Interest Income and Interest Expense

9 Months Ended

Sep. 30, 2019

Interest Income (Expense), Net [Abstract]

Interest Income and Interest Expense

Interest income and Interest expense

Refer to Note 7 of JPMorgan Chase’s 2018 Form 10-K for a description of JPMorgan Chase’s accounting policies regarding interest income and interest expense.

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

	Three months ended September 30,				Nine months ended September 30,
(in millions)	2019		2018		2019		2018
Interest income
Loans(a)	$	12,586	$	12,207	$	38,192	$	34,915
Taxable securities	2,132		1,402		5,712		4,098
Non-taxable securities(b)	318		394		1,021		1,199
Total investment securities(a)	2,450		1,796		6,733		5,297
Trading assets - debt instruments	2,659		2,155		8,343		6,369
Federal funds sold and securities purchased under resale agreements	1,542		952		4,865		2,490
Securities borrowed(c)	434		248		1,298		549
Deposits with banks	898		1,585		3,200		4,449
All other interest-earning assets(c)(d)	552		496		1,482		1,430
Total interest income(c)	21,121		19,439		64,113		55,499
Interest expense
Interest-bearing deposits	2,409		1,621		7,010		4,021
Federal funds purchased and securities loaned or sold under repurchase agreements	1,241		827		3,577		2,164
Short-term borrowings(e)	261		288		1,051		757
Trading liabilities – debt and all other interest-bearing liabilities(c)(f)	660		617		2,141		1,674
Long-term debt	2,188		2,056		6,796		5,812
Beneficial interest issued by consolidated VIEs	134		122		459		366
Total interest expense(c)	6,893		5,531		21,034		14,794
Net interest income	14,228		13,908		43,079		40,705
Provision for credit losses	1,514		948		4,158		3,323
Net interest income after provision for credit losses	$	12,714	$	12,960	$	38,921	$	37,382

(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) In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect on net interest income. These changes were made to align the accounting treatment between the balance sheet and the related interest income or expense, primarily by offsetting interest income and expense for certain prime brokerage-related held-for-investment customer receivables and payables that are currently presented as a single margin account on the balance sheet. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.

(d) Includes prime brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets which are classified in other assets on the Consolidated balance sheets.

(e) Includes commercial paper.

(f)

Other interest-bearing liabilities include prime brokerage-related customer payables.