4Q23 Financial Results
January 12, 2024
Agenda
Page
1
4Q23 and FY23 Financial Results
1
2
Financial Outlook
10
3
Notes
13
Pretax Net income EPS
FDIC special assessment in Corporate ($2,882) ($2,186) ($0.74)
Net investment securities losses in Corporate ($743) ($563) ($0.19)
4Q23 Financial highlights
1
See note 4 on slide 13
2
Represents the estimated Basel III common equity Tier 1 (“CET1”) capital and ratio and Total Loss-
Absorbing Capacity for the current period. See note 1 on slide 14
3
Standardized risk-weighted assets (“RWA”). Estimated for the current period. See note 1 on slide 14
4
Cash and marketable securities represents HQLA and unencumbered marketable securities. Estimated
for the current period. See note 2 on slide 14
5
See note 3 on slide 13
6
See note 1 on slide 13
7
On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First
Republic. All references in this presentation to “ex. FR” or “FR impact” refer to excluding or including the
relevant effects of the First Republic acquisition, as well as subsequent related business and activities,
as applicable
8
Includes the net impact of employee issuances. Excludes excise tax and commissions cost
9
Last twelve months (“LTM”)
SIGNIFICANT ITEMS ($MM, EXCLUDING EPS)
Balance sheet
⚫ Loans: average loans of $1.3T up 17% YoY and 1% QoQ
– Ex. FR
7
, average loans of $1.2T up 4% YoY and 1% QoQ
⚫ Deposits: average deposits of $2.4T flat YoY and up 1% QoQ
– Ex. FR, average deposits of $2.3T down 3% YoY and up 1% QoQ
⚫ CET1 capital of $251B
2
– Standardized and Advanced CET1 capital ratios of 15.0%
2
Capital distributed
⚫ Common dividend of $3.1B or $1.05 per share
⚫ $2.0B of common stock net repurchases
8
⚫ Net payout LTM of 41%
8,9
Income statement
⚫ 4Q23 net income of $9.3B and EPS of $3.04
– Excluding significant items
5
, 4Q23 net income of $12.1B, EPS of $3.97 and ROTCE of 19%
⚫ Managed revenue of $39.9B
6
⚫ Expense of $24.5B and managed overhead ratio of 61%
6
ROTCE
1
15%
CET1 capital ratios
2
Std. 15.0% | Adv. 15.0%
Total Loss-Absorbing Capacity
2
$514B
Std. RWA
3
$1.7T
Cash and marketable securities
4
$1.4T
Average loans $1.3T
1
4Q23
Reported FR impact ex. FR 3Q23 4Q22
Net interest income $24.2 $1.3 $22.8 $1.4 $2.5
Noninterest revenue 15.8 0.5 15.2 (1.8) (0.0)
Managed revenue
1
39.9 1.9 38.1 (0.4) 2.5
Expense 24.5 0.9 23.6 2.7 4.6
Credit costs 2.8 0.1 2.6 1.2 0.3
Net income $9.3 $0.6 $8.7 ($3.4) ($2.3)
Net income applicable to common stockholders $8.9 $0.6 $8.2 ($3.4) ($2.4)
EPS – diluted $3.04 $0.22 $2.82 ($1.15) ($0.75)
ROE
2
12% 1% 11% 16% 16%
ROTCE
2,3
15 1 14 20 20
Overhead ratio – managed
1,2
61 (1) 62 54 53
Memo:
NII excluding Markets
4
$23.6 $1.3 $22.2 $0.5 $2.2
NIR excluding Markets
4
10.6 0.5 10.0 (0.1) 0.1
Markets revenue 5.8 - 5.8 (0.8) 0.1
Managed revenue
1
39.9 1.9 38.1 (0.4) 2.5
Adjusted expense
5
$24.3 $0.9 $23.4 $3.2 $4.4
Adjusted overhead ratio
1,2,5
61% (1)% 62% 53% 53%
ex. FR $ O/(U)
4Q23 Financial results
1
4Q23 Tax rate
Effective rate: 17.8%
Managed rate: 26.7%
1,6
Note: Totals may not sum due to rounding
1
See note 1 on slide 13
2
Actual numbers for all periods, not over/(under)
3
See note 4 on slide 13
4
See note 2 on slide 13
5
See note 5 on slide 13
6
Reflects fully taxable-equivalent (“FTE”) adjustments of $1.4B in 4Q23
$B 4Q23 3Q23 4Q22
Net charge-offs $2.2 $1.5 $0.9
Reserve build/(release)
0.6 (0.1) 1.4
Credit costs $2.8 $1.4 $2.3
$B, EXCEPT PER SHARE DATA
2
FY2023 FY2022 ex. FR $ O/(U)
Reported FR impact ex. FR Reported FY2022
Net interest income $89.7 $3.7 $86.0 $67.1 $18.9
Noninterest revenue 72.6 4.4 68.2 65.1 3.0
Managed revenue
1
162.4 8.2 154.2 132.3 21.9
Expense 87.2 2.3 84.8 76.1 8.7
Credit costs 9.3 1.3 8.0 6.4 1.7
Net income $49.6 $4.1 $45.4 $37.7 $7.8
Net income applicable to common stockholders $47.8 $4.1 $43.7 $35.9 $7.8
EPS – diluted $16.23 $1.39 $14.84 $12.09 $2.75
ROE
2
17% 1% 16% 14%
ROTCE
2,3
21 2 19 18
Overhead ratio – managed
1,2
54 (1) 55 58
Memo:
NII excluding Markets
4
$90.0 $3.7 $86.3 $62.4 $24.0
NIR excluding Markets
4
44.5 4.4 40.1 40.9 (0.8)
Markets revenue 27.8 - 27.8 29.0 (1.2)
Managed revenue
1
162.4 8.2 154.2 132.3 21.9
Adjusted expense
5
$85.7 $2.3 $83.4 $75.9 $7.5
Adjusted overhead ratio
1,2,5
53% (1)% 54% 57%
$B
FY2023
FY2022
Net charge-offs $6.2 $2.9
Reserve build/(release)
3.1 3.5
Credit costs $9.3 $6.4
FY23 Financial results
1
Note: Totals may not sum due to rounding
1
See note 1 on slide 13
2
Actual numbers for all periods, not over/(under)
3
See note 4 on slide 13
4
See note 2 on slide 13
5
See note 5 on slide 13
6
Reflects fully taxable-equivalent (“FTE”) adjustments of $4.3B in 2023
$B, EXCEPT PER SHARE DATA
FY23 Tax rate
Effective rate: 19.6%
Managed rate: 24.8%
1,6
3
Fortress balance sheet
Note: Totals may not sum due to rounding
1
Estimated for the current period. See note 1 on slide 14
2
Estimated for the current period. Represents the supplementary leverage ratio (“SLR”)
3
Estimated for the current period. Liquidity Coverage Ratio (“LCR”) represents the average LCR for
the Firm and JPMorgan Chase Bank, N.A. (“Bank”). See note 2 on slide 14
4
See note 4 on slide 14
5
See note 4 on slide 13
6
Reflects Net Income Applicable to Common Equity
7
Excludes AOCI on cash flow hedges and DVA related to structured notes
8
Includes net share repurchases and common dividends
9
Primarily a reduction in CET1 capital deductions
10
Includes Loans and Commitments
4Q23 3Q23 4Q22
Risk-based capital metrics
1
CET1 capital $251 $242 $219
CET1 capital ratio – Standardized 15.0% 14.3% 13.2%
CET1 capital ratio – Advanced 15.0 14.5 13.6
Basel III Standardized RWA $1,676 $1,692 $1,654
Leverage-based capital metric
2
Firm SLR 6.1% 6.0% 5.6%
Liquidity metrics
3
Firm LCR 113% 112% 112%
Bank LCR 129 123 151
Total excess HQLA $309 $252 $437
HQLA and unencumbered marketable securities 1,447 1,386 1,429
Balance sheet metrics
Total assets (EOP) $3,875 $3,898 $3,666
Deposits (average) 2,372 2,356 2,380
Tangible book value per share
5
86.08 82.04 73.12
4
$B, EXCEPT PER SHARE DATA
1,692
1,676
(4)
(2)
(10)
3Q23 Lending Market Risk Credit Risk
ex. Lending
4Q23
STANDARDIZED CET1 RATIO (%)
1
14.3%
15.0%
(30 bps)
(1 bps)
53 bps
30 bps
15 bps
3Q23 Net
income
AOCI Capital
Distributions
RWA Other 4Q23
6
7
8
9
Includes FDIC special
assessment: (13 bps)
STANDARDIZED RISK-WEIGHTED ASSETS ($B)
1
10
4
Consumer & Community Banking
1
KEY DRIVERS / STATISTICS ($B) – DETAIL BY BUSINESS
FINANCIAL PERFORMANCE (ex. FR)SELECTED INCOME STATEMENT DATA ($MM)
KEY DRIVERS / STATISTICS ($B)
3
Note: Totals may not sum due to rounding
1
See note 1 on slide 13;
2
See note 3 on slide 14
For additional footnotes see slide 15
CCB CIB CB AWM Corp.
4Q23 ex. FR $ O/(U)
Reported FR impact ex. FR 3Q23 4Q22
Revenue $18,097 $1,091 $17,006 ($1) $1,213
Banking & Wealth Management
2
10,877 745 10,132 (209) 550
Home Lending 1,161 346 814 (87) 230
Card Services & Auto 6,059 - 6,059 294 432
Expense
2
9,336 599 8,737 215 825
Credit costs 2,189 15 2,174 726 329
Net charge-offs (NCOs) 1,638 2 1,636 237 791
Change in allowance 551 13 538 489 (462)
Net income $4,788 $362 $4,425 ($882) ($131)
4Q23 ex. FR
Reported FR impact ex. FR 3Q23 4Q22
Average equity $55.5 $3.5 $52.0 $52.0 $50.0
ROE 33% 0% 33% 40% 35%
Overhead ratio 52 0 51 50 50
Average loans $571.2 $94.5 $476.7 $470.0 $448.5
Average deposits 1,092.4 42.9 1,049.6 1,076.8 1,142.5
Active mobile customers (mm)
4
53.8 n.a. 53.8 53.2 49.7
Debit & credit card sales volume
5
$441.0 $0.5 $440.5 $425.8 $411.1
4Q23 ex. FR
Reported
FR impact
ex. FR 3Q23 4Q22
Banking & Wealth Management
Business Banking average loans
6
$19.5 - $19.5 $19.5 $20.5
Business Banking loan originations 1.1 - 1.1 1.3 1.1
Client investment assets (EOP) 951.1 144.6 806.5 741.7 647.1
Deposit margin 2.82% 0.03% 2.79% 2.85% 2.48%
Home Lending
Average loans $261.4 $91.1 $170.3 $172.9 $174.5
Loan originations
7
7.2 0.4 6.8 10.3 6.7
Third-party mortgage loans serviced (EOP)
631.2 2.9 628.3 634.9 584.3
Net charge-off/(recovery) rate 0.01% (0.00)% 0.01% (0.04)% (0.08)%
Card Services & Auto
Card Services average loans $202.7 - $202.7 $195.2 $177.0
Auto average loans and leased assets 86.8 - 86.8 85.1 80.0
Auto loan and lease originations 9.9 - 9.9 10.2 7.5
Card Services net charge-off rate 2.79% - 2.79% 2.49% 1.62%
Card Services net revenue rate 9.82 - 9.82 9.60 10.06
Card Services sales volume
5
$307.2 - $307.2 $296.2 $284.8
⚫ Net income of $4.4B, down 3% YoY
⚫ Revenue of $17.0B, up 8% YoY, predominantly driven by higher net
interest income
⚫ Expense of $8.7B, up 10% YoY, largely driven by higher compensation,
including an increase in employees, primarily in bankers, advisors and
technology, and wage inflation, as well as continued investments in
marketing and technology
⚫ Credit costs of $2.2B
⚫ NCOs of $1.6B, up $791mm YoY, predominantly driven by continued
normalization in Card Services
⚫ Net reserve build of $538mm was driven by loan growth in Card Services
⚫ Ex. FR:
⚫ Average loans up 6% YoY and 1% QoQ
⚫ Average deposits down 8% YoY and 3% QoQ
– EOP deposits down 7% YoY and 2% QoQ
⚫ Active mobile customers up 8% YoY
⚫ Debit & credit card sales volume up 7% YoY
⚫ Client investment assets up 25% YoY and 9% QoQ
5
4Q23 3Q23 4Q22
Equity $108.0 $108.0 $103.0
ROE 9% 11% 12%
Overhead ratio 62 63 61
Comp/revenue 31 29 29
IB fees ($mm) $1,654 $1,717 $1,467
Average loans 233.3 232.9 225.8
Average client deposits
4
660.8 638.1 649.7
Merchant processing volume
5
639 610 583
Assets under custody ($T) 32.4 29.7 28.6
Net charge-off/(recovery) rate
6
0.25% 0.09% 0.02%
Average VaR ($mm) $32 $38 $60
$ O/(U)
4Q23 3Q23 4Q22
Revenue $10,958 ($772) $360
Investment Banking revenue 1,576 (37) 187
Payments
2
2,332 238 212
Lending 150 (141) (173)
Total Banking 4,058 60 226
Fixed Income Markets 4,033 (481) 294
Equity Markets 1,778 (289) (153)
Securities Services 1,191 (21) 32
Credit Adjustments & Other (102) (41) (39)
Total Markets & Securities Services 6,900 (832) 134
Expense 6,774 (669) 279
Credit costs
210 395 69
Net income $2,524 ($568) ($790)
Corporate & Investment Bank
1
KEY DRIVERS / STATISTICS ($B)
3
⚫ Net income of $2.5B, down 24% YoY; revenue of $11.0B, up 3% YoY
⚫ Banking revenue
⚫ IB revenue of $1.6B, up 13% YoY
– IB fees up 13% YoY, predominantly driven by higher debt and equity
underwriting fees
⚫ Payments revenue of $2.3B, up 10% YoY
– Excluding the net impact of equity investments, which included higher
markdowns in the prior year, revenue was flat, as fee growth was
predominantly offset by higher deposit-related client credits
⚫ Lending revenue of $150mm, down 54% YoY, driven by mark-to-market
losses on hedges of retained loans, partially offset by higher net interest
income
⚫ Markets & Securities Services revenue
⚫ Markets revenue of $5.8B, up 2% YoY
– Fixed Income Markets revenue of $4.0B, up 8% YoY, driven by
higher revenue in the Securitized Products Group
7
, partially offset by
lower revenue in Rates
– Equity Markets revenue of $1.8B, down 8% YoY, driven by lower
revenue in Derivatives and Cash
⚫ Securities Services revenue of $1.2B, up 3% YoY
⚫ Expense of $6.8B, up 4% YoY, predominantly driven by the timing of
revenue-related compensation
⚫ Credit costs were $210mm
⚫ NCOs of $121mm
⚫ Net reserve build of $89mm
1
See note 1 on slide 13
2
See note 3 on slide 14
For additional footnotes see slide 15
SELECTED INCOME STATEMENT DATA ($MM) FINANCIAL PERFORMANCE
CCB CIB CB AWM Corp.
2
6
4Q23 ex. FR
Reported FR impact ex. FR 3Q23 4Q22
Average equity $30.0 $1.5 $28.5 $28.5 $25.0
ROE 21% 1% 20% 23% 22%
Overhead ratio 35 (3) 37 37 37
Payments revenue ($mm) $2,045 $65 $1,980 $2,045 $1,937
Investment Banking and Markets
revenue, gross ($mm)
4
$924 - $924 $821 $700
Average loans
5
281.0 39.0 242.0 244.0 235.3
Average client deposits 267.8 5.7 262.1 262.1 278.9
Allowance for loan losses 5.0 0.7 4.3 4.2 3.3
Nonaccrual loans 0.8 0.1 0.7 0.9 0.8
Net charge-off/(recovery) rate
6
0.18% (0.03)% 0.21% 0.08% 0.06%
ALL/loans
6
1.80 (0.01) 1.81 1.72 1.42
7
3
Commercial Banking
1
KEY DRIVERS / STATISTICS ($B)
2
⚫ Net income of $1.5B, up 4% YoY
⚫ Revenue of $3.7B, up 7% YoY, largely driven by higher net
interest income, where the impact of rates was partially offset
by lower deposit balances
⚫ Payments revenue of $2.0B, up 2% YoY, reflecting fee
growth, largely offset by higher deposit-related client
credits
⚫ Investment Banking and Markets revenue, gross of
$924mm, up 32% YoY, primarily reflecting increased
capital markets and M&A activity
⚫ Expense of $1.4B, up 9% YoY, driven by an increase in
employees, including front office and technology investments,
as well as higher volume-related expense, including the
impact of new client acquisition
⚫ Credit costs of $269mm
⚫ NCOs of $127mm
⚫ Net reserve build of $142mm, driven by a deterioration in
the outlook related to commercial real estate valuations
⚫ Average loans of $242B, up 3% YoY and down 1% QoQ
⚫ C&I
8
up 1% YoY and down 2% QoQ
⚫ CRE
8
up 4% YoY and flat QoQ
⚫ Average deposits of $262B, down 6% YoY, primarily driven
by lower non-operating deposits
⚫ Flat QoQ, as client balances are seasonally higher at year-
end
Note: Totals may not sum due to rounding
1
See note 1 on slide 13
For additional footnotes see slide 15
FINANCIAL PERFORMANCE (ex. FR)SELECTED INCOME STATEMENT DATA ($MM)
CCB CIB CB AWM Corp.
4Q23 ex. FR $ O/(U)
Reported FR impact ex. FR 3Q23 4Q22
Revenue $4,016 $361 $3,655 ($10) $251
Middle Market Banking 1,898 75 1,823 40 204
Corporate Client Banking 1,164 2 1,162 (46) 53
Commercial Real Estate Banking 939 284 655 7 (11)
Other 15 - 15 (11) 5
Expense 1,395 27 1,368 11 114
Credit costs 366 97 269 205 (15)
Net income $1,653 $180 $1,473 ($217) $50
7
Asset & Wealth Management
1
KEY DRIVERS / STATISTICS ($B)
2
⚫ Net income of $925mm, down 18% YoY
⚫ Revenue of $4.7B, up 2% YoY, driven by higher
management fees on strong net inflows and higher average
market levels, predominantly offset by lower net interest
income on lower deposit margins and balances, partially
offset by wider loan spreads
⚫ Expense of $3.4B, up 11% YoY, largely driven by higher
compensation, including performance-based incentives,
continued growth in private banking advisor teams, the
impacts of closing the J.P. Morgan Asset Management China
acquisition and continued investments in Global Shares
⚫ AUM of $3.4T and client assets of $5.0T were each up 24%
YoY, driven by continued net inflows and higher market levels
⚫ For the quarter, AUM had long-term net inflows of $12B
and liquidity net inflows of $49B
⚫ Average loans of $215B, up 1% YoY and up 2% QoQ
⚫ Average deposits of $215B, down 9% YoY
⚫ Up 7% QoQ, driven by inflows generated by targeted
pricing and product offering initiatives
Note: Totals may not sum due to rounding
1
See note 1 on slide 13
2
Actual numbers for all periods, not over/(under)
SELECTED INCOME STATEMENT DATA ($MM) FINANCIAL PERFORMANCE (ex. FR)
CCB CIB CB AWM Corp.
4Q23 ex. FR
Reported FR impact ex. FR 3Q23 4Q22
Average equity $17.0 $1.0 $16.0 $16.0 $17.0
ROE 28% 6% 22% 26% 26%
Pretax margin 34 5 28 31 33
Assets under management ("AUM")
$3,422 - $3,422 $3,186 $2,766
Client assets 5,012 12 5,000 4,644 4,048
Average loans 227.0 11.7 215.3 210.8 214.2
Average deposits 226.6 11.2 215.4 202.0 237.0
4Q23
Reported FR impact ex. FR 3Q23 4Q22
Revenue $5,095 $432 $4,663 $94 $75
Asset Management 2,403 - 2,403 239 245
Global Private Bank 2,692 432 2,260 (145) (170)
Expense 3,388 33 3,355 234 333
Credit costs (1) 13 (14) (32) (46)
Net income $1,217 $292 $925 ($150) ($209)
ex. FR $ O/(U)
8
Corporate
1
FINANCIAL PERFORMANCE (ex. FR)SELECTED INCOME STATEMENT DATA ($MM)
⚫ Revenue was $1.8B, up $597mm YoY
⚫ Net interest income was $2.5B, up $1.2B YoY, driven by
the impact of higher rates and balance sheet mix
⚫ Noninterest revenue was a net loss of $687mm,
compared with a net loss of $115mm in the prior year
– The current quarter included net investment securities
losses of $743mm
– The prior year quarter included a $914mm gain on the
sale of Visa B shares, largely offset by $874mm of net
investment securities losses
⚫ Expense of $3.4B, up $3.0B YoY, predominantly driven by
the FDIC special assessment
Note: Totals may not sum due to rounding
1
See note 1 on slide 13
CCB CIB CB AWM Corp.
4Q23
Reported FR impact ex. FR 3Q23 4Q22
Revenue $1,777 ($4) $1,780 $300 $597
Net interest income 2,445 (23) 2,468 482 1,170
Noninterest revenue (668) 19 (687) (181) (572)
Expense 3,593 231 3,362 2,907 3,023
Credit costs (2) - (2) (49) 12
Net income/(loss) ($875) ($187) ($689) ($1,600) ($1,270)
ex. FR $ O/(U)
9
Agenda
Page
1
4Q23 and FY23 Financial Results
1
2
Financial Outlook
10
3
Notes
13
$94
($8)
$1.5
2023 4Q23 annualized Rate/reprice Balance sheet growth/mix 2024 outlook
Rate / reprice
2
◼ Assumes 6 rate cuts
in 2024 (4.0%
FFTUB
3
at YE)
◼ Deposit reprice and
internal migration
Note: Charts are not to scale; totals may not sum due to rounding
1
See note 2 on slide 13
2
Outlook is based on implied rate curve as of January 11, 2024
3
Federal Funds target upper bound (FFTUB)
We expect ~$88B in NII ex. Markets for 2024, as loan growth partially
offsets lower rates
NII ex. Markets
1
Markets NII
2Q23: $22
3Q23: $23
4Q23: $24
$97
4Q
run rate
$90
~$90
Balance sheet growth / mix
◼ Loan growth including
continued growth in credit
card revolving balances
◼ Modest deposit attrition
~
NII ex.
Markets
1
:
~$88
NET INTEREST INCOME ($B)
Q1 Q2 Q3 Q4
‘21
Q4 Q1
‘23
Q2 Q3 Q4
‘22
Q2 Q3 Q4Q1
0.02%
0.97%
2.01%
0.25%
4.50%
5.50%
FFTUB
Cost of deposits
1Q23: $21
10
Our 2024 expense outlook is ~$90B
Note: Totals may not sum due to rounding
1
See note 5 on slide 13
2
2023 FDIC special assessment
3
Represents a non-GAAP financial measure calculated as 4Q23 Adjusted expense of $24.3B less the FDIC special assessment (“SA”) of $2.9B
ADJUSTED EXPENSE
1
($B)
$35
$38
$28
$29
$5
$6
$13
$14
$2
$2
2023 4Q23 annualized
(ex. FDIC SA)
2024
CIB
CB
AWM
Corp.
~$90
CCB
2024 DRIVERS
⚫ Business-growth-driven hiring,
primarily in front office
⚫ Increase in technology spend
associated with investments and
higher business volumes, net of
efficiencies
⚫ Continued investments in the business
⚫ Marketing
⚫ Bankers, Advisors & Branches
⚫ Higher market-dependent volume- and
revenue-related expense
⚫ Annualization of First Republic, with
significantly lower 2024 exit run rate
⚫ Residual inflationary pressures
~$86
FDIC SA
2
$85.7
Q1 Q2 Q3 Q4
$21.4
3
11
Outlook
1
1
See notes 1, 2 and 5 on slide 13
Expect FY2024 net interest income of ~$90B, market dependent
Expect FY2024 net interest income excluding Markets of ~$88B, market dependent
1
Expect FY2024 Card Services NCO rate of
< 3.50%
3
FIRMWIDE
Expect FY2024 adjusted expense of ~$90B, market dependent
– Adjusted expense excludes Firmwide legal expense
2
12
Agenda
Page
1
4Q23 and FY23 Financial Results
1
2
Financial Outlook
10
3
Notes
13
Notes on non-GAAP financial measures
1. In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these
Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. The Firm’s
definition of managed basis starts, in each case, 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 a fully taxable-equivalent 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. These financial measures allow 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. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business. For a
reconciliation of the Firm’s results from a reported to managed basis, refer to page 7 of the Earnings Release Financial Supplement. There are no reclassifications
associated with FR managed revenue
2. In addition to reviewing net interest income (“NII”) and noninterest revenue (“NIR”) on a managed basis, management also reviews these metrics excluding CIB
Markets (“Markets”, which is composed of Fixed Income Markets and Equity Markets). Markets revenue consists of principal transactions, fees, commissions and other
income, as well as net interest income. These metrics, which exclude Markets, are non-GAAP financial measures. Management reviews these metrics to assess the
performance of the Firm’s lending, investing (including asset-liability management) and deposit-raising activities, apart from any volatility associated with Markets
activities. In addition, management also assesses Markets business performance on a total revenue basis as offsets may occur across revenue lines. For example,
securities that generate net interest income may be risk-managed by derivatives that are reflected at fair value in principal transactions revenue. Management believes
these measures provide investors and analysts with alternative measures to analyze the revenue trends of the Firm. For a reconciliation of NII and NIR from reported
to excluding Markets, refer to page 29 of the Earnings Release Financial Supplement. For additional information on Markets revenue, refer to page 70 of the Firm’s
2022 Form 10-K
3. Fourth-quarter 2023 net income, earnings per share and ROTCE excluding significant items are non-GAAP financial measures. Significant items collectively refer to
the FDIC special assessment of $2.9B and net investment securities losses of $743mm. Excluding these significant items resulted in an increase of $2.7B (after tax) to
reported net income from $9.3B to $12.1B; an increase of $0.93 per share to reported EPS from $3.04 to $3.97; and an increase of approximately 4% to ROTCE from
15% to 19%. Management believes these measures provide useful information to investors and analysts in assessing the Firm’s results
4. Tangible common equity (“TCE”), return on tangible common equity (“ROTCE”) and tangible book value per share (“TBVPS”), are each non-GAAP financial measures.
TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than
mortgage servicing rights), net of related deferred tax liabilities. For a reconciliation from common stockholders’ equity to TCE, refer to page 10 of the Earnings
Release Financial Supplement. ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. ROTCE ex. FR uses the same
average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. Book value per share was $104.45, $100.30 and $90.29 at
December 31, 2023, September 30, 2023 and December 31, 2022, respectively. TCE, ROTCE and TBVPS are utilized by the Firm, as well as investors and analysts,
in assessing the Firm’s use of equity
5. Adjusted expense and adjusted overhead ratio are each non-GAAP financial measures. Adjusted expense represents noninterest expense excluding Firmwide legal
expense of $175mm, $665mm and $27mm for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022, respectively; and $1.4B and
$266mm for the full year 2023 and 2022, respectively. There was no legal expense excluded from FR adjusted expense for the three months ended December 31,
2023 and September 30, 2023, and for the full year 2023. The adjusted overhead ratio measures the Firm’s adjusted expense as a percentage of managed net
revenue. Management believes this information helps investors understand the effect of these items on reported results and provides an alternate presentation of the
Firm’s performance
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Additional notes
1. Reflects the Current Expected Credit Losses ("CECL") capital transition provisions. Beginning January 1, 2022, the $2.9B CECL capital benefit is being phased out at
25% per year over a three-year period. As of December 31, 2023 and September 30, 2023, CET1 capital and Total Loss-Absorbing Capacity reflected the remaining
$1.4B CECL benefit; as of December 31, 2022, CET1 capital reflected a $2.2B benefit. Refer to Capital Risk Management on pages 48-53 of the Firm’s Quarterly
Report on Form 10-Q for the quarterly period ended September 30, 2023 and on pages 86-96 of the Firm’s 2022 Form 10-K for additional information
2. Total excess high-quality liquid assets (“HQLA”) represent the average eligible unencumbered liquid assets that are in excess of what is required to meet the estimated
Firm and Bank total net cash outflows over a prospective 30 calendar-day period of significant stress under the LCR rule. HQLA and unencumbered marketable
securities, includes end-of-period HQLA, excluding regulatory prescribed haircuts under the LCR rule where applicable, for both the Firm and the excess HQLA-eligible
securities included as part of the excess liquidity at JPMorgan Chase Bank, N.A., which are not transferable to non-bank affiliates and thus excluded from the Firm’s
LCR. Also includes other end-of-period unencumbered marketable securities, such as equity and debt securities. Does not include borrowing capacity at Federal Home
Loan Banks and the discount window at the Federal Reserve Bank. Refer to Liquidity Risk Management on pages 54-61 of the Firm’s Quarterly Report on Form 10-Q
for the quarterly period ended September 30, 2023 and on pages 97-104 of the Firm’s 2022 Form 10-K for additional information
3. In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are
now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation
4. The 4Q22 prior-period amount has been revised to conform with the current presentation, which uses end-of-period HQLA and end-of-period unencumbered
marketable securities. Previous presentations used average Firm HQLA (consistent with the LCR metric) and end-of-period unencumbered marketable securities
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Additional notes on slides 5-7
Slide 5 – Consumer & Community Banking
3. Actual numbers for all periods, not over/(under)
4. Users of all JPMorgan Chase mobile platforms who have logged in within the past 90 days. Excludes First Republic
5. Excludes Commercial Card
6. Includes the impact of loans originated under the PPP. For further information, refer to page 13 of the Earnings Release Financial Supplement
7. Firmwide mortgage origination volume was $8.6B, $13.0B and $8.5B for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022,
respectively
Slide 6 – Corporate & Investment Bank
3. Actual numbers for all periods, not over/(under)
4. Client deposits and other third-party liabilities pertain to the Payments and Securities Services businesses
5. Represents Firmwide merchant processing volume
6. Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate
7. Securitized Products Group is comprised of Securitized Products and Tax Oriented Investments
Slide 7 – Commercial Banking
2. Actual numbers for all periods, not over/(under)
3. In the third quarter of 2023, certain revenue from CIB Markets products was reclassified from payments to investment banking. Prior-period amounts have been
revised to conform with the current presentation
4. Includes gross revenues earned by the Firm that are subject to a revenue sharing arrangement between CB and the CIB for Investment Banking and Markets’ products
sold to CB clients. This includes revenues related to fixed income and equity markets products. Refer to page 61 of the Firm’s 2022 Form 10-K for discussion of
revenue sharing
5. Includes the impact of loans originated under the PPP. For further information, refer to page 20 of the Earnings Release Financial Supplement
6. Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate and loan loss coverage ratio
7. Note that FR net charge-offs were a net recovery of $1mm in CB in 4Q23; the FR impact to the net charge-off rate is negative due to the addition of FR loans to the
overall denominator and the net recovery
8. Commercial and Industrial (“C&I”) and Commercial Real Estate (“CRE”) groupings for CB are generally based on client segments and do not align with regulatory
definitions
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Forward-looking statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase &
Co.’s management and are subject to significant risks and uncertainties. Actual results may differ from those set
forth in the forward-looking statements. Factors that could cause JPMorgan Chase & Co.’s actual results to differ
materially from those described in the forward-looking statements can be found in JPMorgan Chase & Co.’s
Annual Report on Form 10-K for the year ended December 31, 2022, and Quarterly Report on Form 10-Q for the
quarterly period ended September 30, 2023, which have been filed with the Securities and Exchange
Commission and is available on JPMorgan Chase & Co.’s website (https://jpmorganchaseco.gcs-
web.com/financial-information/sec-filings), and on the Securities and Exchange Commission’s website
(www.sec.gov). JPMorgan Chase & Co. does not undertake to update any forward-looking statements.
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