Interest Income and Interest Expense

3 Months Ended

Mar. 31, 2011

Interest Income and Interest Expense

INTEREST INCOME AND INTEREST EXPENSE

NOTE 7 — INTEREST INCOME AND INTEREST EXPENSE

For a description of JPMorgan Chase’s accounting policies regarding interest income and interest expense, see Note 8 on page 200 of JPMorgan Chase’s 2010 Annual Report.

Details of interest income and interest expense were as follows.

	Three months ended March 31,
(in millions)	2011		2010
Interest income
Loans	$	9,507	$	10,557
Securities		2,216		2,904
Trading assets		2,885		2,760
Federal funds sold and securities purchased under resale agreements		543		407
Securities borrowed		47		29
Deposits with banks		101		95
Other assets(a)		148		93
Total interest income		15,447		16,845
Interest expense
Interest-bearing deposits		922		844
Short-term and other liabilities(b)(c)		818		562
Long-term debt(c)		1,588		1,399
Beneficial interests issued by consolidated VIEs		214		330
Total interest expense		3,542		3,135
Net interest income		11,905		13,710
Provision for credit losses		1,169		7,010
Net interest income after provision for credit losses	$	10,736	$	6,700

(a)	Predominantly margin loans.
(b)	Includes brokerage customer payables.
(c)	Effective January 1, 2011, the long-term portion of advances from FHLBs was reclassified from other borrowed funds to long-term debt. The related interest expense for the prior-year period has also been reclassified to conform with the current presentation.