The following table provides a summary of the Firm’s segment results as of or for the years ended December 31, 2020, 2019 and 2018, 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/(benefit). These adjustments have no impact on net income as reported by the Firm as a whole or by the LOBs.

Business segment capital allocation

Each business segment is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. ROE is measured and internal targets for expected returns are established as key measures of a business segment’s performance.

The Firm’s allocation methodology incorporates Basel III Standardized RWA, Basel III Advanced RWA, the GSIB surcharge, and a simulation of capital in a severe stress environment. The assumptions and methodologies used to allocate capital are periodically assessed and as a result, the capital allocated to the LOBs may change from time to time.

Business segment changes

In the fourth quarter of 2020, the Firm transferred certain assets, liabilities, revenue, expense and headcount associated with certain wealth management clients from AWM to the J.P. Morgan Wealth Management business unit within CCB. Prior-period amounts have been revised to conform with the current presentation, including the transfer of approximately 1,650 technology and support staff during the second and third quarters of 2020. Ultra-high-net-worth and certain high-net-worth client relationships remained in AWM.

In the first quarter of 2020, the Firm began reporting a Wholesale Payments business unit within CIB following a realignment of the Firm’s wholesale payments businesses. The Wholesale Payments business comprises:

•Merchant Services, which was realigned from CCB to CIB

•Treasury Services and Trade Finance in CIB. Trade Finance was previously reported in Lending in CIB.

In connection with the alignment of Wholesale Payments, the assets, liabilities and headcount associated with the Merchant Services business were realigned to CIB from CCB, and the revenue and expenses of the Merchant Services business are reported across CCB, CIB and CB based primarily on client relationships. In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Payment processing-only clients are those that only use payment services offered by Merchant Services, and in general do not currently utilize other services offered by the Firm. Prior-period amounts have been revised to reflect this realignment and revised allocation methodology.

Segment results and reconciliation(a)


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As of or for the year ended December 31, (in millions, except ratios)	Consumer & Community Banking(b)									Corporate & Investment Bank									Commercial Banking									Asset & Wealth Management
	2020			2019			2018			2020			2019			2018			2020			2019			2018			2020			2019			2018
Noninterest revenue	$	17,740		$	17,796		$	15,338		$	35,120		$	30,060		$	27,854		$	3,067		$	2,710		$	2,620		$	10,822		$	10,236		$	10,052
Net interest income	33,528			37,337			35,933			14,164			9,205			9,528			6,246			6,554			6,716			3,418			3,355			3,375
Total net revenue	51,268			55,133			51,271			49,284			39,265			37,382			9,313			9,264			9,336			14,240			13,591			13,427
Provision for credit losses	12,312			4,954			4,754			2,726			277			(60)			2,113			296			129			263			59			52
Noninterest expense	27,990			28,276			27,168			23,538			22,444			21,876			3,798			3,735			3,627			9,957			9,747			9,575
Income/(loss) before income tax expense/(benefit)	10,966			21,903			19,349			23,020			16,544			15,566			3,402			5,233			5,580			4,020			3,785			3,800
Income tax expense/(benefit)	2,749			5,362			4,642			5,926			4,590			3,767			824			1,275			1,316			1,028			918			855
Net income/(loss)	$	8,217		$	16,541		$	14,707		$	17,094		$	11,954		$	11,799		$	2,578		$	3,958		$	4,264		$	2,992		$	2,867		$	2,945
Average equity	$	52,000		$	52,000		$	51,000		$	80,000		$	80,000		$	70,000		$	22,000		$	22,000		$	20,000		$	10,500		$	10,500		$	9,000
Total assets	496,705			541,367			560,177			1,097,219			914,705			909,292			228,932			220,514			220,229			203,384			173,175			161,047
Return on equity	15		%	31		%	28		%	20		%	14		%	16		%	11		%	17		%	20		%	28		%	26		%	32		%
Overhead ratio	55			51			53			48			57			59			41			40			39			70			72			71


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As of or for the year ended December 31, (in millions, except ratios)	Corporate						Reconciling Items(a)						Total(b)
	2020		2019		2018		2020		2019		2018		2020			2019			2018
Noninterest revenue	$	1,199	$	(114)	$	(263)	$	(2,968)	$	(2,534)	$	(1,877)	$	64,980		$	58,154		$	53,724
Net interest income	(2,375)		1,325		135		(418)		(531)		(628)		54,563			57,245			55,059
Total net revenue	(1,176)		1,211		(128)		(3,386)		(3,065)		(2,505)		119,543			115,399			108,783
Provision for credit losses	66		(1)		(4)		—		—		—		17,480			5,585			4,871
Noninterest expense	1,373		1,067		902		—		—		—		66,656			65,269			63,148
Income/(loss) before income tax expense/(benefit)	(2,615)		145		(1,026)		(3,386)		(3,065)		(2,505)		35,407			44,545			40,764
Income tax expense/(benefit)	(865)		(966)		215		(3,386)		(3,065)		(2,505)		6,276			8,114			8,290
Net income/(loss)	$	(1,750)	$	1,111	$	(1,241)	$	—	$	—	$	—	$	29,131		$	36,431		$	32,474
Average equity	$	72,365	$	68,407	$	79,222	$	—	$	—	$	—	$	236,865		$	232,907		$	229,222
Total assets	1,359,831		837,618		771,787		NA		NA		NA		3,386,071			2,687,379			2,622,532
Return on equity	NM		NM		NM		NM		NM		NM		12		%	15		%	13		%
Overhead ratio	NM		NM		NM		NM		NM		NM		56			57			58

(a)Segment results on a managed basis reflect revenue on a 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.

(b)In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation.