Business Segments

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Business Segments

Business segments

The Firm is managed on an LOB basis. There are four major reportable business segments - Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. In addition, there is a Corporate segment. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by the Firm’s Operating Committee. Segment results are presented on a managed basis. Refer to Segment results below, and Note 32 of JPMorgan Chase’s 2021 Form 10-K for a further discussion of JPMorgan Chase’s business segments.

Segment results

The following table provides a summary of the Firm’s segment results as of or for the three months ended March 31, 2022 and 2021, 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. Refer to Note 32 of JPMorgan Chase’s 2021 Form 10-K for additional information on the Firm’s managed basis.

Capital allocation

The amount of capital assigned to each segment is referred to as equity. Periodically, the assumptions and methodologies used to allocate capital are reassessed and as a result, the capital allocated to the LOBs may change. Refer to Line of business equity on page 93 of JPMorgan Chase’s 2021 Form 10-K for additional information on capital allocation.

Segment results and reconciliation(a)
As of or for the three months ended March 31, (in millions, except ratios)	Consumer & Community Banking							Corporate & Investment Bank							Commercial Banking							Asset & Wealth Management
	2022			2021				2022			2021				2022			2021				2022			2021
Noninterest revenue	$	3,902		$	4,588			$	9,957		$	11,088			$	867		$	917			$	3,239		$	3,146
Net interest income	8,327			7,929				3,572			3,517				1,531			1,476				1,076			931
Total net revenue	12,229			12,517				13,529			14,605				2,398			2,393				4,315			4,077
Provision for credit losses	678			(3,602)				445			(331)				157			(118)				154			(121)
Noninterest expense	7,720			7,202				7,298			7,104				1,129			969				2,860			2,574
Income/(loss) before income tax expense/(benefit)	3,831			8,917				5,786			7,832				1,112			1,542				1,301			1,624
Income tax expense/(benefit)	936			2,130			(b)	1,401			1,908			(b)	262			361			(b)	293			364			(b)
Net income/(loss)	$	2,895		$	6,787		(b)	$	4,385		$	5,924		(b)	$	850		$	1,181		(b)	$	1,008		$	1,260		(b)
Average equity	$	50,000		$	50,000			$	103,000		$	83,000			$	25,000		$	24,000			$	17,000		$	14,000
Total assets	486,183			487,978				1,460,463			1,355,123				235,127			223,583				233,070			213,088
ROE	23		%	54		%		17		%	28		%	(b)	13		%	19		%		23		%	36		%	(b)
Overhead ratio	63			58				54			49				47			40				66			63

As of or for the three months ended March 31, (in millions, except ratios)	Corporate					Reconciling Items(a)				Total
	2022		2021			2022		2021		2022			2021
Noninterest revenue	$	(345)	$	382		$	(775)	$	(744)	$	16,845		$	19,377
Net interest income	(536)		(855)			(98)		(109)		13,872			12,889
Total net revenue	(881)		(473)			(873)		(853)		30,717			32,266
Provision for credit losses	29		16			—		—		1,463			(4,156)
Noninterest expense	184		876			—		—		19,191			18,725
Income/(loss) before income tax expense/(benefit)	(1,094)		(1,365)			(873)		(853)		10,063			17,697
Income tax expense/(benefit)	(238)		(513)		(b)	(873)		(853)		1,781			3,397
Net income/(loss)	$	(856)	$	(852)	(b)	$	—	$	—	$	8,282		$	14,300
Average equity	$	57,506	$	74,542		$	—	$	—	$	252,506		$	245,542
Total assets	1,539,844		1,409,564			NA		NA		3,954,687			3,689,336
ROE	NM		NM			NM		NM		13		%	23		%
Overhead ratio	NM		NM			NM		NM		62			58

(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.

(b)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.