
Other income
1,302

 
1,160

 
1,255

 
1,626

 
449

 
12

 
190

 
 
5,343

 
3,646

 
47

 
Noninterest revenue
11,755

 
13,352

 
14,268

 
14,595

 
11,430

 
(12
)
 
3

 
 
53,970

 
50,608

 
7

 
Interest income
21,038

 
19,840

 
18,869

 
17,695

 
16,993

 
6

 
24

 
 
77,442

 
64,372

 
20

 
Interest expense
6,684

 
5,932

 
5,384

 
4,383

 
3,966

 
13

 
69

 
 
22,383

 
14,275

 
57

 
Net interest income
14,354

 
13,908

 
13,485

 
13,312

 
13,027

 
3

 
10

 
 
55,059

 
50,097

 
10

 
TOTAL NET REVENUE
26,109

 
27,260

 
27,753

 
27,907

 
24,457

 
(4
)
 
7

 
 
109,029

 
100,705

 
8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
1,548

 
948

 
1,210

 
1,165

 
1,308

 
63

 
18

 
 
4,871

 
5,290

 
(8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
7,809

 
8,108

 
8,338

 
8,862

 
7,498

 
(4
)
 
4

 
 
33,117

 
31,208

 
6

 
Occupancy expense
1,069

 
1,014

 
981

 
888

 
920

 
5

 
16

 
 
3,952

 
3,723

 
6

 
Technology, communications and equipment expense
2,361

 
2,219

 
2,168

 
2,054

 
2,038

 
6

 
16

 
 
8,802

 
7,715

 
14

 
Professional and outside services
2,169

 
2,086

 
2,126

 
2,121

 
2,244

 
4

 
(3
)
 
 
8,502

 
7,890

 
8

 
Marketing
894

 
798

 
798

 
800

 
721

 
12

 
24

 
 
3,290

 
2,900

 
13

 
Other expense (a)
1,418

 
1,398

 
1,560

 
1,355

 
1,474

 
1

 
(4
)
 
 
5,731

 
6,079

 
(6
)
 
TOTAL NONINTEREST EXPENSE
15,720

 
15,623

 
15,971

 
16,080

 
14,895

 
1

 
6

 
 
63,394

 
59,515

 
7

 
Income before income tax expense
8,841

 
10,689

 
10,572

 
10,662

 
8,254

 
(17
)
 
7

 
 
40,764

 
35,900

 
14

 
Income tax expense
1,775

 
2,309

 
2,256

 
1,950

 
4,022

(d)
(23
)
 
(56
)
 
 
8,290

 
11,459

(d)
(28
)
 
NET INCOME
$
7,066

 
$
8,380

 
$
8,316

 
$
8,712

 
$
4,232

 
(16
)
 
67

 
 
$
32,474

 
$
24,441

 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME PER COMMON SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
$
1.99

 
$
2.35

 
$
2.31

 
$
2.38

 
$
1.08

 
(15
)
 
84

 
 
$
9.04

 
$
6.35

 
42

 
Diluted earnings per share
1.98

 
2.34

 
2.29

 
2.37

 
1.07

 
(15
)
 
85

 
 
9.00

 
6.31

 
43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on common equity (b)
12
%
 
14
%
 
14
%
 
15
%
 
7
%
 
 
 
 
 
 
13
%
 
10
%
 
 
 
Return on tangible common equity (b)(c)
14

 
17

 
17

 
19

 
8

 
 
 
 
 
 
17

 
12

 
 
 
Return on assets (b)
1.06

 
1.28

 
1.28

 
1.37

 
0.66

 
 
 
 
 
 
1.24

 
0.96

 
 
 
Effective income tax rate
20.1

 
21.6

 
21.3

 
18.3

 
48.7

(d)
 
 
 
 
 
20.3

 
31.9

(d)
 
 
Overhead ratio
60

 
57

 
58

 
58

 
61

 
 
 
 
 
 
58

 
59

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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. Refer to page 29 for a further discussion.

(a)
Included Firmwide legal expense/(benefit) of $(18) million, $20 million, $0 million, $70 million and $(207) million for the three months ended December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018, and December 31, 2017, respectively; and $72 million and $(35) million for the full year 2018 and 2017, respectively.
(b)
Quarterly ratios are based upon annualized amounts.
(c)
For further discussion of ROTCE, refer to pages 28–29.
(d)
The three months and full year ended December 31, 2017 included a $1.9 billion tax expense as a result of the estimated impact of the enactment of the Tax Cuts & Jobs Act (“TCJA”).



Page 4



JPMORGAN CHASE & CO.
 
 
 
 
jpmclogoa05.gif
CONSOLIDATED BALANCE SHEETS
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Dec 31,
 
 
2018
 
2018
 
2018
 
2018
 
2017
 
2018
 
2017
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
22,324

 
$
23,225

 
$
23,680

 
$
24,834

 
$
25,898

 
(4
)%
 
(14
)%
 
Deposits with banks
256,469

 
395,872

 
381,500

 
389,978

 
405,406

 
(35
)
 
(37
)
 
Federal funds sold and securities purchased under
 
 
 
 
 
 
 
 
 
 
 
 
 
 
resale agreements
321,588

 
217,632

 
226,505

 
247,608

 
198,422

 
48

 
62

 
Securities borrowed
111,995

 
122,434

 
108,246

 
116,132

 
105,112

 
(9
)
 
7

 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and equity instruments
359,501

 
359,765

 
360,289

 
355,368

 
325,321

 

 
11

 
Derivative receivables
54,213

 
60,062

 
58,510

 
56,914

 
56,523

 
(10
)
 
(4
)
 
Investment securities
261,828

 
231,398

 
233,015

 
238,188

 
249,958

 
13

 
5

 
Loans
984,554

 
954,318

 
948,414

 
934,424

 
930,697

 
3

 
6

 
Less: Allowance for loan losses
13,445

 
13,128

 
13,250

 
13,375

 
13,604

 
2

 
(1
)
 
Loans, net of allowance for loan losses
971,109

 
941,190

 
935,164

 
921,049

 
917,093

 
3

 
6

 
Accrued interest and accounts receivable
73,200

 
78,792

 
75,669

 
72,659

 
67,729

 
(7
)
 
8

 
Premises and equipment
14,934

 
14,180

 
14,132

 
14,382

 
14,159

 
5

 
5

 
Goodwill, MSRs and other intangible assets
54,349

 
54,697

 
54,535

 
54,533

 
54,392

 
(1
)
 

 
Other assets
121,022

 
115,936

 
118,805

 
118,140

 
113,587

 
4

 
7

 
TOTAL ASSETS
$
2,622,532

 
$
2,615,183

 
$
2,590,050

 
$
2,609,785

 
$
2,533,600

 

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
$
1,470,666

 
$
1,458,762

 
$
1,452,122

 
$
1,486,961

 
$
1,443,982

 
1

 
2

 
Federal funds purchased and securities loaned or sold
 
 
 
 
 
 
 
 
 
 
 
 
 
 
under repurchase agreements
182,320

 
181,608

 
175,293

 
179,091

 
158,916

 

 
15

 
Short-term borrowings
69,276

 
64,635

 
63,918

 
62,667

 
51,802

 
7

 
34

 
Trading liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and equity instruments