Accumulated Other Comprehensive Income/(Loss)

9 Months Ended

Sep. 30, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income/(Loss)

Accumulated other comprehensive income/(loss)

AOCI includes the after-tax change in unrealized gains and losses on investment securities, foreign currency translation adjustments (including the impact of related derivatives), fair value changes of excluded components on fair value hedges, cash flow hedging activities, net gain/(loss) related to the Firm’s defined benefit pension and OPEB plans, and fair value option-elected liabilities arising from changes in the Firm’s own credit risk (DVA).

As of or for the three months ended September 30, 2023 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)
Balance at July 1, 2023		$	(6,155)			$	(1,278)	$	(43)		$	(5,355)		$	(1,512)		$	53		$	(14,290)
Net change		(1,950)				(340)		(5)			(583)			(21)			85			(2,814)
Balance at September 30, 2023		$	(8,105)	(a)		$	(1,618)	$	(48)		$	(5,938)		$	(1,533)		$	138		$	(17,104)
As of or for the three months ended September 30, 2022 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)
Balance at July 1, 2022		$	(8,844)			$	(1,675)	$	30		$	(4,435)		$	(123)		$	678		$	(14,369)
Net change		(2,145)				(581)		38			(1,698)			(1,004)			625			(4,765)
Balance at September 30, 2022		$	(10,989)	(a)		$	(2,256)	$	68		$	(6,133)		$	(1,127)		$	1,303		$	(19,134)
As of or for the nine months ended September 30, 2023 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)
Balance at January 1, 2023		$	(9,124)			$	(1,545)	$	(33)		$	(5,656)		$	(1,451)		$	468		$	(17,341)
Net change		1,019				(73)		(15)			(282)			(82)			(330)			237
Balance at September 30, 2023		$	(8,105)	(a)		$	(1,618)	$	(48)		$	(5,938)		$	(1,533)		$	138		$	(17,104)
As of or for the nine months ended September 30, 2022 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)
Balance at January 1, 2022		$	2,640			$	(934)	$	(131)		$	(296)		$	(210)		$	(1,153)		$	(84)
Net change		(13,629)				(1,322)		199			(5,837)			(917)			2,456			(19,050)
Balance at September 30, 2022		$	(10,989)	(a)		$	(2,256)	$	68		$	(6,133)		$	(1,127)		$	1,303		$	(19,134)

(a)As of September 30, 2023 includes after-tax net unamortized unrealized gains/(losses) of $(29) million related to HTM securities that have been transferred to AFS as permitted by the new hedge accounting guidance adopted on January 1, 2023. As of September 30, 2023 and 2022 includes after-tax net unamortized unrealized gains/(losses) of $(1.0) billion and $(1.3) billion, related to AFS securities that have been transferred to HTM, respectively. Refer to Note 10 of this Form 10-Q, and Note 10 of JPMorgan Chase's 2022 Form 10-K for further information.

The following table presents the pre-tax and after-tax changes in the components of OCI.

	2023						2022
Three months ended September 30, (in millions)	Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	$	(3,234)	$	775	$	(2,459)	$	(3,785)	$	912	$	(2,873)
Reclassification adjustment for realized (gains)/losses included in net income(a)	669		(160)		509		959		(231)		728
Net change	(2,565)		615		(1,950)		(2,826)		681		(2,145)
Translation adjustments(b):
Translation	(1,608)		18		(1,590)		(3,017)		164		(2,853)
Hedges	1,647		(397)		1,250		2,992		(720)		2,272
Net change	39		(379)		(340)		(25)		(556)		(581)
Fair value hedges, net change(c):	(7)		2		(5)		50		(12)		38
Cash flow hedges:
Net unrealized gains/(losses) arising during the period	(1,209)		290		(919)		(2,511)		602		(1,909)
Reclassification adjustment for realized (gains)/losses included in net income(d)	443		(107)		336		278		(67)		211
Net change	(766)		183		(583)		(2,233)		535		(1,698)
Defined benefit pension and OPEB plans, net change(e):	(26)		5		(21)		(1,320)		316		(1,004)
DVA on fair value option elected liabilities, net change:	111		(26)		85		823		(198)		625
Total other comprehensive income/(loss)	$	(3,214)	$	400	$	(2,814)	$	(5,531)	$	766	$	(4,765)
	2023						2022
Nine months ended September 30, (in millions)	Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	$	(1,097)	$	264	$	(833)	$	(19,443)	$	4,670	$	(14,773)
Reclassification adjustment for realized (gains)/losses included in net income(a)	2,437		(585)		1,852		1,506		(362)		1,144
Net change	1,340		(321)		1,019		(17,937)		4,308		(13,629)
Translation adjustments(b):
Translation	(509)		(13)		(522)		(6,908)		381		(6,527)
Hedges	596		(147)		449		6,854		(1,649)		5,205
Net change	87		(160)		(73)		(54)		(1,268)		(1,322)
Fair value hedges, net change(c):	(20)		5		(15)		262		(63)		199
Cash flow hedges:
Net unrealized gains/(losses) arising during the period	(1,761)		422		(1,339)		(7,697)		1,847		(5,850)
Reclassification adjustment for realized (gains)/losses included in net income(d)	1,391		(334)		1,057		17		(4)		13
Net change	(370)		88		(282)		(7,680)		1,843		(5,837)
Defined benefit pension and OPEB plans, net change(e):	(105)		23		(82)		(1,197)		280		(917)
DVA on fair value option elected liabilities, net change:	(436)		106		(330)		3,240		(784)		2,456
Total other comprehensive loss	$	496	$	(259)	$	237	$	(23,366)	$	4,316	$	(19,050)

    

(a)The pre-tax amount is reported in Investment securities gains/(losses) in the Consolidated statements of income.

(b)Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. During the nine months ended September 30, 2023, the Firm reclassified a net pre-tax loss of $(4) million to other revenue predominantly related to the acquisition of CIFM of which $(38) million related to the net investment hedge loss. The amounts reclassified for the three months ended September 30, 2023 and nine months ended September 30, 2022 were not material.

(c)Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross currency swaps.

(d)The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income.

(e)During the period ended September 30, 2022, a remeasurement of the Firm’s U.S. principal defined benefit plan was required as a result of a pension settlement. The remeasurement resulted in a net decrease of $1.4 billion in pre-tax AOCI. Refer to Note 8 for further information.