JPMorgan Chase Annual Report 2024

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FY2024 Annual Report · JPMorgan Chase

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Resolute
Annual
Report
2024

Financial Highlights
As of or for the year ended December 31,
(in millions, except per share, ratio data and employees)

2024

2023

2022
Selected income statement data
Total net revenue
$
177,556 (d)
$
158,104
$
128,695
Total noninterest expense

91,797 (d)

87,172

76,140
Pre-provision profit(a)

85,759

70,932

52,555
Provision for credit losses

10,678

9,320

6,389
Net income
$
58,471
$
49,552
$
37,676
Per common share data
Net income per share:

Basic
$
19.79
$
16.25
$
12.10

Diluted

19.75

16.23

12.09
Book value per share

116.07

104.45

90.29
Tangible book value per share (TBVPS)(a)

97.30

86.08

73.12
Cash dividends declared per share

4.80

4.10

4.00
Selected ratios
Return on common equity

18 %

17 %

14 %
Return on tangible common equity (ROTCE)(a)

18
Liquidity coverage ratio (average)(b)

113

112
Common equity Tier 1 capital ratio(c)

15.7

15.0

13.2
Tier 1 capital ratio(c)

16.8

16.6

14.9
Total capital ratio(c)

18.5

16.8
Selected balance sheet data (period-end)
Loans
$ 1,347,988

$ 1,323,706
$
1,135,647
Total assets
4,002,814

3,875,393

3,665,743
Deposits
2,406,032

2,400,688

2,340,179
Common stockholders’ equity

324,708

300,474

264,928
Total stockholders’ equity

344,758

327,878

292,332
Market data
Closing share price
$
239.71

$
170.10
$
134.10
Market capitalization

670,618

489,320

393,484
Common shares at period-end

2,797.6

2,876.6

2,934.2
Employees

317,233

309,926

293,723
(a) Pre-provision profit, TBVPS and ROTCE are each non-GAAP financial measures. Refer to Explanation and Reconciliation of the
Firm’s Use of Non-GAAP Financial Measures on pages 67–69 for a discussion on these measures.
(b) Refer to Liquidity Risk Management on pages 108-115 for additional information on this measure.
(c) Refer to Capital Risk Management on pages 97-107 for additional information on these measures.
(d) Total net revenue included a $7.9 billion net gain related to Visa shares, and total noninterest expense included a $1.0 billion
contribution of Visa shares to the JPMorgan Chase Foundation, both recorded in the second quarter of 2024. Refer to Executive
Overview on pages 54-58 and Notes 2 and 6 for additional information on the exchange offer for Visa Class B-1 common stock.
JPMorganChase (NYSE: JPM) is a leading financial services firm with assets of
$4.0 trillion and operations worldwide. The firm is a leader in investment banking,
financial services for consumers and small businesses, commercial banking, financial
transaction processing and asset management. Under the J.P. Morgan and Chase
brands, the firm serves millions of customers, predominantly in the U.S., and many of
the world’s most prominent corporate, institutional and government clients globally.
Information about J.P. Morgan’s capabilities can be found at jpmorgan.com and about
Chase’s capabilities at chase.com. Information about JPMorganChase is available at
jpmorganchase.com.

2024
Year of Firsts
COMMERCIAL & INVESTMENT BANK
Generated $25 billion of net income
on revenue of $70 billion
#1
#1
IN DEPOSITS AND FOR SMALL BUSINESSES
Named #1 in retail deposit market share
and #1 primary bank for U.S. small businesses
MIDDLE MARKET SYNDICATED LENDER
Ranked #1 overall
Middle Market Syndicated Lender
in the U.S.
#1
IN ARTIFICIAL INTELLIGENCE
Ranked #1 for overall artificial intelligence
capabilities on the Evident AI Index
for the third year in a row
#1
IN CUSTOMER SATISFACTION
Ranked #1 among self-directed investors
in the J.D. Power 2024 U.S. Wealth Management
Digital Experience Study
#1
MOST ADMIRED COMPANIES
Ranked in the top 10 on
Fortune magazine’s Most Admired Companies list
for the eighth year in a row
TOP 10
TOP COMPANIES
Ranked #1 on LinkedIn’s 2024 Top Companies list,
which ranks the 50 best large U.S. companies
for career growth
#1
PRIVATE BANK AND ASSET MANAGER
Named Best Private Bank in the World
by Global Finance magazine
and #1 asset manager by active flows
#1
1

Dear Fellow Shareholders,
Jamie Dimon,
Chairman and
Chief Executive Officer
Across the globe, 2024 was yet another year of significant challenges, from
the terrible ongoing war and violence in Ukraine and conflicts in the Middle East
to ongoing terrorist activity and growing geopolitical tensions, importantly with
China. Our hearts go out to those whose lives are profoundly affected by these
events.
JPMorganChase, a company that historically has worked across borders and
boundaries, will do its part to ensure that the global economy is safe and secure,
but it is not immune to the effects of these events. Two things are absolutely
foundational to the long-term success of JPMorganChase: one is whether
we run a great company and two, which is maybe more important, is whether
the long-term health of America, domestically, and the future of the free and
democratic world are strong. In the first two sections of this letter, I deal with
these critical issues. And in the third and fourth sections, I talk about specific
issues unique to JPMorganChase and how we are addressing them, including
constantly fighting complacency, arrogance and bureaucracy.
2
INTRODUCTION

1 Represents managed
revenue.
2 Adjusted ROTCE of
20% excludes $5.4 billion
from net income in 2024
as a result of the net gain
related to Visa shares
and the donation of
Visa shares to pre-fund
contributions to the
Firm’s Foundation.
This is a non-GAAP
financial measure.
Despite the unsettling landscape, the U.S. economy, at least until recently,
continued to be resilient, with consumers still spending (though with some
recent weakening) and businesses still healthy. It is important to note that the
economy has been fueled by large amounts of government deficit spending and
past stimulus. There also remains a growing need for increased expenditure on
infrastructure, the restructuring of global supply chains and the military, which
may lead to stickier inflation and ultimately higher rates than markets currently
expect. The recent tariffs will likely increase inflation and are causing many to
consider a greater probability of a recession. And even with the recent decline
in market values, prices remain relatively high. These significant and somewhat
unprecedented forces cause us to remain very cautious. There is much more
detail on all of this in section three.
2024 was another strong year for JPMorganChase, with our firm generating
record revenue for the seventh consecutive year, as well as setting numerous
records in each of our lines of business. We earned revenue in 2024 of
$180.6 billion1 and net income of $58.5 billion, with return on tangible common
equity (ROTCE) of 20%2, reflecting strong underlying performance across our
businesses. We also increased our quarterly common dividend of $1.05 per
share to $1.15 per share in the first quarter of 2024 – and again to $1.25 per
share in the third quarter of 2024 – while continuing to reinforce our fortress
balance sheet. We grew market share in several of our businesses and contin
ued to make significant investments in products, people and technology while
exercising strict risk disciplines.
Throughout the year, we demonstrated the power of our investment philosophy
and guiding principles, as well as the value of being there for clients – as we
always are – in both good times and bad times. The result was continued
broad healthy growth across the firm. The charts on pages 6–12 show our
performance results and illustrate how we have grown our franchises, how we
compare with our competitors and how we look at our fortress balance sheet.
Please peruse them and the CEO and COO letters in this Annual Report, all of
which provide specific details about our businesses and our plans for the future.
In 2024, we continued to play a forceful and essential role in advancing
economic growth. In total, we extended credit and raised capital totaling
$2.8 trillion for our consumer and institutional clients around the world.
3

INTRODUCTION

On a daily basis, we move over $10 trillion in 120+ currencies and more than 160
countries, as well as safeguard over $35 trillion in assets. After we purchased
and effectively fully integrated First Republic Bank, that bank failure disappeared
as a negative issue for the U.S. economy. In addition to bringing much-needed
stability to the U.S. banking system, we were able to give a new, secure home to
approximately half a million First Republic customers.
While we have modified our approach to certain corporate responsibilities
to conform to new guidance, we remain committed to reaching out to all
communities in an effort to create a stronger, more inclusive economy – from
supporting work skills training programs around the world and financing
affordable housing and small businesses to making investments in our people
and in cities like Detroit that show how business and government leaders can
work together to solve problems. Almost all of these efforts are commercial in
nature; i.e., “profit seeking” and are no different from what businesses, large and
small, are trying to do in towns across America.
We have achieved our decades-long consistency by adhering to our key
principles and strategies (see sidebar on Steadfast Principles on page 5), which
allow us to drive good organic growth and promote proper management of our
capital (including dividends and stock buybacks).
I remain proud of our company’s resiliency and of what our hundreds of
thousands of employees around the world have achieved, collectively and
individually. Throughout these recent challenging years, we have never
stopped doing all the things we should be doing to serve our clients and our
communities. As you know, we are champions of banking’s essential role in a
community – its potential for bringing people together, for enabling companies
and individuals to attain their goals, and for being a source of strength in
difficult times. I often remind our employees that the work we do matters and
has impact. United by our principles and purpose, we help people and
institutions finance and achieve their aspirations, lifting up individuals,
homeowners, small businesses, larger corporations, schools, hospitals, cities
and countries in all regions of the world. What we have accomplished in the
20+ years since the JPMorganChase and Bank One merger is evidence of the
importance of our values.
4
INTRODUCTION

Steadfast Principles Worth Repeating
Looking back on the past two+
decades – starting from my time as
Chairman and CEO of Bank One in 2000
– there is one common theme: our
unwavering dedication to help clients,
communities and countries throughout
the world. Clearly our financial disci
pline, constant investment in innova
tion and ongoing development of our
people have enabled us to achieve this
consistency and commitment. In addi
tion, across the firm, we uphold certain
steadfast tenets that are worth
repeating.
First, our work has very real human
impact. While JPMorganChase stock is
owned by large institutions, pension
plans, mutual funds and directly by
single investors, the ultimate beneficia
ries, in almost all cases, are individuals
in our communities. More than 100
million people in the United States own
stocks; many, in one way or another,
own JPMorganChase stock. Frequently,
these shareholders are veterans, teach
ers, police officers, firefighters, health
care workers, retirees, or those saving
for a home, education or retirement.
Often, our employees also bank these
shareholders, as well as their families
and their companies. Your management
team goes to work every day recogniz
ing the enormous responsibility that we
have to all of our shareholders.
Second, shareholder value can be built
only if you maintain a healthy and
vibrant company, which means doing a
good job of taking care of your custom
ers, employees and communities.
Conversely, how can you have a healthy
company if you neglect any of these
stakeholders? As we have learned over
the past few years, there are myriad
ways an institution can demonstrate its
compassion for its employees and its
communities while still strengthening
shareholder value.
Third, while we don’t run the company
worrying about the stock price in the
short run, in the long run we consider
our stock price a measure of our prog
ress over time. This progress is a func
tion of continual investments in our
people, systems and products, in good
and bad times, to build our capabilities.
These important investments will also
drive our company’s future prospects
and position it to grow and prosper for
decades. Measured by stock perfor
mance, our progress is exceptional. For
example, whether looking back 10 years
or even further to 2004, when the
JPMorganChase/Bank One merger
took place, we have outperformed the
Standard & Poor’s 500 Index and the
Standard & Poor’s Financials Index.
Fourth, we are united behind basic prin
ciples and strategies (you can see the
principles for How We Do Business on
our website and our Purpose statement
in my letter from 2022) that have helped
build this company and made it thrive.
These allow us to maintain a fortress
balance sheet, constantly invest and
nurture talent, fully satisfy regulators,
continually improve risk, governance
and controls, and serve customers and
clients while lifting up communities
worldwide. This philosophy is embed
ded in our company culture and influ
ences nearly every role in the firm.
Fifth, we strive to build enduring busi
nesses, which rely on and benefit from
one another, but we are not a conglom
erate. This structure helps generate our
superior returns. Nonetheless, despite
our best efforts, the walls that protect
this company are not particularly high
– and we face extraordinary competi
tion. I have written about this reality
extensively in the past and cover it
again in this letter. We recognize our
strengths and vulnerabilities, and we
play our hand as best we can.
Sixth, we must be a source of strength,
particularly in tough times, for our
clients and the countries in which we
operate. We must take seriously our
role as one of the guardians of the
world’s financial systems.
Seventh, we operate with a very import
ant silent partner – the U.S. government
– noting, as my friend Warren Buffett
points out, that his company’s success
is predicated upon the extraordinary
conditions our country creates. He is
right to say to his shareholders that
when they see the American flag, they
all should say thank you. We should,
too. JPMorganChase is a healthy and
thriving company, and we always want
to give back and pay our fair share. We
do pay our fair share – and we want it to
be spent well and have the greatest
impact. To give you an idea of where our
taxes and fees go: In the last 10 years,
we paid more than $52 billion in federal,
state and local taxes in the United
States and over $26 billion in taxes out
side of the United States. Additionally,
we paid the Federal Deposit Insurance
Corporation over $11 billion so that it
has the resources to cover failures in
the American banking sector. Our
partner – the federal government – also
imposes significant regulations upon
us, and it is imperative that we meet all
legal and regulatory requirements
imposed on our company.
Eighth and finally, we know the founda
tion of our success rests with our
people. They are the front line, both
individually and as teams, serving our
customers and communities, building
the technology, making the strategic
decisions, managing the risks, deter
mining our investments and driving
innovation. However you view the world
– its complexity, risks and opportunities
– a company’s prosperity requires a
great team of people with guts, brains,
integrity, enormous capabilities and
high standards of professional excel
lence to ensure its ongoing success.
5

6
Net income Diluted earnings per share (EPS) Return on tangible common equity (ROTCE)

2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
$8.5
$15.4
$17.4
$19.0
$21.3
$17.9
$21.7
$24.4
$14.4
$24.7
$24.4
$26.9
$38.4
$36.4
$37.7
$49.6
$53.0
$48.3
$58.5
$32.5

15%
24%
22%
6%
10%
15%
15%
15%
11%
13%
13%
12%
17%
19%
14%
23%
18%
21%
22%
13%

$4.00
$4.33
$1.35
$2.26
$3.96
$4.48
$5.19
$4.34
$5.29
$6.00
$6.31
$10.72
$15.36
$12.09
$16.23
$19.75

$8.88

$9.00
$6.19
$2.35
$5.6
$11.7
$29.1
$39.1
1 Adjusted net income excludes $2.4 billion from net income in 2017 as a result of the enactment of the Tax Cuts
and Jobs Act (TCJA). This a non-GAAP financial measure.
2 Effective January 1, 2020, the Firm adopted the Financial Instruments – Credit Losses accounting guidance.
Firmwide results excluding the net impact of reserve release/(build) of $(9.3) billion and $9.2 billion for the years
ending December 31, 2020 and 2021, respectively, are non-GAAP financial measures.
3 Adjusted net income excludes $5.4 billion from net income in 2024 as a result of the net gain related to Visa
shares and the donation of Visa shares to pre-fund contributions to the Firm's Foundation. This a non-GAAP
financial measure.
GAAP = Generally accepted accounting principles
Net income
excluding TCJA1
Net income
excluding reserve
release/build2
ROTCE
excluding
TCJA1
was 13.6%
for 2017
ROTCE excluding
reserve release/build2
was 19.3% for 2020
and 18.5% for 2021
ROTCE excluding
Visa gain (net of
contribution)3 was
19.9% for 2024
Earnings, Diluted Earnings per Share and Return on Tangible Common Equity
2005–2024
($ in billions, except per share and ratio data)
Net income
excluding Visa
gain (net of
contribution)3

7
Tangible Book Value and Average Stock Price per Share
2005–2024
High: $254.31
Low: $164.30
Tangible book value Average stock price
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
$60.98
$66.11
$71.53
$73.12
$86.08
$97.30
$56.33
$16.45
$18.88
$21.96
$22.52
$27.09
$30.12
$33.62
$38.68 $40.72
$44.60
$48.13
$51.44
$53.56
$36.07
$43.93
$47.75
$39.83
$35.49
$40.36 $39.36 $39.22
$51.88
$58.17
$63.83 $65.62
$113.80
$106.52
$155.61
$128.13
$144.05
$205.20
$110.72
$92.01
CAGR = Compound annual growth rate
10% CAGR
since 2005
Stock total return analysis
Bank One
S&P 500 Index
S&P Financials Index
Performance since becoming CEO of Bank One
(3/27/2000–12/31/2024)
Compounded annual gain
13.2%
7.6%
5.8%
Overall gain
2,065.0%
512.2%
304.3%
JPMorganChase
S&P 500 Index
S&P Financials Index
Performance since the JPMorganChase and Bank One merger
(7/1/2004–12/31/2024)
Compounded annual gain
12.3%
10.5%
5.9%
Overall gain
978.1%
668.5%
222.1%
Performance for the period ended December 31, 2024

Compounded annual gain

One year
44.3%
25.0%
30.6%

Five years
14.7%
14.5%
11.7%

Ten years
17.6%
13.1%
11.4%
This chart shows actual returns of the stock, with dividends reinvested, for heritage shareholders of JPMorganChase and Bank One vs. the Standard & Poor’s 500 Index
(S&P 500 Index) and the Standard & Poor’s Financials Index (S&P Financials Index).

2005

2014

2023

2024
Consumer &
Community
Banking
Average deposits ($B)1
Deposits market share2

# of top 50 markets where

we are #1 (top 3)
Business Banking primary market

share3
Client investment assets ($B)1
Total payments volume ($T)4
% of digital non-card payments5

Credit card sales ($B)

Debit card sales ($B)
Debit and credit card sales volume ($B)
Credit card sales market share6
Credit card loans ($B, EOP)
Credit card loans market share7
Active mobile customers (M)
# of branches
# of advisors1

$187

4.5%

6 (12)

4.0%

~20%

$225

15%

$142

19%

2,641

$487

7.9%

7 (22)

7.2%

$213

$1.6

49%

$466

$241

$707

21%

$131

17%

19.1

5,602
3,090
$1,127

11.4%
12 (25)

9.5%

$951

$5.9

79%
$1,164

$515
$1,679

23%

$211

17%

53.8
4,897
5,456
$1,064

11.3%
14 (25)

9.7%
$1,088

$6.4

81%
$1,259

$546
$1,805

23%

$233

17%

57.8
4,966

5,755
 Serve 84M U.S. consumers and 7M small
businesses
 71M active digital customers8, including 58M
active mobile customers9
 Primary bank relationships for ~80% of consumer
checking accounts
 #1 retail deposit share
 #1 deposit market share position in 4 out of 5
largest banking markets in the country (NY, LA,
CHI and SF) while maintaining branch presence
in all 48 contiguous U.S. states
 #1 primary bank for U.S. small businesses
 Ranked #1 in J.D. Power 2024 U.S. Wealth
Management Digital Experience Satisfaction
among full-service and self-directed investors10
 #1 U.S. credit card issuer based on sales and
outstandings11
 #1 owned mortgage servicer12
 Ranked #3 in the J.D. Power 2024 U.S. Mortgage
Servicer Satisfaction Study13
 #3 bank auto lender for loan and lease
financing14
 Ranked #1 in J.D. Power 2024 Digital Experience
for Customer Satisfaction among Non-Captive
Automotive Finance Lenders15
Commercial &
Investment
Bank
Total Markets revenue16

Market share16

FICC16

Market share16

Equities16

Market share16
Global investment banking fees17

Market share17
Assets under custody ($T)
Average client deposits ($B)18

Average CB client deposits ($B)19
Payments revenue ($B)20
Payments revenue rank (share)21
Firmwide average daily security

purchases and sales ($T)
# of top 75 MSAs with dedicated

teams22
Average Banking & Payments

loans ($B)23

Average CB Loans ($B)24

Average GCB & GIB Loans ($B)23
Multifamily lending25
# of Global Banking Bankers26

# of CB Bankers

# of GCB Bankers

# of GIB Bankers
2006

6.3%

7.0%

5.0%

8.7%

$10.7
$220.8

$66.1

$4.9

$117.0

$38.1
$75.3

#29

8.7%

9.0%

8.0%

8.2%
$20.5
$621.4
$124.6

$7.9

$219.0
$112.5
$105.0

11.2%

#1
10.8%

#2
12.2%

8.6%
$32.4
$912.9
$174.1

$18.3
#1 (9.3%)

$3.0

72
$340.8
$209.2
$131.2

#1
9,272
3,469

1,408

3,574

11.4%

#1
10.9%

#2
12.4%

9.3%
$35.3
$961.6
$179.5

$18.4
#1 (9.5%)

$3.4

74
$348.8
$220.3
$128.1

9,726
3,700

1,453
3,858
 >90% of Fortune 500 companies do business
with us
 On-ground presence in 177 locations in the U.S.,
60+ countries internationally and serving clients
in 100+ markets
 #1 in global investment banking fees for the 16th
consecutive year and ranked #1 across M&A,
ECM and DCM for the first time in a calendar
year17
 Consistently ranked #1 in Markets revenue since
201116
 J.P. Morgan Research ranked as the #1 Global
Research Firm, #1 Global Equity Research Team
and #1 Global Fixed Income Research Team27
 #1 in USD payments volume with 28.7% USD
SWIFT market share28
 #1 in U.S. Merchant volume processing29
 #3 Custodian globally by revenue30
 Banking and Payments services to 32K+
Middle Market clients and 38K+ real estate
owners and investors
 $2.6B revenue from Middle Market expansion,
as well as nearly 2,700 new relationships in
Middle Market Banking
 #1 overall Middle Market Bookrunner in the U.S.
with 20 specialized industry coverage teams31
 Over 8K incremental affordable housing units
financed in 2024 within Global Banking32
Asset & Wealth
Management
JPMAM LT funds AUM performed

above peer median (10-year)33
Client assets ($T)34
Traditional assets ($T)34, 35
Alternatives assets ($B)34, 36
Average deposits ($B)34
Average loans ($B)34
# of Global Private Bank client

advisors34

$1.1

$1.0

$74

$42

$27

1,484

82%

$2.3

$1.9

$221

$146

$95
2,392

83%

$5.0

$4.4

$421

$216

$220

3,515

85%

$5.9

$5.2

$504

$235

$228

3,775

 181 funds with a 4/5 star rating37
 Business with 57% of the world’s largest
pension funds, sovereign wealth funds and
central banks
 #2 in 5-year cumulative net client asset flows38
 #1 in active flows39
 Positive client asset flows in 2024 across all
regions, channels and asset classes
 #1 in active ETF flows and #2 in active ETF AUM39
 #1 in Institutional Money Market Funds AUM40
 #1 Private Bank in the World41
AUM = Assets under management
ETF = Exchange-traded funds
LT = Long-Term
USD = U.S. dollar
CB = Commercial Banking
FICC = Fixed income, currencies and commodities
M&A = Mergers and acquisitions
M = Millions
DCM = Debt capital markets
GCB = Global Commercial Banking
MSA = Metropolitan statistical area
B = Billions
ECM = Equity capital markets
GIB = Global Investment Banking
NA = Not available
T = Trillions
EOP = End of period
JPMAM = J.P. Morgan Asset Management
NM = Not meaningful
K = Thousands
For footnoted information, refer to pages 58-59 in this Annual Report.
Client Franchises Built Over the Long Term

9
New and Renewed Credit and Capital for Our Clients
2005–2024
($ in billions)
1 In alignment with the business segment reorganization effective in the second quarter of 2024, Corporate Client Banking
activity was moved from Small Business, Middle Market and Commercial clients to Corporate clients starting in 2024.
2 Government, government-related and nonprofits available starting in 2019; included in Corporate clients and Small Business,
Middle Market and Commercial clients for prior years.
Corporate clients Small Business, Middle Market and Commercial clients1 Consumers Government, government-related and nonprofits2
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
$1,090
$165
$310
$1,120
$135
$245
$1,160
$165
$250
$1,390
$220
$250
$1,260
$1,520
$280
$310
$275
$275
$1,690
$400
$265
$1,620
$430
$260
$1,790
$480
$225
$1,350
$440
$225
$335
$290
$215
$250
$615
$1,290
$465
$245
$260
$640
$1,930
$1,330
$205
$240
$590
$270
$250
$510
$1,230
$1,770
$330
$1,440
$370
$235
$1,620
$325
$195
$1,500
$1,575
$1,860 $1,815
$2,105
$2,355
$2,310
$2,495
$2,350
$3,190
$2,410
$2,265
$2,800
$2,260
$2,045
$2,140
$1,565
~$1,900 estimated

10
1 Represents assets under management, as well as custody, brokerage, administration and deposit accounts.
2 Represents activities associated with the safekeeping and servicing of assets.
Assets Entrusted to Us by Our Clients
2005–2024
Deposits and client assets1
($ in billions)
Assets under custody2
($ in trillions)
Client assets Wholesale deposits Consumer deposits
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
$1,883
$730
$398
$2,061
$755
$439
$2,329
$824
$464
$2,376
$861
$503
$2,353
$2,427
$722
$757
$558
$618
$3,255
$3,617 $3,740 $3,633 $3,802
$3,781
$4,240
$1,186
$1,209
$959
$1,132
$5,926
$6,580
$6,383
$1,349
$1,057
$8,789
$5,292
$1,306
$1,095
$7,693
$4,488
$1,314
$1,148
$6,950
$3,258
$844
$718
$4,820
$2,740
$792
$679
$4,211
$2,783
$784
$660
$4,227
$3,011
$1,881
$558
$372
$2,811
$1,743
$573
$365
$2,681
$1,415
$648
$361
$2,424
$1,513
$520
$221
$2,254
$1,296
$425
$214
$1,935
$1,107
$364
$191
$1,662
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
$16.9
$18.8
$20.5
$13.2
$10.7
$13.9
$15.9
$14.9
$16.1
$20.5
$19.9
$20.5
$23.5
$23.2
$26.8
$33.2
$32.4
$35.3
$31.0
$28.6

11
JPMorganChase Exhibits Strength in Both Efficiency and Returns
When Compared with Large Peers1 and Best-in-Class Peers1
Year ended December 31, 2024
Efficiency
Returns
Overhead ratio2
ROTCE
JPMorganChase
Efficiency
Returns

JPM
overhead ratio
Best-in-class peer
overhead ratio4
JPM
ROTCE
Best-in-class
peer ROTCE5, 7
Best-in-class GSIB
peer ROTCE6, 7
Consumer &
Community Banking

53%

51%

COF-DC & CB

32%

25%

BAC-CB

25%

BAC-CB
Commercial &
Investment Bank

50%

56%

BAC-GB & GM

18%

15%

GS-GBM

15%

GS-GBM
Asset & Wealth
Management

67%

62%

NTRS-WM & ALLIANZ-AM

34%

41%

MS-WM & IM

41%

MS-WM & IM
GSIB = Global systemically important bank
ROTCE = Return on tangible common equity
For footnoted information, refer to page 59 in this Annual Report.
71%
66%
65%
65%
63%
51%
MS
C
BAC
WFC
GS
JPM
7%
13%
13%
14%
19%
22%
20%
C
BAC
WFC
GS
MS
JPM
Adjusted ROTCE
excluding Visa gain
(net of contribution)3
Daily Average Cash Management
Volume1 and Value1
(# in millions, $ in trillions)
Daily Average Merchant Transactions
and Settlement Value
(# in millions, $ in billions)
1 Based on regulatory reporting guidelines prescribed by the Federal Reserve for U.S. Title 1 planning purposes; includes
internal settlements, global payments to and through third-party processors and banks, and other internal transfers.
2024
2023
2022
2021
2020
2019
2018
2017
2016
55.0
62.3
72.1
82.4
90.1
102.4
113.4
124.8
133.5
$2.9
$3.3
$3.7
$4.1
$4.4
$5.2
$5.9
$6.6
$7.1
2024
2023
2022
2021
2020
2019
2018
2017
2016
32.7
34.6
37.4
39.3
45.7
49.2
52.6
56.6
59.7
$6.1
$6.7
$7.0
$7.3
$8.6
$9.7
$9.8
$9.7
$10.2

12
Our Fortress Balance Sheet
2005–2024
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
$124
$136 $149
$80
$56
$49
$63
$95
$111
$161
$170 $180 $185 $183
$187
$203
$230
$260
$191
$204
10.1%
11.0% 10.7%
7.3%
7.0%
7.0%
7.0%
8.8%
9.8%
10.2%
11.6% 12.2% 12.1% 12.0% 12.4%
15.0%
15.7%
13.1% 13.1% 13.2%
Tangible common equity (average) CET1 (%) 2
Liquid assets
Average loans/Liquid assets (%)
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
90%
132%
136%
192%
152%
159%
350%
311%
387%
80% 106% 110% 118% 129% 115%
86%
93%
70%
63%
77%
$804
$547
$510
$366
$450
$371
$137
$146
$106
$921
$745 $786 $768 $755
$860
$1,652
$1,447 $1,428
$1,437
$1,430
9% CAGR
since 2005
Tangible common equity (average)1
($ in billions)
Liquid assets4
($ in billions)
2005 2006 2007 2008 2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023 2024
Net income applicable to
common stockholders ($B)
$8
$14
$15
$5
$9
$16
$18
$20
$17
$20
$22
$23
$23
$31
$35
$27
$47
$36
$48
$57
Capital returned to
common stockholders ($B)3
$6
$5
$9
$(12)
$(6)
$1
$11
$4
$9
$10
$11
$14
$22
$28
$34
$16
$29
$13
$20
$31
ROTCE (%)
15%
24%
22%
6%
10%
15%
15%
15%
11%
13%
13%
13%
12%
17%
19%
14%
23%
18%
21%
22%
Liquid assets from December 31, 2005–2012 defined as cash, cash due from banks and investment securities
CAGR = Compound annual growth rate
CET1 = Common equity Tier 1
ROTCE = Return on tangible common equity
For footnoted information, refer to page 59 in this Annual Report.

13
Within this letter, I discuss the following:

Introduction
— Steadfast principles worth repeating
I. America and the World Are at a Critical Crossroads: Comprehensive
Action and Leadership Are Imperative Now
Only America has the economic, military and, yes, moral power.
•
Celebrate America’s values and virtues, with humility, in order to restore civic pride,
citizenship and purpose.
•
Acknowledge and fix our problems at home by regaining common sense and being
resolute.
•
Recognize that the best strategy for America’s success is to implement effective
domestic policies that drive robust economic growth for the benefit of all citizens.
•
Initiate comprehensive economic foreign policy to win the new global “economic”
war. America will be first – but not if it is alone.
•
Affirm that our national security and the world’s best military, at whatever cost, are
paramount and necessary for peace.
II. A Compendium of Critical Domestic Policies to Drive Growth,
Opportunity and Well-Being
•
We need consistent and responsible tax and fiscal policies.
•
Our education system is in deep need of reform to create skills, jobs and
opportunity.
•
We must remedy the healthcare system, both to reduce costs and
improve outcomes.
•
We can improve effective regulations while reducing crippling rules,
demoralization, and arbitrary and expensive litigation.
•
We could do a better job supporting small businesses.
•
We should have permanent plans to consistently drive the building of great
infrastructure.
•
We can make it easier to build a more affordable housing supply.
•
We can strengthen our financial system and markets.
•
Local democracy works: Let it shine and learn from it.
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14
III. Specific Issues Facing Our Company
•
We take a long view in dealing with our excess capital.
•
We bring an investor/owner mindset to drive organic growth.
•
Our largest risk is geopolitical risk.
•
We’re not in Kansas anymore: economy, inflation, interest rates, asset prices,
trade wars, oh my!
•
Consumer payments have become a new battleground.
•
We devote significant resources to strategic intelligence to inform change
and share our knowledge.
— Powering economic growth in Texas
IV. Management Learnings
•
Why complacency, arrogance, bureaucracy and BS kill companies.
•
You have to get the numbers right.
•
You need a full and constant assessment.
•
You better have great controls.
•
You must kill bureaucracy all the time and relentlessly.
•
Mistakes I made.
•
What the heck is culture?
•
Leading the team.
•
Why it’s hard to achieve good growth and innovate.
•
Management tricks and tools.

In Closing

I. America and the World
Are at a Critical Crossroads:
Comprehensive Action and
Leadership Are Imperative Now
Only America Has the Economic, Military and, Yes, Moral Power
I am writing about this topic, both as a patriot
who cares about America’s and the free world’s
future and as the CEO of our company, because
it may be the most critical factor affecting the
future of JPMorganChase itself. The success of
JPMorganChase has always been predicated on
the success of the United States of America and
the health of the world, particularly the strength
of free and democratic countries.
Whether you call them adversaries or major
competitors, they have made their goal clear.
We must act now.
The brutal invasion of Ukraine and the inde
scribable terrorist acts on Israel should have dis
pelled any illusion that the world is a safe place.
We do not need another Pearl Harbor or 9/11 to
shatter any false sense of security based on the
hopeful notion that dictators, terrorists and
oppressive nations won’t use their economic
and military powers to advance their aims –
particularly against what they perceive as weak,
incompetent and disorganized Western democ
racies. Global peace and world order are vital
American interests. We also need to answer the
question: What kind of world do we want to live
in? And do we believe that we can, or should, try
to make the world a better place? Practically,
what is the other choice?
Our international adversaries and major com
petitors have made it clear that their goal is to
dismantle American hegemony, which means
dismantling the rules-based system led by
America in concert with our allies (essentially
the Bretton Woods system and the North Atlantic
Treaty Organization, as well as the International
Monetary Fund and the United Nations). Since
the end of World War II, this system has brought
forth the longest period of peace and prosperity
among the great powers. Today, it is clear this
system needs serious reform and strengthen
ing, not total destruction. Yet, if given the oppor
tunity, that is exactly what our adversaries want
to happen: Tear asunder the extensive military
and economic alliances that America and its
allies have forged. In the multipolar world that
follows, it will be every nation for itself – giving
our adversaries the opportunity to set the rules
and use military and economic coercion to get
what they want. That is what is at stake here. We
need to bring the whole of government and the
private sector together to build the world we
want while dealing with the cold realities of the
world we have.
We face the most perilous and complicated geo
political and economic environment since World
War II. Today’s world is more complex and more
interconnected than ever before. Comprehen
sive strategies, diligently deployed, are required
to address challenges on many fronts: the war
in Ukraine; terrorism in the Middle East and the
real possibility that Iran may develop a nuclear
weapon; Europe’s potential fragmentation; and
ongoing trade disputes and the rise of China.
If Iran acquires a nuclear weapon, many other
nations around the world will seek to acquire
nuclear weapons, presenting us with a cata
strophic situation. A global nuclear arms race
is the worst outcome that could happen to our
world – and this may be the greatest threat to
mankind’s survival. Lastly, it is extremely
important to recognize that security and
economics are interconnected – “economic”
warfare has caused military warfare in the past.
Not only is America’s global leadership role
being challenged outside our borders by other
nations but also inside our borders by our
polarized electorate.
15
15
AMERICA AND THE WORLD ARE AT A CRITICAL CROSSROADS: COMPREHENSIVE ACTION AND LEADERSHIP ARE IMPERATIVE NOW

The actions taken in the next decade may prove,
depending on how our country and our allies per
form, the most consequential of our lives and may
very well determine the fate of the free and demo
cratic world over the next century. America has
always had an amazing ability to confront enor
mous challenges – and we did so by facing them
head-on with superb leadership from Abraham
Lincoln to FDR to Dwight Eisenhower. We should
remember that America, “conceived in liberty
and dedicated to the proposition that all men are
created equal,” still remains a shining beacon of
hope to citizens around the world.
Here are five things our nation needs to do well
in order to secure the future we should want for
our country and our companies. I fear that if we
fail at one of them, we may fail overall:
1.
Celebrate America’s values and virtues,
with humility, in order to restore civic pride,
citizenship and purpose.
2. Acknowledge and fix our problems at home
by regaining common sense and being
resolute.
3. Recognize that the best strategy for
America’s success is to implement effective
domestic policies that drive robust economic
growth for the benefit of all citizens.
4. Initiate comprehensive economic foreign
policy to win the new global “economic” war.
America will be first – but not if it is alone.
5. Affirm that our national security and the
world’s best military, at whatever cost, are
paramount and necessary for peace.
These are my prescriptions, and I understand
that some people may disagree with them – and,
on some issues, I may ultimately be wrong. What
I am not wrong about, however, is the urgent
need to face these issues head-on – we should
not assume that America will overcome them.
We have always been a resilient nation and have
overcome significant adversity in the past
because we faced our challenges and dealt with
them properly. Problems don’t age well. And the
consequences of not dealing with this properly
range from bad to catastrophic.
CELEBRATE AMERICA’S VALUES AND
VIRTUES, WITH HUMILITY, IN ORDER TO
RESTORE CIVIC PRIDE, CITIZENSHIP
AND PURPOSE.
To be able to attack our problems at home
and abroad, we must be strong. And our core
strength is based upon our commitment to our
values, as well as our ability to work hard and
think intelligently about our problems. If the soul
of America is not strong, then the rest will be
weak. While we should acknowledge America’s
flaws, they should not be used to pull apart our
country.
Our values transcend any political stance –
libertarian, conservative, progressive, Democrat
or Republican. We need to believe in ourselves
and get back to work (in the office!), not tear
each other down.
America’s strength is not a divine right – it is
earned by citizens committed to a common
purpose.
Many of the blind ideologies being bandied
about run counter to our fundamental principles.
Our principles of freedom of speech, religion
and enterprise allow individuals to pursue life as
they lawfully see fit. Ideologues often adhere to
rigid beliefs and seek to impose those beliefs on
others; in extreme forms of fanaticism, there is
no room for individual differences.
I applaud many traditional Democratic values,
such as a commitment to try to lift up all of our
citizens and to provide more justice and equal
opportunity. I also deeply respect many tradi
tional Republican values, such as a dedication
to provide a strong national defense, to promote
free enterprise and encourage a pro-business
environment, and to emphasize the importance
of the Constitution. And we should all support
other core values, such as family, country,
self-reliance, respect for workers and common
sense. These values are not mutually exclusive
and should be embraced and upheld by both
parties. We, the people, need to be able to
embody all these values.
Even with all of our current problems, billions of
people, if they could, would leave their country
and move to ours. Similarly, if most people could
only invest in one country, they would choose
the United States. Our exceptionalism is based
16
16
AMERICA AND THE WORLD ARE AT A CRITICAL CROSSROADS: COMPREHENSIVE ACTION AND LEADERSHIP ARE IMPERATIVE NOW

on our freedoms, our liberties, our opportunities
and our rule of law, all under the protection of
the Constitution (and the military) of the United
States of America. You need only to witness the
deep appreciation of new citizens, who often
made enormous sacrifices to be here, to feel
what it must be like when they take the Oath of
Allegiance to the United States of America – it
would bring you to tears.
It is incumbent on us to educate ourselves, our
fellow citizens and future generations about
American values and our ongoing pursuit of a
more perfect democracy. This education should
start in grammar school – our civic roles and
responsibilities need to be taught. Our common
values are transcendent.
ACKNOWLEDGE AND FIX OUR
PROBLEMS AT HOME BY REGAINING
COMMON SENSE AND BEING
RESOLUTE.
Facts are often used by people to justify what
they already think, and then populists on both
sides distort the facts and use them to jazz up citi
zens around their grievances. But, as former U.K.
Prime Minister Tony Blair asserts, we need to sep
arate the populists from the grievances because
many of these grievances are partially rooted in
truth and must be addressed. The following are
issues that I believe are causing legitimate frustra
tion and anger in the country today. This list is not
complete, but let’s acknowledge some of these
profound challenges. In this section and the next,
I discuss some possible solutions:
• Lack of control of our borders. Uncontrolled
immigration is highly disturbing to affected
populations around the world and reduces the
ability to manage legal and needed immigra
tion. In the United States, the number of immi
grants has increased by approximately 50%
over the last 20 years. Once we gain control of
our borders, I believe most Americans would
support increasing merit-based immigration,
including allowing anyone who earns a degree
here to stay, ensuring there are proper visas
for seasonal workers, enabling children born
in this country to remain and providing a rigor
ous path to citizenship for law-abiding, undoc
umented immigrants. Healthy and proper
immigration would bring great talent to our
country and has been shown to actually help
grow the economy.
• Too many left behind. Our fellow citizens at
the lowest income tier have, in fact, been left
behind, a trend we’re seeing globally. From
1979 to 2019, wage growth of the top 10%
income tier was nearly 10 times that of the
bottom 10% – which, basically, did not
increase at all. Our very low-income citizens
experience higher school dropout rates,
greater joblessness, increased drug use and
crime in their neighborhoods, and signifi
cantly worse health outcomes. They often
reside in rural areas and in inner cities. So
while enormous wealth has been created in
the country, the promise of equal opportunity
seems unfulfilled for too many for too long.
• Education, some of the best and some of the
worst. We have many of the best universities
(including research universities) in the world.
However, over the last 20 years, the cost of
college has more than doubled for both public
and private colleges, while household median
incomes have gone up only 18%. Many inner-
city schools graduate under 50% of their stu
dents. And in both high schools and colleges,
we don’t teach enough skills that lead to
well-paying jobs. Again, this affects the bot
tom income tier far more. Equal opportunity is
clearly not fairly shared.
• Ineffective and incompetent government.
Most people do not believe that the govern
ment, regardless of party control, is doing a
good job. For some, it’s the constant bureau
cracy, lack of permitting and failing schools;
for others, it’s the constant anti-business
sentiment. We struggle to build pipelines,
upgrade our electrical grid, develop high-
speed rails and accomplish other necessary
goals. Our government seems unable to
reform and reorganize itself, which is a prob
lem. This is amplified by the fact that many of
our career politicians have little real-world
experience, and it shows. We have failed
at basic common sense. And let’s stipulate
here that this is not about blaming individual
workers. We all know that many government
employees are hard-working, ethical and
caring citizens doing very important jobs that
support and protect their fellow Americans.
17
17
AMERICA AND THE WORLD ARE AT A CRITICAL CROSSROADS: COMPREHENSIVE ACTION AND LEADERSHIP ARE IMPERATIVE NOW

• Profligate fiscal management. Most people
do not believe that giving the government
more money leads to better outcomes. In fact,
most people perceive government actions,
such as special tax breaks, as patronage for
favored interest groups. Many people think
the tax system itself is littered with unfair
loopholes. Government has been fiscally irre
sponsible and profligate – and even with all
the money spent, grievances increased. Our
government estimates that it makes over
$200 billion in “improper” payments per year.
Somehow, we have huge deficits and bad
outcomes.
• A leviathan both too weak and too strong.
Our state is paradoxically both too weak –
ineffective at accomplishing essential tasks –
and overly strong – overreaching in ways that
undermine fundamental democratic princi
ples like individual freedom and autonomy.
Over the last few decades, many have felt
violated by the government’s increasing inter
ventions. This heavy-handedness often
prescribes not only how we should act but
also how we should think and feel.
• Culture wars and virtue signaling. In the past,
the elite often insulted traditional values of
family, God and individual success, lecturing
about their superior values from their com
fortable perches and imposing all of this on
people who believed differently. We have
implemented many climate policies that do
not effectively address climate change and
raise the cost of living. We have stopped
teaching some important parts of American
history. Instead of acknowledging America’s
significant virtues, we denigrate them and
tear them down. We engage too frequently in
class warfare and excessively in identity poli
tics; i.e., using race, sex or creed inappropri
ately. And state laws were passed that actually
increase crime instead of preventing it. Many
of these policies hurt the very people they
were meant to protect most. Many cities that
paid a high price for their misguided policies
are now returning to obvious policy goals –
safe streets, better schools, more housing.
Unfortunately, more and more people are
being disrespectful, condescending and
unwilling to listen to one another. While
adjustments are needed, it is quite predict
able that the pendulum will swing too far in the
other direction. When all is said and done, let’s
hope we can all treat each other with a little
more respect.
• An imperfect healthcare system. While in
some ways our healthcare is the best in the
world, it is also expensive, essentially costing
almost twice as much as the average health
care in OECD (Organisation for Economic
Co-operation and Development) countries.
Our healthcare system is also lacking in
preventive care, transparency and proper
incentives, and leaves too many uninsured.
• Crippling litigation, bureaucracy and regula
tion. An effective legal environment, upheld
by a dependable judiciary, is essential for eco
nomic health, protecting rights, ensuring jus
tice, resolving disputes, maintaining checks
and balances, and supporting innovation.
However, the current environment is demoral
izing and slowing growth. While we all want
justice through the legal system, our litigation
system is expensive (far more than most other
countries), capricious, arbitrary and slow. All
of this leads to extreme risk aversion – mostly
on the part of government but often on the
part of business as well. It is concerning that
some politicians have grown increasingly
beholden to the interests of tort lawyers,
posing real risk to balanced policymaking.
In some ways, this could be America’s
Achilles heel.
• Red tape 2.0. Red tape has always meant
excessive paperwork, bureaucracy and
regulations. But it’s been taken to a whole new
level by people who really like it and want even
more of it. They have doubled down on regula
tions and bureaucracy, which also dramati
cally increased red tape. In so doing, they
made sure that new rules were written by
academics with no pragmatic experience,
guaranteeing that they would be excessive,
confusing, contradictory and infused with
ideology. So we need to give credit where
credit is due. Therefore, I have renamed it
“BLUE” tape. Even when “blue” tape has been
shown to slow down economic growth and
make it hard for businesses and individuals to
thrive, those who created it excuse the out
come and refuse to change (see Europe).
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• Damaging trade practices, particularly with
China. While trade has greatly benefited the
world and many – if not most – American
citizens, the damage that was done to some,
while acknowledged, was never rectified.
Those who suffered felt the sting – both in lost
jobs and lower wages. We also allowed too
much unfair trade. Finally, and most import
ant, we failed to protect our national security,
becoming too reliant on potential adversaries
for critical products that the military needs
(more on this later).
• Selfishness on the part of our citizens and
elected officials. Whether it is unions fighting
new technologies or businesses getting tax
breaks, the focus on “what am I going to get”
needs to stop. There are 13,000 groups lobby
ing in Washington, D.C., defending their “spe
cial interest.” Rarely do they fight for what is
good for America. When America’s future
hangs in the balance or when special interest
groups wield undue influence, it is time to pri
oritize principle over profit – and put country
before company or union. Many in our country
do this – our uniformed officers in the military
are an ideal example as they put their lives on
the line out of a deep belief in our values and
our country.
America is still the exceptional nation, but its
problems demand that we adjust our strategies.
America has carried the burden of keeping the
world safe and has made extraordinary efforts,
including through trade, to improve the lives of
the citizens of other nations. It is time to rebal
ance and rebuild but not retreat from the post-
world order. A U.S. retreat from international
leadership will leave a vacuum that may be filled
by China or other actors that seek to promote an
alternate set of international rules and norms.
Both parties contributed to our failures (and
the media amplifies it).
Many of the grievances I’ve noted existed and
grew under both parties’ leadership. These
grievances are frequently amplified by media,
both traditional and new, that often adheres to
only one party’s views, which leaves audiences
blind to all of the issues and consequences of
flawed policies. For example, when conducting
interviews, reporters many times reveal their
biases whether through subtle support or open
skepticism. Interview subjects may be discred
ited because of who they are, not because of the
content of their argument. Much of this is making
us meaner to each other – a little more kindness
and understanding would go a long way. I am
a firm believer that we should constantly talk
with each other, air our views, hold each other
accountable and try to respect all sides of an
argument.
Social media has made this worse, in fact, delib
erately worse by using algorithms to manipulate
as opposed to educate. Networks and platforms
could meaningfully improve the quality of dis
course on the town square both by offering a
menu of algorithms, as opposed to ones that are
addictive, and by requiring all users to authenti
cate their identities, whether they choose to
speak anonymously or not. In banking, we have
“know your customer” requirements – social
media should have them as well. Verifying iden
tities would go a long way toward eliminating
foreign influence and bots, and would make
individuals, not the platform, subject to the law.
We also exist in a nation awash with inaccurate
and unfair labeling and scapegoating; i.e., Wall
Street versus Main Street. Who exactly is Wall
Street in this comparison with Main Street? Large
business and small business are symbiotic.
Shouldn’t we respect jobs and workers and the
companies that create those jobs? And some
give voice to the view that public sector jobs are
more virtuous than private sector jobs. Less than
25 million people work in the public sector and we
should hold them in high regard – teachers,
police, firefighters, military, sanitation workers
and others. All jobs have dignity and purpose,
and add to the general well-being of the country.
It is good to remember that the 135 million people
who work in the private sector generate the
income that funds the public sector.
All of these are among the reasons why I believe
the body politic may be tired and ready to see
bold disruption. While we need to take proper
actions, we also need reform and reconstruction.
In addition, our adversaries mistake our appar
ent disarray as a sign that we are lazy, weak
and decadent. Anyone who knows America –
its work ethic, innovation and morality of most
citizens – knows this is not true.
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RECOGNIZE THAT THE BEST STRATEGY
FOR AMERICA’S SUCCESS IS TO
IMPLEMENT EFFECTIVE DOMESTIC
POLICIES THAT DRIVE ROBUST
ECONOMIC GROWTH FOR THE BENEFIT
OF ALL CITIZENS.
We need to address the underlying issues caus
ing the grievances that are tearing us apart and
holding the nation back. By enacting meaningful
policy reforms to resolve these issues, I believe
our gross domestic product (GDP) would grow
by over 3% a year – benefiting all Americans and
especially those in our lower-income communi
ties. From 2000 to 2024, GDP grew by just over
2% a year. Had it grown by 3%, which should be
easily achievable with the right policy decisions,
our GDP per person would be approximately
$16,000 higher this year.
In this section and in the following, I describe
many of the policies that we need to fix – and, in
some cases, how to do it. Some of the fixes are
easy, while others are more challenging. They
run the gamut from improving the supply side,
such as education, infrastructure, permitting,
production capability and technology, to
addressing the demand side, including fiscal
and tax policy. All of these are domestic policies,
which we can fix on our own. Later in this section,
I talk about foreign economic policies, including
trade, foreign investment and the U.S. dollar as
the world’s reserve currency, all of which are
essential to our country and the world.
Policy needs to be detailed, comprehensive
and coordinated to be successful – how you
describe it politically is a separate matter.
As someone once said, “If you are going to do
what you already did, you are going to get what
you already got.” We have the best economy in
the world, but we must confront our extensive
flaws and fault lines. We need to build our own
capabilities and stop the constant under- and
over-reaction. Our policies must foster healthy,
sustainable growth, and it’s essential that we
unite the entire nation – government and busi
ness alike – to achieve it. Around the world, we
observe both effective and counterproductive
policies. For example, well-intentioned labor laws
can backfire, as seen in parts of Europe where
rigid labor regulations have contributed to
persistently high unemployment. Similarly,
certain safety net programs may inadvertently
discourage paid work. On the other hand, stream
lined permitting policies show how smart gover
nance can accelerate development and get
projects built – in short order and safely. Nations
that implement sound policies are capable
of achieving remarkable outcomes; consider
Ireland, Singapore, South Korea and Sweden.
Even Greece, which used to be Europe’s perennial
basket case, has managed to turn itself around,
driven by an exceptional political leader.
Good political leaders get both the politics and
the policies, in detail, right. They are constantly
educating the public instead of just responding
to it. Our country needs leaders who can guide
their parties away from catering to the extremes
and who can collaborate effectively with our
allies to craft integrated policies that address
both economic and security challenges – in the
short and long term. Most important, on the
home front, we need lawmakers on both sides
of the aisle to commit to the serious work of
governing – setting aside partisan divides to
develop policies that foster economic growth
and expand opportunities for all Americans to
succeed. Running for any executive office
(mayor, governor or president) and running the
government are completely different things.
Some quickly figure that out, and some don’t.
While a good politician must communicate
policies in a clear, compelling way that resonates
with the American public, the policies them
selves must be well designed to be truly effec
tive. And this is more important today than ever
before because the future, for both foreign policy
and economic policy, is fraught with extreme risk.
We need to promote, not denigrate,
businesses, large and small.
On economic policy, the Republicans are right
to champion business and free enterprise, limit
excessive government intervention, establish an
international tax system that has made America
competitive for the first time in over 15 years,
and cut back on needless, mind-numbing,
job-killing regulations. And all of this could be
done while still maintaining the proper regula
tion necessary to prevent market abuses and
safeguard the economic environment.
Recent Democratic policies, driven by
often-misguided narratives and an often-
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dismissive tone, have left much of the business
community frustrated and disillusioned. Many
government agencies and regulators frequently
criticize business by relying on oversimplified
and dishonest concepts like “price gouging” to
justify their stance. They tend to take the iso
lated missteps of a few companies and use them
to paint the broader business community as
unethical. This fuels rhetoric that undermines
free enterprise and leads to regulatory over
reach that frequently exceeds the intent of the
law. Few in the previous administration actually
understood business or had any experience run
ning a business – and it showed. Other import
ant policies (for example, infrastructure, the
CHIPS and Science Act, the Inflation Reduction
Act), while well-intentioned, were laden with vir
tue-signaling and uninformed rules, which limit
their effectiveness. And instead of fixing endless
regulations, like permitting, government effec
tively made them worse.
It would be wiser to properly educate the public
about the role of business, large and small. The
private sector is the engine for investing our
country’s capital into high-returning areas – it is
our most effective tool for promoting innovation,
sustainable growth, productivity and jobs. There
are more than 30 million businesses in America,
but within the private sector, it is large compa
nies that are responsible for 85% of the research
and development (R&D) and nearly half of all
nonresidential capital investment. Big compa
nies generally have excellent healthcare, well
ness, retirement and training programs.
Every time a new plant is built somewhere, it cre
ates four or five times more jobs in that area,
usually in small businesses. Small business and
large business are truly symbiotic.
INITIATE COMPREHENSIVE ECONOMIC
FOREIGN POLICY TO WIN THE NEW
GLOBAL “ECONOMIC” WAR. AMERICA
WILL BE FIRST – BUT NOT IF IT IS ALONE.
America’s extraordinary standing in world
affairs is predicated on our economic, military
and moral strengths. Our exceptional relation
ships with our allies largely exist both because
of the security they receive from America’s mili
tary umbrella and our strong economic ties. But
we are in a new world defined by shifting power
dynamics, rapid technological disruption and
rising geopolitical tensions, including China’s
growing assertiveness. This economic competi
tion and conflict will likely go on far longer than
the wars on the battlefield.
The autocratic nations of the world, and some
of the nonaligned nations, would like to see a
fragmentation of America’s economic alliances
and a weakening of our global economic posi
tion, including our status as the world’s most
powerful economy, a leader in innovation and
holder of the world’s reserve currency. This
competition has many players, using many tac
tics, over many years. But our long-term strate
gic goals should be crystal clear: to maintain the
cohesion and strength of the Western world,
including their economies. If the Western world’s
military and economic alliances were to frag
ment, America itself would inevitably weaken
over time.
Economic fragmentation from our allies may
be disastrous in the long run.
Keeping our alliances together, both militarily
and economically, is essential. The opposite is
precisely what our adversaries want. Europe has
some serious issues to fix. Since 2008, the euro
zone’s GDP per person has gone from over 75%
of U.S. GDP per person to approximately 50%.
While Europe has received some tough mes
sages from U.S. leaders recently, what European
leaders should do is seize the moment. Euro
pean nations know what they need to do: signifi
cantly reform their economies so they can grow;
e.g., finish the economic union to make com
merce across their countries easier and more
efficient, and initiate labor reform and tax reform
to incent more business growth and more labor
participation (see the Draghi report). They also
recognize that they need to materially increase
their military spend and capabilities. This is
going to be hard, but our country’s goal should
be to help make European nations stronger and
keep them close.
If Europe’s economic weakness leads to frag
mentation, the landscape will look a lot like the
world before World War II. Each nation will need
to seek out its own relationships to secure its
future, and that may very well mean closer rela
tionships with Russia and Iran for energy and
China for trade and economics. Such moves
would ultimately make these countries far more
reliant on China and Russia – over time effectively
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making them vassal states. Economics is the
longtime glue, and America First is fine, as long
as it doesn’t end up being America alone.
We do not need to fear China – we just need
to get our act together.
Comprehensive economic policy is critical to
compete with China. There is no more conse
quential relationship for the world, and this rela
tionship will affect the whole Indo-Pacific region,
especially our allies: Australia, Japan, the Philip
pines, South Korea and others.
Over the last 20 years, China has been executing
a more comprehensive economic strategy than
we have. The country’s leaders have success
fully grown their nation and, depending on how
you measure it, have made China the largest or
second-largest economy in the world. That said,
many people question China’s current economic
focus – it continues to be beset by many eco
nomic and domestic issues, particularly capital
misallocation, which have resulted in large real
estate problems, a weakened financial system,
policies that inhibit entrepreneurs in their own
country and an urgent need to accommodate a
rapidly aging population.
China has its own national security concerns, as
it is located in a very politically complex part of
the world. Many of China’s actions have caused
its neighbors (e.g., Japan, Korea, the Philippines,
among others) to start to re-arm and draw closer
to the United States. It also surprises many
Americans to hear that while our country is
100% energy sufficient, China needs to import
10 million barrels of oil a day. It is clear that Chi
na’s new leadership has set a different course,
with a much more intense focus on national
security, military capability and internal devel
opment. That is its right, and we simply need to
adjust to it.
America still has an enormously strong hand –
plenty of food, water and energy; peaceful
neighbors; and what remains the most prosper
ous and dynamic economy the world has ever
seen, with a per person GDP of over $86,000 a
year (this compares with China’s GDP per per
son of $13,000 in 2024). Most important, our
nation is blessed with the benefit of true free
dom and liberty.
Starting well over a decade ago, both business
and government should have focused on certain
problems with China: unfair trade across multi
ple dimensions and our reliance on China for
critical national security-related components.
While we may always have a complex relation
ship with China (made all the more complicated
and serious by its actions in supporting Russia
in the ongoing war with Ukraine), the country’s
vast size and importance to so many other
nations (China is the largest trading partner to
almost every other nation) require us to stay
engaged – thoughtfully and without fear. At the
same time, we need to build and execute our
own long-term, comprehensive economic secu
rity strategy to keep our position safe and
secure. For example, we need to remain com
petitive with China in the artificial intelligence
(AI) race by bolstering our technological
advancements and reducing our reliance on Tai
wan for semiconductor chips. Most of the
actions we can take to protect our country are
unilateral and do not need China’s agreement.
Overall, I believe that respectful, strong and con
sistent engagement would be best for both the
United States and China, as well as the rest of
the world.
Whether you view China as a competitor or a
potential adversary, we should work with our
allies to firmly negotiate an ongoing relationship.
Tough but thoughtful negotiations over strate
gic, military and economic concerns – including
unfair competition – should lead to a better situ
ation for all. If America provides strong leader
ship, and keeps the Western world together,
China will be better off forming partnerships
with a strong Western world than with nations
like Russia, Iran and others. We should also rec
ognize what critical common interests with
China we share in combating nuclear prolifera
tion, climate change and terrorism.
What China does so well is manage its country as
a whole – coordinating government and business
so that they are able to further some of their stra
tegic goals. We must improve our ability to act in
a more organized and strategic way to succeed in
this new global landscape. Simply put, if we keep
our economy the strongest and maintain the
strength of our alliances, we will thrive.
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We should promote healthy economic
alliances, which includes fair trade.
Global trade is enormous, amounting to approxi
mately $20 trillion a year, of which only $2.5 tril
lion is with the United States. And global trade
will take place with or without us. We should
remember that other nations have choices, both
in the short term and in the long term, and they
will make these choices in their own self-interest
based on economics, security and reliability.
Many countries need trade to help grow their
economies. The European Union, for example,
has the largest trade network with 40 individual
agreements. China has applied for and signed
several new trade agreements (e.g., the Regional
Comprehensive Economic Partnership, Digital
Economy Partnership Agreement, and Compre
hensive and Progressive Agreement for
Trans-Pacific Partnership). The United States
lacks trade agreements with some of its closest
allies, many of whom have signed trade deals
with China. We should more actively be seeking
free (and, of course, fair) trade agreements, par
ticularly with strong allies like Australia, Japan,
the United Kingdom and – we hope one day –
the European Union. These can be done in a way
that is clearly beneficial to both sides.
We already trade with most nations on the planet
– and, of course, we should always be trying to
make it better and fairer for America. Deepening
high-standard trade with key trading partners is
good economics and great geopolitics. And we
don’t need to ask many nonaligned nations, like
India and Brazil, to align with us – but we can
bring them closer to us by simply extending a
friendly hand with trade and investment.
There are many ways to combat unfair trade
– industrial policy is one of them, but it should
be done right or not at all.
For hundreds of years, countries have used
trade practices to get a leg up on other coun
tries. This economic competition is often exer
cised through industrial and trade policy, and it
comes in many forms: banning or limiting trade
(quotas), tariffs, subsidies, grants, tax credits or
accelerated depreciation, loan guarantees, long-
term purchase agreements and capital controls.
These tools are generally intended to give a
company or an industry an unfair competitive
advantage, and when used together, they can
create unbeatable economies of scale. In their
harshest form, they can be used by countries
as a tactic to try to unfairly dominate whole
industries. This should not be allowed.
There are other unfair trade practices that need
to be mentioned; e.g., nontrade barriers, such as
regulations that effectively stop specific types
of trade and various unfair tax policies that
range from value-added taxes to a particular
country’s tax schemes. Many countries use
some of these tools in various forms (including
the United States).
So trade agreements have many flaws and need
to be carefully negotiated. Practices such as
permitting countries to circumvent trade restric
tions imposed on them – for example, allowing
China to use agreements that it has with other
nations to bypass tariffs on Chinese goods – can
and should be stopped. Obviously, where the
United States is treated unfairly, we should
demand that those agreements be fixed. It
would also be good to acknowledge that we
have sometimes treated others unfairly (for
example, parts of the Inflation Reduction Act
unfairly favor American business).
Industrial policy mechanisms, when used,
should be as targeted and as simple as possible.
The cleanest of these is tax credits in various
forms. Whatever the policy, two rules should not
be violated: (1) there should be no social engi
neering and (2) markets should allocate capital,
not the government – lest the result is a buffet
where corporate America gorges. The govern
ment is simply not good at allocating capital in a
free market. One example should suffice: In our
attempt to create a more competitive chip man
ufacturing industry in the United States (it costs
two times more to manufacture these chips in
America, and, therefore, our manufacturers
would fail if they tried to compete), the govern
ment could have given land grants for the land,
accelerated depreciation and lowered taxes or
offered tax credits for an extended period. Then
the companies and the capital markets would
have competed to decide how best to do this.
Nonetheless, we need to acknowledge that
there have been real negative job impacts as a
result of trade (in 1990, manufacturing created
18 million jobs in this country versus 13 million
today), which are usually concentrated around
certain geographic areas and businesses. So
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any new trade policy should be combined with a
greatly enhanced and effective Trade Adjustment
Assistance program, which provides retraining,
income assistance and relocation for those
workers directly impacted by trade.
America already trades with more than 200
countries, territories and regional associations.
We should strike the best and, of course, the
most fair trade agreements that we can. And
we should do this while maintaining our close
economic relations with our allies.
What’s the truth about trade deficits?
Trade deficits, by their nature, are not necessar
ily good or bad. Even if our country had no net
trade deficit, it would likely be running deficits
with some countries and surpluses with others.
Sometimes a high trade deficit results from a
country’s extraordinary attractiveness as an
open investment destination, and these invest
ments help that country grow and prosper. This
may be true for part of America’s trade deficit.
However, trade deficits for pure consumption
may mean a country is slowly selling parts of
itself to someone else, and I’m not sure that’s
a good idea.
Our trade deficit over the last 20 years has
totaled over $12 trillion, and this is probably too
large. The other side to the trade deficit is an
investment surplus, which has resulted over the
years in foreign investors owning $30 trillion of
U.S. securities, while U.S. investors own only
$16 trillion of foreign securities. In 2005, these
numbers were $6.3 trillion and $4.3 trillion,
respectively. You can see that, over time, foreign
investors have come to own an increasing share
of the United States. (For your information,
China’s holdings of U.S. assets are approximately
$1.5 trillion, of which half is U.S. Treasury
securities.)
It is good to remember that our trade deficit
is also driven by our large government deficit.
Therefore, it is perfectly reasonable for us to
focus on our “twin” deficits: our $2 trillion fiscal
deficit and our $1 trillion trade deficit. While the
numbers in the above paragraph highlight the
attractiveness of the American economy, they
also reveal certain underlying risks: If America,
for whatever reason, becomes a less-attractive
investment destination, the U.S. dollar and the
economy could suffer if foreigners sold their
U.S. assets.
Our extraordinary energy position is a
massive competitive advantage, ensuring
affordable, reliable, safe and ever cleaner
energy, both for us and critically for our allies.
The United States has a huge competitive
advantage in that it is essentially self-sufficient on
energy – and will be for decades. This reduces
the cost of so many things in our country (e.g., up
to 40% of the cost of food is related to energy)
and makes it much easier for American compa
nies to compete. It’s also an enormous geopoliti
cal benefit for us to be able to export safe, afford
able, secure liquefied natural gas overseas to our
allies. This binds them to us, gives them greater
security and is economically beneficial for the
United States. It also has the virtue of being good
for the climate – as cleaner liquefied natural gas
replaces dirtier coal.
America should lead the way in generating more
energy to meet greater demand, including from
AI, which will require huge amounts of energy.
And we need an “all of the above” strategy for
developing renewable energy, as well as tapping
conventional energy sources. We should not
forget that to make energy ever more efficient
and cleaner, we also need more rapid permit
ting, investment in the grid and access to critical
minerals. I am convinced that, over time, our
innovative capabilities will make energy cleaner
and solve the carbon emissions problem.
In this country, we have made many mistakes
around climate policy – and I believe a lot of
money will ultimately be wasted. We also made
many bad decisions. For example, we failed to
build the pipeline that would bring gas from
Pennsylvania to New York – this would have
replaced coal (in a cleaner way) and dramatically
decreased the cost of energy for New Yorkers.
It’s also important to remember that pollution
in the United States was significantly reduced
because we effectively outsourced the produc
tion of “dirty” manufacturing, like steel, to other
nations that have lower emissions standards
than we do.
One last point: Billions of people around the
world still lack access to affordable and reliable
energy, a fundamental driver of higher and
healthier living standards. Meeting this demand
improves lives on a global scale.
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There are many other critical foreign
economic policies that could be used to
promote the American economy and protect
our allies.
Essentially, they are:
• We must keep America’s tax system interna
tionally competitive so as not to drive capital,
companies, intellectual property or people
overseas. There is a complexity to this
because so many countries play games with
their tax systems – but staying competitive
can be done. It would be a huge mistake for
America to put itself at a disadvantage – there
are better ways to collect taxes (more on
taxes in the next section).
• U.S. development finance institutions, includ
ing the two main ones (the U.S. International
Development Corporation and the Export-
Import Bank of the United States), are gener
ally used to develop projects in and support
exports from developing nations. Our devel
opment finance is very small relative to the
size of our country – in total, America’s devel
opment finance investment is approximately
$60 billion. We are virtually absent compared
with China. By contrast, China’s government-
led Belt and Road initiative has lent or invested
$1.4 trillion in 155 different countries. China
does this to promote its business expansion
overseas and to enhance its own energy,
minerals or supply chains.
In addition to the Belt and Road initiative, China
has foreign direct investment of approximately
$3 trillion in the rest of the world. This invest
ment was virtually zero in 2000. By compari
son, America’s foreign direct investment totals
$6.7 trillion. In my travels in Africa and Latin
America, the absence of American business or
government investment is palpable. African
and Latin American nations want more of
America, but they are getting what they need
from China. Done right, America could dramat
ically increase its development finance – it is
not a giveaway, it can be quite profitable, and it
has the virtue of promoting America and its
businesses overseas.
• We need to do a better job, in general, of pro
moting American business overseas. Ameri
ca’s development institutions can work with
American businesses far more effectively, for
instance, by providing political insurance on
large capital investments. This insurance
would protect businesses and enable them
to make investments in unstable regions by
covering risks like government takeovers or
political unrest.
At the same time, while laws like the Foreign
Corrupt Practices Act have helped reduce
corruption and level the playing field abroad,
such laws often put firms at a disadvantage,
including American firms and international
firms with a U.S. nexus. The rules can be
vague, the guidelines are ambiguous and the
penalties are steep – making impacted
companies hesitant to compete. This needs
to be fixed.
• We need to constantly educate and inform the
world about America’s values and virtues. We
don’t need to be condescending or lecturing,
just consistently educating and sharing – the
lore of freedom and democracy combined
with a gentle assist will eventually win the day.
America’s strong economy plays a critical
role in preserving the U.S. dollar as the
world’s reserve currency.
The U.S. dollar is a “fiat” currency. Some say
this makes the dollar purely a matter of trust.
This is simply not true. The Federal Reserve,
which issues dollars, owns assets (mostly U.S.
Treasuries) supporting each dollar it issues.
Those assets carry the full faith of the U.S.
government, backed by its taxing power on the
most prosperous nation the world has ever seen.
If you have U.S. dollars, you are essentially free
to do with them as you see fit – that is not true in
many autocratic nations. The U.S. dollar is the
world’s reserve currency because of America’s
open markets, the strength of our economy and
our rule of law upholding property rights – all
protected by the U.S. military. These are also the
reasons why the United States is such an attrac
tive investment destination for anyone wanting
to invest their money.
A well-functioning international monetary sys
tem is good for the United States and for our
allies, particularly since the rules are set by us
and our allies (although some reform is needed).
The U.S. dollar is foundational to a healthy global
economic system, and it’s the cornerstone of
America’s commanding global influence. The
strength of our financial system gives America
considerable clout, not only in allocating capital
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AMERICA AND THE WORLD ARE AT A CRITICAL CROSSROADS: COMPREHENSIVE ACTION AND LEADERSHIP ARE IMPERATIVE NOW

efficiently but also in creating a huge informa
tional advantage for our country. The U.S. finan
cial system writ large is the best in the world –
with extraordinary knowledge and capabilities, it
is a critical flywheel of the American economy.
To protect the status of our global economic
influence and of our reserve currency, America
also needs to be broadly trusted and reliable.
Good trade should be enabled to flourish. Sanc
tions are a powerful tool (against not just finan
cial corruption but global bad actors) – but they
should only be used judiciously and for the right
purpose and, generally, done in concert with our
allies. In addition to the benefits mentioned
above, being the reserve currency saves the
United States $100 billion a year at current inter
est rates. People around the world actually carry
approximately $2.5 trillion of paper U.S. dollars,
which, in effect, is borrowing without paying
interest.
There is a correlation between the strength of
our economic and military alliances and our
status as reserve currency: The stronger our alli
ances, the stronger our reserve currency status.
However, the opposite is also true. History has
shown that as countries become weaker, their
currency loses reserve currency status.
AFFIRM THAT OUR NATIONAL
SECURITY AND THE WORLD’S BEST
MILITARY, AT WHATEVER COST, ARE
PARAMOUNT AND NECESSARY FOR
PEACE.
In today’s troubled world, we’ve seen several
stark reminders that national security is and
always will be paramount even if that idea seems
to recede in tranquil times. America remains the
arsenal of democracy and the bastion of free
dom for the whole world. We must explain to the
American public, over and over, how Ukraine
and the terrorist activity in Israel, fueled mainly
by the Iranian regime, are the actual battlefields
of freedom. It is our hope that these terrible
events have awakened all of us to the fact that
the world is never safe. As President Ronald
Reagan once wisely said, “The only way to stay
safe is peace through strength.” Having the best
military is expensive, but it is not nearly as
expensive as dealing with what would happen
without it. We must maintain the world’s
strongest military, without question.
Of course, it is reasonable to expect allies to pay
their fair share of global military expenses – but
we should also recognize that it is in our own
strategic self-interest to keep our allies together.
The U.S. military presence around the world
should not be viewed as mere protection for hire
– it’s a critical pillar of global stability and a
reflection of our leadership.
We hope one day there will be a lasting and per
manent peace for Israel and the Middle East.
Ukraine needs a proper resolution – one that
provides it with sovereignty, stability and secu
rity – putting their country on a path to healthy
growth. Sovereignty means that they are a free
nation left to make their own decisions. If
Ukraine is left in a weakened position (meaning,
essentially, that Russia succeeded), we will see
a fracturing of America’s military alliances as
countries, Europe in particular, search for better
security arrangements.
One more point about military security: There
was always a thought that America was far from
European wars, even though we have been
dragged into them many times. With the advent
of cyber war, satellites and hypersonic missiles,
the world has changed; other countries’ military
capabilities are already on our doorstep.
We need to employ all instruments of national
power.
The exercise of power isn’t measured by military
force alone but also includes other instruments
of national power: diplomacy, economic devel
opment, foreign assistance (all done in a strate
gic, efficient and accountable way) and constant
education about the benefits of freedom. Again,
as President Reagan said, “Freedom is special
and rare. It’s fragile; it needs protection.” Funda
mentally, we need to realize that power is also
based on trust: trust that we will do the right
thing, that we can do the right thing and that we
are not just strong but reliable.
We need to immediately change certain
policies to secure and enhance our military
capabilities.
Sustaining America’s position of power requires
major changes in the funding and planning of
our military. This includes major changes in
trade, production capacity and supply chains to
make our military as resilient and capable as
possible. Some specifics will suffice:
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AMERICA AND THE WORLD ARE AT A CRITICAL CROSSROADS: COMPREHENSIVE ACTION AND LEADERSHIP ARE IMPERATIVE NOW

• We don’t have multi-year plans for critical
military expenditures and often rely on short-
term continuing resolutions to fund our mili
tary. This costs the military billions of dollars
a year and creates instability and uncertainty
for the defense industry. Switching to multi-
year plans could potentially provide $40 billion
in savings a year (out of a 2024 Defense
Department budget of almost $850 billion)
and greater stability for the military.
• We need to allow greater flexibility on the
reallocation of money; i.e., to continuously
innovate (buy the newest drones and other
items).
• Our stockpiles of vital munitions are seriously
inadequate – if there was a war in the South
China Sea, we would run out of missiles in
seven days. If it were up to me, I would be
stockpiling ammunition, air and missile
defense, rare earths and other critical com
ponents, importantly to preserve peace.
• We don’t maintain sufficient excess produc
tion capacity in our defense industrial base to
ramp up the production of weapons, if neces
sary. We don’t even have the proper capacity
to build battleships anymore. It would be
rather easy for the government to work with
the private sector to help maintain factories
capable of producing military materials that
would be required at a wartime pace.
• We also lack sufficient labor necessary to do
everything outlined above. It can take up to six
years to train workers on the complex skills
that are needed to manufacture this equip
ment – and we don’t have six years.
• We need to immediately restructure some of
our trade and supply chains. Surprisingly,
many of the essential items we would need in
case of war would come from potential adver
saries. These products range from rare earths
to penicillin and other pharmaceutical ingredi
ents to certain types of steel, semiconductors
and even some manufactured components.
We need to use all of the tools at our disposal
to do this as expeditiously as possible.
• Taking the proper unilateral actions on very
targeted investment and export restrictions
(chip making equipment, advanced chips and
other hard-to-duplicate technology used for
military purposes) is essential. However, we
should only expect these kinds of actions to
slow down our competition, not necessarily
stop it.
• Finally, the extraordinary science that comes
out of our national labs and our exceptional
universities has been critical to creating
and maintaining our scientific discoveries
and advances, which have not only fueled
America’s economy but have also maintained
our military superiority. There are lots of
complaints – some legitimate – about
America’s elite universities, but this cannot
and should not be one of them.
Protecting our country goes way beyond just the
military and includes, among other items, grid
security, data centers, communications and
cybersecurity in general.
Foreign policy is realpolitik.
America’s alliance system is the foundation of
our geopolitical advantage and is the special
sauce of American leadership. Foreign policy
must be grounded in realpolitik – a pragmatic
approach that prioritizes national interest over
ideological considerations. Realpolitik means
that many decisions are properly subordinated
to national security. For example, while address
ing global challenges, like climate change, is
important, such efforts should not overshadow
the strategic imperatives of our foreign
relations.
We need to bring our allies along and help them
build their own capabilities. A weak Europe is
ultimately very bad for America. Among other
things, our allies need reliable, safe, secure and
affordable energy – or they will be in a terrible
position. Diplomacy and our economic relation
ships, including trade, are a critical part of main
taining these alliances. While we should educate
other nations about the virtues of our values, we
should stop lecturing – we don’t need them to
have all our values, but we do need them to be
strong allies.
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We should do everything we can to drive healthy
growth in the economy. By doing so, we create
the resources to constantly reinvest in our
country, and we create the conditions to pro
mote greater opportunity and well-being for all
our citizens. In this section, I describe nine criti
cal policies that I believe are essential to making
our economy strong – putting us in the best
position to deal with any issue in front of us,
economic or geopolitical, and guaranteeing our
ongoing military and economic predominance.
In compiling this list, I tried to look at the United
States as I would any large complex company
that we might acquire. (Of course, our country is
much more complicated than any one com
pany.) A full assessment of all critical issues
allows you to develop a game plan. The issues
I’ve highlighted – and there may be more – are
those that I believe are holding us back and
causing much of the “grievances” I wrote about
in the first section. In all cases, I tried to be prac
tical in my approach, and, in some cases, I offer
ideas for potential fixes.
I tried to look at this without regard to how posi
tions might be labeled; i.e., conservative, liberal,
progressive, red or blue. Whether my views are
right or wrong, it is critical that we start to fix
that which is broken.
Government as a whole needs to demonstrate
to the American public that it is effective,
efficient, competent and principled – as any
institution should do – in developing policies
that are conducive to maximizing long-term
growth, jobs, competitiveness and fairness –
without micromanaging the economy.
The government, like all institutions, should
continuously prioritize and allocate resources to
streamline its operations and reduce red tape to
improve service delivery, enhance responsive
ness and achieve cost efficiencies. Every
department should focus not just on the amount
of money spent but on what it expects the out
comes should be, what the outcomes actually
are and how it can deliver more at a lower cost.
Instead, we have a broken bureaucracy that fails
to fully acknowledge or effectively deal with our
biggest problems. Even worse, the power of the
government over the years has been used to
attack parties, businesses and individuals, par
ticularly those not in favor by the party in power.
This needs to stop. It begins by always remind
ing the American public about the founding
principles of the United States of America – the
principles embedded in our Declaration of Inde
pendence and the Constitution – liberty, free
dom, individual rights and justice for all.
The economic machine is extraordinarily
complex. We need to focus on proper policies
that are conducive to growth. Micromanaging
coupled with misguided, ill-informed policies
not based on reality and pragmatism often
have huge unintended consequences. People
frequently twist accurate data with bad logic to
kill good policy. Many times, it is easier to throw
money at a problem, mostly on the demand side
(i.e., spend more money), than to formulate good
policy or spend money appropriately to help the
supply side. Good supply-side policies, such as
those promoting job creation and infrastructure
development, are critical to achieving productiv
II. A Compendium of Critical
Domestic Policies to Drive Growth,
Opportunity and Well-Being
A COMPENDIUM OF CRITICAL DOMESTIC POLICIES TO DRIVE GROWTH, OPPORTUNITY AND WELL-BEING
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ity and, therefore, to maximizing long-term
growth. While innovation is the cosmological
constant always driving growth, sometimes its
downside is used to block it. This is a huge mis
take. We should foster innovation and then cre
ate policies that help those who are negatively
affected.
WE NEED CONSISTENT AND
RESPONSIBLE TAX AND FISCAL
POLICIES.
America could benefit from a bipartisan, binding
mechanism to achieve fiscal responsibility, simi
lar to a Simpson-Bowles type of commission –
but with real congressional authority. Some
countries, such as Sweden, have implemented a
fiscal policy framework with specific guidelines.
Sweden’s framework establishes a debt-to-GDP
ratio of 35% plus or minus 5%. This allows the
country to run deficit financing at the same rate
as its economic growth and still maintain a debt-
to-GDP ratio of 35%. Adhering to this kind of
consistent fiscal standard makes it easier to
manage the country in general. The United
States should eventually establish similar guide
lines that would make it easier to run this “ship of
state” and reduce the uncertainty that results
from constant flip-flopping between sometimes
radically different fiscal policies.
Additionally, we should eliminate the debt ceil
ing. The debt ceiling is essentially a “weapon of
mass destruction” that can be misused by politi
cians who don’t understand the damage it can
do. It’s hard to even contemplate the harm that
would be done to the trust in America and in our
economy if we actually failed to meet our debt
obligations.
We must learn to account for investments
differently from the way we account for
expenses, particularly in areas such as
infrastructure.
The lack of proper accounting by the U.S. govern
ment is astounding and is almost laughable.
Unfortunately, the practice drives terrible deci
sion making. For example, in determining the
deficit, the government treats investments in
infrastructure (roads, hospitals, ports) the same
way that it treats expenses. But we should put
them in completely different budgetary catego
ries. Good investment spending has long-term
productivity benefits that many expenses do not.
The United States now spends only 0.55% of its
GDP on infrastructure. The OECD average is at
0.81%, and China’s is a staggering 5.56%. We
need to spend more money on productive infra
structure, not less. Borrowing to invest is funda
mentally different from borrowing to consume.
The government also makes a lot of loans, but it
doesn’t have to account for them in the same
way that a bank does – which makes bad lending
easy to do. For example, the government contin
ues to extend a significant amount of student
loans with improper or no underwriting. When
the student loan system was taken over by the
government in 2010, loan losses had been rea
sonable, and loans outstanding were $750 bil
lion. Through the magic of government account
ing, the government actually forecasted more
than $60 billion in profit from when they took
over the program. Thirteen years later, the out
standing debt from student loans has more than
doubled to $1.6 trillion, and we estimate that the
government has lost, with proper accounting, at
least $500 billion. Yet the government continues
to make many of these bad loans.
The stakes are even higher regarding the gov
ernment’s control of two of the largest financial
institutions in the world, Fannie Mae and Freddie
Mac, whose combined assets of $7.7 trillion
largely represent mortgages these organiza
tions have guaranteed. It is incumbent on our
government to properly manage institutions like
these to protect U.S. taxpayers from tremen
dous losses (they lost $265 billion in the great
financial crisis) and to shield U.S. and global
economies from severe damage.
To make the U.S. tax system conducive to
economic growth and job creation, we should
incorporate these overall objectives:
• Be agnostic to specific industries, setting
aside favoritism.
• Offer a system that is stable with standards
consistently applied.
• Ensure that our practices keep the United
States competitive with other countries.
• Provide effective incentives for growth and
innovation.
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The 2017 Tax Cuts and Jobs Act (TCJA) took
significant steps toward achieving these goals
by (1) broadening the tax base, (2) reducing the
federal corporate rate to 21% (which is approxi
mately the OECD average) and (3) reforming the
international tax rules. The first point is some
times forgotten: While the reduction of the head
line tax rate from 35% to 21% was projected to
reduce corporate taxes by $1.4 trillion (over 10
years), the broadening of the base offset $1
trillion of that reduction. Regarding international
tax rules, a key part of that reform was the
removal of gimmicks that allowed U.S. corpora
tions to indefinitely defer tax rules on their over
seas earnings. As a result, our international tax
system strikes about the right balance between
recognizing the importance to U.S. companies
of serving overseas markets while not incentiv
izing them to move capital, skills and R&D outside
the country.
Although there is certainly room for improve
ment, overall, the changes made by the TCJA
recognize that reducing and rationalizing taxes
on business income are critical to spurring eco
nomic growth and producing more “bang for the
buck” than cutting taxes on individual income.
Importantly, these reforms benefited most
Americans. In the first two years after the TCJA
went into effect, we saw real median income rise
more than in the previous 10 years and the low
est unemployment rate for adults without a high
school diploma.
In the year following enactment, we also saw
GDP growth of 3% and a 20% increase in domes
tic investment for affected firms. Corporate
taxes paid have risen to record levels – not
because the tax burden on corporations was
increased, but because corporations were
more profitable; they were doing more business,
hiring more people, making more investments.
None of this would have been possible without
a competitive corporate tax rate.
Our Internal Revenue Code can be further
amended to incentivize growth and ensure a
fairer tax system overall.
On the first point, our tax system should provide
effective incentives for growth and innovation to
support entrepreneurs and small businesses.
Two such examples were in the tax code for
decades before Congress recently phased them
out: (1) recognizing the importance of capital
investments and (2) increasing expenditures for
R&D. Both are proven ways of growing the econ
omy and creating jobs.
As to ensuring a fairer system, there are still
numerous provisions for Congress to go after.
On the business side, the rules intended to pre
vent artificial shifting of taxable income outside
the United States need strengthening and a
number of specific industry tax breaks need
eliminating. On the individual side, there are also
many tax breaks that primarily benefit a certain
segment of the population: the wealthy. These
include carried interest, the ability to deduct up
to $10,000 of state and local taxes, and too
many creative estate tax planning techniques.
These tax breaks not only cost revenue but also
have the additional stigma of being perceived by
the American public as just another example of
institutional bias and favoritism toward a special
interest group. And consistent with ensuring a
fairer system, the U.S. tax code should incorpo
rate the “Buffett Rule” so that high-income
earners pay a minimum tax on realized income.
Everyone, including the wealthy, would benefit
enormously from the increased growth that
would follow if we amended our system the
right way. I think many people would have fewer
objections to paying a slightly higher tax rate if
they thought the money was being used wisely
to attack America’s biggest problems.
Finally, the tax code plays an important role in
helping to raise up those at the bottom of the
economic ladder. This includes incentives to
ensure an adequate and affordable housing
supply, such as the credit provision for building
affordable housing. It’s important that any tax
credit and social benefit program be properly
phased in so that it doesn’t dis-incent work. One
way the code could incentivize labor force par
ticipation is to expand and reform the Earned
Income Tax Credit (EITC). The EITC gives an
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individual earning $14,000 a year with two chil
dren a $5,600 tax credit (and with no children a
$350 tax credit). I would almost double this tax
credit and remove the child requirement. While
this would cost a lot of money, it has many vir
tues. It would give those with lower income far
more money to spend, without government
interference, on what they and their families
need – education, food, better housing and
more. And much of it would be spent locally, in
lower-income neighborhoods. It has the virtue of
rewarding work, which would grow the GDP.
Jobs not only bring dignity but better social out
comes in terms of less homelessness and crime,
improved health outcomes and more household
formation, among other benefits. For many peo
ple, that first job is just the first rung on the lad
der of a career. I have little doubt that this plan
would more than pay for itself over time. Many
Republicans and Democrats support this pro
gram as it helps create the American Dream for
many people.
OUR EDUCATION SYSTEM IS IN DEEP
NEED OF REFORM TO CREATE SKILLS,
JOBS AND OPPORTUNITY.
Much of our education system no longer truly
meets our country’s promise that its students
graduate with the skills they need to attain a
good job. The American Dream itself rests upon
our providing, as best as we can, equal opportu
nity to all our citizens. Education and jobs are
still the best way to achieve this. That certainly
can’t happen when so many of our schools are
not working.
In a number of our inner-city high schools, under
50% of the students graduate, and those who do
often don’t have the skills they need to hold a
well-paying job. Increasingly, poverty has
become intergenerational.
The growth of America was always driven by
productivity that matched capital investment
with skills, which is also the driver of individual
incomes. Fortunately, all we need to do is reori
ent what we do today. No investment is required.
It is essentially free; we just need to redirect
existing resources (the United States spends
almost $1 trillion a year on K-12 education) into
better outcomes.
Let’s begin with a refresh of our country’s
workforce training system.
Effective workforce training systems that align
education, training and the private sector are
necessary for securing well-paying jobs. There
are many successful examples, but one will suf
fice. Aviation High School in Long Island City,
New York, teaches its students not just the basic
high school curriculum but also how to maintain
small aircraft; i.e., hydraulic, engine and electri
cal systems, and other technical skills. Some
students travel several hours a day to get to
school, and often parents are the driving force
behind their child’s enrollment. The school
graduates about 450 students annually, many of
whom go directly into the aviation field. These
young people are currently earning in the range
of $80,000 a year (not including overtime) from
major U.S. airlines who are in desperate need of
these types of skilled workers.
Schools like this are the template we need to
follow, modernizing education and workforce
development programs to be responsive to
current workforce needs. The advent of AI and
technological change will require lifelong learn
ing and re-skilling. Career and Technical Educa
tion programs and alternative pathways, such as
apprenticeships, earn-and-learn programs and
work-based learning, also provide effective
career entryways.
Reforms to credentialed programs could also
increase access to careers with a future and
reward experience. We know exactly what to do,
though systems change is hard. There are mil
lions of jobs available for which training could be
done in high school, community college or spe
cial programs outside of school. For example,
there are training programs lasting 12-24 weeks
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in coding, advanced manufacturing, cyber, data
science, program management, and nursing and
healthcare-related areas. These trainings
should be certified and counted as credits for
undergraduate or graduate education. Many
unions run excellent apprenticeship and training
programs that certify workers for badly needed
high skilled jobs like welding, electrical work,
plumbing and others. These jobs can pay well in
excess of $100,000 a year.
Two other points: Pell Grants, which are govern
ment grants awarded to students to help pay for
eligible two-year or four-year colleges, should
be available for work credential programs. In
addition, the Workforce Innovation and Oppor
tunity Act should be reauthorized to support
Second Chance initiatives that give returning
felons an opportunity to receive training to
re-enter the workforce.
Higher education costs too much and is
insufficiently linked to outcomes.
Many people who graduate from college are
successful not solely because of their college
degree. Their opportunities stem from their
socioeconomic circumstances – how and where
they grew up – which offer them knowledge,
confidence, and often internships and relation
ships within the workplace that give them a leg
up. Even with all of that, over 30% of those who
obtain college degrees face underemployment;
i.e., low-paying jobs. They, too, need skills. You
can major in philosophy or history, but a creden
tial of value in coding, data science and analyt
ics, graphic design, financial accounting, digital
marketing or engineering can lead to jobs mak
ing $80,000+ a year.
Some portion of higher education funding
should be linked to outcomes focusing less on
graduation and employment rates and more on
income levels of graduates.
The federal student lending system needs to be
reformed to help ensure that the borrower’s
education is leading to a good-paying job. This
would be better for the student, would reduce
future loan losses and would discourage simply
driving education costs up.
Early childhood education is critically
important (it’s a long-term investment so
start now).
Early childhood education is a long-term invest
ment so it is important to start now. Universal
pre-K and other early childhood programs
enhance educational outcomes and increase
parent labor-force participation. Almost every
study I have seen shows the tremendous return
on this investment (some even showing two to
four times for every dollar invested) even though
it appears as a cost in the early years. Included
among the positive outcomes for both the par
ent and the child are early childhood education
and higher levels of income, good health and
parental employment.
All students should receive a basic financial
education.
Financial education should be taught as part of
the K-12 education system. Everyone, and in par
ticular our young people, should understand the
basics: the need for a rainy day fund, how to look
at savings, the value of a checking account
(versus payday lending), the value of homeown
ership, the importance of saving for retirement
and other basic principles. Specific financial
coaching delivered simultaneously with opening
a first bank account would also be very effective.
Teaching health and well-being in grades
K-12 would benefit all our citizens.
A basic understanding of health, exercise and
nutrition would be a huge benefit for our society.
Ninety percent of our nation’s $4.5 trillion in
annual healthcare expenditures are for people
with chronic conditions (certain cancers, heart
disease, diabetes, obesity, musculoskeletal dis
orders and mental health). Preventive medicine
and early interventions to manage these dis
eases, especially those directly related to
behaviors (smoking, drinking, poor exercise and
nutrition) can have significant health and eco
nomic benefits. One small but meaningful exam
ple: Cigarette smoking costs the United States
more than $240 billion in healthcare spending.
This could be reduced every year if we could
prevent young people from starting to smoke
and help those who do smoke to quit.
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WE MUST REMEDY THE HEALTHCARE
SYSTEM, BOTH TO REDUCE COSTS AND
IMPROVE OUTCOMES.
America has among the best and worst of
healthcare. While we may have the best doctors,
hospitals, pharmaceutical industry, medical
devices and more, our average outcomes are
not good, and our costs are double those of our
global competitors (17% of GDP versus 9% in
other countries). In addition, 27 million people
don’t have insurance, and, as mentioned above,
preventable chronic diseases run rampant.
Our healthcare system also lacks transparency
around costs, pricing and proper incentives
since the user never effectively pays the full
price. We need to begin reform right away.
A few simple policy changes would go a long
way toward improving all of this:
1.
Healthcare data should be tabulated in a
consistent way across all healthcare organi
zations and providers.
2. All healthcare data should belong to the indi
vidual and, therefore, be transferable (and
not used for unauthorized purposes by
anyone).
3. Increasing transparency for both the compa
nies and the patients is essential, ensuring
clarity about the cost of care. Additionally,
patients should understand what their medi
cines will cost them and be eligible for vol
ume discounts, including rebates.
4. Healthcare would be more affordable if the
exchanges were national and offered a
broader range of insurance options people
could buy.
Better data and more consistent standards
across Medicare, Medicaid and commercial
markets are needed, with transparency and
elimination of fraud and waste being key to sta
bilizing markets and portability being important
for empowering patients.
Engaging employees by prioritizing health edu
cation and literacy can help make them
informed consumers of healthcare and wellness.
Addressing the significant problem of medical
bankruptcy in the United States is crucial, and
medical bills should not be calculated as part of
credit scores.
One day, individuals should be responsible for
purchasing their own healthcare. Healthcare
should not be an annual purchase – you should
be able to make a long-term buy, which means
you would be the beneficiary of taking care of
your own health.
One final point. Over the last 100 years, the
health of our citizens and our workforce has
played a significant role in increasing productiv
ity for American workers. Some studies show
that over the last 25-30 years, this may have
accounted for as much as 45% of productivity
growth over time. Healthier workers and the par
ticipation of older workers (due to their accumu
lated knowledge and wisdom) are the main
reasons.
WE CAN IMPROVE EFFECTIVE
REGULATIONS WHILE REDUCING
CRIPPLING RULES, DEMORALIZATION,
AND ARBITRARY AND EXPENSIVE
LITIGATION.
I don’t even know where to begin! How did the
can-do, commonsense practical America end
up here? Clearly, something is broken. We have
gotten to the point where we barely talk about
improving our regulations. We only talk about
adding more – contributing to endless,
mind-numbing and demoralizing bureaucracy.
Studies show that the cost of our regulations
(which do have some productive outcomes) is
over $3 trillion annually. J.P. Morgan Global
Research estimates that relative to the United
States, more restrictive regulation reduces long-
term growth in the five largest European Union
economies by 0.8% per year, and in China by
2.4% per year. These regulations are at the fed
eral, state and local levels, and they affect every
industry and business, small and large. They
range from permitting and licensing to employ
ment rules and tax compliance (and much
more). Each of these rules could easily be fixed.
Take permitting, for example. Various regula
tors, state and federal, should be forced to
approve projects sequentially. Some countries
(Singapore and Canada) have rules to reduce
permitting timelines substantially to two years
or fewer (ours can take over 10 years). Regula
tions shouldn’t be like concrete (immovable) –
they should be constantly improved. U.S. law
already requires major rules and regulations to
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33

have a cost-benefit analysis done – this needs to
be fully enforced. There are hundreds of rules to
fix. Often these regulations are targeted at the
financial and technology sectors, whose indus
tries help drive our dynamic economy.
The cost of our tort system is over $500 billion a
year, a little more than 2% of our GDP. While the
tort system plays an important role in compen
sating victims and deterring irresponsible
behavior, our system is capricious and arbitrary.
Since the loser never pays, there is a great
incentive for someone to sue and for the person
being sued to settle. Much of the compensation
never even gets to the victims. These costs
are two-and-a-half times the average level of
eurozone countries. One example of a major
improvement would be Florida’s recent reforms,
which seem to have both reduced the excessive
cost of torts to the system while giving people
better odds of proper recompense.
These excessive regulatory and litigation costs
result in higher costs across the whole economy,
including infrastructure, utilities, education and
other essentials. Proper federal, state and local
regulations, along with permitting reform, are
necessary to reduce delays and litigation. Mini
mizing red tape would make it easier, cheaper
and faster to build infrastructure such as roads,
schools, bridges, energy facilities and homes. A
little common sense would go a long way.
One last point: Excessive regulations make
it much harder to start a new business, and
they often reduce competition. And they
almost always hurt smaller companies more
than larger ones.
WE COULD DO A BETTER JOB
SUPPORTING SMALL BUSINESSES.
Small businesses power job growth in America
– they account for two-thirds of new jobs and
employ nearly half of the American workforce.
Our entrepreneurial ecosystem has been the
envy of the world for generations, and it is
essential to create a policy environment that
facilitates small business creation, growth and
continuity.
Business starts have been above-trend for sev
eral years, but the failure rate remains high –
50% fail in the first five years. Public-private
partnerships can help fill the capital gap in the
white space between venture funding and bank
lending.
Small business owners in low-to-moderate
income areas face more headwinds than those
in wealthier communities, so tax benefits and
community education programs play an import
ant role in helping communities lift themselves
up through commerce. While banks will remain a
critical supporter of small business in their
growth phase, the Small Business Administra
tion’s role is crucial and agency modernization
must remain a priority, including reforms to the
Small Business Investment Company program
and the National Technical Assistance program.
Finding qualified talent is the #1 challenge fac
ing small businesses owners, and nearly 40% of
them have job openings that they can’t fill. Pub
lic partnerships with trade schools and commu
nity colleges can increase the supply of skilled
labor. As mentioned in the education section,
there are many ways to increase the supply of
skilled labor.
Innovative healthcare legislation can reduce
healthcare costs and help small businesses
compete with larger employers for talent.
Just like for larger businesses, there is a need for
predictability in tax policies, litigation processes
and the EITC – over 15% of small business own
ers cite these issues as their most pressing
problems. Many small businesses face a heavier
burden from state and local regulations than
from federal ones so seeking best practices
from multiple jurisdictions to streamline require
ments can support business operations and
growth.
Finally, we must prepare for the coming “silver
tsunami” in small business – 75% of business
owners would like to exit their business in the
next decade, representing trillions of dollars in
business wealth at stake. There will be substan
tial turnover in small businesses in the next
decade, and we must prepare the next genera
tion with the skills and passion to take the baton.
Local communities can help protect their tax
and employment base by investing in succes
sion and transition education programs.
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34

WE SHOULD HAVE PERMANENT PLANS
TO CONSISTENTLY DRIVE THE BUILDING
OF GREAT INFRASTRUCTURE.
Every state, city and municipality should have
multi-year infrastructure plans. Improper plan
ning and ineffective execution are rampant,
costly and potentially dangerous. Waiting for
bridges to be near collapse or airports to be
overly crowded is a bad idea. This planning
could include manufacturing sites, maritime,
grids, housing, pipelines, canals, broadband and
highways, to name but a few.
WE CAN MAKE IT EASIER TO BUILD A
MORE AFFORDABLE HOUSING SUPPLY.
To address the housing supply issue, it is
important to increase funding for effective,
affordable housing production programs. This
can be partially and easily achieved by expand
ing the already successful Low-Income Housing
Tax Credit programs. Additionally, incentivizing
investments that increase economic opportu
nity in disinvested communities is crucial, and
making the New Markets Tax Credit program
permanent would support this goal.
In terms of mortgages, reducing unnecessary
regulations would decrease homeownership
costs. Streamlining loan origination and servic
ing standards, reducing capital requirements
and simplifying securitization rules would
reduce the cost of mortgages without making
them riskier. These simple reforms could lower
the cost of mortgages by 70–80 basis points.
The costs of unnecessary regulation go beyond
price - they impact the availability of credit and
who can qualify for a mortgage. The Urban Insti
tute estimates that a reduction like this would
increase mortgage originations by 1 million per
year and help lower-income households, in par
ticular, buy their first home. This would specifi
cally help individuals buy homes in the
$150,000–$300,000 range. Buying a home, still
a pillar of the American Dream, is simply the
best way for individuals to start building house
hold wealth.
Good and consistent local zoning requirements
– that are executed with a sense of urgency – are
essential in building more affordable housing.
Finally, the availability of more housing, particu
larly lower-income housing (it’s generally more
economical to build denser housing than
detached housing), would help people move out
of rental properties sooner and reduce rents for
those who do continue to rent.
WE CAN STRENGTHEN OUR FINANCIAL
SYSTEM AND MARKETS.
While we have the best financial system in the
world, it can always be improved. And of course,
our financial system should have good con
sumer protections to prevent Americans from
being tempted to purchase bad products or
being misled, as well as strong regulations to
protect the country from the failure of financial
institutions. Since the great financial crisis (the
financial system deserved a lot of the negative
attention it received), we’ve made many
improvements to regulations. However, as usual
in a crisis, we also overreacted.
Fundamentally, we need a dynamic regulatory
structure that facilitates growth and innovation
rather than one that continuously imposes top-
down mandates or promotes the constant
demonization of corporations and financial ser
vices. Shortsighted and misguided policies
often sound good politically but usually have
unintended consequences that frequently hurt
the very people those policies are trying to help.
Healthy financial systems are the lifeblood of a
healthy economy. You only need to look at many
countries around the world to see the damage
done to their economy by misguided financial
policies and regulations. I’d like to suggest a few
ways we can make our regulatory system better
for all Americans.
We need to improve bank regulations.
It is a completely false narrative that there has
been any type of looser regulation on the largest
banks since the Dodd-Frank Wall Street Reform
and Consumer Protection Act (Dodd-Frank) was
passed. Capital requirements and other regula
tions have been on a relentless march upward
even as banks have become proportionally
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35

smaller within the financial system (see chart
above). All of this makes banking and banking
services (loans) not only more expensive but
less available; these costs eventually will be
passed on to the consumer and businesses and
result in a slower-growing economy.
Dodd-Frank did do some good things, mostly
by improving capital and liquidity requirements
and by creating resolution mechanisms for
failed investment banks. But even for the regula
tors, Dodd-Frank set up a balkanized and dys
functional regulatory system with too many
cooks in the kitchen. This is hard for the regula
tors as well as the banks – not only does it result
in excessive and duplicative regulations, but it
also makes it more difficult for regulators to be
responsive and nimble in a rapidly changing
environment. You might ask why has it taken 10
years to finish Basel III?
The enormous rules and regulations by multiple
regulators that make up the Comprehensive
Capital and Analysis Review (CCAR) stress test
and examination are tens of thousands of pages
long; our most recent Resolution and Recovery
plan was 80,000 pages long; and the regula
tions around global systemically important
banks (G-SIB), liquidity, trading and operational
risk have proved to be absurd and even harmful.
Many of the tests we are required to perform are
not even remotely accurate in measuring true
risk – and this causes distortions on how and
when capital is allocated and creates large
opportunities for unnecessary arbitrage.
The CCAR stress test, in particular, is highly
flawed. While it essentially repeats the condi
tions during the great financial crisis, it does not
take into account any of the structural improve
ments to regulations, underwriting and product
offerings since then. The reported results of the
test do not come close to anything that would
actually happen if the hypothetical scenarios
were to happen – they unfairly misled the true
strength of the banks. The numbers are simply
inaccurate. It would be far better to perform
accurate testing, and then if the regulators
wanted to add conservatism on top of that, they
should do so prudently and transparently. I have
mentioned many times before that we conduct
hundreds of stress tests a week to protect our
selves from a wide range of possible bad out
comes – not just the CCAR scenarios.
The supplementary leverage ratio and G-SIB
capital rules also treat U.S. Treasury securities
and repurchase agreements as far riskier than
they actually are. And the liquidity coverage
ratio treats all other securities and loans as
riskier than they are. These rules effectively dis
courage banks from acting as intermediaries in
the financial markets – and this would be partic
ularly painful at precisely the wrong time: when
markets get volatile.
So now is a good time to go back and ask basic
questions that should have been asked before
and, in fact, were required to be asked by legis
lation: What is the cost/benefit of these rules,
and what is the interplay between them? What
do you want the expected outcome to be? For
example, do you want mortgages and leveraged
lending outside the banking system? Many of
these rules incent capital and even companies
1 Represents fully phased-in requirements; risk-weighted
assets as of 4Q24
Sources: Company filings of Bank of America Corporation,
The Bank of New York Mellon Corporation, Citigroup Inc.,
The Goldman Sachs Group, Inc., JPMorganChase, Morgan Stanley,
State Street Corporation and Wells Fargo & Company
GSIB = Global systemically important bank
Required Amount of Risk-Based
Common Equity Tier 1
Capital for U.S. GSIBs1
($ in billions)
4Q24
4Q17
$707
$837
+18%
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36

Size of the Financial Sector/Industry
($ in trillions)

2007
2010
2024
Banks in the
financial system
Global GDP1
Total U.S. debt and equity market
Total U.S. broker-dealer inventories
U.S. GSIB market capitalization
U.S. bank loans
U.S. bank liquid assets2
U.S. treasuries outstanding
U.S. primary dealer inventory

$
58.6

$
54.3

$
6.2

$
0.9

$
6.5

$
1.5

$
9.2

$
0.4

$
66.7

$ 56.0

$
4.1

$
0.8

$
6.6

$
2.8

$
14.0

$
0.2

$
110.1

$ 154.9

$
5.3

$
1.8

$
12.7

$
7.4

$
36.2

$
0.5
Nonbank financial
institutions
Hedge fund and private equity AUM3
Top 50 sovereign wealth fund AUM4
Global private credit AUM5
Global venture capital AUM6
Global family office AUM
Loans held by nonbanks7
U.S. money market funds8
U.S. private equity-backed companies (K)
U.S. publicly listed companies (K)9
Nonbank share of mortgage originations10
Nonbank share of leveraged lending5
1996
7.3

$
3.1

$
2.7

$
0.2

$
0.3

$
15.3

$
3.1

4.9

4.6

12%

44%

$
3.4

$
4.1

$
0.3

$
0.4

$
13.8

$
3.0

6.0

4.2

54%

$
11.0

$
13.5

$
$1.6

$
3.1

$
21.9

$
7.2

11.8

4.0

75%

68%
Sources: Assets and Liabilities of Commercial Banks in the United States H.8 data, Bloomberg, Dealogic, Deloitte, FactSet, Federal Reserve Bank of New York, Federal Reserve
Board, Financial Accounts of the United States Z.1 data, Hedge Fund Research, Inside Mortgage Finance, International Monetary Fund, Pitchbook, Preqin, Sovereign Wealth Fund
Institute, S&P Global Market Intelligence and World Federation of Exchanges
AUM = Assets under management
GDP = Gross domestic product
GSIB = Global systemically important bank
NA = Not available
K = Thousands
For footnoted information, refer to page 59 in this Annual Report.
to be private as opposed to public. Financial
risks have grown dramatically outside of the
banking system, where there may not be the
same liquidity or transparency. We have created
large and sometimes leveraged arbitrage
opportunities. Similar products now have com
pletely different rules and requirements. The
chart above shows the extraordinary growth in
nonbank institutions and in private credit and
private companies. Is this what we wanted?
Additionally, we have not adequately under
stood how the extensive changes that regula
tions had on loans and liquidity affected money
supply and monetary policy and, therefore, the
growth of the economy. Banks used to lend out
nearly 100% of their deposits, and now they lend
approximately 70%. Before the great financial
crisis, banks had less than 15% of their assets
held as liquid assets, and they now hold over
30%. If that capital and liquidity, now sitting idle,
could be put to better use driving the economy
without creating additional risk, shouldn’t we do
this? Again, what is the effect of all this, and is
this what we wanted to achieve?
I do believe if we take a proper re-look, we can
create more liquidity in the system and more
clarity in resolution, eliminate most bank runs
and reduce the cost of any bank failure, increase
the amount of credit while lowering its cost, sim
plify regulations and improve access to banking
for the unbanked – all the while maintaining a
safe and sound banking system. Shouldn’t those
be our collective goals?
One final point: If all these rules ended up being
properly modified, JPMorganChase would be in
a position to extend, over time, hundreds of
billions of dollars in extra lending annually. Many
other banks would be in the same position.
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37

able that simplifies the investing process with
favorable tax treatment. Account holders can
deposit and withdraw funds at any time, and
there is no capital gains tax – just an annual tax
of 1% on the balance. This has dramatically
increased investment by retail investors into the
Swedish stock market.
The decline of the defined benefit pension sys
tem was fueled by funding rules that can affect
cash flow and sometimes credit ratings, along
with accounting changes for corporate plans
that can create huge volatility in a company’s
earnings and balance sheet. America’s critically
important retirement policy should not have
been undermined by accounting rules. For the
defined benefit pension system to remain a via
ble component of our retirement system, we
should return to a model that does not penalize
pension funds for taking some investment risk.
Guardrails are necessary: We need clear rules
that ensure pensions are properly funded and
transparent so that participants have confi
dence in the system and the burden isn’t trans
ferred to taxpayers (roughly $70 billion has been
paid to struggling defined benefit plans under
the American Rescue Plan’s Special Financial
Assistance program). A well-funded pension
plan offers an investment-supported, tax-advan
taged mechanism for employers to deliver
retirement benefits cost-effectively.
We need to encourage public markets.
Our public markets have been shrinking dramat
ically, which I do not believe is a good thing. The
number of public companies has gone from
7,300 in 1996 to 4,000 today – it should be
15,000 today. This situation is the result, I
believe, of a combination of factors: costly regu
lation and listing requirements; litigation; frivo
lous shareholder meetings; interference by
non-governmental organizations; irresponsible,
not-shareholder-friendly and misguided proxy
advisors; lack of research for smaller compa
nies; and cookie-cutter compliance require
ments for boards, among others.
We need to improve our retirement system.
In 1980, 84% of our country’s private workforce
had access to defined benefit plans versus 15%
today. At present, 85% of the private workforce
has access to defined contribution plans only,
mostly 401(k)s. Defined benefit plans give indi
viduals a known and guaranteed income that
supplements their Social Security benefits,
while employers invest the pension funds’ capi
tal to generate long-term returns and manage
asset-liability risk.
Currently, many people are not prepared to deal
with self-directed retirement plans, such as
401(k)s: They don’t necessarily know how to
invest the money; and they don’t know how long
they will live in retirement. Defined benefit plans
address these concerns by transferring the
investment risks and the mortality risk from the
individual to the company.
Nonetheless, significant progress has been
made to enhance the defined contribution sys
tem’s effectiveness for individual savers. Enroll
ment is now the default option while employer
matching has become the norm, and profes
sionally managed target date funds offer a sim
ple age-based model of investing. A young
worker today will have a much better chance of
reaching a successful retirement outcome than
previous generations.
401(k) plans still have room for improvement.
They should become more cost-effective and
simpler to use for both employers and individu
als. For example, 401(k)s should be portable
when workers change jobs, and offered in a stan
dardized form that can be used by multiple small
businesses. Finally, and this is happening now,
these plans should be designed with features that
make them more like defined benefit plans.
We can learn some valuable lessons from how
other countries balance adequate contributions,
professional investing, simplified structures and
tax efficiency. Australia has an excellent retire
ment system in which employers effectively
contribute 12% of ordinary pay into an account
that is invested by professionals; the funds are
available to the employee upon retirement. In
Sweden, an investment savings account is avail
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38

Regulations should encourage, rather than dis
courage, companies to go public. We can
achieve a more active market for small compa
nies by allowing investment banks to sponsor
smaller companies with research and market
making. This could be accomplished by reduc
ing the cost of listing, enacting tax policies that
favor equity investment and allowing more flexi
bility in listing (e.g., dual voting, simpler disclo
sures, reduced proxy access, smaller boards).
Litigation would need to be kept to a minimum to
allow this to take place. Sweden is an example of
a country with a thriving stock market due to
reforms made along these lines.
Finally, these changes would not only make it
easier for companies to be public but would also
improve capital access and create more innova
tion and, therefore, propel more economic
growth. And great investments would be avail
able to the average retail investor.
LOCAL DEMOCRACY WORKS: LET IT
SHINE AND LEARN FROM IT.
In their book Our Towns, James and Deborah
Fallows describe their visits to dozens of small
cities and towns across America (the largest
being Columbus, Ohio) in 2019 to see what was
happening outside of major cities. What they
learned was this: Local democracy works and is
not nearly as polarizing as reported in major
media outlets in big cities. Local businesses,
mayors and civic societies work together to
create jobs, improve schools and enhance their
community’s quality of life (parks, river walks
and other amenities). People generally collabo
rate, treat each other with respect and attack
their local problems. Universities are often a
critical part of this equation. What Mayor Mike
Duggan did to turn Detroit around is an unbe
lievable example of what can be done in a major
city. These cities fix their local problems: They
experiment, they learn and they eventually win.
Small democracy works – and we can learn a lot
from it.
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39

III. Specific Issues Facing Our
Company
The last five years have been a period of signifi
cant growth for us – as evidence, we added
more than 60,000 people to our workforce.
While we have been very successful during this
time, which was complicated by the pandemic,
we allowed some bad habits to develop. Working
from home exacerbated the situation by hinder
ing innovation, slowing decision making, inhibit
ing information sharing, reducing efficiency, and
creating more politics and bureaucracy. In the
next section, Management Learnings, and in the
letter by our Chief Operating Officer, we talk
about various ways we seek to keep our com
pany healthy and some specific efforts we are
making to maintain our grit, our edge and our
efficiency – all while keeping a keen sense that
our competition around the world is always gain
ing. Here I outline how we are dealing with par
ticular business challenges.
WE TAKE A LONG VIEW IN DEALING
WITH OUR EXCESS CAPITAL.
Depending on what happens with all future reg
ulations, we have somewhere between $30 bil
lion to $60 billion in excess capital. While this is
a nice problem to have, it does require some
explanation on how we plan to deal with it. We
aim to maintain a very secure dividend of 30% to
35% of current earnings. When it comes to capi
tal deployment, our first priority has always been
to invest in organic growth – as growth with
good returns is the greatest value driver. Our
second priority would be to use that capital for
acquisitions, but, for a variety of reasons, we find
it hard to imagine a sufficiently compelling
large-scale acquisition at this time. Our last pri
ority would be to buy back stock. We believe
that buying back stock should benefit ongoing
shareholders rather than simply returning cash
to exiting shareholders. Therefore, buying back
stock, which might be a no-brainer at one times
tangible book value, becomes a stretch above
two times the tangible book value. This explains
why our stock buyback program has not used
up all of our capital generation and why our
equity capital has grown. We are very patient,
and don’t believe that there is any magic to the
next 12 months, and, therefore, we look at
excess capital as earnings in store or reserve –
waiting to be used.
After reading the first section of this letter about
the state of the world and the many risks facing
the global economy, we hope you can see why
we also believe that now is a good time to retain
lots of extra capital and liquidity.
WE BRING AN INVESTOR/OWNER
MINDSET TO DRIVE ORGANIC GROWTH.
We are very fortunate to be able to drive organic
growth in virtually every part of our company –
and at healthy returns. Organic growth is hard,
but it’s the best way to drive long-term, sustained
shareholder value. You can read about many of
these initiatives in the CEO letters of this Annual
Report. Suffice it to say, organic growth involves
adding bankers, branches, technology, products,
services and countries virtually everywhere (we
opened two new branch offices in Africa this year:
in Kenya and Côte d’Ivoire). I had the privilege of
visiting Kenya in 2024 with two of our senior
executives who grew up there – it was quite mov
ing to meet their families – both to see how
important it is for Kenya to have JPMorganChase
in their country and to see the great American
story of how America can attract, train and
develop great talent. You couldn’t help but be
moved to see the pride on the mothers’ faces for
their son’s and daughter’s achievements and the
tears of joy in their eyes.
The CEO letters cover our new affluent client
drive following the acquisition of First Republic,
new payment systems, enhanced development
finance efforts, private credit and our huge new
efforts around the growing Innovation Economy.
Our great economies of scale allow us to invest
and compete – with much of our growth driven
by technology builds of new products and ser
vices. We are constantly assessing the land
SPECIFIC ISSUES FACING OUR COMPANY
40

scape and do expect lots of competition from
existing competitors and fintech companies. We
need to be as nimble as they are and use our
skills and capabilities to stay ahead.
OUR LARGEST RISK IS GEOPOLITICAL
RISK.
You have already read about the high and grow
ing geopolitical and global economic risks. We
constantly evaluate various potential outcomes
(tabletop exercises) to ensure we can handle a
range of scenarios. One of the largest risks we
face is cyber attacks, both directly on our bank
and on critical infrastructure; e.g., energy, com
munications. We also look at other potential
large risks, such as war, hybrid and cyber war
fare, energy disruptions and ongoing global
threats, among other dangers. When we look at
these various scenarios, we try to analyze and
make sure we can handle not just the immediate
effects on our company but also the secondary
and tertiary impacts: effects on clients and
potential dramatic repercussions on markets
and the global economy. While we are not pre
dicting or even expecting some of these terrible
events, we believe that it is our job to be a source
of strength, particularly in the toughest of times.
WE’RE NOT IN KANSAS ANYMORE:
ECONOMY, INFLATION, INTEREST
RATES, ASSET PRICES, TRADE WARS,
OH MY!
The United States has had a rather healthy
and steady economy for years, although it
was already weakening as I began writing this
letter – and that was before the recent tariff
announcement
The economy is facing considerable turbulence
(including geopolitics), with the potential posi
tives of tax reform and deregulation and the
potential negatives of tariffs and “trade wars,”
ongoing sticky inflation, high fiscal deficits and
still rather high asset prices and volatility.
Before I get into some of these issues, there is
a really big “BUT” about what is considered
America’s exceptional economic performance:
Part of this performance has been driven by
extraordinary deficit spending and the quantita
tive easing that took place. Since COVID-19, the
federal government has borrowed and spent
almost $11 trillion, and the Federal Reserve
bought over $4.5 trillion in securities, creating
huge liquidity in the financial system. Some of
the results are exactly what you would expect:
strong growth, inflation and higher corporate
profits due to all the spending. But the U.S. defi
cit remains very large at just below $2 trillion, or
6.6% of GDP, which is the highest peacetime
level ever not driven by recessionary needs (as,
for example, during the pandemic). This high
U.S. deficit also is associated with large trade
deficits and is happening while our debt-to-
GDP ratio is already over 100%, which is another
peacetime high. The rest of the world has ele
vated debt levels and high fiscal deficits as well,
although few as large as those of the United
States. These large deficits are not sustainable
– I do not know whether it will cause a real prob
lem in six months or six years – the sooner we
deal with it, the better.
Tariffs and non-tariff barriers have always been
hotly contested in trade negotiation. Non-tariff
barriers come in many forms and have been
growing over time (regulatory barriers, govern
ment procurement, export subsidies, food
restrictions, etc.). Recently, value-added taxes
(VAT) have entered this debate. Economists
generally see VATs as a tax on domestic expen
ditures that does not discriminate on the source
of spending. But since the VAT does not tax
exports, some see them as a non-tariff trade
barrier. In any event, their effect on trade may
not be very large.
Whatever you think of the legitimate reasons for
the newly announced tariffs – and, of course,
there are some – or the long-term effect, good
or bad, there are likely to be important short-
term effects. As for the short-term, we are likely
to see inflationary outcomes, not only on
imported goods but on domestic prices, as
input costs rise and demand increases on
domestic products. How this plays out on differ
ent products will partially depend on their sub
stitutability and price elasticity. Whether or not
the menu of tariffs causes a recession remains
in question, but it will slow down growth.
SPECIFIC ISSUES FACING OUR COMPANY
41

There are many uncertainties surrounding the
new tariff policy: the potential retaliatory
actions, including on services, by other coun
tries, the effect on confidence, the impact on
investments and capital flows, the effect on
corporate profits and the possible effect on the
U.S. dollar. The quicker this issue is resolved,
the better because some of the negative effects
increase cumulatively over time and would be
hard to reverse. In the short run, I see this as one
large additional straw on the camel’s back.
I am hoping that after negotiations, the long-
term effect will have some positive benefits for
the United States. My most serious concern is
how this will affect America’s long-term eco
nomic alliances, as I have written about in the
first section.
Our economy also faces the unknown effects of
quantitative tightening – you must remember we
have never had this much quantitative easing
and, therefore, quantitative tightening before.
This introduces another element of uncertainty,
which, in my view – particularly in conjunction
with the restrictions put on market making by
primary dealers – will likely lead to much higher
volatility in the treasury markets. This higher vol
atility is not necessarily bad for JPMorganChase,
but it is not particularly good for the capital
markets. Fortunately, there are many regulatory
changes now being discussed that could amelio
rate the situation.
While inflation has come down, most of what I
see in the future is inflationary: continued high
fiscal deficits, the remilitarization of the world
and the need for infrastructure investment,
including the green economy and the restruc
turing of trade and tariffs.
Another critical point: All these factors will
impact interest rates. While the Federal Reserve
essentially controls short-term interest rates, it
does not effectively control 10-year interest
rates. The Fed can take actions that can affect
the 10-year interest rate in the short run, but,
ultimately, the 10-year rate will be based upon
inflation, the strength of the U.S. economy and
expectations of the future value of the dollar, and
the supply and global demand for long-term
treasuries. All things being equal, the slower the
growth, the lower the interest rates, and the
higher the inflation, the higher the interest rates.
This tug-of-war can go on for some time, but it’s
good to remember that in the stagflation of the
1970s, recessions did not stop the inexorable
trend of rising rates. While interest rates have
come down recently due to the weakening dol
lar, the risk off trade and the prospect of slower
growth, this trend could still reverse.
Moreover, it is worth noting that we enter this
time of uncertainty with high equity and debt
prices, even after the recent decline. No matter
how you measure it, equity valuations are still
well above their historical averages. And credit
spreads are still near the low end of these same
ranges. Markets still seem to be pricing assets
with the assumption that we will continue to
have a fairly soft landing. I am not so sure.
All of these cross currents and turbulence may
take years to play out. It is almost impossible to
confidently put them into a quarterly or even
annual forecast. We always hope for the best,
but we are prepared for a full range of outcomes
– lower or higher rates and potentially lower
asset prices, all of which could be driven by
different factors, including inflation, recession,
high capital demand, successful trade negotia
tions, regulatory and/or tax reform, or adverse
effects from ongoing wars. Even with fairly
extreme outcomes, our company would remain
healthy.
Finally, I would like to close this section by reiter
ating that I still have an abiding faith in America
– the exceptional strength of our innovative
economy and our resiliency.
CONSUMER PAYMENTS HAVE BECOME
A NEW BATTLEGROUND.
There is a lot of misunderstanding about the
value and cost of a consumer checking account.
Our consumer bank serves nearly 44 million
customers and just over 60 million accounts. It
costs approximately $225 for us to maintain an
account, of which roughly $150 is a fixed
expense. Included among these costs are all the
branch expenses, the people expenses and the
cost of onboarding accounts (including verifying
customers’ identity and meeting Know Your
Customer and anti-money laundering require
ments). They do not include certain litigation
costs or the cost of capital, which would add
another $1.5 billion or essentially $25 per
account. Our consumer accounts also come
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42

with an extraordinary number of services, gen
erally free checking, free direct deposit, superior
fraud protection, 24/7 access to call centers,
access to cash from branches and ATMs nation
wide, free investment accounts, free wealth
planning, and free and safe payments, including
debit cards, Zelle and more.
Consumers “pay” for these accounts by the bank
retaining net interest on deposits, which has
averaged around 2.25% or approximately $275
a year per account. However, for accounts with
lower balances, which make up the majority of
accounts, this is generally around $25 a year.
Banks also receive certain fees, such as monthly
account fees, overdraft fees and debit card fees,
which on these accounts is usually around $100
a year. For these lower balance accounts, our
costs to maintain and operate them are far
greater than what we make from them.
Debit revenue, which is paid by the third party
receiving the payment rather than the con
sumer, was cut in half due to the ill-conceived
Durbin Amendment (the average revenues from
debit went from approximately $130 to $60 –
this had been a large share of the revenues from
smaller accounts). In setting the pricing for debit
cards, the government looked only at the cost
of the debit card swipe, which is illogical as that
assumes a debit card is a separate and distinct
product from its underlying checking account.
Debit cards are a feature of the checking
account that enable consumers to access their
funds to pay merchants. Therefore, the true cost
of providing debit cards should also include the
costs associated with operating checking
accounts (e.g., the costs of branches, bankers
and so on). Predictably, to make up for their lost
revenue, banks had to increase their fee sched
ules, causing approximately 1 million more indi
viduals to become unbanked. The Durbin
Amendment is the only case I can think of where
the government determined the pricing between
two big industries, in this case banks and
retailers.
Retailers now pay banks like ours that are sub
ject to this government-mandated pricing 47
basis points (0.47%), on average, for debit card
transactions. This is far cheaper for retailers
than debit card alternatives, such as cash and
checks, while debit cards also provide retailers
immediate guaranteed money and are preferred
by consumers. All retailers bear a high cost of
processing cash (including defalcation, cash
sorting, delivery of cash to a bank, counterfeit
funds and higher insurance because of robber
ies). The cost of processing cash, even for the
largest retailers, is probably more than 4% of the
payment. It is unfortunate that retailers and
banks have been in a battle for years over who
should bear the cost of processing money – and
that retailers continue to use “lawfare” to get
their way. This also makes it ironic that retailers
are now adding “buy now-pay later” features as
another payment option for their customers,
which usually cost the retailer considerably
more than processing a debit or even credit card
transaction.
Our Consumer Bank lost $500 million from fraud
last year – $300 million from losses as a result of
customer fraud committed on us (for example,
counterfeit deposited checks) and $200 million
from reimbursements to customers who were
victims of fraud (it is our policy to reimburse
100% of valid fraud claims). Unfortunately, we
must also process thousands of scam claims
where customers authorized transactions but
should not have done so (for example, buying
nonexistent products or sending money to fake
websites), often because they were misled by
bad actors. The loss rate to scams for our cus
tomers is amongst the lowest in the industry,
and lower than nonbank payment providers.
That is because we have made significant
investments in fraud and scam detection, as well
as prevention capabilities, and believe that our
efforts have prevented Chase customers from
losing $12 billion. Fraud and scams are a societal
problem, and we need law enforcement, retail
ers, social media, telecom companies and oth
ers to work together to stop these crimes at the
source.
Now a new battle is brewing: Third parties want
full access to banks’ customer data so they
can exploit it for their own purposes and profits.
Contrary to what you may read, we have no
problem with data sharing but only if it is done
properly: It must be authorized by the customer
– the customer should know exactly what data is
shared and when and how it is used; third par
ties should pay for accessing the banking sys
tem and payment rails; third parties should be
restricted from using the customers’ data for
SPECIFIC ISSUES FACING OUR COMPANY
43

purposes beyond what the customer authorized,
and they should be liable for the risks they cre
ate when accessing and using that data. When
banks utilize third party data, they will be, and in
most cases already are, subject to these same
obligations.
Banks provide fantastic services, and it’s time to
defend ourselves – in the public realm or in
court if need be.
WE DEVOTE SIGNIFICANT RESOURCES
TO STRATEGIC INTELLIGENCE TO
INFORM CHANGE AND SHARE OUR
KNOWLEDGE.
One of JPMorganChase’s roles in the global
financial system is to educate ourselves and the
world about companies, markets, countries and
critical economic issues. With a team of over
700 senior analysts, we perform extensive
research on more than 5,000 companies and
over 75 countries, spanning more than 20 spe
cific sectors. Making ourselves, our clients and
countries smarter, including about good public
policy, has always been our goal. Doing this
effort costs us over $1 billion a year. Given the
importance of strategic intelligence, we have
added a few critical elements, as follows:
• JPMorganChase Institute. Ten years ago, we
created the JPMorganChase Institute to
deliver unique data and insights to help solve
some of our most pressing economic chal
lenges. This information offers a unique lens
into the financial habits of millions of small
businesses and households, leveraging
de-identified and aggregated customer data
that represents half of U.S. households. The
Institute’s data and analyses have helped poli
cymakers better understand the impact of
decisions – ranging from student loan relief
and targeted investments in underserved Chi
cago and Detroit neighborhoods to small
business support and insights about how fam
ilies manage income volatility and use their
tax refunds. Importantly, the Institute has also
helped shape some of our own products and
employee benefits, including how we incentiv
ize customers to save more money and
reduce health insurance deductibles for our
lower-paid employees.
• JPMorganChase PolicyCenter. Five years
ago, we launched the JPMorganChase Policy
Center to distill what we’ve learned through
the firm’s business resources and expertise,
including Institute research and data, talent
and philanthropic investments, into action
able, evidence-based policy recommenda
tions. Grounded in data, we develop and
promote policy aimed at reducing structural
barriers to economic mobility and broadening
opportunity for millions of families who live
on the financial margins. We’ve conducted
thought leadership and advocacy on issues
such as housing affordability, workforce
development and small business growth.
• Asia Pacific Policy and Strategic Competi
tiveness. A year ago, we created a new role –
Head of Asia Pacific Policy and Strategic
Competitiveness – to lead an effort to bring
together colleagues across the firm in exam
ining key policy issues critical to our competi
tiveness, including trade and investment,
supply chains, technology and infrastructure.
We also maintain a strategic security forum
focused on horizon scanning for emerging
and evolving risks, such as societal polariza
tion, nuclear and biological threats, cyberse
curity and strategic competition in the Arctic,
to name just a few.
• JPMorganChase Center for Geopolitics. We
are creating a new group that builds on our
firm’s long tradition of integrity, reliability
and fortitude, offering forward-looking per
spectives and unparalleled expertise. The
JPMorganChase Center for Geopolitics will
harness the firm’s vast network of knowledge
and know-how to help clients successfully
seize opportunities and weather the trends
transforming the global landscape.
SPECIFIC ISSUES FACING OUR COMPANY
44

• Morgan Health. Back in 2021, we launched
Morgan Health, a new division with an aim to
deliver and scale new healthcare models that
improve the quality, affordability and equity of
employer-sponsored healthcare. The team is
broadly focused on improving the U.S. health
care system. In its first three years, Morgan
Health has invested $217 million in nine health
care companies. These investments have
focused on advanced primary care and care
navigation (Centivo, Mosaic Health and Per
sonify Health), data analytics (Embold Health
and Merative), specialty (Cortica and Kind
body), new coverage options for small- and
mid-sized businesses (Venteur) and at-home
care (LetsGetChecked). In addition, Morgan
Health works closely with the JPMorganChase
Benefits team to better meet the needs of our
U.S.-based population, where 285,000 lives
are covered in the United States. The Morgan
Health team is addressing health disparities,
publishing novel research, sharing insights
with other employers and engaging policymak
ers. The team is making progress, but consid
erable work remains.
• Localized Investments. After watching
Detroit’s extraordinary recovery from bank
ruptcy, we replicated how we supported that
turnaround to develop a model for large-scale
investments to other cities around the world.
From San Francisco to Paris to Greater Wash
ington, D.C., we’ve applied what we learned in
Detroit to communities where conditions are
opportune for success and require deeper
investments – where community, civic and
business leaders have come together to solve
problems and get results. For us, Detroit
was an incubator for developing models that
help us hone how we deploy our business
resources, philanthropic capital, skilled volun
teerism, and low-cost loans and equity invest
ments. Some of these specific initiatives
include: our virtual call centers that launched
in Detroit and Baltimore; our senior business
consultants who help entrepreneurs and small
businesses make the transition from commu
nity lending to accessing capital from tradi
tional financial institutions; our 19 Community
Centers/branches that are often located in
areas with larger Black, Hispanic or Latino
populations; and our work skills development
efforts around the country. In addition, our
Affordable Housing Preservation program,
established in 2021, has extended loans of
$20 billion to incentivize the preservation of
over 190,000 affordable housing rental units
across the United States. Along those same
lines, we expanded our $5,000 Chase Home
buyer Grant program to include more than
15,000 majority Black, Hispanic and Latino
communities (where the grant is available to
all) and increased our grant amount to $7,500
in select markets. Since our grant program
began in 2021, we have provided about 14,000
grants totaling $82 million.
SPECIFIC ISSUES FACING OUR COMPANY
45

Powering economic growth in Texas
Our support to government, higher education,
healthcare and nonprofit organizations:
• We serve over 400 government, higher education,
healthcare and nonprofit clients in Texas, and, since
2019, provided more than $42 billion in credit and
capital to them.
• Our clients range from county offices to school
districts to healthcare systems. For example:
– We serve as the primary depository bank for the
City of Houston for its various operations. We are
the primary operating bank for the City of Austin,
Travis County and the City of Arlington. We also
provide banking services to both the City of Fort
Worth and the Fort Worth Independent School
District.
– For 30 years, JPMorganChase has helped the
Dallas Fort Worth International Airport operate,
serving over 88 million passengers in 2024.
– We bank the University of North Texas System, a
public university system supporting over 52,000
students that includes the University of North
Texas Health Science Center at Fort Worth. We also
bank Texas Christian University, a top-ranked
national research university located in Fort Worth
with more than 13,000 undergraduate and gradu
ate students.
– We bank Parkland Health, which is the oldest and
only safety net hospital in Dallas.
Our support to investment, corporate and middle-
market banking clients:
• Since 2019, we have provided in excess of $814 billion
in credit and capital to local clients, such as oil and
gas, technology, and media and telecommunications
companies. For example:
– JPMorganChase has been a steadfast banking
partner to Fort Worth-based Double Eagle Energy,
supporting the company’s growth and resilience
through challenging times, including the 2016 and
2020 commodity price crashes. With our support,
it is executing 10,000 transactions totaling $15
billion, benefiting individual landowners across
more than 1 million acres.
JPMorganChase has helped to drive economic prosper
ity, job creation and business growth in Texas for more
than 155 years. In 2023, we contributed over
$1 billion to the Texas economy through goods and ser
vices purchased. With over 31,500 employees in the
state – the highest number by state in the country – we
bank businesses of all sizes, as well as schools, grocery
stores, hospitals, government institutions and nonprof
its. From Dallas to Austin to Houston to El Paso, we have
the largest market share of Federal Deposit Insurance
Corporation deposits in the state. We’re helping millions
of clients, including over 8.5
million consumer banking customers, 775,000+ small
business clients, and government and community lead
ers thrive and achieve their goals.
We also know Texas is a great place to do business
that values the power of free enterprise and partnership
across sectors. We have shown up for Texans in good
times and bad, and we will continue to do what it takes
to keep growing. From creating or preserving 7,000+
affordable housing units since 2020 and helping large
energy clients to supporting local community colleges,
we’re continually exploring ways to help create jobs and
develop business and policy solutions to drive growth.
Our work with traditional and new energy technologies is
a great example of how we help empower industry lead
ers in the state. We provided more than $219 billion in
credit and capital to energy companies headquartered in
Texas between 2019 and 2024, helping support afford
able, reliable energy that bolsters American energy
independence, energy security and economic growth.
SPECIFIC ISSUES FACING OUR COMPANY
46

– In addition, we served as the financial advisor to
Endeavor Energy in its historic $26 billion merger
in 2024 with Diamondback Energy to create a
North American independent oil leader, while also
ensuring job stability in the Midland community.
Importantly, the vast majority of Endeavor’s 1,200
employees were retained after the merger.
• We have more than 5,000 medium and large clients
across the state.
Our support to local financial firms:
• Since 2019, we have provided over $43 billion in
credit and capital for financial institutions, such as
local banks, insurance companies, asset managers
and securities firms.
• We bank more than 80 regional, midsized and com
munity banks in Texas, which play an essential role in
maintaining the state’s economy and serving local
communities.
Our support to small business:
• Across the state, we have over 775,000 small busi
ness customers.
• As of 2024, we have provided nearly $2 billion in loans
to small businesses in the state.
• We provide more than 325,000 hours of advice and
support – including to small businesses – annually.
– For example, in North Texas, we helped Farmhouse
Fresh grow into an international luxury skincare
brand with $50 million in annual sales at retail value
and almost 80 employees. The company’s origins
began when the founder opened a business bank
ing account 20 years ago at her local Chase
branch.
Our support to consumer banking needs:
• We support more than 8.5 million consumer banking
customers with mortgages, auto loans, and savings,
checking and credit card accounts.
• We manage over $91 billion in investment and annuity
assets for local clients.
• We operate more than 1,500 ATMs and 480 branches
across the state.
Our business and community investments:
• Over the last six years, we have provided $100 million
in philanthropic capital to help drive workforce and
community development, increase access to financial
health resources, and improve or protect housing
affordability. For example:
– We helped Houston Community College increase
career opportunities for residents while improving
the resilience of the local workforce in Houston fol
lowing natural disasters.
Our support as a local employer:
• We employ over 31,500 residents throughout the
state, including nearly 4,000 veterans.
• In Texas, the minimum annual pay of our full-time
employees is $41,600 (plus an average annual bene
fits package worth over $19,000) compared with the
statewide per capita income of nearly $39,775.
SPECIFIC ISSUES FACING OUR COMPANY
47

At a recent annual senior leadership conference,
I led a type of “master class” focused on man
agement lessons for 400 of our top executives.
I held this session because we cannot afford to
be complacent if we want to continue as one of
the great companies in the world. Leadership
should always be about learning and question
ing. Our company needs to nurture innovation,
ambition and discipline while discouraging com
placency, arrogance and bureaucracy. Here is a
slightly streamlined (I did speak for 90 minutes)
and edited version (to protect clients, former
colleagues … and myself!) of my actual remarks
to our team:
Welcome, everybody. I have a lot to say, and I’ve
tried to organize it thoughtfully and intelligently.
I just want to start with: What a great company!
I don’t know about you, but when I see this com
pany in action, it just blows me away. The quality
of the people, the respect of our clients, and how
much they want us in cities and countries around
the world – it’s extraordinary. That’s based on the
things that you do and how you do them.
WHY COMPLACENCY, ARROGANCE,
BUREAUCRACY AND BS KILL
COMPANIES.
Part of what I’m always asking is: How do we
make sure we stay innovative, ambitious and
disciplined while eliminating complacency,
arrogance and bureaucracy?
So let’s look at a bunch of things. None of this is
out of anger; it’s just thoughtful consideration
about reinforcing some basic disciplines.
You know, if you already have 100 people on
your team, can you live with 100 people – or
fewer – and make that work? This is very import
ant. Everyone in this room, I’m talking to you per
sonally. When I give examples, don’t say that
applies to someone else: “That’s not my unit.
That doesn’t affect me.”
IV. Management Learnings
It does, and I’m going to tell you why. Because all
of you are responsible for this company that’s
worth around $700 billion, employs 320,000
people and serves so many, including all the cli
ents you’ve seen who depend on you around the
world. You, individually, are responsible. And you
know more than you think. When you travel
around, when you talk to people and when you
manage what you do means that you know more
than you think.
As you know, we’ve been asking people to
achieve a 10% efficiency target. Again, it’s a dis
cipline in business. Think about what you your
self can do to make things better. This is basic
business: Can you do more with less? What are
your units doing that can be streamlined? Or
maybe you are doing things you don’t need to
be doing at all.
I apologize, when I’m being specific, if it’s you I’m
talking about. I’ve just got to get some things off
my chest about what we need to do and some of
the things I’ve seen recently or over my career.
I’m going to ask each and every one of you,
personally – and I’m going to track it – to send
me an email. We’re going to have a little team to
take these issues you raise and follow up, and
this will be permanent. I kind of like bureaucracy
busting to get things done. It could be stupid
things you’ve observed, any ideas, almost any
thing. We’re not trying to limit you to any specific
category.
You’ve got something to say? You want to add
something? You want to check out something?
You think something doesn’t make sense?
Please bring it up. Too many people stay in their
lane. I’m going to follow up personally with each
and every one of you in this room. I’m just asking
you to sit down and have a little fun thinking
about the stupid stuff we do, the bureaucratic
stuff we do – about things you would change if
you were able to change them – and you all can
be very helpful. I think we should all be thinking
about this.
MANAGEMENT LEARNINGS
48

I’ve said speed kills, but I mean slow speed.
I didn’t mean fast speed. And I’ve written down
some examples of winners and losers from just
the last 20 or 30 years that didn’t adapt.
Sears and Kmart, they’re gone. Digital Equip
ment: Gone. A&P, the best supermarket in the
world, disappeared – overtaken by Kroger. Black
Berry practically disappeared, too. Walmart’s
done well. Dell did well, Apple obviously has done
well, and Amazon has done well. Remember
when everyone used to have Nokia phones?
It’s even worse in financial services, where
companies can manipulate numbers and over-
leverage and stuff like that. Travelers blew up,
Citi blew up twice. Bear Stearns failed. Lehman
failed. And Bank One – I’m here because, you
know, Bank One screwed up a bunch of busi
nesses. The S&L business – the whole business
– got wiped out. The whole thing. Savings and
loans do not exist anymore. WaMu’s mortgage
losses. Whole parts of the mortgage business
disappeared, and mortgage brokers disap
peared. Kidder disappeared. Drexel disappeared.
And then more recently, Silicon Valley Bank’s
interest rate mismatch.
Of those that failed, many failed out of compla
cency, and complacency is a form of bureau
cracy. It’s arrogance – it’s being slow to adjust.
Complacency allows a lot of negative things to
set in: dishonest numbers, failure to set stan
dards, bad people, bad compensation schemes,
disincentives, bad incentives, politics – and
these things are all the cancers that kill compa
nies. We all have to be very cautious when we
see this happening.
And things are faster and more complex now.
That means we’ve got to move quicker, coordi
nate better and do things at a faster speed.
YOU HAVE TO GET THE NUMBERS
RIGHT.
I’m a fanatic about proper accounting. Account
ing can lead you to the wrong answer. Regula
tory rules can lead you to the wrong answer.
Regulatory capital can lead you to the wrong
answer. Or your own echo chamber can steer
you the wrong way. Still, you need to know your
numbers: You need to get your numbers right,
understand them, analyze them, work them, test
them and don’t be rote about it.
McKinsey used strategic business units as a
way of segmenting businesses. Always remem
ber that when you have big companies, it’s
important to break them down to look at the
component parts because the game is fought
in the specific units. It’s fought in commercial
card. It’s fought in premier card. It’s fought in
branch banking. It’s fought in small business.
However, it’s not fought in the consumer fran
chise as a whole.
You must have an actual budget as your
barometer. For example, you can’t always com
pare yourself with the forecast because then
you’re always very close. You’ve got to show
any deficits or progress against the budget.
Another thing I hate is comparing yourself with
the peer average. I mean, really? You should
always compare yourself with the best. Where
are they, and where are we? Remember that the
peer average includes some really crummy
companies, too.
You have to – we have to – always understand
that a rigorous review of allocated expenses is
needed. They are real expenses, but you have
the right to question them. You have to ques
tion them because seeing through the BS that
gets involved in allocating expenses – and then
causes misallocation of capital – is really
critical.
Zero-based budgeting. I don’t like asking peo
ple to do it. It’s too hard. But you’ve got to think
that way. For instance, if I start with 100 people
doing the same thing, what do I do differently,
better, more with the same number of people?
Understand that a P&L is not an assessment of
a business – you’ve got to do the full assess
ment with customer metrics, turnover, apps,
technology ... whatever matters. In fact, the P&L
could be the most deceptive thing of all – tell
ing you and giving the wrong answer.
Project reporting. Whenever you have a proj
ect, and this is on you, it’s important to do
proper reporting. It could be technology cost,
it could be anything. I remember coming to
J.P. Morgan and, one after another, every proj
ect was on course – but from the last forecast.
I said, “Show me where it is from the begin
ning,” and now every single project was a year
or two late. It’s just an honest assessment – not
MANAGEMENT LEARNINGS
49

to blame yourself or get mad about it. Also, the
project often morphed without any discussion.
And I think that’s just bad management.
External reporting. External reporting actually
matters. So I’m always quite careful. Reporting
externally is real, but for a lot of companies, it’s
not – they sugarcoat, they make it obscure. And
what happens inside those companies is people
start running their businesses that way. You’ve
never seen me spin analysts. That’s because if
I spin analysts, you’re going to spin me. That’s it.
You know, I want to honestly show how we com
pare with competitors.
Honest analysis. In your financial analysis,
always evaluate the good, the bad, the ugly. That
will make you better. Doing just the good makes
you worse. Doing the good, the bad and the ugly
makes you get better versus the competition.
Constant investment. You know, the practice of
stop-starting investments is a bad idea. Constant
transformation in technology and conversions
means you can’t have stop-start strategies
almost anywhere. Make proper assumptions:
What do you do when your spread on deposits is
zero, but you’re still opening branches? That’s
why I always talk about “through-the-cycle”
investments. Think very carefully about the
assumptions that go into your budgets because,
sometimes, they cause you to do stupid stuff, and
sometimes they stop you from doing good stuff.
Watching competitors. This involves comparing
yourself with what the competition is doing
today. But you always need to show how you’re
going to catch up to where things might go.
You’ve got to say, “What are the competitors
going to do next?” because that shows when
you’re getting to the puck and where the puck is
going to be – not where things currently stand.
Good expenses/bad revenue. Sometimes great
expenses become great investments. The fact
that it’s something called an expense means
nothing to me. In fact, a lot of businesses capi
talize these expenses. You build a plant, you
capitalize it. You don’t start expensing it until it’s
producing. But when we open a branch, many of
the costs are not capitalized. We have a large
cash outflow to build it, but after approximately
four years when it breaks even, it generates
profit for eternity. This is also true for private
bankers, investment bankers, Chase wealth
managers – our investment in them pays off
over time.
In all that we do to grow and innovate, we must
do the full analysis – as I’ve said, “the good, the
bad, the ugly.” This makes us better. Looking at
only the positives is dangerous. We all know
there are good revenues and bad revenues,
good expenses and bad expenses. We can make
a big loan and book lots of revenue in the short
term, but those will turn out to be bad revenues
if we didn’t do the proper analysis at the begin
ning. The same reasoning applies to expenses.
I hate the concept of cutting costs; instead, the
concept should always be cutting waste. If costs
are investments that drive healthy growth, then
I want more of them.
Expense allocations. I’ve got a heritage JPMor
ganChase example. The company used to be
dominated by the investment bank – because
the people on the executive floor cared mostly
about the investment bank. Everything was
skewed toward the investment bank. They took
HR costs, including pension, medical, executive
comp, expats – all these costs lumped together
– and they charged them out based on head
count across the company, which was not accu
rate. Expats were 100% in the investment bank.
Executive comp was 100% in the investment
bank, but their expenses were spread across the
whole company. We subsidized capital for the
trading floors. In all, subsidizing the investment
bank cost $2 billion a year, which I immediately
fixed. This was not to punish anyone, but it was a
huge misallocation of capital. The big loser in all
this was the consumer bank, and I’m still quite
sensitive about that.
Here’s another example: Capacity in the com
puter center was charged out to everybody,
whereas the extra capacity, which is quite
expensive, was required for only certain busi
nesses but not others. It is not a waste of time to
get expense allocation right. You may spend no
time on it, but you shouldn’t be paying for capac
ity. We need payment systems to be paid for by
the payment businesses. It’s important to be
vigilant when you analyze expenses because
things always morph, always go bad. Don’t
assume allocations are okay. Businesses some
times get credit for things they shouldn’t get
paid for, and they don’t mention it.
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I’ll just give you another example. When I got to
JPMorganChase, we paid the treasury sales
force based on estimated revenue going for
ward. That was it. And almost no adjustments
later on. It was staggering.
Investing in branches. When I became CEO,
Bank One hadn’t opened a branch in five years.
Chase hadn’t opened a branch in five years.
Chase had barely refurbished its branches, but
at least Bank One did. By the time we did the
merger, Bank One was making $1 million-plus
profit on each branch every year: 2,300
branches. Chase was making zero, partially
because of its allocation practices and partially
because no one seemed to care about them.
But these branches should have been hugely
profitable. We don’t give a branch credit for
credit cards when they create a credit card
account that’s worth $600, even though
branches create 1.5 million credit card accounts
a year. That’s $900 million of value.
We do this NPV (net present value) analysis
about why we should close a branch, and we
should do this. We should be disciplined. I think,
for the most part, NPVs might work, but they
don’t always work. You need to use your com
mon sense.
Sometimes banks will say they’re going to close
a branch because it’s kind of small. This hap
pened to me recently with our Old Greenwich
branch. They were going to close it, and I just
looked at some of the numbers ... and I went
numb. It was making approximately $500,000,
all profit, the NPV. And it’s six miles to the next
closest branch. I said, if you close that branch,
you know what’s going to happen? Eighty per
cent of the revenues will move elsewhere – to the
Wells Fargo down the street, along with most of
the local small businesses. Now would you rather
have $500,000 a year profit or $1 million in cash
in your pocket? I’d rather keep the $500,000
annually. Who’s going to open in the same spot?
One of our competitors: Wells Fargo, Bank of
America or Citizens. And why does someone
want to drive six miles in the winter on those icy
roads? And is the branch more profitable than it
looks? And to me, this wasn’t thinking about the
NPV; it was the pawn blocking the queen.
Judgment calls. Well, while we’re talking about
cutting costs, I also did something unusual in
2008: I opened the partners’ dining room. This is
just how I think about what you should do, and
what you shouldn’t do. You do the right thing
anyway, whether it looks good or bad. The whole
Operating Committee said, “Don’t do it. The
partners’ dining room is going to cost a lot, and
it will look like we are spoiling ourselves with
good food.” And I was like, “Yeah, but we don’t
actually know each other after the merger – and
if we don’t do it now, it’ll be years before we get
to know each other.” I call it a good expense. It’s
a judgment call. You do the right thing and then
explain it. Sometimes people don’t do things
because they think it’ll look bad for them or hurt
morale a little bit. When I got to Bank One, I
authorized a partners’ dining room, and I did this
at J.P. Morgan, too.
YOU NEED A FULL AND CONSTANT
ASSESSMENT.
We can learn so much from our competitors,
customers and employees if we only open our
eyes and ears. I want a full and constant assess
ment of our competition, including many organi
zations outside of financial services. We always
need to look and learn, assess and evaluate –
stringently monitoring market trends and
engaging with whoever does something better
than us. Visit other companies, see their
branches. Go on road trips with your people.
Take your management teams to dinner. When
you talk with clients and they tell you that you’re
making a mistake, thank them. It’s a gift. And if
the issue is not in your area, write it down and
send it to the person who’s responsible. Get out
of your own echo chamber. Hit the road, leave
your office and talk with everyone you can – be
constantly learning and assessing. Don’t be
afraid to admit if you’ve made a mistake or were
late to the game on something. It’s okay to be a
fast follower. Just do a postmortem and identify
what you’d do differently next time.
I mentioned learning from those outside our
industry. Take Chick-fil-A as an example. I read
they’re using drones to figure out how to move
people through the drive-thru line faster. We
should always have that mindset of making
something easier for our customers.
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Ten years ago I said, “I’d like our senior team
from the consumer bank to go to China.” I wish
I had done more things like that sooner. This
goes back to why it’s important to get on the
road – to really understand your business and
the competition. The team didn’t really want to
go, but they did go, and they got to see Alib
aba, Ping An and Tencent in action. And it
changed the way they thought about digital
banking, biometrics, super apps and other
technology advancements. It’s amazing what
you learn on the road.
YOU BETTER HAVE GREAT
CONTROLS.
Honest numbers are critical to having great
controls. Make a practice of continually
reviewing financial operational detail, project
reporting and audit reports. It’s a discipline
like exercising – it should be frequent and rig
orous. And little things can add up to big
things.
Back in the Primerica days, I bought one of
those big Xerox copy machines for 2 million
bucks. I’m down in Primerica’s printing plant,
and the guy there showed me his Xerox copy
machine, and I said, “Great, I just bought one
of these.” He asked, “How much did you pay
for it?” I said, “Two million dollars. How much
did you pay?” He said, “Fifty thousand dollars.”
You know why? He bought it from a bankrupt
company. It was still in the box. That’s all. Let’s
do that a little bit every now and then.
Additionally, in terms of risk management,
always examine new products and new credit
underwriting standards. New products often
tend to blow up. That happened with foreign
exchange, with mortgage-backed securities,
with swaps, derivatives, credit default swaps
and others. Often, these new products have
not been fully tested and haven’t been used
over a long enough period of time. I’m also a
fanatic about stress testing, which they
quickly learned at J.P. Morgan when I first got
there. In their scenarios, they were looking at
equity markets down 10% and credit spreads
gapping out 40%. Was that sufficient? No!
I said let’s look at what would happen if equity
markets were down 50%, high yield went to
20% and credit spreads gapped out to the
worst ever. That is real stress testing and risk
management.
YOU MUST KILL BUREAUCRACY ALL
THE TIME AND RELENTLESSLY.
One of the biggest things that can kill a company
– or make it slow to adjust or admit problems – is
bureaucracy. It comes in a lot of forms, and you
have to continuously weed that garden. It’s a
mindset.
Take Home Depot: When you walk into the Home
Depot global galactic headquarters, the sign
above the main entrance says “Store Support
Center.” It reminds corporate employees every
day that they are there because they support the
workers in stores around the country. And we
have to remember – all of us, particularly corpo
rate staff – that we are here because we have a
customer, a branch or an investment banker in
front of a client. That is an important mindset.
Then you can use things like war rooms and
review customer complaints to hone this
thinking.
I always like to read customer complaints. I read
them, and when I know the policy behind the
complaint, I call up the people in charge and say,
“I agree with the customer.” Sure, we “shoulda,
coulda, woulda.” But I don’t give a damn whether
we’re technically responsible or not. You’ve got
to do the right thing; you’ve got to change your
mindset.
Let’s take ATMs. When I got to Bank One, this
situation happened. My wife called me from Wal
greens. The Bank One ATM didn’t work. I tell the
people on the ATM side of the bank, and a guy
calls me back and says, “No, it’s working.” I say,
“My wife called me and says it’s not working.” He
replies, “No, it’s working.” So I say, “Do me a
favor – get in your car and drive out there.” Then
he drives out there – and it’s not working. As it
turned out, we had an outside vendor tracking
this stuff. So I told the guy that we were firing the
vendor and wouldn’t pay him for the last six
months. Now we track it ourselves. This stuff
can happen all the time.
Then there’s the black car story. You all know the
black car story never happened at J.P. Morgan. It
did happen when we took over Shearson though.
I was going outside one day, and there were, lit
erally, 50 black cars. People were waiting to go
home until 7 o’clock so they could take a black
car home. They were supposed to take them to
the closest train station. And they would pick up
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their dinner – no one paid attention to it. There
was one woman who took a car to Glen Cove or
somewhere and back every day. She came in
early in the morning. I went back to her boss,
who knew about it. And I said to the boss, “You
know, I can get her a full-time car and driver for
one-third the cost.” And I changed a bunch of
rules and stuff like that.
Some years ago, all our branches were receiving
tons of stuff, daily and weekly, from Corporate –
from HR, Risk, Legal, Compliance, Trading,
Audit, Finance – they were overwhelmed. I used
to go to branches, and they’d complain about
things they didn’t know about. I said, “We sent
you a memo that was full of information.” And
one of the men in the branch showed me a
FedEx box, the really big one, and dropped it in
front of me. He said, “This box is what we get
every week from you guys.” He had no idea
about all the stuff that was in it. So we just
changed things up a bit, using common sense,
and created a little booklet called, I think, “Since
We Last Met” or “You Must Read This.” It had a
summary page and listed the important stuff
people needed to know. Little things like this are
important to get right.
It’s important for leadership to always question
what their company does and why. And the
answer cannot be, “That’s the way we’ve always
done it.” Lots of times bad habits form and
people get lazy, take shortcuts or don’t care
enough. A good example is from when I came
to JPMorganChase more than 20 years ago.
I was told we had 500 management coaches.
I said, “Five hundred coaches? Really?” Our
Operating Committee was slightly annoyed by
my question and wondered whether I was going
to micromanage every single decision. Of
course I said that I wasn’t – and that it was their
decision – but the issue really bothered me. I
thought about it over the weekend, and on
Monday I told the Operating Committee, “You
know what? I changed my mind. I’m going to
micromanage this one. I want all coaches out
by the end of the week.” I didn’t take that step
to save money. I did it because it’s a leader’s job
to coach, and we basically had outsourced
management! I told the committee they could
bring back a coach at the end of one year if
they truly thought it was necessary and if they
personally vouched for the coach’s capabilities.
But in my entire career, I’ve rarely seen this kind
of outsourcing of responsibility succeed.
Here’s another example of what slows us down:
meetings. Kill meetings. But when they do hap
pen, they have to start on time and end on time
– and someone’s got to lead them. There should
also be a purpose to every meeting and always a
follow-up list. Sometimes we think we’re just
being nice by inviting people to a meeting who
don’t have to be there. Sometimes we overcol
laborate. One annoying example of bureaucracy
is the meeting after the meeting, where an exec
utive tells me what they didn’t want to say in
front of their partners. That’s not acceptable.
Don’t bother. I’m not their messenger. Lay it on
the table in real time. Shine light on a problem or
disagreement. Be transparent with your col
leagues. Obviously, it’s different if it involves a
private matter, but, usually, this strategy is just a
go-around, an end run. We cannot allow these
kinds of behaviors.
MISTAKES I MADE.
I also recognize that I don’t always get everything
right and that I have made plenty of mistakes
myself, and that’s why I want to candidly share
some of them – as lessons. It’s important that we
all do that. For example, I underestimated the
importance of cloud technology, I’ve sometimes
left the wrong person in a job for too long and I
failed to recognize some early signs of risk.
In sharing these experiences, I always reflect on
the anatomy of mistakes and emphasize the
need to acknowledge and learn from them.
Mistakes happened for a variety of reasons –
we didn’t have the right people in the room, we
didn’t work hard enough, we didn’t have a
thoughtful decision-making process, we didn’t
get the right inputs, we made bad assumptions.
The London Whale, where we lost billions of
dollars in 2012, is another mistake that’s good
to reflect upon. The mistake there wasn’t the
complexity of the portfolio; it was that it didn’t
get the proper oversight, including from the
firm’s risk committees. The idea emerged in a
supposedly non-risky part of the bank, and the
team overseeing the trades played it close to
the vest and didn’t go through our normal risk
controls. We didn’t realize that at the time, but
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we should have, and I had some signs looking
back. Frustratingly, the traders wanted to avoid
oversight because it was risky. This reminds me
of another sin that promotes mistakes in compa
nies – hoarding information, which is a disease.
And here is one of my big mistakes when I got to
Bank One. I’d been there for not quite a year, and
I was in Louisville, where our business had been
shrinking. I was trying to fix all that. I was in a
local branch, and I realized that the branch
across the street’s hours were 9 a.m. to 5 p.m.,
and our hours were 10 a.m. to 4 p.m. I thought,
whoa, that’s not so good. I called up our branch
management, and they said, “Well, we’re differ
ent – we’re not that kind of bank.” I asked them
to do me a favor: Let’s find out for all of our
branches – we had about 1,800 at the time –
what are our hours compared with the average
competitor. And they said, “Well, how are we
going to do that?” I said, “Well, email the other
branch managers, and ask them for their hours
of operation.” And, it turns out, we were open
two hours fewer a day.
It was a Friday, and I went home a bit embar
rassed. I came in on Monday, and it just so
happened that the whole branch management
team was there. And here’s what I said to them:
“I apologize. I thought I was a pretty good CEO,
but I messed up, I made a mistake. I should have
recognized this much sooner.” However, not one
salesperson, not one branch manager, not one
regional manager, not one district manager
noticed this or mentioned it. Now that I was
aware of the issue, I told them all that we must
change our hours. Morale was already bad, and
everyone went on and on about morale because
we had to change our work hours – and it was
difficult and complicated. But I said, “We’ve got
to change it. We’re here for customers. Obvi
ously, I care about morale – but morale sucks
because we suck. Morale will get better when
we’re better as a company.”
WHAT THE HECK IS CULTURE?
What is culture anyway? I struggle with this one
a little bit because I think it’s a lot of the things
I’m speaking about here. A great culture is cre
ated by what you do and not by what you say.
When we talk about the culture of our company,
we include the hundreds of thousands of people
who work for our company and what they believe
in, as well as the role of our company in society.
For those people, our employees, we work hard
to foster an environment that enables them to
thrive as curious, honest, hard-working and
empathetic individuals who care not only about
each other but about our customers as well – to
be people who want to do the right thing – and
it’s very important we get this right. Of course,
there are good people and bad people, but I like
to think we’re almost all good people. Similarly,
there can be people you don’t trust: Sometimes
you don’t trust them because they lie – or they
shape the truth. Or you can’t trust them because
you don’t trust their judgment. Watch out for
them and don’t follow them.
Unfortunately, sometimes the bad people are
our customers. I fire bad clients: corporate
clients, individuals. There used to be a wealthy
guy who would come into a branch yelling and
screaming. He was verbally abusive to our staff
multiple times. I finally heard about it and called
him and said, “I want you to take all your business
out of the bank. And by the way, you’re not going
to treat our people that way.” If we have a client
who is disrespectful to our people and the way
we operate, we will fire them. And life will go on.
And recognition is important. Recognition says
someone did something that you didn’t, that
they taught you something. I was never particu
larly good at recognition. But I’ve learned les
sons about recognition by watching “Ted Lasso”
and observing David Novak, former CEO of Yum!
Brands. They taught me that recognition is a
form of humility and acknowledgment. And this
directly aligns with our company’s values and,
importantly, our actions. Organizations build a
great culture by recognizing people’s actions
day in and day out – not by serving up
platitudes.
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Creating a good culture is possible only if every
one understands a company’s purpose – in our
case, the role of our bank. I think our purpose is
to lift up society, to help people, which is an
enormous responsibility. We have millions of
customers, employees and shareholders who
count on us. I think if you don’t share this vision,
you don’t belong at our company.
And have a little heart. One example: Many years
ago, when I was new to JPMorganChase, I
learned that the company’s security guards had
been outsourced – to save money. But after out
sourcing, the same guards continued coming to
work every day at the same salary, and I won
dered, “How could this be?” (FYI, this was
brought to my attention by the head of a large
union, who came to see me personally over the
objection of my management team.) The reason
we were saving money was because the benefits
were cut in half for the guards and their family
members (currently worth more than $19,000 a
year), and the savings were split with us. This was
a heartless thing to do – and the second I found
out, I reversed the decision. JPMorganChase’s
success will not be built off the backs of our
guards – it will be the result of fair treatment of all
of our employees – and we’re thankful that many
of those guards are still with our company today.
LEADING THE TEAM.
It’s very important to have regular business
reviews and to attack problems by putting all the
dead cats, the hard issues, on the table. Empha
size the negatives. Make it fun and foster a col
laborative environment when you’re facing
tough subjects. Share all the facts and recognize
that disagreement is a good thing.
Loyalty is earned when people receive full input
and know that they’ve had a chance to offer
theirs. Everyone should provide their input,
review the facts and then make decisions – but
not before that. Sometimes in meetings, col
leagues urge others to “stay in your lane.” Abso
lutely do not stay in your lane! That is a bureau
cratic, stupid direction. Our biggest mistakes
happen when people think something is kind of
a problem, but they are afraid to raise it in the
right room where it might be provocative.
There’s nothing wrong with disagreement. Ever.
And make it fun. You know, it’s our job to have
fun in life and make everything we do fun. Just
do it all the time in your unit and ask others to do
the same.
For example, see mom and dad when you go on
the road. When I went to Kenya this year, I invited
two of our senior executives from Kenya who
now work for our company in the United States
to join me – and we invited their mothers to
attend the client reception in Nairobi. It was
quite moving to meet their families – what a gift
to see what those women had accomplished
with those wonderful kids. And moms and dads
love to see us. Also, when you take the manage
ment teams to dinner, try to include their
spouses. It’s a lot of fun, and you learn a lot
about each other on the team.
WHY IT’S HARD TO ACHIEVE GOOD
GROWTH AND INNOVATE.
Testing and learning are important – there’s
nothing that can’t be improved by testing and
learning. You can kill innovation with too many
resources, too few resources or bureaucracy,
and you’ve got to really think through what you
are trying to accomplish. Similarly, it’s important
to evaluate innovative ideas through testing and
learning rather than rote analysis, which can
stifle creativity. Companies that want to foster
growth through forward thinking need to nurture
that effort and support innovation.
The conversions at both J.P. Morgan/Chase and
Bank One are good examples. There was resis
tance to the integration, and the conversions
were costly. They took time and different
resources. But there were approximately seven
loan systems, five deposit systems and 25 gen
eral ledgers that all needed to be consolidated
to develop the best systems. You just do the
tough stuff like this. And then what happens
when you get these consolidations done is
you make the company better at it over time.
Transformation is a constant effort to improve.
In many cases, expansion is fought – and it’s
most often fought from within the existing ranks.
The current workforce is often resistant to grow
the team because they think it’s going to come
out of their compensation. That’s not right –
the company pays for the additional bankers.
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I confronted this resistance years ago when we
wanted to grow the Global Corporate Bank –
again, there was pushback from our current
bankers. I saw the same resistance from within
when we were growing Chase Wealth Manage
ment. But we looked at how big the opportunity
was in each of these cases to grow, expand and
be able to compete more effectively. And each
of these efforts has been a home run for us.
MANAGEMENT TRICKS AND TOOLS.
Now I want to talk about some management
tricks and tools.
Effective leaders are responsive and treat every
one fairly and with respect. You have to be direct
and honest, which is all about respect (though
I recognize I get too worked up sometimes!). But
I’m not only talking about bosses – I’m talking
about people at every level. Treat everyone well,
from clerks to CEOs, no matter who they are.
While leaders should celebrate successes, it’s
still important to emphasize the negatives and
focus on continuous improvement. Be a skeptic
but not a cynic. Utilize management techniques
that work.
I’m a big fan of this one: Write memos yourself.
Don’t always let others write them for you. Simi
larly, when I ask someone a question, I want to
hear directly back from that person, not their
boss’s boss up the chain. And if I call that person
directly, I want to talk to them. And share all the
facts. Don’t hoard facts. The facts don’t lie.
Another tip: Always make follow-up lists. I keep
my own follow-up lists with me almost all the
time. Regarding communications, avoid man
agement pablum. It’s a pet peeve of mine. Talk
like you speak – get rid of the jargon.
And turning to meetings, if one is required, make
it count. I ALWAYS do the pre-read. I give it 100%
of my attention. I see people in meetings all the
time who are getting notifications and personal
texts or who are reading emails. This has to stop.
It’s disrespectful. It wastes time. Finally, if you’re
going to a meeting to present a new product or
service, write a press release about it. This exer
cise forces you to answer lots of questions peo
ple are likely to ask. When you write down what
you’re going to say, it focuses the mind and
helps you explain things better.
Work smarter, not longer. Don’t read the same
email two or three times. Most can be addressed
immediately. And while this all sounds serious,
make work fun. We spend the vast majority of
our waking hours at work – it’s our job to try to
make it fun and fulfilling.
And another important one: Take care of
yourself. If you don’t take care of yourself,
it doesn’t work.
Last, always answer this question: “What would
you do if you were queen or king for a day?”
That’s the big one – what would you do?
I’m going to stop here. Thank you for all the
great things you said, for the great things you’ve
done. And just so you know, while I may be say
ing this, I want to be self-critical, too. I’m awed by
you all. Thank you for spending time with me.
To see a similarly streamlined video of my
session, click here.

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In Closing
It’s been more than 20 years since the JPMorganChase-Bank One merger – and it’s been
an extraordinary journey. I can’t even begin to express my heartfelt appreciation and
respect for the tremendous character and capabilities of the management team that got
us through the good times and the bad times to where we stand today. And I recognize
that we all stand on the shoulders of many others who came before us in building this
exceptional company of ours.
A beautiful physical manifestation of our company is our new headquarters in New York City,
which we look forward to opening later this year. It is a great example of how we treat our
people with wonderful places to work – in New York City, across the country and around the
world. Our new headquarters also shows how you can deconstruct something and rebuild it
in a powerful way – that’s good for our colleagues, our clients and our community.
I would also like to express my deep gratitude to the 300,000+ employees, and their
families, of JPMorganChase. Through these annual letters, I hope shareholders and all
readers have gained a deeper understanding of what it takes to be an “endgame winner”
in a rapidly changing world. More important, I hope you are as proud of what we all have
achieved – as a business, as a bank and as a community investor – as I am. Thank you for
your partnership.
Finally, we sincerely hope to see the world on the path to peace and prosperity.
Jamie Dimon
Chairman and Chief Executive Officer
April 7, 2025
57

58
Client Franchises Built Over the Long Term (page 8)
Note: Figures may not sum due to rounding.
1
Certain wealth management clients were realigned from Asset & Wealth Management (AWM) to Consumer & Community Banking (CCB) in
4Q20. 2005 and 2014 amounts were not revised in connection with this realignment.
2
Federal Deposit Insurance Corporation (FDIC) Summary of Deposits survey per S&P Global Market Intelligence applies a $1 billion deposit cap
to Chase and industry branches for market share. While many of our branches have more than $1 billion in retail deposits, applying a cap
consistently to ourselves and the industry is critical to the integrity of this measurement. Includes all commercial banks, savings banks and
savings institutions as defined by the FDIC. Deposit market share and rankings are calculated with historical institutional ownership for each
year stated.
3
Barlow Research Associates, Primary Bank Market Share Database. Rolling eight-quarter average of small businesses with revenue of more
than $100,000 and less than $25 million. 2023 results include First Republic. Barlow’s 2005 Primary Bank Market Share is based on companies
with revenue of more than $100,000 and less than $10 million.
4
Total payment volumes reflect Consumer and Small Business customers’ digital (ACH, BillPay, PayChase, Zelle, RTP, external transfers, digital
wires), nondigital (nondigital wires, ATM, teller, checks), and credit and debit card payment outflows.
5
Digital noncard payment transactions include outflows for ACH, BillPay, PayChase, Zelle, RTP, external transfers and digital wires, excluding
credit and debit card sales. 2005 is based on internal JPMorganChase estimates.
6
Represents general purpose credit card (GPCC) spend, which excludes private label and Commercial Card. Based on company filings and
JPMorganChase estimates.
7
Represents GPCC loans outstanding, which excludes private label, Citi Retail Cards and Commercial Card. Based on loans outstanding
disclosures by peers and internal JPMorganChase estimates.
8
Represents users of all web and/or mobile platforms who have logged in within the past 90 days.
9
Represents users of all mobile platforms who have logged in within the past 90 days.
10 Measures satisfaction with wealth management websites and apps. Learn more: jdpower.com/awards.
11 Based on 2024 sales volume and loans outstanding disclosures by peers (American Express Company (AXP), Bank of America Corporation,
Capital One Financial Corporation, Citigroup Inc. and Discover Financial Services) and JPMorganChase estimates. Sales volume excludes
private label and Commercial Card. AXP reflects the U.S. Consumer segment and JPMorganChase estimates for AXP’s U.S. small business
sales. Loans outstanding exclude private label, Citi Retail Cards and Commercial Card.
12 Inside Mortgage Finance, Top Owned Mortgage Servicers as of 4Q24.
13 Measures customer satisfaction with the mortgage servicing experience. Learn more: jdpower.com/awards.
14 Experian Velocity data as of Full Year 2024. Reflects financing market share for new and used loan and lease units at franchised and
independent dealers.
15 Measures satisfaction with automotive finance websites and apps. Learn more: jdpower.com/awards.
16 Coalition Greenwich Competitor Analytics (preliminary for Full Year 2024). Market share is based on JPMorganChase’s internal business
structure, footprint and revenue. Ranks are based on Coalition Index Banks for Markets. 2006 rank is based on JPMorganChase analysis.
17 Dealogic as of January 2, 2025, excludes the impact of UBS/Credit Suisse merger prior to the year of the acquisition (2023).
18 Client deposits and other third-party liabilities pertain to the Payments and Securities Services businesses.
19 Includes client deposits and other third-party liabilities. 2005 includes Corporate Client Banking.
20 Payments revenue metrics exclude the net impact of equity investments; 2005 data represents Treasury Services firmwide revenue only. All
other periods include Merchant Services revenue.
21 Coalition Greenwich Competitor Analytics (preliminary for Full Year 2024) reflects global firmwide Treasury Services business (Corporate &
Investment Banking and Commercial Banking). Market share is based on JPMorganChase’s internal business structure, footprint and revenue.
Ranks are based on Coalition Index Banks for Treasury Services.
22 Data in 2005 column is as of 12/31/2006.
23 Balances represented for 2005 include certain loans in the Markets business.
24 Balances represented for 2005 do not include certain loans related to Community Development Banking.
25 S&P Global Market Intelligence as of December 31, 2024.
26 Global Banking (GB) is a client coverage view within the Banking & Payments business and primarily composed of the Global Corporate
Banking, Global Investment Banking and Commercial Banking Client Coverage segments. The number of bankers represented includes
bankers that are not aligned with Commercial Banking and Global Corporate Banking and Global Investment Banking client segments.
27 Extel: an Institutional Investor Company.
28 Represents U.S. dollar payment instructions for direct payments and credit transfers processed over Society for Worldwide Interbank Financial
Telecommunications (SWIFT) in the countries where J.P. Morgan has sales coverage. Market share is based on December 2024.
29 Nilson, Full Year 2024.
30 Coalition Greenwich Competitor Analytics (preliminary for Full Year 2024). Rank is based on JPMorganChase’s internal business structure,
footprint and revenue. Ranks are based on Coalition Index Banks for Securities Services.
31 Middle Market Bookrunner rank based on data from London Stock Exchange Group, Full Year 2024.
32 Part of the Firm’s $30 billion Racial Equity Commitment, excluding any adjustments to the prior periods reported.
33 Percentage of active mutual fund and active exchange-traded funds (ETF) assets under management (AUM) in funds ranked in the 1st or 2nd
quartile (one, three and five years): All quartile rankings, the assigned peer categories and the asset values used to derive these rankings are
sourced from the fund rating providers. Quartile rankings are based on the net-of-fee absolute return of each fund. Where applicable, the fund
rating providers redenominate asset values into U.S. dollars. The percentage of AUM is based on fund performance and associated peer
rankings at the share class level for U.S.-domiciled funds, at a primary share class level to represent the quartile ranking for U.K., Luxembourg
and Hong Kong SAR funds, and at the fund level for all other funds. The performance data may have been different if all share classes had been
included. Past performance is not indicative of future results. “Primary share class” means the C share class for European funds and ACC share
class for Hong Kong SAR and Taiwan funds. If these share classes are not available, the oldest share class is used as the primary share class.
Due to a methodology change effective September 30, 2023, prior results include all long-term mutual fund assets and exclude active ETF assets.
34 In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been
revised to conform with the current presentation.
35 Traditional assets include Equity, Fixed Income, Multi-Asset and Liquidity AUM; Brokerage, Administration and Custody assets under
supervision.
Footnotes

59
36 Alternatives assets include Private Equity, Private Credit, Real Assets, Hedge Funds, Liquid Alternatives and other nontraditional assets. Assets
calculated using net asset value of investments (except for certain Real Asset strategies, which use gross asset value) plus undrawn,
committed capital. AUM only for 2005. 2023 restated due to product reclassification.
37 Percentage of active mutual fund and active ETF AUM in funds rated 4- or 5-star: Mutual fund rating services rank funds based on their
risk-adjusted performance over various periods. A 5-star rating is the best rating and represents the top 10% of industrywide ranked funds.
A 4-star rating represents the next 22.5% of industrywide ranked funds. A 3-star rating represents the next 35% of industrywide ranked funds.
A 2-star rating represents the next 22.5% of industrywide ranked funds. A 1-star rating is the worst rating and represents the bottom 10% of
industrywide ranked funds. An overall Morningstar rating is derived from a weighted average of the performance associated with a fund’s
three-, five- and 10-year (if applicable) Morningstar rating metrics. For U.S.-domiciled funds, separate star ratings are provided at the individual
share class level. The Nomura “star rating” is based on three-year risk-adjusted performance only. Funds with fewer than three years of history
are not rated and hence are excluded from these rankings. All ratings, the assigned peer categories and the asset values used to derive these
rankings are sourced from the applicable fund rating provider. Where applicable, the fund rating providers redenominate asset values into
U.S. dollars. The percentage of AUM is based on star ratings at the share class level for U.S.-domiciled funds and at a primary share class level
to represent the star rating of all other funds except for Japan, for which Nomura provides ratings at the fund level. The performance data may
have been different if all share classes had been included. Past performance is not indicative of future results.
38 Source: Company filings and JPMorganChase estimates. Rankings reflect publicly traded peer group as follows: Allianz, Bank of America,
Bank of New York, BlackRock, Charles Schwab, DWS, Franklin Templeton, Goldman Sachs, Invesco, Morgan Stanley, State Street,
T. Rowe Price and UBS. JPMorganChase ranking reflects AWM client assets, U.S. Wealth Management investments and new-to-firm Chase
Private Client deposits.
39 Source: Public filings, company websites, Morningstar
40 Source: iMoneynet
41 Source: Global Finance magazine
JPMorganChase Exhibits Strength in Both Efficiency and Returns When Compared with Large Peers
and Best-in-Class Peers (page 11)
1
Bank of America Corporation (BAC), Citigroup Inc. (C), The Goldman Sachs Group, Inc. (GS), Morgan Stanley (MS) and Wells Fargo & Company
(WFC).
2
Managed overhead ratio = total noninterest expense/managed revenue; revenue for GS and MS is reflected on a reported basis.
3
JPM’s adjusted ROTCE excludes $5.4 billion from net income in 2024 as a result of the net gain related to Visa shares and the donation of Visa
shares to pre-fund contributions to the Firm’s Foundation. This is a non-GAAP financial measure.
4
Best-in-class overhead ratio of comparable peer business segments and firms: Capital One Domestic Card and Consumer Banking
(COF-DC & CB), Bank of America Global Banking and Global Markets (BAC-GB & GM), Northern Trust Wealth Management (NTRS-WM) and
Allianz Group (ALLIANZ-AM). Peer segment overhead ratio is estimated based on public disclosure where unavailable.
5
Best-in-class ROTCE of comparable peer business segments and firms: Bank of America Consumer Banking (BAC-CB), Goldman Sachs Global
Banking & Markets (GS-GBM) and Morgan Stanley Wealth Management & Investment Management (MS-WM & IM). Peer segment ROTCE is
estimated based on public disclosure where unavailable.
6
Best-in-class ROTCE of comparable GSIB peer business segments: Bank of America Consumer Banking (BAC-CB), Goldman Sachs Global
Banking & Markets (GS-GBM) and Morgan Stanley Wealth Management & Investment Management (MS-WM & IM). Peer segment ROTCE is
estimated based on public disclosure where unavailable.
7
Given comparisons are at the business segment level, where available; allocation methodologies across peers may be inconsistent with JPM’s.
Our Fortress Balance Sheet (page 12)
1
Tangible Common Equity (TCE) 2005-2007 reflects common stockholder’s equity less goodwill and other intangibles assets.
2
Basel III Transitional rules became effective January 1, 2014; prior-period common equity Tier 1 (CET1) data is based on Basel I rules. As of
December 31, 2014, the ratios represent the more binding of the Standardized or Advanced approach calculated under the Basel III Fully
Phased-in basis. Capital results reflect the current expected credit loss (CECL) capital transition provisions starting in 2020.
3
Capital returned to common shareholders includes common dividends and net repurchases.
4
Includes eligible High Quality Liquid Assets (HQLA) as defined in the liquidity coverage ratio (LCR) rule and unencumbered marketable
securities, such as equity and debt securities, that the Firm believes would be available to raise liquidity, including excess eligible HQLA
securities at JPMorganChase Bank, N.A. that are not transferable to nonbank affiliates. For December 31, 2022-2024, the balance includes
eligible end-of-period HQLA as defined in the LCR rule, issued December 19, 2016. For December 31, 2017-2021, the balance includes average
eligible HQLA. Periods prior to 2017 represent period-end balances. December 31, 2016 and 2015 balances are under the initial U.S. rule
approved on September 3, 2014. The December 31, 2014 amount is estimated prior to the effective date of the initial rule and under the Basel III
liquidity coverage ratio (Basel III LCR) for December 31, 2013. December 31, 2005-2012 reflect cash, cash due from banks and investment
securities.
Size of the Financial Sector/Industry (page 37)
1
GDP in current prices; Source: International Monetary Fund
2
Consists of cash assets and Treasury and agency securities.
3
Private equity assets under management includes Balanced, Buyout, Co-investment, Co-investment Multi-Manager, Growth, Hybrid and
Private Investments in Public Equity in closed-end commingled funds and excludes Venture Capital, Secondaries and Fund of Funds.
2024 private equity data as of June 2024.
4
Top 50 fund AUM data per Sovereign Wealth Fund Institute. 2007 and 2010 AUM for entities in the top 50 in 2024.
5
Sources: Preqin, Dealogic, JPM Credit Research
6
Source: Preqin; venture capital AUM includes early stage, venture and expansion/late-stage capital in closed-end commingled funds only.
Excludes secondaries and Fund of Funds to avoid the double counting of funds. 2024 venture capital AUM reflects data as of June 2024
7
Loans held by nonbank entities per the FRB Z.1 Financial Accounts of the United States.
8
U.S. money market fund investment holdings of securities issued by entities worldwide.
9
NYSE + NASDAQ; excludes investment funds, exchange-traded fund unit trusts and companies whose business goal is to hold shares of other
listed companies; a company with several classes of shares is counted only once.
10 Inside Mortgage Finance and JPMorganChase internal data; consists of Top 50 Originators (Top 40 for 2007).

60
FUTURE-PROOFING THE COMPANY AND OUR OPERATIONS
60
Future-Proofing the Company
and Our Operations
JPMorganChase is a world-class
institution. We operate in more than
100 global markets, serve millions of
customers and process nearly $10
trillion daily through our wholesale
payments business. Our footprint is as
broad as the globe and as deep as the
very personal, individual interactions
our employees have each day with the
governments, businesses, nonprofits,
individuals and communities that
we serve.
In my new capacity as Chief Operating
Officer for the firm, I have the
responsibility and privilege of looking
after critical operations that function
as the foundation and engine for our
employees to deliver excellence in
financial services around the world
each day.
INVESTING IN THE
TECHNOLOGY OF THE FUTURE
In addition to the day-to-day opera
tions of the firm, I am focused on mak
ing certain that we are investing in our
future. We are a technology-driven
company as much as we are a bank,
and technology is fundamental to
everything that we do.
We employ more than 60,000 technol
ogists across the globe, and we’ve
made remarkable strides modernizing
our technology infrastructure and
engineering practices. Our technology
estate consists of more than 6,000
applications and nearly an exabyte of
data, with a multi-cloud strategy that
enables us to continuously innovate our
businesses. We have also been recog
nized as a leader in banking in frontier
technologies like artificial intelligence
(AI) and quantum computing research.
We know that investments we made in
technology years ago are helping our
business, products and services to
be best-in-class today. Our software
engineers are seeing up to 10-20%
productivity in the software develop
ment life cycle through AI coding assis
tant tools, freeing them up to work on
other tasks and projects. We also just
achieved an industry milestone, the
first successful demonstration of a
novel quantum computing protocol to
generate Certified Randomness, with
industry-leading partners.
We’ll continue to invest in technology
to ensure we are on the front lines of
innovation and to set the company up
for future success.
We recognize that AI is not just a
technological advancement but a trans
formative force that is reshaping the
financial services landscape. In 2024,
we launched our flagship generative AI
product, LLM Suite, to more than
200,000 of our colleagues around the
world. LLM Suite enables employees to
access leading GenAI capabilities on
their desktop in a controlled environ
ment that protects our customer and
company data. In addition, it also
enables businesses across the enter
prise to develop use cases and to
integrate GenAI more easily into their
workflows by leveraging a shared set of
capabilities available on the platform.
While we have made substantial
progress in our AI journey over the
past decade, we are still in the early
stages. As the technology continues
to evolve to offer more reasoning and
complex problem-solving capabilities,
AI will play a critical part in helping us
produce faster and better results
for our business.
INVESTING IN THE WORKFORCE
OF TODAY AND TOMORROW
Our technology would be rudderless
without the incredible people who run it.
Our workforce reflects the very best
and brightest talent from many differ
ent backgrounds and perspectives.
We support career growth with com
petitive pay, comprehensive benefit
packages and opportunities to develop
new skills through training and educa
tion benefits. With our global footprint,
thousands of open roles across a
myriad of job types, and a mobility
mindset, we offer a depth of incredible
career possibilities that most compa
nies simply cannot.
We also recently made enhancements
to our leading benefits based on
employee feedback, including
expanded parental and bereavement
leave time, education reimbursement,
special awards for employees on their
savings plans, expanded matching
contributions, decreased costs on
medical plans, increased wellness
benefits, mental health resources,
special perks and discounts, and more.
Over the past two years, Human
Resources (HR), Global Technology
and our Chief Administrative Office
have been working in partnership to
reinvent the employee experience.
We’re innovating across platforms and
functions to deliver a more cohesive,
frictionless, personalized experience
for our employees, which in turn, helps
them better serve our customers and
clients. GenAI is helping us reimagine
how teams collaborate and connect,
driving greater efficiency and effec
tiveness and ultimately a better
employee experience.

61
FUTURE-PROOFING THE COMPANY AND OUR OPERATIONS
Simply put, JPMorganChase is a great
place to work.
We believe that the office remains
the primary place for people to work.
It’s where we foster and deepen
our great culture, collaboration and
career mobility.
We also recognize we need to continue
to invest in the workplace of the future
that delivers an elevated experience
for employees, clients and visitors.
That’s why we’re working to upgrade
our global real estate portfolio, mod
ernizing 125,000 seats with plans to
deliver an incremental 75,000 addi
tional new or modernized seats over
the next five years. It’s also why we
opened two new corporate centers in
India, a technology center in Glasgow
and renovated our Columbus head
quarters, all completed within the last
two years. Our strategy is focused on
creating excellent workspaces that
have more communal, collaborative
and restorative areas, advanced envi
ronmental systems and best-in-class
amenities.
It’s also why we are so excited to cut
the ribbon on our new headquarters
building, a true architectural marvel.
When complete, it will be New York
City’s largest all-electric building
totally powered by renewable energy,
with net zero operational emissions.
Special features include outdoor
spaces, 30% more daylight and the
capacity to support more than 50,000
connected devices, including comput
ers and mobile devices, making it the
most connected, data-driven high-rise
building in New York City.
When we invest in improving our real
estate, not only are we investing in our
employees – we’re investing in the
local community. We are a major
employer in local communities across
the globe, with thousands of employ
ees who significantly contribute to
the local economy surrounding their
workplace, stimulating additional jobs
across local industries such as restau
rants, coffee shops, dry cleaners, local
retailers and gas stations. We recog
nize the critical role we play not only
as a steward of the global financial
system but also as a catalyst in boost
ing local economic health in the com
munities where we operate.
Our Guiding Principles Remain Unchanged:
•
We seek to make dreams possible for everyone, everywhere, every day.
•
We do not believe that talent is concentrated in any particular demographic group(s) and are
dedicated to equal employment opportunity for talent across all backgrounds.
•
We strictly prohibit unlawful discrimination, harassment and abusive conduct of any kind. We are
dedicated to treating all individuals fairly and with respect.
•
We seek to attract and retain the best talent. We recognize that our people are our strength and the
diverse talents and perspectives they bring to our global workforce are directly linked to our success.
•
We strive to build and foster an inclusive work environment where our employees are respected,
trusted and empowered. Our experience is that if our teams are more diverse, we will generate better
ideas and outcomes, enjoy a stronger corporate culture and outperform our competitors.
•
We are dedicated – and in many places obligated – to supporting underserved communities as part
of our commitment to corporate responsibility and long-term shareholder value. We strive to
empower individuals and improve lives through our business practices and community outreach
efforts that we have seen are good for customers, communities and our business.

62
FUTURE-PROOFING THE COMPANY AND OUR OPERATIONS
62
OUR PURPOSE AT WORK
Our Purpose is to make dreams possi
ble for everyone, everywhere, every
day. We bring that to life with passion
and grit through every interaction we
have with our colleagues, customers
and clients.
Our business and people practices are
all anchored to the correct governance
and controls that hold us to account for
the policies and processes we put in
place. We have the highest standards of
excellence and are constantly asking
ourselves how we can get better.
Part of that includes doing the right
thing, upholding our code of conduct,
and how we treat our customers and
clients – never turning anyone away
because of who they are or what they
believe. This Purpose also extends to
our treatment of our employees and to
our belief that a culture where everyone
is afforded respect and dignity creates
the best workplace and business
outcomes.
Indeed, we believe our strong culture
is what makes us deliver so well for our
shareholders, clients and customers,
and that includes our belief in the
power of a diverse workforce, which
strengthens our business and builds
trust within our communities. As I
mentioned recently in a note to
employees, our Diversity, Opportunity
and Inclusion organization, along with
the lines of business, HR and Corporate
Responsibility, will continue our efforts
to reach the most customers and
clients to grow our business, uplift
the people and communities we serve,
and create an inclusive workplace for
our employees.
We will continuously evaluate programs
across every part of our business to
ensure they make commercial sense,
are driving the right business outcomes
and comply with current laws as they
evolve. And we’ll stay true to our long
standing core principle and practice
of reducing barriers because we know
that talent and potential are equally
distributed but that access and oppor
tunity are not.
As a global company, we are dedicated
to serving communities worldwide,
from Baltimore and Huntsville to Paris
and Hyderabad. Initiatives born from
the model of our successful work in
cities like Detroit to spur economic
opportunity have led to innovation in
products and services. Our offerings –
including affordable housing and the
expansion of branches, products and
services in urban and rural areas – are
now embedded in our everyday busi
ness and are, and always have been,
available to all. Sometimes you start
with a problem statement around a
very particular issue or community,
but the solutions benefit all.
Our virtual call centers, first piloted in
Detroit in 2022, have created more
than 200 jobs. Since 2022 we have
expanded to other cities, including
Atlanta and Baltimore, where we
recently welcomed a new cohort of 40
employees who are military spouses.
Hiring veterans is another win for
everyone, and I’m proud to break
the news here that the Veteran Jobs
Mission, a coalition of more than 300
companies that we helped to found in
2011, just reached 1 million veterans
hired. That includes nearly 20,000
veterans hired within our firm. Removing
barriers through these initiatives and
others, like our second chance hiring
and tapping different communities
for the skills and expertise that they
lend our business, has helped our firm
to thrive.
Successful companies require thriving
communities. It makes good business
sense to invest in the broader
ecosystem.
OUR VALUES
Our Purpose is realized through living
our Values – Excellence, Heart, Service,
Courage and Curiosity.
Each one of these words and the ethos
they carry is what sets us apart: striving
for better every day; serving our cus
tomers, communities and each other
with heart; always having the courage
to do the right thing – especially when
it’s hard; and staying humble in our
approach and curious to learn.
This is how we deliver for our share-
holders, invest in the JPMorganChase
of tomorrow and keep our business not
only running well, but also as one of the
most successful in the world – and our
people are the fuel that enables it all.
Jennifer Piepszak
Chief Operating Officer

CONSUMER & COMMUNITY BANKING
63
Consumer &
Community Banking
I’m very proud of how Consumer &
Community Banking (CCB) delivered
for our customers, communities and
employees in 2024, as we focused on
our priorities to:
1.
Grow and deepen relationships by
engaging customers with products
and services they love and expand
ing our distribution.
2. Deliver best-in-class financial
performance.
3. Leverage technology, data and
artificial intelligence (AI) to drive
customer value and speed to
market.
4. Protect our customers and the firm
through a strong risk and controls
environment.
5. Cultivate talent to build high-
performing, diverse teams where
culture is a competitive advantage.
This consistent, long-term strategy
has served us well through volatile
and uncertain times, and we believe
it positions us well for the future.
1. GROW, ENGAGE AND DEEPEN
RELATIONSHIPS
Across CCB, we serve more than 84
million consumers and 7 million small
business clients1. We’ve grown con
sumer relationships by 14% from 2019
(3% year-over-year) and small business
relationships by 51% (10% year-over-
year) by engaging customers with
products, services and seamless expe
riences across both digital and branch
channels. Our branches are still the
storefront of JPMorganChase, with
more than 41 million customers choos
ing to visit a Chase branch in 2024,
up 12% since 2019 (4% year-over-year).
Nearly 71 million customers were
digitally active, up 35% since 2019
(6% year-over-year).
We’re not just growing our customer
base. We’re also creating deep,
enduring relationships by investing in
industry-leading products and capabil
ities and improving the customer expe
rience. Today, 28% of customers have
at least two discrete products with us,
up from 24% in 2019 (27% in 2023).
2. DELIVER BEST-IN-CLASS
FINANCIAL PERFORMANCE
We’re proud of our financial results,
which are an outcome of a customer-
first approach and a focus on opera
tional excellence. We manage the
business with a long-term, through-
the-cycle view. While the goal is to
deliver best-in-class performance in
any year or environment, we also aim
to realize durable and profitable growth
that is consistent with our 25% through-
the-cycle return on equity (ROE) target.
For the fourth consecutive year, we
exceeded that objective, delivering
a 32% ROE in 2024.
Consumers remain healthy despite
excess cash having been largely
drained from their balance sheets,
which, to date, we view as normaliza
tion. Spend remains strong, fueled by
a healthy labor market. By recent his
torical standards, today’s interest rates
are elevated, even after a 100-basis-
point reduction in 2024, and yield-
seeking behaviors continue, albeit at
a slower pace. Importantly, we are
successfully defending primary bank
relationships and capturing money in
motion. In 2024, we retained over 85%
of flows within Banking and Wealth
Management. As expected, declining
rates drove deposit margin compres
sion, while ongoing yield-seeking
behavior resulted in a 6% decline in
2024
2023
2019
+23%
2024
2023
2019
+52%
2024
2023
2019
+76%
2024
2023
2019
+39%
2024
2023
2019
+19%
2024
2023
2019
-61%
Consumer
Banking
Customers
Credit Card
Active accounts3
Auto
Loan and lease
originations
Home Lending
Mortgage
originations
Business
Banking
Clients
Wealth
Management
Relationships2
2019 to 2024 Performance

CONSUMER & COMMUNITY BANKING
64
average deposit balances from 2023.
In Card, we continue to see strong
demand for our products and low levels
of attrition, which resulted in a 12%
increase in average loans over 2023.
Taking deposits and loans together,
where we see offsetting impacts, net
interest income was $54.9 billion, flat
compared with 2023.
Noninterest revenue of $16.6 billion
increased 10%, driven by strong annual
fee growth in Card, coupled with the
scaling of Wealth Management and
Connected Commerce, and the easing
of cyclical and secular headwinds in
both Home Lending and Auto.
Expenses of $38 billion were up 9%
from 2023. We grew our distribution
capacity as we added an incremental
800 bankers, approximately 300
advisors and nearly 70 branches to our
network, all of which drive long-term
growth. Through investments in data
and technology, we’ve made great
progress modernizing our infrastruc
ture and developing products custom
ers love. In marketing, where we have
a data-driven, proven track record of
success, we remain focused on oppor
tunities to acquire customers across
products and segments. Additionally,
we saw strong account and transaction
growth and engagement.
Against a macroeconomic backdrop
similar to 2023, credit remains in line
with expectations.
Maintaining our #1 position across
industry-leading businesses
We’re the clear market leader in
Consumer and Business Banking, as
well as Card, on the back of strong
new account acquisition and primary
bank relationships.
Consumer and Business Banking:
We maintained the #1 position in 2024
and outperformed large bank peers
with 11.3% national retail deposit share,
up 220 basis points since 2019 (down
7 basis points year-over-year). We also
remained #1 in small business with
9.7% primary bank share, up 28 basis
points since 2019 (up 25 basis points
year-over-year). We ended 2024
with 44 million Consumer Banking
relationships (up 4% year-over-year)
and 7 million small business clients1
(up 10% year-over-year). Approximately
80% of consumers and 65% of small
business owners with whom we have
banking relationships consider us their
primary bank.
This position reflects strong new
account acquisition, as well as over a
decade of investment in our branch
network. Historic investments continue
to mature, and we invest for the future
with plans to get to 15% national retail
deposit share.
Banking is local, and nearly 1 million
customers walk into a Chase branch
each day. The bank’s team of approxi
mately 50,000 experts helps custom
ers transact, open accounts, and get
information and advice. In 2024, 85% of
business checking accounts and nearly
30% of Chase-branded cards were
opened in branches.
Branch expansion remains core to
long-term growth. Since 2019, we’ve
added over 860 new branches, more
than all large bank peers combined,
and we are the only bank with a pres
ence in all 48 contiguous states. As a
result, Chase covers more Americans
than any other bank, with 68% of the
U.S. population within an accessible
drive to one of our branches. We are on
track to meet the goals we announced
last year to build 500 new branches by
2027, contributing to our long-term
plans of reaching 75% of the national
population within an accessible drive
and over 50% within each state. This
goal demonstrates our commitment to
providing local banking services in all
communities, from urban centers to
rural areas across America’s heartland.
In 2024, we entered 10 new markets,
opened approximately 150 new
branches – including the first two
J.P. Morgan Financial Centers in
Manhattan and San Francisco – and
three Community Center branches in
the Bronx and Brooklyn in New York
City and Columbus, Ohio. We’re also
investing in existing branches, refresh
ing nearly 450 in 2024.
We aim to be the bank for all and
remain committed to evolving prod
ucts, services and experiences to meet
the unique needs of each customer
segment. In 2024, we enhanced Secure
BankingSM, a product geared toward
emerging segments, and introduced
J.P. Morgan Private Client as a new tier
in our affluent product continuum. We
also launched new tools to help small
business owners run their businesses,
including invoicing, payroll and cus
tomer insights.
The First Republic integration is com
plete, and we’re proud to have retained
approximately 90% of banking clients
and over 95% of deposit balances across
the firm. In the Wealth Management
businesses, we retained nearly 80%
of advisors and assets.
Card: In 2024, we remained the #1
credit card issuer in the U.S. and
continued to gain share. We increased
total active accounts to nearly 60 mil
lion and outstandings to $214 billion
(up 12% year-over-year). This fueled
market share gains to 23.5% share of
sales and 17.3% share of outstandings,
up 110 basis points and 90 basis points,
respectively, since 2019 (each up
60 basis points year-over-year).
Our ongoing investment in marketing
distribution is driving strong new
account production and engaging
existing cardmembers. In 2019, we
booked 7.8 million new card accounts,
and since 2022, we’ve consistently
booked approximately 10 million new
accounts each year with strong return

CONSUMER & COMMUNITY BANKING
65
profiles. This step-change in growth
will serve as a solid financial foundation
for the Card franchise for years to
come. Through industry-leading prod
uct benefits, we drove engagement
with existing cardmembers, and in
2024, more than 60% of customers
chose Chase as their top-of-wallet
card5, which is a record high.
We invest in benefits and capabilities
to keep our cards fresh and relevant,
and in 2024:
• Refreshed the Marriott Bonvoy Bold®
card with an embedded lending
benefit, inspiring cardmembers to
“Travel Now, Pay Later” and to divide
qualifying purchases into equal
monthly payments with no interest
or plan fees.
• Launched Chase Pay Over Time® at
Amazon checkout so customers can
break up large purchases into fixed
monthly payments without requiring
a credit check or forfeiting rewards.
• Extended our partnership with
InterContinental Hotels Group and
further deepened the relationship
into Chase TravelSM and other
businesses.
We continue to focus on adding value
for key segments where we have out
sized opportunity to grow, including:
• New-to-credit customers: Continued
to scale the Freedom Rise® card
while increasing the number of
annual new accounts within this
segment by 85% year-over-year.
• Small businesses: Refreshed the Ink
Business Cash® card to better serve
the needs of smaller businesses.
Continued to deepen with Chase
Business Banking clients, who
contributed to over 50% of business
card spend growth.
• Affluent clients: Expanded our award-
winning lounge network, opening five
new Sapphire airport lounges, includ
ing at LaGuardia Airport. The Points
Guy named it the best new U.S.
airport lounge and recognized the
Sapphire Preferred® card as the best
travel rewards card in 2024.
These strategies will fuel our plans
to get to 20% share of outstandings.
Scaling growth businesses
In Connected Commerce and Wealth
Management, we have the assets to
win and outsized opportunity to
grow to what we view is our fair share,
given the breadth of CCB relationships.
These businesses are natural adjacen
cies to credit card and banking, and
both diversify and strengthen the
CCB franchise.
Connected Commerce: We continue to
build a powerful two-sided platform to
connect customers with relevant mer
chant brands. In 2024, we reached over
$23 billion in volume and are on track
to reach $30 billion in volume in 2025.
Since launching Connected Commerce
in 2021, we’ve doubled volume on both
Travel and Offers platforms.
Travel – We maintained our rank as a
top five consumer leisure travel provider
and secured the #3 spot6 in 2024. We
launched Chase TravelSM as a stand
alone brand in 2024 to help customers
discover, plan and experience travel and
delivered $11 billion in booked volume,
up 9% year-over-year. We also scaled
The Edit by Chase TravelSM to more
than 1,000 hotels, offering customers
exclusive benefits and experiences at
our curated list of premium hotels. The
share of Chase proprietary card spend
on our platform has increased by more
than 200 basis points since 2021, and
we expect ongoing growth.
Chase Media SolutionsSM – Our new
digital media business connects cus
tomers’ personal passions and inter
ests with brands they love. Customers
benefit from the ability to earn extra
cash back at places where they already
shop or just discovered. Since launch
ing last year, we’ve experienced strong
growth with 18 billion offers and $12
billion of customer spend on the plat
form in 2024, up 31% year-over-year.
Payments and Lending Innovation –
In payments, trust and security are top
priorities. We continue to invest and
use assets that we believe will help pro
tect customers from fraud and scams.
This includes adding steps in the
ZelleSM user flow to warn customers
about scams. As a result, we had a
26% reduction in fraud and scam claim
rates in 2024. We are making enhance
ments to new capabilities, including
#1 banking portal
in the United States 4
#1 in total combined
U.S. credit and debit
payments volume
#1
#1
#1 in U.S. retail deposit
market share
#1
#1
#1 primary bank for
U.S. small businesses
#1 U.S. credit card issuer based
on sales and outstandings
#1

CONSUMER & COMMUNITY BANKING
66
preventing higher-risk transactions
that originate from social media. To
introduce new, secure payments solu
tions, we’ve rolled out PazeSM, a digital
wallet created in partnership with Early
Warning Services. We’ve onboarded
40 merchants and expect it will
continue to scale.
In lending, we now offer a range of Pay
Over Time® solutions across credit and
debit cards, both in our own and part
ner digital channels, and we’ve had
strong customer adoption. In 2024,
over 6 million customers used our flexi
ble payments and lending solutions
(compared with over 5 million in 2023),
totaling $10.7 billion in originations, up
from $8.5 billion in 2023.
Wealth Management: We reached
a milestone of $1 trillion in client
investment assets ahead of schedule,
doubling assets since 2019 (up 34%
year-over-year). While the First Republic
acquisition and strong market perfor
mance in 2024 provided tailwinds,
nearly half of this growth was driven by
a record 150,000 first-time investors7
(up 27% year-over-year), product
enhancements (such as launching frac
tional shares in Self-Directed Investing)
and investments in advisor hiring (add
ing approximately 300 net advisors in
2024 alone). In fact, we had a record
year for advisors, doubling net flows
per advisor relative to 2019. These
factors should continue to spur growth.
Our branch referral program was
particularly impactful with more than
90% of first-time investors7 being
introduced to J.P. Morgan Wealth
Management by their banker.
We have tremendous opportunity to
further advance growth by leveraging
existing assets and continuing to invest
in products and distribution.
Customers increasingly want to manage
their banking and investments together,
and we are uniquely positioned to fill
that need and capitalize on the opportu
nity. More than 5 million affluent house
holds have banking relationships with
us, but the majority still have their
investment relationships elsewhere.
We continue to invest to meet custom
ers’ evolving wealth management
needs. As a result, 2024 was a break
through year in which we made signifi
cant progress in our digital customer
experience. In 2024, J.D. Power ranked
us #1 in Wealth Management Digital
Experience Satisfaction8 among full-
service and self-directed investors.
Secured Lending
In both Home Lending and Auto, we’ve
faced a few years of challenging market
conditions, but we continue to focus on
what we can control while managing
returns on a through-the-cycle basis.
We make ongoing investments in prod
ucts, experiences and technology plat
forms that position us for growth as
conditions become more favorable.
These two businesses remain strategi
cally important, as they provide diversi
fication and help us serve customers’
needs in life’s key moments.
Home Lending: We continue to face
some of the strongest market head
winds we’ve seen in generations, as
high rates are coupled with limited
housing supply and elevated prices.
Since 2019, home prices are up more
than 50% (roughly flat year-over-year),
inventory is down approximately 15%
(albeit recovering strongly and up
over 20% year-over-year) and mort
gage rates have increased to nearly
7% (roughly flat from 2023).
Despite these challenges, in 2024
we scaled originations to $41 billion
in volume, up from $35 billion in 2023,
while maintaining our position as the
#1 owned servicer. We scaled Chase
MyHomeSM, a digital home shopping
platform, to promote deeper engage
ment and generate leads. In 2024,
over 9 million unique users visited
Chase MyHomeSM (up 46% year-over-
year). We experienced an increase of
approximately 20% in customers who
engage with high-value features,
including searching for homes, viewing
insights on their current property and
mortgage, and understanding how
much they can afford.
Our investments in technology, data
and AI enhance our sales and under
writing capabilities, improve productiv
ity, and facilitate efficiencies and speed
to market. Our newly modernized loan
origination system enabled us to roll
out a home equity product in 2024 to
provide additional lending options for
customers.
Auto: The industry showed signs of
improvement, with COVID-era, secular
headwinds abating. In 2024, new vehi
cle sales recovered from pandemic
lows to about 90% of 2019 levels
(up 2% year-over-year).
While the industry outlook remains
uncertain, Chase Auto has been on
a strong growth trajectory. Up 19%
from 2019, the business originated
$40 billion in 2024 compared with
$41 billion the year prior. Notably, lease
originations have rebounded from
recent lows, though they remain below
pre-pandemic levels. We continue to
enhance digital capabilities and drive
engagement with customers. In 2024,
over 13 million unique users visited
our digital car shopping and financing
platform, Finance & DriveSM, down
12% year-over-year. Importantly, the
number of customers engaging with
high-value features (including shop
ping for a car and pre-qualifying for a
loan) was up 16% year-over-year, which
reflects our focus to deepen engage
ment with our digital tools.
J.D. Power scores indicate our prod
ucts and services resonate with cus
tomers, as we ranked #1 in Digital
Experience for Customer Satisfaction
among Non-Captive Automotive
Finance Lenders9.

CONSUMER & COMMUNITY BANKING
67
Finally, we’ve increased operational
efficiency across the business. About
80% of all applications are automati
cally decisioned, and we continue to
streamline and automate more back-
end processes.
3. LEVERAGE TECHNOLOGY,
DATA AND AI TO DRIVE
CUSTOMER VALUE AND SPEED
TO MARKET
Our technology investments enable
business growth and customer
engagement, resulting in market share
gains, record channel satisfaction
and continued improvements to net
promoter scores.
In 2024, we increased investments in
product, technology and customer
experience to approximately $4 billion
to accelerate innovation, moderniza
tion and AI readiness.
Our innovation agenda focuses on
improving digital products and investing
in personalized customer experiences.
These investments support increased
payment volumes, more targeted offers
and enhanced financial planning tools.
Modernization investments improve our
scale, resilience and speed to market.
With the migration to new data centers
largely behind us, we’re investing to
enhance core platforms, particularly in
Card, Consumer Banking and Home
Lending. Modernization efforts aren’t
just about technology but also about
elevating the quality, accessibility and
usability of our data. We’ve nearly com
pleted the migration of our data to the
public cloud, which is critical for scaling
experimentation and innovation.
Investments in technology and data
are essential for AI readiness. We were
early movers in AI and have invested in
it for over a decade. We initially focused
on risk management, such as fraud
detection. We’ve since made signifi
cant progress in operational efficien
cies and revenue growth, including
personalization and sales effective
ness. To increase AI readiness, we
continue to modernize data and invest
in platforms to scale AI and machine
learning broadly across the organiza
tion. As we implement these ideas in
a controlled manner, we‘re driving
efficiencies – both large and small –
in every process, function and product.
4. PROTECT OUR CUSTOMERS
AND THE FIRM
A strong risk and controls environment
is core to who we are and what we do.
We earn customers’ trust by providing
safe and secure access to banking,
and we protect the firm and sharehold
ers through a rigorous commitment to
a fortress balance sheet and through-
the-cycle decision making.
5. CULTIVATE TALENT
Our more than 140,000 employees
across the globe help make dreams
possible for tens of millions of custom
ers, strengthening the communities
where we operate and the economy
overall. People and culture continue to
be our greatest competitive advan
tages, helping us achieve the best
business outcomes. We’re proud to
attract and develop employees who
reflect diverse backgrounds and
perspectives, and we are committed
to helping employees build rewarding,
long-term careers at the firm.
2025 LOOK AHEAD
CCB continues to be a growth-oriented
franchise that operates from a position
of strength with strong financial perfor
mance. We focus on building durable
customer relationships across segments
and in communities across the U.S.
From where we stand today, we’re con
fidently building upon a stable founda
tion. Consumers and small businesses
have healthy balance sheets, and cash
sorting feels largely behind us.
While the regulatory environment looks
different from a year ago, there’s still a
significant amount of uncertainty. In
this – like everything – we’ll focus more
on where the puck is going instead of
reacting to a specific moment in time to
create maximum strategic flexibility
and adapt accordingly. We can’t pre
dict everything 2025 will bring, but we
have confidence in our growth strategy
and discipline.
1
Includes clients across all CCB lines of business.
2
Unique families with primary and joint account
owners for open and funded accounts.
3
Defined as average sales debit active accounts.
4
#1 most visited banking portal in the U.S. (chase.com)
amongst registered banks based on Similarweb.
5
Defined as the percentage of monthly active
customers who have 10 or more transactions or
$10,000 or more annualized spend.
6
Skift research.
7
Customers investing for the first time with a
J.P. Morgan Private Client Advisor.
8
Measures satisfaction with wealth management
websites and apps. Learn more: jdpower.com/awards.
9
Measures satisfaction with automotive finance
websites and apps. Learn more: jdpower.com/awards.
Marianne Lake
CEO, Consumer & Community Banking

68
COMMERCIAL & INVESTMENT BANK
Commercial &
Investment Bank
2024 was a transformative year for our
business. The combination of our
Commercial Banking and Corporate &
Investment Bank businesses was a
significant step forward in our mission
to deliver more value to our clients and
maximize the value of our franchise.
The new Commercial & Investment
Bank (CIB) leverages the combined
strengths of our united businesses and
offers a more cohesive organization,
enabling us to better align our capabili
ties for clients of all sizes across the
globe, from startups to multinationals.
We are well-positioned to respond to
significant industry trends, such as the
rapid growth of private markets and
the expansion of important client eco
systems, including financial sponsors
and the Innovation Economy.
Our performance in 2024 highlighted
the effectiveness of this strategy and
the value it is creating for our clients
and shareholders.
DELIVERING RECORD RESULTS
In 2024, financial markets continued to
adjust following the injection of trillions
of dollars into the global economy
during the pandemic. Economic opti
mism rose among business leaders in
both large companies and the middle
market. Dealmaking rebounded and
trading surged as investors reposi
tioned their portfolios in response to
inflation data, interest rate cuts and the
busiest international election calendar
on record.
Against this backdrop, the CIB reported
net income of $25 billion on record
$70 billion in revenue, setting new
benchmarks across major business
lines and achieving a full-year return
on equity of 18%.
Global Banking
Our Investment Banking franchise
maintained its top position in global
fees with a 9.3% market share1 and,
for the first time, ranked #1 in M&A,
debt capital markets (DCM) and equity
capital markets (ECM) 1. This excep
tional performance is a testament to
our strategic focus and strength of
our client relationships.
In M&A, J.P. Morgan ended the year
as the top advisor, advising on 395
transactions totaling more than $744
billion1. The business earned $3.3
billion in advisory fees to finish the year
with a leading 9.6% market share1.
Meanwhile, in capital markets, lower
Venture
capital-backed
startups
Small &
medium-sized
businesses
Local
municipalities
Regional
banks
Global
banks
Multinational
corporates
Asset
managers
Government
& public sector
Capital markets
Advisory
Research
Custody
Payments
Trading
Data analytics
Lending
Powerful Client Capabilities across the Globe

69
COMMERCIAL & INVESTMENT BANK
volatility and interest rate cuts sup
ported a pickup in debt underwriting
fees and equity transactions, with
DCM fees rising to $4.1 billion, up from
$2.7 billion in 2023, and ECM fees
increasing to $1.7 billion from $1.2
billion. We maintained our #1 position
in both areas with wallet share of
8.4% and 11.0% in DCM and ECM1,
respectively.
Our Commercial Banking and Global
Corporate Banking (GCB) businesses
are also key growth drivers for the new
CIB. Middle Market Banking revenue
has doubled since 2020, driven by
client acquisition and market expan
sion, including the purchase of First
Republic. In 2024, we added more than
2,500 new clients, and we now have a
strong presence in 90 of the top 100
U.S. metropolitan areas. Similarly, GCB
added over 450 new clients last year.
With bankers in over 40 countries, we
are covering the largest firms across
the world. And in Commercial Real
Estate, where we have long been the
#1 multifamily lender in the U.S., we
are deepening relationships and
becoming the primary operating bank
for our clients.
Payments
In Payments, we delivered record
revenue of $18.4 billion2. The business
has experienced impressive growth,
gaining 260 basis points over the last
five years3 to reach a market share of
9.5% for Treasury Services. A key
competitive advantage is our ability
to provide a complete set of advanced
payments solutions to clients around
the world.
Markets
Markets reported record revenue of
$30 billion, a 7% increase year-over-
year, with equities up 13% and fixed
income up 5%. In a year dominated
by macro themes, our rates, foreign
exchange, commodities and emerging
markets desks excelled in helping cli
ents navigate complex markets.
The year began with expectations of
aggressive Federal Reserve easing,
but global inflation proved stickier than
anticipated, prompting adjustments
across institutional portfolios. We have
consistently ranked #1 in Markets,
finishing 2024 with an overall market
share of 11.4%.
Securities Services
Securities Services delivered another
record year with $5.1 billion in revenue5,
an increase of over $800 million since
2020. This business plays a central role
in J.P. Morgan’s strategy to act as a
complete counterparty to institutional
investor clients, enabling the firm to
meet their needs across the full invest
ment life cycle. Securities Services
operates at remarkable scale, with
assets under custody growing by 14%
in the last five years to over $35 trillion
at the end of 2024.
The exceptional results across the CIB
are a true testament to our incredible
teams and their continued focus on our
clients. We are honored by the trust
placed in us and understand the impor
tance of earning it every day.
Fixed Income Markets revenue Equities Markets revenue
Note: Totals may not sum due to rounding.
#1 rank4
2024
2023
2022
2021
2020
$21.4
$8.3
$29.6
$17.4
$10.2
$27.5
$19.1
$10.1
$19.2
$8.8
$20.1
$9.9
$29.2
$28.0
$30.0
Maintaining Strength in Markets
Markets revenue
($ in billions)
Leadership in Securities Services
Assets under custody6
($ in trillions)
Securities Services revenue5
($ in billions)
2024
2020
$31.0
$35.3
+14%
$4.3
$5.1
2024
2020
+20%

70
COMMERCIAL & INVESTMENT BANK
While we are proud of our performance,
we aren’t standing still.
In an environment of fierce competi
tion, it’s crucial to adapt and innovate.
We continue to make sustained
investments in our capabilities and
solutions, leveraging the full force of
JPMorganChase to stay ahead and
provide what’s best for our clients.
INCREASING OUR FOOTPRINT
To serve clients where they are and to
provide deep sector expertise, we are
expanding into new geographies and
investing in our capabilities.
Our global growth plans are underway
with a particular focus on expanding
our footprint to new markets. Over the
past five years, we have organically
added banking coverage of midsized
companies across 24 new countries.
Extending our capabilities adds tre
mendous value for our clients seeking
access to markets and capital around
the world. This international growth has
contributed to an increase in Banking
and Payments revenue from roughly
$25 billion to more than $35 billion over
the same period.
We are also investing in key growth
sectors. Since the start of 2024, we’ve
hired more than 300 bankers across
Global Banking. Our goal is to continue
to grow market share across 28 sub
sectors in investment banking with a
particular emphasis on healthcare,
technology, infrastructure and the
middle market. Despite being the lead
ing franchise in the world for more than
a decade, there are still plenty of ways
we can grow and expand our relation
ships over time.
Serving client ecosystems
We are partnering across the firm to
deliver more value to important client
ecosystems, such as financial sponsors,
the Innovation Economy, sovereign
wealth funds and family offices.
Financial sponsors represent a major
market opportunity, with an estimated
$3 trillion7 of investable assets. Over
the last five years, about half of the
Investment Banking wallet from
sponsors has come from middle-
market-sized transactions8. As the
bank to over 32,000 middle market
companies, we have a significant
competitive advantage. To support our
growth, we’ve expanded our teams
globally. Strong collaboration among
our Markets, Banking and Private Bank
teams has resulted in differentiated
dialogue with financial sponsor clients,
who are expected to drive a significant
amount of activity around the world.
By strengthening the partnership
between Banking and Markets, we have
been able to bolster our capabilities in
private credit. Over the past four years,
we have successfully deployed more
than $10 billion in 100 direct lending
financings. Recently, we announced
that we are dedicating up to $50 billion
from our own balance sheet, along with
nearly $15 billion from our co-lending
partners, highlighting our determina
tion to be a leader in both the broadly
syndicated and private credit markets.
Our investment also continues in
banking the full Innovation Economy
ecosystem – the network of venture-
backed companies, founders and
investors – where we had nearly 30%
client growth in 2024. Our ability to
support clients throughout every stage
of their life cycle is a true differentiator.
As they scale and grow, we are uniquely
positioned to meet their increasingly
complex and global needs.
Delivering leading capabilities
In Global Banking, we’re equipping our
commercial, corporate and investment
banking teams with data-enabled
analytics and intuitive applications to
best serve our clients. Leveraging the
latest technology and J.P. Morgan’s
unparalleled access to data across
global markets, we are empowering our
teams with rich market insights that
lead to better client outcomes.
In Payments, we operate at scale,
processing over $10 trillion9 in
payments daily, with a 5% increase in
volumes year-over-year. J.P. Morgan
is also the largest U.S. dollar clearer
globally, with over 28% of SWIFT market
share10, and the largest merchant
Banking and Payments Revenue Growth
Combined Banking and Payments revenue
($ in billions)
2024
2023
2022
2021
2020
$24.9
$29.8
$26.8
$31.9
$35.3
+11%

71
COMMERCIAL & INVESTMENT BANK
acquirer in North America11, with settled
sales of about $2.6 trillion globally.
There is still significant room for
growth, particularly with corporates
and in international markets. With that
goal, we are investing in innovation,
enhancing product capabilities and
modernizing to improve the resiliency
of our platforms. We have expanded
our biometric payments offerings,
rebranded our blockchain business to
Kinexys by J.P. Morgan – processing
over $2 billion in transactions daily –
and launched our acquiring services in
France through our partnership with
the Cartes Bancaires network.
In Markets, we continue to add value
for clients across the trading life cycle,
from research and market insights to
execution and post-trade services. The
Global Research team, which plays a
crucial role in acquiring and retaining
clients in this business, achieved a
clean sweep of #1 rankings in Extel’s
Global Leaders Tables for research
providers. J.P. Morgan was named the
world’s top research house for the fifth
consecutive year. J.P. Morgan Markets,
our client research platform, under
went a redesign to improve the user
experience, personalize content and
make it easier to access our trading
services.
Investments in technology have also
enhanced the scale and resiliency of
our Securities Services platforms,
enabling revenue growth and securing
major new wins. Among recent innova
tions, our Fusion platform provides
clients with tools for data discovery,
simplified access to consistent data,
and proprietary analytics within a
robust governance framework.
INVESTING IN THE CLIENT
EXPERIENCE
To maintain our leadership positions in
highly competitive markets, enhancing
the client experience on our digital
platforms is a top priority. This year, we
will continue to harmonize platforms,
creating a more seamless and consis
tent experience and providing easier
access to J.P. Morgan’s extensive
thought leadership and global
capabilities.
By simplifying and updating our sys
tems, we’ll eliminate barriers clients
may have encountered when switching
among applications and workflows. In
addition, greater personalization will
ensure that the firm’s wide range of
content, products and services is
tailored to each client’s specific needs.
We expect these investments to boost
client satisfaction and open up revenue
opportunities - while decreasing com
plexity and costs.
The first step in achieving these objec
tives has been to modernize our infra
structure and make the necessary
investments to move core infrastruc
ture into the cloud. As of today, 98%
of production applications have been
successfully migrated to strategic
data centers and the public cloud, and
approximately 50% of applications now
operate on the public or private cloud.
This positions us to leverage cloud,
data and artificial intelligence (AI)
innovations that will be critical for the
future of our business.
HARNESSING THE POWER OF
OUR DATA
The CIB has incredibly rich proprietary
data assets.
We have made significant strides to
build a data-driven business and
transform the way we work. Using our
data, we are reimagining how we serve
clients, manage risk and optimize
our operations. We are investing to
build the data infrastructure needed
to integrate AI into our operating
environment.
The CIB now has over 175 AI use cases
in production, with large parts of our
team using our internal large language
model platform to deliver insights and
improve efficiency across a range of
daily tasks.
Among other operational efficiency
gains, AI and machine learning technol
ogy has enabled the CIB to improve its
know your customer processes, lead
ing to a nearly 40% reduction in unit
costs. It also meaningfully improved
the cost and effectiveness of sanctions
screening and fraud protection.
Meanwhile, AI is enabling us to improve
the client experience and offering,
using data across the business to
create recommendations based on
client interactions in over 40 countries.
Firmwide data also plays a key role in
the unified client dashboard we are
developing for our bankers, an espe
cially important initiative as we look to
better serve complex client segments
like financial sponsors.
Other AI use cases include tools to
help corporate clients better predict
cash flows, to optimize the use of
capital in our trading business and,
in Global Research, to quickly find
relevant insights from reports and
economic data.
MAKING A POSITIVE IMPACT
AROUND THE WORLD
We are a purpose-led organization and
continue to dedicate capital, expertise
and resources to drive real impact for
our clients and communities.
In 2024, we supported vital institutions
– including hospitals, schools, non-
profits, state and local governments,

72
COMMERCIAL & INVESTMENT BANK
and transportation infrastructure –
with more than $8 billion in credit
facilities and over $19 billion in capital
markets financing, as well as provided
funding for over 8,000 incremental
affordable housing and rental units12.
In the United States, we financed
affordable housing in Chicago’s Lincoln
Park neighborhood and the renovation
of a vital blood sciences unit in New
York City, as well as the construction
of the world’s first purpose-built wom
en’s soccer stadium in Kansas City.
Internationally, our Public Sector group
continued to help clients invest in a
more sustainable future and improve
economic prospects for people around
the world. Among its work, the team
supported conservation efforts in
El Salvador with a $1 billion loan facility
to free up funds for the Lempa River
watershed and, in Brazil, we arranged
an $800 million loan to Banco do Brasil
to help smallholder farmers operate
their land more sustainably.
In the CIB, we believe that our true suc
cess is not purely defined by financial
performance but also derived from
making a positive impact and uplifting
communities around the world.
LOOKING FORWARD
J.P. Morgan’s new CIB has further
strengthened its market position.
The integration of two industry-leading
businesses will drive value for years to
come, enabling us to offer more seam-
less and tailored solutions to meet the
distinct needs of diverse businesses.
We have a tremendous client franchise
and a complete set of products and
services. We also have the capacity to
invest through cycles, enabling us to
innovate to extend our competitive
advantage and focus relentlessly on
improving the client experience.
Even in the face of uncertain times,
J.P. Morgan stands ready to support
our clients. Our strong operating
discipline and fortress principles allow
us to be there for them in any market
environment.
We are incredibly proud of our
exceptional team for everything
they do to support our clients and
communities around the world.
Looking forward, we are excited
about the many opportunities ahead
for this extraordinary franchise.
1
Dealogic as of January 2, 2025.
2
Payments revenue excludes the net impact of
equity investments.
3
Coalition Greenwich Competitor Analytics
(preliminary for FY24) reflects global firmwide
Treasury Services business (CIB and CB). Market
share is based on JPMorganChase’s internal
business structure, footprint and revenue.
4
Coalition Greenwich Competitor Analytics
(preliminary for FY24). Market share is based on
JPMorganChase’s internal business structure,
footprint and revenue. Ranks are based on Coalition
Index Banks for Markets. Institutional client share
based on Coalition Greenwich 2020-9M24
Institutional Client Analytics for Markets.
5
Revenue reflects J.P. Morgan reported revenue.
6
Represents assets held directly or indirectly on
behalf of clients under safekeeping, custody and
servicing arrangements.
7
Preqin.
8
Dealogic as of March 28, 2025.
9
Based on firmwide data using regulatory reporting
guidelines prescribed by the Federal Reserve for
U.S. Title 1 planning purposes; includes internal
settlements, global payments to and through
third-party processors and banks, and other
internal transfers.
10 Represents U.S. dollar payment instructions for
direct payments and credit transfers processed
over Society for Worldwide Interbank Financial
Telecommunications (SWIFT) in the countries
where J.P. Morgan has sales coverage. Market
share is based on December 2024.
11
Nilson, Full Year 2024.
12 Part of the Firm’s $30 billion Racial Equity
Commitment, excluding any adjustments to
the prior periods reported units.
Troy L. Rohrbaugh
Co-CEO, Commercial &
Investment Bank
Douglas B. Petno
Co-CEO, Commercial &
Investment Bank

73
ASSET & WEALTH MANAGEMENT
Asset &
Wealth Management
J.P. Morgan has a proud fiduciary
history spanning nearly two centuries
of managing client assets. Throughout
each decade, we have consistently
delivered valuable insights and strong
performance to a distinguished clientele
worldwide, including governments,
major institutions, central banks,
sovereign wealth funds, CEOs, founders
and individuals. Our steadfast commit
ment to delivering strong and consis
tent results has solidified our position
as a leader in industry growth. Whether
supporting a first-time saver seeking
cash management solutions or retire
ment options at a Chase branch or
serving a major state pension plan in
need of tactical asset allocation overlay
strategies, our franchise continues to
strengthen with each new relationship,
earning the trust of our clients.
Having had the privilege of working
for Jamie Dimon for over two decades,
I am reminded every day that success
is not accidental and should never be
taken for granted. Sustainable growth
requires constant innovation, extra-
ordinary focus, intensity and drive,
coupled with a fortress mindset – always
preparing for the toughest challenges
while remaining poised to seize new
opportunities. We are in a fiercely
competitive race to identify the best
opportunities for our clients and for our
future growth while simultaneously
maintaining our unwavering focus
on cutting waste and achieving
operational excellence.
In Asset & Wealth Management (AWM),
my partners and I work tirelessly to
optimize client portfolios and future-
proof them for what lies ahead. We
achieve this by delivering leading
investment performance, leveraging
what I believe is the most exceptional
talent in the industry and executing our
most ambitious investment agenda to
date. Our focus on investing in cutting-
edge technology and our elite talent,
while driving out inefficiencies, has led
us to highly profitable growth for our
shareholders.
Our clients vote daily on our success
with their consistent contribution of
new assets. They have demonstrated
their ongoing confidence in our strategy
by entrusting us with an additional
$486 billion in net new assets, bringing
the total to nearly $1 trillion of inflows
over the past two years. This remark
able achievement stands as the
ultimate testament to the strength
and effectiveness of our business.
Building on this tremendous momen
tum, we have achieved record results
across nearly all financial metrics,
reaching all-time highs in five key
performance indicators, as shown in
the top right chart on this page.
ACTIVELY MANAGING OUR
CLIENTS’ ASSETS
Over the past two decades, we have
focused on and invested in the industry’s
leading active management platform,
even as many of our peers double down
on passive strategies. In today’s market
environment, where having fundamental
insights is critical, we believe our
responsibility is to proactively seek
opportunities that are not yet reflected
in backward-looking benchmark
weightings. We have responded swiftly
and adeptly to various market cycles,
consistently achieving world-class
investment performance. Our peer-
leading performance has enabled us to
deliver positive outcomes for our inves
tors, strengthening our clients’ trust
in us as their long-term partner and
attracting more clients than ever before.
A Record-Breaking Year
$22B
Revenue
$7B
Pre-tax Income
$5B
Net Income
$236B
Loans (EOP)
$6T
Client Assets
EOP = End of period = Record
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
$24
$61
$85
$74
$176
$276
$389
$49
$490
$486
$1T
Client Asset Flows1
($ in billions)

74
ASSET & WEALTH MANAGEMENT
BEST-IN-CLASS ADVISORY
TEAMS
Over the past five years, we have
strategically invested in expanding and
elevating our global advisor teams to
enhance our capabilities and meet
clients’ diverse and evolving needs.
This includes both hiring new advisors
and expanding our comprehensive
training programs to equip them
with the latest knowledge and skills,
ensuring they remain at the forefront
of industry trends. With over 9,500
advisors, our Wealth Management
network reflects a 6% growth in 2024
– a notable achievement given industry
stagnation – demonstrating the
scale of our global platform and our
commitment to first-class service and
expertise. We aim to build future-ready
advisory teams in Wealth Management,
Institutional and Retail/Funds, setting a
standard that is admired by our
competitors.
A key component of our strategy to be
the industry’s leading active manager
is our substantial investment in our
research capabilities. In 2024, we
employed 490 proprietary research
analysts across various asset classes,
underscoring our commitment to mak
ing informed decisions and embedding
research into our culture and business
ecosystem. In the past year alone, our
research team provided coverage on
approximately 4,700 companies and
conducted nearly 11,000 company visits
and engagements. These real-time,
on-the-ground insights from around the
world, infused with JPMorganChase’s
dominant technology, empower our
teams to adeptly navigate complex
global markets for our clients.
By harnessing and leveraging advanced
technologies – such as artificial
intelligence (AI), machine learning and
proprietary data science – we enhance
all aspects of our business, significantly
improving our risk management capa
bilities, streamlining operations and
boosting overall efficiency. Our recent
launch of GPT-Insights exemplifies this
commitment, streamlining the research
process for Asset Management (AM)
investors. This proprietary generative
AI tool creates comprehensive company
reports from multiple sources, high
lighting both internal and external
perspectives in an easily digestible
format. Since its December 2024
launch, GPT-Insights has reduced
research task times by up to 85%,
guiding investors on where to delve
deeper. Our dedication to leveraging
state-of-the-art technology not only
strengthens our competitive edge but
also aligns with our broader goal of
delivering superior value to our clients
– from pilot to production to profitabil
ity. We are setting a new standard of
innovation in the banking industry,
driving sustainable growth and long-
term shareholder value.
Lastly, in recent years we have
made significant investments in our
exchange-traded funds (ETF) platform.
The combination of top active manage
ment performance and ETF expertise
has positioned us as a leader in the
rapidly expanding field of active ETFs.
In 2024, we were the leader in inflows
in both active management and active
ETFs across the industry.
#1
Active
flows
Total
85%
#1
Active Equity
flows
Equities
91%
Fixed Income
#2
Active Fixed Income
flows
88%
#1
Active ETF
flows
Active ETFs
95%
Investment Performance and Global Rankings by Flows2, 3
J.P. Morgan Asset Management Long-Term Funds AUM (%) Outperforming Peer Median Over 10 Years
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
84%
85%
91%
85%
85%
80%
86%
90%
83%
85%
>75% 74%-50% <50%
Advisor Growth and Client Coverage
Wealth Management Advisors
(in thousands)
Global Private Bank
U.S. Wealth Management
2024
2019
6.6
9.5
+1.4x
Largest Pensions/Sovereign
Wealth Funds as clients
U.S. Financial Advisors
opportunity covered
Global billionaires as 23 Wall
clients; ~$3T in wealth
57%
680+
70%+
AUM = Assets under management

75
ASSET & WEALTH MANAGEMENT
In addition to hiring and training, we
equip our advisors with cutting-edge
AI tools like Connect Coach and
Sales Assist, significantly enhancing
their productivity and scope. With over
80% of AWM Front Office utilizing our
J.P. Morgan Large Language Model
(AI) Suite, each day we uncover oppor
tunities to eliminate “no joy” work and
repetitive tasks, allowing our teams
to focus on higher-value activities.
These initiatives are integral to deliver
ing exceptional service and driving
sustainable growth.
HIGHLY CUSTOMIZED
SOLUTIONS FOR EACH
INDIVIDUAL
Our vision for personalized advice
focuses on empowering both clients
and advisors to make choices tailored
to each unique situation. To enhance
our capabilities, we made two import
ant acquisitions: 55ip (in 2020) and
OpenInvest (in 2021). Our technology
teams leverage these acquisitions,
alongside continuous proprietary devel
opments, to equip every portfolio team
with the most modern and advanced
tools and resources. This enables them
to customize preferences and concen
trations, adapt to tax considerations
and create portfolios that are aligned
with their specific needs. We don’t
believe any fiduciary manager should
dictate choice or preferences for a
client’s investment portfolio. Instead,
we empower clients to specify criteria
important to them, and J.P. Morgan
teams execute accordingly.
We believe our fiduciary voice should
be leveraged to influence the compa
nies we invest in, drawing on our two
centuries of collective knowledge to
enhance long-term shareholder value
creation. Our in-house stewardship
teams operate independently, without
relying on external proxy advisors to
vote for us. In fact, we have taken major
steps to minimize the influence of proxy
advisory firms on our teams and no
longer incorporate their research into
the governance decisions made by our
stewardship and investment profes
sionals. We take pride in the active role
our fundamental investors play in the
governance process, utilizing their
expertise and insights to ensure strong
oversight for client portfolios.
ALTERNATIVES
Alternatives have always been a key
differentiator in our clients’ portfolios,
as we are among the leading providers
and investors globally. Recently, this
asset class has emerged as one of the
industry’s largest and fastest-growing
areas, primarily driven by the open-
ended structure now available to
individual investors. In response, we
have strategically restructured our
coverage into two distinct pillars:
AWM Alternative Solutions and AM
Private Markets. This new structure is
designed to broaden our coverage and
enable meaningful growth, leveraging
our rich history of over 60 years and
our extensive experience across
various investment types. With these
enhancements, we are poised to
expand our coverage and unlock our
deep expertise in this area, ultimately
providing our clients with innovative
and tailored investment solutions
across the board – from third-party
strategies to funds managed by our
own teams. By aligning our resources
and capabilities with the evolving needs
of the market, we are well-equipped to
navigate the complexities of the finan
cial landscape and drive sustainable
growth in this important area.


AI Use Case Examples
Connect Coach
• Improves customer experience through proactive engagement
• Utilizes client and market data to provide tailored recommendations
• Boosts productivity with detailed call summaries
Sales Assist
• Transcribes calls and presents relevant information in real time
• Supports discussion with key product info and thought leadership
• Summarizes calls/tags client data for consistent entry and analysis
~95%
quicker at locating relevant content to drive
impactful conversation with clients
~20%
higher gross sales supported by Sales Assist YoY,
enhanced by focusing on high-impact client work
Alternative Assets
Assets Under Supervision ($ in billions1, 4)
Liquid Alternatives/Other
Hedge Funds
Private Credit
Private Equity
Real Assets
2024
2019
$504
$265
+90%
YoY = Year-over-year

76
ASSET & WEALTH MANAGEMENT
GLOBAL FOOTPRINT
As a business within a firm with hun
dreds of years of history, we possess a
deep understanding of the complex
economic and geopolitical landscape
that shapes our industry. Today, AWM
maintains client coverage in over 150
countries, underscoring our commit
ment to serving a diverse range of
clients globally. In recent years, we
have invested in opening new offices
in Athens, Jacksonville, Manchester,
Munich, Salt Lake City and Scottsdale.
Additionally, we have increased our
number of advisors by more than 10%
in other key offices, including Austin,
Fort Lauderdale and Frankfurt. In China,
we have one of the largest teams of
research analysts covering Chinese
stocks among foreign-owned asset
managers. These investments build
a strong foundation for AWM for
decades to come.
In addition to expanding our geographic
footprint, we cultivate a culture of
excellence through talent mobility,
ensuring our teams are not only adept
in local market dynamics but also
aligned with our cohesive global
culture. This combination allows us to
remain agile and responsive, position
ing us to capitalize on emerging trends
and to deliver a consistent experience
to our clients worldwide. Lastly, in most
of AWM locations around the world,
we co-locate with our Consumer &
Community Banking and Commercial &
Investment Bank partners, significantly
amplifying our impact on clients and
communities.
EVIDENCE THAT THIS
STRATEGY IS WORKING:
STRONG ROE FOR OUR FIRM
AND SHAREHOLDERS
Our results are not only strong
compared with every major competitor
but are also crucial for the broader
success of JPMorganChase. Our ability
to deliver industry-leading return on
equity (ROE) stems from our disci
plined approach to managing every
dollar on our balance sheet, contribut
ing to a robust blended ROE for our
shareholders. These results, achieved
while maintaining significant invest
ment in our business, speak to the
strength of our franchise and the focus
of our strategic investment agenda.
CONCLUSION
Our fiduciary commitment to our
clients serves as our north star, guiding
every aspect of our work. I am proud
of how we have successfully guided
our clients and shareholders through
the challenges and volatility of recent
years, all while making significant
investments in the future.
As each of the three lines of business
at JPMorganChase strives every day
to excel in our respective areas, we
are acutely aware that our collective
strength surpasses the sum of our
individual parts. Together with my
Operating Committee partners in AWM,
we work relentlessly to maximize the
firm’s value to every client, delivering
investment advice, liquidity manage
ment, capital markets expertise, credit,
1
For footnote, refer to page 58 footnote 34 in this
Annual Report.
2
For footnote, refer to page 58 footnote 33 in this
Annual Report.
3
Source: Public filings, company website, Morningstar.
4
For footnote, refer to page 59 footnote 36 in this
Annual Report.
5
Source: Public filings; return on equity (ROE) or
comparable metric is based on as reported figures,
where available. For peers that do not report ROE or
a comparable metric, calculations were derived from
reported net income attributable to common
shareholders and the reported average common
shareholders’ equity.
payments, custody and full-service
banking. Clients benefit from being
part of the broader JPMorganChase
ecosystem, as does each line of
business, with access to unparalleled
resources and scale that set us apart
from the competition.
We are deeply grateful for the trust our
clients and shareholders place in us
and remain dedicated to delivering
excellence every day. By leveraging
the strengths of JPMorganChase, we
are confident in our ability to deliver
exceptional value and maintain our
leadership position in the industry. As
we look to the future, we are committed
to driving innovation and consistent
growth, ensuring that we continue to
meet and exceed your expectations.
JPM
AWM
Peer
#9
Peer
#8
Peer
#7
Peer
#6
Peer
#5
Peer
#4
Peer
#3
Peer
#2
Peer
#1
12%
13%
15%
15%
17%
21%
23%
28%
28%
34%
Peer-Leading Performance
2024 Return on Equity for 10 Largest Asset and Wealth Managers5
Mary Callahan Erdoes
CEO, Asset & Wealth Management

77
CORPORATE RESPONSIBILITY
Corporate Responsibility
More than 10 years ago, JPMorganChase
began a historic investment in Detroit’s
economic recovery after the city filed
for bankruptcy. Leveraging research
and data, we focused on the areas
where our firm’s expertise and resources
could make the greatest impact. As a
result, we devoted business, philan
thropic and human capital to promote
neighborhood revitalization and afford
able housing, skills training and job
creation, small business growth and
financial security for residents. Most
important, despite being a bank head
quartered in New York City, we showed
up like a bank headquartered in Detroit.
The firm’s investments in Detroit, which
helped spur economic growth through
out the city, also gave way to new com
mercial opportunities for our business.
As the city’s credit rating jumped from
junk bond to investment grade status
and as home values doubled, our
market share and commercial loans
increased; so did our consumer and
business banking accounts and bal
ances. The takeaway – and business
model it informed – was clear: Thriving
communities are good for business.
Fast forward to today: The Corporate
Responsibility department’s work is a
central part of our firm’s strategy. With
team members around the world, we
help JPMorganChase develop hyper-
local solutions to community challenges
and forge meaningful partnerships with
leaders in the public, private and non
profit sectors. This multipronged
approach contributes to the firm’s resil
iency through economic cycles and
creates strong local business conditions
that bolster our competitive advantage.
Many of our current initiatives that are
designed to help generate economic
growth originated in Detroit. Take our
virtual call centers (VCC), which pro
vide training and employment to cus
tomer service specialists who work
from home. First launched in 2022, the
VCC program grew from a collabora
tion with Detroit’s workforce agency
(established with our help in 2017) to
help us attract top talent in markets
where we did not have traditional call
centers. Our VCC team members have
earned high customer satisfaction
ratings, leading us to expand the
program and tailor it to other markets,
including Greater Baltimore, which
recently welcomed a cohort of employ
ees who are military spouses, and
Atlanta, which offers customer support
in English and Spanish.
Similarly, in Detroit we partnered with
nonprofit and local government lead
ers to open Financial Empowerment
Centers that offer guidance on how to
manage finances, pay down debt,
increase savings and access banking
products. This model helped inspire
many of the services we provide in our
Community Center branches, where
we help residents access affordable
home loans, low-cost checking
accounts and financial health educa
tion workshops in neighborhoods in
Akron (Ohio), Dallas, Minneapolis and
New Orleans, among others.
As we continually expand our work in
communities, I am often asked,
“Where’s the next Detroit?” My answer
is simple: It’s every market we serve.
From Columbus to the United King
dom, San Francisco to Alabama, we
take the time to understand a locale
and what it needs to grow its economy.
We then apply lessons we’ve learned in
Detroit and elsewhere to execute a tai
lored approach with goals like creating
jobs, training workers, increasing
access to housing and helping people
grow their savings – all while strength
ening the firm’s bottom line.
Our efforts in four very different mar
kets, described below, just scratch the
surface of how our team helps commu
nities build wealth and catalyzes com
mercial impact. Click here to learn more.
COLUMBUS, OHIO
With more than 18,000 employees,
720,000 customers, 57,800 small busi
ness clients and eight office buildings,
it’s safe to say that JPMorganChase’s
presence in Columbus is robust.
As one of the largest employers in
Ohio, we have a bird’s-eye view of the
incredible talent coming out of local
educational institutions – but we
have also observed that many workers
struggle to access career paths in
growing industries. Given our own local
hiring needs, as well as those of our
clients, over the last decade we have
zeroed in on the opportunity to invest in
students, supporting JPMorganChase’s
recruiting and the region’s long-term
economic outlook.
In 2020, we selected Columbus as one
of five U.S. cities to participate in the
firm’s New Skills Ready Network, a five-
year, $35 million initiative to give young
people real-world work experiences
and help them access high-wage,
in-demand jobs across industries like
information technology (IT) and health
care. Since then, according to our part
ner Ohio Excels, student participation
in IT and healthcare career pathways

78
CORPORATE RESPONSIBILITY
has risen across Columbus City
Schools, Columbus State Community
College and The Ohio State University
— with a significant increase in student
participation in these pathways at
Columbus City Schools among eco
nomically disadvantaged students.
Building on this foundation and armed
with the insights we gained while
strengthening Detroit’s workforce sys
tem, in September 2024 we supported
the launch of a new collaborative that
convenes business, education, commu
nity and elected officials to modernize
the regional workforce infrastructure
and strategy. Our philanthropic capital
will help the collaborative to develop a
road map that accounts for critical
business needs and priorities, all while
aligning efforts and resources across
the system. Hand-in-hand with the
mayor, public school superintendent
and other community leaders, we are
helping to build a Columbus where the
labor market works for everybody.
Because despite being a bank head
quartered in New York City, we are
proud to show up like a bank head
quartered in Columbus.
THE UNITED KINGDOM
JPMorganChase has a growing pres
ence in the U.K. with more than 22,000
employees across the country, our
regional headquarters in London, a new
technology center in Glasgow, and a
significant footprint in Bournemouth
and Edinburgh. Our business continues
to prosper: We provide more than $614
billion in credit and capital to nearly
4,500 medium and large companies
and support over 2 million retail
customers.
Despite being the sixth largest econ
omy and second biggest exporter of
services globally, the U.K. is burdened
with income inequality that is higher
than any other large European country.
Weak productivity growth has contrib
uted to flattening wages and sluggish
income growth that impact our clients,
customers, employees and, by exten
sion, our business.
Alongside local partners across sec
tors, we asked, “What else can we do
about this?” Last May, we announced
$50 million in funding that is focused
on helping people access job opportu
nities and strengthen their financial
future, bringing the firm’s total philan
thropic support in the U.K. since 2019
to $110 million.
To carry this out, we are leveraging
our position as a large employer by
refreshing our recruitment practices
to emphasize skills-based hiring and
expanding this approach to entry-
level operations jobs. We continue to
offer a work experience program to
young people in secondary school in
Attendees of a roundtable discussion following the announcement of a new philanthropic commitment
to advance local career pathways. Participants included Columbus Mayor Andrew Ginther, Columbus
City Schools Superintendent and CEO Dr. Angela Chapman, and other members of the regional
workforce collaborative.
Team members joined with nonprofit and government partners to discuss the firm’s latest commitment
to help drive economic growth in the U.K.

79
CORPORATE RESPONSIBILITY
Bournemouth, Glasgow and London,
and we will launch the program in
Edinburgh later this year. This initiative
to help students develop the key skills
employers look for on candidates’
resumes complements the firm’s exist
ing degree-level apprenticeship pro
gram and our Aspiring Professionals
Programme (APP), which I wrote about
in last year’s shareholder letter. The
APP, run in partnership with the Social
Mobility Foundation, has helped more
than 850 young people secure a job
at JPMorganChase and other firms
since 2012.
At the same time, we are continuing
to work with nonprofits and the U.K.
government, British Business Bank
and other industry leaders to support
small businesses, consumers, workers,
entrepreneurs and investors. We’re
engaged in a range of initiatives,
including the Careers and Enterprise
Company’s efforts to help prepare
young people for a career in growth
sectors and Nest Insight’s work to test
product innovations to help low-paid
employees build savings in preparation
for unexpected expenses.
Because despite being a bank head
quartered in New York City, we are
proud to show up like a bank headquar
tered in the United Kingdom.
SAN FRANCISCO, CALIFORNIA
Our history in the Greater Bay Area
dates back more than 120 years. In
the past decade, we have opened a
technology campus in Palo Alto and a
Community Center branch in Oakland,
and we have expanded our Innovation
Economy banking franchise across
industries, including applied technol
ogy, enterprise software, life sciences
and disruptive commerce. On top of
this, we have hosted our annual Health
care Conference in downtown San
Francisco for more than 40 years,
driving an estimated $104.9 million
in economic impact to the city in
2025 alone.
However, partially due to the pandemic,
the city has experienced reduced foot
traffic, with shuttered storefronts and
office vacancies hitting 36% by the end
of 2024. This drop in economic activity
continues to hinder a business’s ability
to reach current and prospective
customers and employees, prompting
us to work with other companies,
including Visa and Gap, to pave the way
for a more vibrant downtown. Together,
we are collaborating on two initiatives:
the Downtown Volunteer Coalition,
focused on engaging employees to
revitalize San Francisco, and Advance
SF, a coalition of leading corporate
employers working to address issues
impacting San Francisco’s businesses.
In addition to these initiatives, we are
pursuing philanthropic programs –
modeled after those that contributed to
Detroit’s comeback – to support local
businesses, clean up the streets, and
bring residents and visitors back to
the city’s downtown. A portion of new
philanthropic capital will help launch
the Downtown San Francisco Vibrancy
Loan Fund, with additional support
from U.S. Bank and the City of San
Francisco’s Office of Economic and
Workforce Development, to help pro
mote the recovery of small businesses
through low-interest loans provided by
Main Street Launch, a local nonprofit
lender. At the same time, we are
making continued investments to
upgrade our office building in the heart
of the city for our clients and employ
ees, helping to boost commerce in
the neighborhood.
Because despite being a bank head
quartered in New York City, we are
proud to show up like a bank head
quartered in San Francisco.
STATE OF ALABAMA
JPMorganChase has provided banking
and financial services to consumers,
businesses and vital institutions across
Alabama since 1973, and today we
proudly bank Auburn University along
with other colleges across the state.
We’ve helped support the state’s econ
omy by financing the construction of
manufacturing, wholesale distribution
and recycling facilities, as well as the
development of more than 650 afford
able housing units. Our funding has
been wide ranging and had a positive
impact on local economies. In Foley –
one of the fastest-growing cities in
the United States and a place where
we plan to expand our branch presence
Our Corporate Responsibility Management team joined our nonprofit partner Union Square Foundation
for a walking tour of the neighborhood.

80
CORPORATE RESPONSIBILITY
next year – we invested $2.6 million
through New Markets Tax Credits to
the Coastal Alabama Farmers and
Fishermens Market, which helped
it grow to host 30 vendors, two retail
stores and a wholesale distribution
facility for vendors to sell local and
fresh seafood, produce and meats.
Five years ago, we opened our first
bank branch in Alabama, creating a
new opportunity for us to connect with
consumers and to share insights
gained from JPMorganChase Institute
research. Earlier this year, the Institute
published a report on how small busi
nesses outside of metropolitan areas,
like those beyond the boundaries of
Alabama’s cities, fare in scaling to
$1 million in annual revenue – a key
milestone of business development
and sustainability.
Moved by the countless stories we
heard from Alabamians eager to utilize
our branches’ resources – and with the
support of partners, including the
Huntsville mayor and members of
Congress – we’ve grown our banking
network to include 11 branches state
wide, with plans to triple that number
and hire an additional 170 bankers
by 2030.
While our branch network’s expansion
will help Alabamians access tools to
bolster their financial health and
even launch a company, we know the
importance of working across sectors
to develop community infrastructure
aligned with these goals. To do so,
we have supported nonprofits, provid
ing technical assistance and commu
nity development finance throughout
the state through partners like
Appalachian Community Capital, the
Southern Capital Project, Neighbor
hood Concepts and the Alabama Small
Business Development Initiative.
Because despite being a bank head
quartered in New York City, we are
proud to show up like a bank head
quartered in Alabama.
THE WORK AHEAD
Actions speak louder than words. In
our branches and offices, with our
clients, customers and community
partners, and through innovative prod
ucts and services developed to help
make it easier for people to generate
wealth, we are focused on walking the
walk to be the bank for every commu
nity we serve.
Make no mistake, this work isn’t charity.
We place a premium on Corporate
Responsibility’s investments as
important contributors to business
growth and our trusted brand. The
reality that the firm can’t succeed if
communities are not strong means
it is a business imperative to foster pro
ductive relationships, understand the
ins and outs of community dynamics,
provide excellent services to meet cus
tomers’ needs and work to tackle the
problems holding communities back.
In each market, we are reaching into
our toolkit of resources and expertise
to implement strategies that will help
advance economic growth. We know
there’s no silver bullet – that’s why the
work ahead looks different in each
place, reflecting the unique nature of
the communities where we are lucky
enough to be included. The throughline
of our approach is bringing businesses,
governments and nonprofits together
to take big, ambitious ideas and work
to turn them into results. Time and
again, it is our experience that these
types of cross-sector collaboration
and buy-in are the key ingredients for
meaningful impact at scale.
The business and community
outcomes speak for themselves.
Tim Berry
Global Head of Corporate Responsibility,
Chairman of the Mid-Atlantic Region
Team members at the ribbon cutting for a new Chase branch in Madison, Alabama.

Financial:
Audited financial statements:
50
Three-Year Summary of Consolidated Financial
Highlights
168
Management’s Report on Internal Control Over
Financial Reporting
51
Five-Year Stock Performance
169
Report of Independent Registered Public
Accounting Firm
Management’s discussion and analysis:
172
Consolidated Financial Statements
52
Introduction
177
Notes to Consolidated Financial Statements
54
Executive Overview
59
Consolidated Results of Operations
63
Consolidated Balance Sheets and Cash Flows
Supplementary information:
67
Explanation and Reconciliation of the Firm’s Use
of Non-GAAP Financial Measures
322
Distribution of assets, liabilities and
stockholders’ equity; interest rates and interest
differentials
70
Business Segment & Corporate Results
327
Glossary of Terms and Acronyms
91
Firmwide Risk Management
96
Strategic Risk Management
97
Capital Risk Management
108
Liquidity Risk Management
117
Credit and Investment Risk Management
141
Market Risk Management
Note:
The following pages from JPMorgan Chase & Co.’s 2024
Form 10-K are not included herein: 1-48, 334
150
Country Risk Management
152
Climate Risk Management
153
Operational Risk Management
161
Critical Accounting Estimates Used by the Firm
165
Accounting and Reporting Developments
167
Forward-Looking Statements
Table of contents
JPMorgan Chase & Co./2024 Form 10-K
49

THREE-YEAR SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
2024
2023
2022
Selected income statement data
Total net revenue
$
177,556
(e) $
158,104
$
128,695
Total noninterest expense

91,797
(e)
87,172

76,140
Pre-provision profit
(a)

85,759

70,932

52,555
Provision for credit losses

10,678

9,320

6,389
Income before income tax expense

75,081

61,612

46,166
Income tax expense

16,610

12,060

8,490
Net income
$
58,471
$
49,552
$
37,676
Earnings per share data
Net income: Basic
$
19.79
$
16.25
$
12.10
Diluted

19.75

16.23

12.09
Average shares: Basic

2,873.9

2,938.6

2,965.8
Diluted

2,879.0

2,943.1

2,970.0
Market and per common share data
Market capitalization

670,618

489,320

393,484
Common shares at period-end

2,797.6

2,876.6

2,934.2
Book value per share

116.07

104.45

90.29
Tangible book value per share (“TBVPS”)
(a)

97.30

86.08

73.12
Cash dividends declared per share

4.80

4.10

4.00
Selected ratios and metrics
Return on common equity (“ROE”)
18 %
17 %
14 %
Return on tangible common equity (“ROTCE”)(a)
22
21
18
Return on assets (“ROA”)
1.43
1.30
0.98
Overhead ratio
52
55
59
Loans-to-deposits ratio
56
55
49
Firm Liquidity coverage ratio (“LCR”) (average)(b)
113
113
112
JPMorgan Chase Bank, N.A. LCR (average)(b)
124
129
151
Common equity Tier 1 (“CET1”) capital ratio(c)(d)
15.7
15.0
13.2
Tier 1 capital ratio(c)(d)
16.8
16.6
14.9
Total capital ratio(c)(d)
18.5
18.5
16.8
Tier 1 leverage ratio(b)(c)
7.2
7.2
6.6
Supplementary leverage ratio (“SLR”)(b)(c)
6.1
6.1
5.6
Selected balance sheet data (period-end)
Trading assets
$
637,784
$
540,607
$
453,799
Investment securities, net of allowance for credit losses

681,320

571,552

631,162
Loans

1,347,988

1,323,706

1,135,647
Total assets

4,002,814

3,875,393

3,665,743
Deposits

2,406,032

2,400,688

2,340,179
Long-term debt

401,418

391,825

295,865
Common stockholders’ equity

324,708

300,474

264,928
Total stockholders’ equity

344,758

327,878

292,332
Employees

317,233

309,926

293,723
Credit quality metrics
Allowances for credit losses
$
26,866
$
24,765
$
22,204
Allowance for loan losses to total retained loans
1.87 %
1.75 %
1.81 %
Nonperforming assets
$
9,300
$
7,597
$
7,247
Net charge-offs

8,638

6,209

2,853
Net charge-off rate
0.68 %
0.52 %
0.27 %
As of or for the year ended December 31,
(in millions, except per share, ratio, employee data and where otherwise noted)
(a) Pre-provision profit, TBVPS and ROTCE are each non-GAAP financial measures. Tangible common equity (“TCE”) is also a non-GAAP
financial measure. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 67–69 for a
discussion of these measures.
(b) For the years ended December 31, 2024, 2023 and 2022, the percentage represents average ratios for the three months ended December 31,
2024, 2023 and 2022.
(c) The ratios reflect the Current Expected Credit Losses (“CECL”) capital transition provisions. Refer to Note 27 for additional information.
(d) Reflects the Firm’s ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 97–107 for additional
information.
(e) Total net revenue included a $7.9 billion net gain related to Visa shares, and total noninterest expense included a $1.0 billion contribution of
Visa shares to the JPMorgan Chase Foundation, both recorded in the second quarter of 2024. Refer to Executive Overview on pages 54–58,
and Notes 2 and 6 for additional information on the exchange offer for Visa Class B-1 common stock.
Financial
50
JPMorgan Chase & Co./2024 Form 10-K

FIVE-YEAR STOCK PERFORMANCE
The following table and graph compare the five-year cumulative total return for JPMorgan Chase & Co.
(“JPMorganChase” or the “Firm”) common stock with the cumulative return of the S&P 500 Index, the KBW Bank
Index and the S&P Financials Index. The S&P 500 Index is a commonly referenced equity benchmark in the United
States of America (“U.S.”), consisting of leading companies from different economic sectors. The KBW Bank Index
seeks to reflect the performance of banks and thrifts that are publicly traded in the U.S. and is composed of leading
national money center and regional banks and thrifts. The S&P Financials Index is an index of financial companies,
all of which are components of the S&P 500. The Firm is a component of all three industry indices.
The following table and graph assume simultaneous investments of $100 on December 31, 2019, in JPMorganChase
common stock and in each of the above indices. The comparison assumes that all dividends were reinvested.
December 31,
(in dollars)
2019
2020
2021
2022
2023
2024
JPMorganChase
$ 100.00
$
94.48
$ 120.68
$ 105.48
$ 137.91
$ 198.96
KBW Bank Index

100.00

89.69

124.08

97.53

96.66

132.62
S&P Financials Index

100.00

98.24

132.50

118.54

132.94

173.57
S&P 500 Index

100.00

118.39

152.34

124.75

157.54

196.96
December 31,
(in dollars)
JPMorganC hase
KBW Bank
S &P Financials
S &P 500
2019
2020
2021
2022
2023
2024
75
100
125
150
175
200
JPMorgan Chase & Co./2024 Form 10-K
51

The following is Management’s discussion and analysis of the financial condition and results of operations (“MD&A”)
of JPMorganChase for the year ended December 31, 2024. The MD&A is included in both JPMorganChase’s Annual
Report for the year ended December 31, 2024 (“Annual Report”) and its Annual Report on Form 10-K for the year
ended December 31, 2024 (“2024 Form 10-K” or “Form 10-K”) filed with the Securities and Exchange Commission
(“SEC”). Refer to the Glossary of terms and acronyms on pages 327–333 for definitions of terms and acronyms used
throughout the Annual Report and the 2024 Form 10-K.
This Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are based on the current beliefs and expectations of
JPMorganChase’s management, speak only as of the date of this Form 10-K and are subject to significant risks and
uncertainties. Refer to Forward-looking Statements on page 167 and Part 1, Item 1A: Risk Factors in this Form 10-K
on pages 10-37 for a discussion of certain of those risks and uncertainties and the factors that could cause
JPMorganChase’s actual results to differ materially because of those risks and uncertainties. There is no assurance
that actual results will be in line with any outlook information set forth herein, and the Firm does not undertake to
update any forward-looking statements.
INTRODUCTION
JPMorgan Chase & Co. (NYSE: JPM), a financial holding
company incorporated under Delaware law in 1968, is
a leading financial services firm based in the United
States of America (“U.S.”), with operations worldwide.
JPMorganChase had $4.0 trillion in assets and $344.8
billion in stockholders’ equity as of December 31, 2024.
The Firm is a leader in investment banking, financial
services for consumers and small businesses,
commercial banking, financial transaction processing
and asset management. Under the J.P. Morgan and
Chase brands, the Firm serves millions of customers,
predominantly in the U.S., and many of the world’s
most prominent corporate, institutional and
government clients globally.
JPMorganChase’s principal bank subsidiary is
JPMorgan Chase Bank, National Association
(“JPMorgan Chase Bank, N.A.”), a national banking
association with U.S. branches in 48 states and
Washington, D.C. JPMorganChase’s principal non-
bank subsidiary is J.P. Morgan Securities LLC (“J.P.
Morgan Securities”), a U.S. broker-dealer. The bank
and non-bank subsidiaries of JPMorganChase operate
nationally as well as through overseas branches and
subsidiaries, representative offices and subsidiary
foreign banks. The Firm’s principal operating
subsidiaries outside the U.S. are J.P. Morgan Securities
plc and J.P. Morgan SE (“JPMSE”), which are
subsidiaries of JPMorgan Chase Bank, N.A. and are
based in the United Kingdom (“U.K.”) and Germany,
respectively.
Business segments & Corporate: Effective in the
second quarter of 2024, the Firm reorganized its
reportable business segments by combining the
former Corporate & Investment Bank and Commercial
Banking business segments to form one reportable
segment, the Commercial & Investment Bank. As a
result of the reorganization, the Firm has three
reportable business segments – Consumer &
Community Banking (“CCB”), Commercial &
Investment Bank (“CIB”) and Asset & Wealth
Management (“AWM”) – with the remaining activities
in Corporate. The Firm’s consumer business segment
is CCB, and the Firm’s wholesale business segments
are CIB and AWM.
A description of each of the Firm’s reportable business
segments, and the products and services that they
provide to their respective client bases, as well as a
description of Corporate activities, is provided in the
Management’s discussion and analysis of financial
condition and results of operations section of this
Form 10-K (“Management’s discussion and analysis” or
“MD&A”) under the heading “Business Segment &
Corporate Results,” which begins on page 70, and in
Note 32.
First Republic: On May 1, 2023, JPMorganChase
acquired certain assets and assumed certain liabilities
of First Republic Bank (the “First Republic acquisition”)
from the Federal Deposit Insurance Corporation
(“FDIC”). References in this Form 10-K to “associated
with First Republic,” “impact of First Republic” or
similar expressions refer to the relevant effects of the
First Republic acquisition, as well as subsequent
related business and activities, as applicable. Refer to
Note 34 for additional information.
Management’s discussion and analysis
52
JPMorgan Chase & Co./2024 Form 10-K

The Firm’s website is www.jpmorganchase.com.
JPMorganChase makes available on its website, free of
charge, annual reports on Form 10-K, quarterly reports
on Form 10-Q and current reports on Form 8-K
pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934, as soon as
reasonably practicable after it electronically files or
furnishes such material to the U.S. Securities and
Exchange Commission (the “SEC”) at www.sec.gov.
JPMorganChase makes new and important information
about the Firm available on its website at https://
www.jpmorganchase.com, including on the Investor
Relations section of its website at https://
www.jpmorganchase.com/ir. Information on the Firm's
website, including documents on the website that are
referenced in this Form 10-K, is not incorporated by
reference into this 2024 Form 10-K or the Firm’s other
filings with the SEC.
JPMorgan Chase & Co./2024 Form 10-K
53

EXECUTIVE OVERVIEW
This executive overview of the MD&A highlights
selected information and does not contain all of the
information that is important to readers of the Firm’s
2024 Form 10-K. For a complete description of the
trends and uncertainties, as well as the risks and
critical accounting estimates affecting the Firm, the
2024 Form 10-K should be read in its entirety.
Financial performance of JPMorganChase
Year ended December 31,
(in millions, except per share
data and ratios)
2024
2023
Change
Selected income statement
data
Noninterest revenue
$ 84,973
$ 68,837
23%
Net interest income

92,583

89,267
4
Total net revenue

177,556

158,104
12
Total noninterest expense

91,797

87,172
5
Pre-provision profit

85,759

70,932
21
Provision for credit losses

10,678

9,320
15
Net income

58,471

49,552
18
Diluted earnings per share

19.75

16.23
22
Selected ratios and metrics
Return on common equity
18 %
17 %
Return on tangible common
equity
22
21
Book value per share
$
116.07
$
104.45
11
Tangible book value per
share

97.3

86.08
13
Capital ratios
(a)(b)
CET1 capital
15.7 %
15.0 %
Tier 1 capital
16.8
16.6
Total capital
18.5
18.5
Memo:
NII excluding Markets
(c)
$
92,419
$ 90,041
3
NIR excluding Markets
(c)

58,167

44,361
31
Markets
(c)

30,007

27,964
7
Total net revenue - managed
basis
$ 180,593
$ 162,366
11
(a) The ratios reflect the CECL capital transition provisions. Refer to
Note 27 for additional information.
(b) Reflects the Firm’s ratios under the Basel III Standardized
approach. Refer to Capital Risk Management on pages 97–107
for additional information.
(c) NII and NIR refer to net interest income and noninterest revenue,
respectively. Markets consists of CIB's Fixed Income Markets
and Equity Markets businesses.
Visa shares: On April 8, 2024, Visa Inc. commenced an
initial exchange offer for its Class B-1 common shares.
On May 6, 2024, the Firm announced that Visa had
accepted the Firm’s tender of its 37.2 million Visa
Class B-1 common shares in exchange for a
combination of Visa Class B-2 common shares and
Visa Class C common shares (“Visa C shares”),
resulting in a $7.9 billion net gain related to Visa
shares recorded in the second quarter of 2024. As of
September 30, 2024, the Firm had disposed of all of its
Visa C shares through sales and through a
contribution to the Firm’s Foundation. Refer to Market
Risk Management on pages 141–149, and Notes 2 and
6 for additional information.
First Republic: JPMorganChase acquired certain
assets and assumed certain liabilities of First Republic
Bank from the FDIC on May 1, 2023. As a result, the
year-to-date results include the twelve-month impact
of First Republic compared with eight months in the
prior-year period. Where meaningful to the results, this
is referred to in this Form 10-K as the "timing impact"
of First Republic. Refer to Notes 6 and 34 for additional
information.
Comparisons noted in the sections below are for the
full year of 2024 versus the full year of 2023, unless
otherwise specified.
Firmwide overview
JPMorganChase reported net income of $58.5 billion
for 2024, up 18%, earnings per share of $19.75, ROE of
18% and ROTCE of 22%.
• Total net revenue was $177.6 billion, up 12%,
reflecting:
– Net interest income (“NII”) of $92.6 billion, up 4%,
driven by the impact of balance sheet actions,
primarily reinvestments in the investment
securities portfolio, higher revolving balances in
Card Services, the timing impact of First Republic,
higher wholesale deposit balances, and higher
Markets net interest income, largely offset by
deposit margin compression across the lines of
business and lower average deposit balances in
CCB. NII excluding Markets was $92.4 billion, up
3%.
– Noninterest revenue (“NIR”) was $85.0 billion, up
23%, predominantly driven by a $7.9 billion net
gain related to Visa shares recorded in the second
quarter of 2024, higher asset management fees in
AWM and CCB, higher investment banking fees,
and lower net investment securities losses in
Treasury and CIO.
The prior year included the estimated bargain
purchase gain of $2.8 billion associated with First
Republic.
54
JPMorgan Chase & Co./2024 Form 10-K

• Noninterest expense was $91.8 billion, up 5%, driven
by higher compensation expense, including higher
revenue-related compensation and growth in the
number of employees, as well as a $1.0 billion
contribution of Visa shares to the JPMorgan Chase
Foundation recorded in the second quarter of 2024,
partially offset by lower FDIC-related expense,
reflecting a $2.9 billion special assessment
recognized in the fourth quarter of 2023, compared
with a $725 million increase to the FDIC special
assessment recognized in the first quarter of 2024.
• The provision for credit losses was $10.7 billion,
reflecting $8.6 billion of net charge-offs and a net
addition to the allowance for credit losses of $2.0
billion. Net charge-offs increased by $2.4 billion,
driven by Card Services, reflecting the seasoning of
vintages originated in recent years, credit
normalization, and balance growth. The net addition
to the allowance for credit losses included a net
addition of $2.1 billion in consumer, driven by Card
Services, and a net reduction of $19 million in
wholesale.
The provision in the prior year was $9.3 billion,
reflecting $6.2 billion of net charge-offs and a $3.1
billion net addition to the allowance for credit losses.
• The total allowance for credit losses was $26.9
billion at December 31, 2024. The Firm had an
allowance for loan losses to retained loans coverage
ratio of 1.87%, compared with 1.75% in the prior year.
• The Firm’s nonperforming assets totaled $9.3
billion at December 31, 2024, up 22%, driven by
higher wholesale nonaccrual loans, which reflected
downgrades in Real Estate, concentrated in Office,
partially offset by lower consumer nonaccrual loans,
which included loan sales. Refer to Wholesale Credit
Portfolio and Consumer Credit Portfolio on pages
126–136 and pages 120–125, respectively, for
additional information.
• Firmwide average loans of $1.3 trillion were up 6%,
driven by higher loans across the lines of business.
• Firmwide average deposits of $2.4 trillion were up
1%, reflecting:
– net inflows in Payments and net issuances of
structured notes in Markets,
– the timing impact of First Republic, and
– growth in balances in new and existing client
accounts in AWM,
predominantly offset by
– a decline in CCB primarily driven by a decrease in
balances in existing accounts due to increased
customer spending.
Refer to Liquidity Risk Management on pages 108–
115 for additional information.
Selected capital and other metrics
• CET1 capital was $275.5 billion, and the
Standardized and Advanced CET1 ratios were 15.7%
and 15.8%, respectively.
• SLR was 6.1%.
• TBVPS grew 13.0%, ending 2024 at $97.30.
• As of December 31, 2024, the Firm had eligible end-
of-period High Quality Liquid Assets (“HQLA”) of
approximately $834 billion and unencumbered
marketable securities with a fair value of
approximately $594 billion, resulting in
approximately $1.4 trillion of liquidity sources. Refer
to Liquidity Risk Management on pages 108–115 for
additional information.
Refer to Consolidated Results of Operations and
Consolidated Balance Sheets Analysis on pages 59–62
and pages 63–65, respectively, for a further discussion
of the Firm's results, including the provision for credit
losses, and Note 34 for additional information on the
First Republic acquisition.
Pre-provision profit, ROTCE, TCE, TBVPS, NII and NIR
excluding Markets, and total net revenue on a
managed basis are non-GAAP financial measures.
Refer to Explanation and Reconciliation of the Firm’s
Use of Non-GAAP Financial Measures on pages 67–69
for a further discussion of each of these measures.
JPMorgan Chase & Co./2024 Form 10-K
55

Business segment highlights
Selected business metrics for each of the Firm’s lines
of business (“LOB”) are presented below for the full
year of 2024.
CCB
ROE 32%
• Average deposits down 6%; client
investment assets up 14%
• Average loans up 9%; Card Services net
charge-off rate of 3.34%
• Debit and credit card sales volume
(a) up
8%
• Active mobile customers
(b) up 7%
CIB
(c)
ROE 18%
• Investment Banking fees up 37%; #1
ranking for Global Investment Banking
fees with 9.3% wallet share for the year
• Markets revenue up 7%, with Fixed
Income Markets up 5% and Equity
Markets up 13%
• Average Banking & Payments loans up
2%; average client deposits
(d) up 5%
AWM
ROE 34%
• Assets under management ("AUM") of
$4.0 trillion, up 18%
• Average loans up 3%; average deposits
up 9% including the transfer of First
Republic deposits to AWM in 4Q23
(e)
(a) Excludes Commercial Card.
(b) Users of all mobile platforms who have logged in within the past
90 days.
(c) Reflects the reorganization of the Firm's business segments.
Refer to Business Segment & Corporate Results on pages 70–90
for additional information.
(d) Represents client deposits and other third-party liabilities
pertaining to the Payments and Securities Services businesses.
(e) In the fourth quarter of 2023, CCB transferred certain deposits
associated with First Republic to AWM and CIB.
Refer to the Business Segment & Corporate Results on
pages 70–90 for a detailed discussion of results by
business segment.
Credit provided and capital raised
JPMorganChase continues to support consumers,
businesses and communities around the globe. The
Firm provided new and renewed credit and raised
capital for wholesale and consumer clients during
2024, consisting of approximately:
$2.8
trillion
Total credit provided and capital
raised (including loans and
commitments)
$250
billion
Credit for consumers
$40
billion
Credit for U.S. small businesses
$2.4
trillion
Credit and capital for corporations and
non-U.S. government entities
(a)
$65
billion
Credit and capital for nonprofit and
U.S. government entities
(b)
(a) Includes Individuals and Individual Entities primarily consisting
of Global Private Bank clients within AWM.
(b) Includes states, municipalities, hospitals and universities.
56
JPMorgan Chase & Co./2024 Form 10-K

Recent events
• On January 14, 2025, JPMorganChase announced
new responsibilities for several of its senior
executives:
– Daniel Pinto, President and Chief Operating Officer
(“COO”), will retire at the end of 2026. Mr. Pinto will
relinquish his responsibilities as President and
COO as of June 30, 2025. He will continue to serve
the Firm as Vice Chairman through the end of
2026.
– Jennifer Piepszak, Co-Chief Executive Officer of
the Commercial & Investment Bank (“CIB”), was
named a COO of the Firm, effective January 14,
2025.
– Doug Petno, Co-head of Global Banking,
succeeded Ms. Piepszak as Co-Chief Executive
Officer of CIB.
• On December 12, 2024, the Firm announced that
Michele G. Buck, 63, had been elected as a director
of the Firm, effective March 17, 2025. Ms. Buck is
Chairman of the Board, President and CEO of The
Hershey Company.
Outlook
These current expectations are forward-looking
statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-
looking statements are based on the current beliefs
and expectations of JPMorganChase’s management,
speak only as of the date of this Form 10-K, and are
subject to significant risks and uncertainties. Refer to
Forward-Looking Statements on page 167 and Part I,
Item 1A: Risk Factors on pages 10-37 of this Form 10-K
for a further discussion of certain of those risks and
uncertainties and the other factors that could cause
JPMorganChase’s actual results to differ materially
because of those risks and uncertainties. There is no
assurance that actual results in 2025 will be in line with
the outlook information set forth below, and the Firm
does not undertake to update any forward-looking
statements.
JPMorganChase’s current outlook for full-year 2025
should be viewed against the backdrop of the global
and U.S. economies, financial markets activity, the
geopolitical environment, the competitive
environment, client and customer activity levels, and
regulatory and legislative developments in the U.S.
and other countries where the Firm does business.
Each of these factors will affect the performance of the
Firm. The Firm will continue to make appropriate
adjustments to its businesses and operations in
response to ongoing developments in the business,
economic, regulatory and legal environments in which
it operates.
Full-year 2025
• Management expects net interest income to be
approximately $94.0 billion and net interest income
excluding Markets to be approximately $90.0 billion,
market dependent.
• Management expects adjusted expense to be
approximately $95.0 billion, market dependent.
• Management expects the net charge-off rate in Card
Services to be approximately 3.60%.
Net interest income excluding Markets and adjusted
expense are non-GAAP financial measures. Refer to
Explanation and Reconciliation of the Firm’s Use of
Non-GAAP Financial Measures on pages 67–69.
JPMorgan Chase & Co./2024 Form 10-K
57

Business Developments
First Republic acquisition
On May 1, 2023, JPMorganChase acquired certain
assets and assumed certain liabilities of First Republic
Bank (the "First Republic acquisition") from the Federal
Deposit Insurance Corporation (“FDIC”), as receiver.
As of December 31, 2024, the Firm had substantially
completed the conversion of operations, and the
integration of clients, products and services,
associated with the First Republic acquisition to align
with the Firm’s businesses and operations.
Refer to Note 34 for additional information on First
Republic.
58
JPMorgan Chase & Co./2024 Form 10-K

CONSOLIDATED RESULTS OF OPERATIONS
This section provides a comparative discussion of JPMorganChase’s Consolidated Results of Operations on a
reported basis for the two-year period ended December 31, 2024, unless otherwise specified. Refer to Consolidated
Results of Operations on pages 54-57 of the Firm’s Annual Report on Form 10-K for the year ended December 31,
2023 (the “2023 Form 10-K”) for a discussion of the 2023 versus 2022 results. Factors that relate primarily to a
single business segment or Corporate are discussed in more detail in the results of that segment or Corporate. Refer
to pages 161–164 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated
Results of Operations.
Revenue
Year ended December 31,
(in millions)
2024
2023
2022
Investment banking fees
$
8,910
$
6,519
$
6,686
Principal transactions

24,787

24,460

19,912
Lending- and deposit-related
fees

7,606

7,413

7,098
Asset management fees

17,801

15,220

14,096
Commissions and other fees

7,530

6,836

6,581
Investment securities losses

(1,021)

(3,180)

(2,380)
Mortgage fees and related
income

1,401

1,176

1,250
Card income

5,497

4,784

4,420
Other income(a)(b)

12,462
(c)
5,609
(d)

4,322
Noninterest revenue

84,973

68,837

61,985
Net interest income

92,583

89,267

66,710
Total net revenue
$ 177,556
$ 158,104
$ 128,695
(a) Included operating lease income of $2.8 billion, $2.8 billion and
$3.7 billion for the years ended December 31, 2024, 2023 and
2022, respectively. Refer to Note 6 for additional information.
(b) Effective January 1, 2024, as a result of adopting updates to the
Accounting for Investments in Tax Credit Structures guidance,
the amortization of certain of the Firm’s alternative energy tax-
oriented investments that was previously recognized in other
income is now recognized in income tax expense. Refer to Notes
1, 6, 14 and 25 for additional information.
(c) Included the net gain related to Visa shares of $7.9 billion
recorded in the second quarter of 2024. Refer to Notes 2 and 6
for additional information.
(d) Included the estimated bargain purchase gain of $2.8 billion for
the year ended December 31, 2023 associated with the First
Republic acquisition. Refer to Notes 6 and 34 for additional
information.
2024 compared with 2023
Investment banking fees increased, reflecting in CIB
the benefit of favorable market conditions, which
resulted in:
• higher debt underwriting fees predominantly driven
by higher industry-wide issuances in leveraged
loans, and in high-grade and high-yield bonds,
• higher equity underwriting fees driven by higher
industry-wide fees and wallet share gains in IPOs,
and in follow-on and convertible securities offerings,
and
• higher advisory fees driven by higher industry-wide
mergers and acquisitions (“M&A”) activity and wallet
share gains.
Refer to CIB segment results on pages 77–83 and Note
6 for additional information.
Principal transactions revenue increased driven by
CIB, reflecting:
• higher Equity Markets revenue in Prime Finance and
Equity Derivatives,
predominantly offset by
• lower Fixed Income Markets revenue, reflecting the
net impact of declines in revenue across macro
businesses and higher revenue in Securitized
Products.
Principal transactions revenue in CIB generally has
offsets across other revenue lines, including net
interest income. The Firm assesses the performance
of its Markets business on a total net revenue basis.
The increase in CIB was partially offset by a net
decrease in Corporate, reflecting lower revenue in
Treasury and CIO, and gains compared with a net loss
on certain legacy private equity investments in the
prior year.
Refer to CIB segment and Corporate results on pages
77–83 and pages 88–90, respectively, and Note 6 for
additional information.
Lending- and deposit-related fees increased,
reflecting, in CIB, higher deposit-related fees, including
cash management fees in Payments, on higher
volume; and higher lending-related fees, including loan
commitment fees. These factors were largely offset by
a decline in the amortization of the fair value discount
on certain acquired lending-related commitments
associated with First Republic, primarily in AWM, as
certain of the commitments have expired.
Refer to CIB and AWM segment results on pages 77–
83 and pages 84–87, respectively, and Note 6 for
additional information.
Asset management fees increased, reflecting, in
AWM and CCB, higher average market levels and net
inflows, as well as higher performance fees in AWM;
and in CCB, the timing impact of First Republic. Refer
to CCB and AWM segment results on pages 73–76 and
pages 84–87, respectively, and Note 6 for additional
information.
JPMorgan Chase & Co./2024 Form 10-K
59

Commissions and other fees increased,
predominantly due to higher brokerage commissions
and fees on higher volume, and higher custody fees, in
both CIB and AWM, as well as higher annuity sales
commissions in CCB. Refer to CCB, CIB and AWM
segment results on pages 73–76, pages 77–83 and
pages 84–87, respectively, and Note 6 for additional
information.
Investment securities losses decreased, reflecting
lower losses on sales of securities, primarily U.S.
Treasuries and U.S. GSE and government agency MBS,
associated with repositioning the investment
securities portfolio in Treasury and CIO. Refer to
Corporate results on pages 88–90 and Note 10 for
additional information.
Mortgage fees and related income increased in Home
Lending, reflecting higher production revenue, which
included the timing impact of First Republic. Refer to
CCB segment results on pages 73–76, and Note 6 and
15 for additional information.
Card income increased, reflecting higher net
interchange on increased debit and credit card sales
volume, as well as higher annual fees in CCB, partially
offset by an increase in amortization related to new
account origination costs. Refer to CCB segment
results on pages 73–76 and Note 6 for additional
information.
Other income increased, reflecting:
• in Corporate:
– the $7.9 billion net gain related to Visa shares
recorded in the second quarter of 2024,
partially offset by
– the absence of the prior-year $2.8 billion
estimated bargain purchase gain associated with
the First Republic acquisition, and
• in CIB:
– the impact of the adoption of updates to the
Accounting for Investments in Tax Credit
Structures guidance effective January 1, 2024,
resulting in the amortization of certain of the
Firm's alternative energy tax-oriented investments
previously recognized in other income which is
now recognized in income tax expense.
Both periods included impairment losses related to
certain equity investments.
The prior year included a gain of $339 million on the
original minority interest in China International Fund
Management ("CIFM"), partially offset by net
investment valuation losses, both in AWM.
Refer to AWM segment results on pages 84–87 for
additional information on CIFM; Notes 1, 6, 14 and 25
for additional information on the adoption of updates
to the Accounting for Investments in Tax Credit
Structures guidance; Notes 2 and 6 for additional
information on Visa shares; and Notes 6 and 34 for
additional information on the First Republic
acquisition.
Net interest income increased driven by the impact of
balance sheet actions, primarily reinvestments in the
investment securities portfolio, higher revolving
balances in Card Services, the timing impact of First
Republic, higher wholesale deposit balances and
higher Markets net interest income. These factors
were largely offset by deposit margin compression
across the lines of business and lower average deposit
balances in CCB.
The Firm’s average interest-earning assets were $3.5
trillion, up $212 billion, and the yield was 5.50%, up 36
bps. The net yield on these assets, on an FTE basis,
was 2.63%, a decrease of 7 bps. The net yield
excluding Markets was 3.84%, relatively flat when
compared to the prior year.
Refer to the Consolidated average balance sheets,
interest and rates schedule on pages 322–326 for
additional information. Net yield excluding Markets is a
non-GAAP financial measure. Refer to Explanation and
Reconciliation of the Firm’s Use of Non-GAAP
Financial Measures on pages 67–69 for an additional
discussion of net yield excluding Markets.
60
JPMorgan Chase & Co./2024 Form 10-K

Provision for credit losses
Year ended December 31,
(in millions)
2024
2023
2022
Consumer, excluding credit card
$
631
$
935
$
506
Credit card

9,292

6,048

3,353
Total consumer

9,923

6,983

3,859
Wholesale

731

2,299

2,476
Investment securities

54
Total provision for credit losses
$ 10,678
$ 9,320
$ 6,389
2024 compared with 2023
The provision for credit losses was $10.7 billion,
reflecting $8.6 billion of net charge-offs and a $2.0
billion net addition to the allowance for credit losses.
Net charge-offs included $7.8 billion in consumer,
predominantly driven by Card Services, reflecting the
seasoning of vintages originated in recent years, credit
normalization and balance growth, and $0.8 billion in
wholesale, primarily in Real Estate, largely
concentrated in Office.
The net addition to the allowance for credit losses
consisted of:
• $2.1 billion in consumer, reflecting:
– a $2.2 billion net addition in Card Services,
predominantly driven by loan growth, reflecting
higher revolving balances, including the seasoning
of vintages originated in recent years,
partially offset by
– a $125 million net reduction in Home Lending in
the first quarter of 2024, and
• a net reduction of $19 million in wholesale,
reflecting:
– changes in certain macroeconomic variables, an
update to loss assumptions on certain loans in
Markets, and a reduction due to charge-offs
largely from collateral-dependent loans,
predominantly offset by
– net downgrade activity, primarily in Real Estate,
and the impact of incorporating the First Republic
portfolio into the Firm’s modeled credit loss
estimates in the second quarter of 2024.
The provision in the prior year was $9.3 billion,
reflecting net charge-offs of $6.2 billion and a $3.1
billion net addition to the allowance for credit losses,
which included $1.2 billion to establish the allowance
for the First Republic loans and lending-related
commitments in the second quarter of 2023.
Refer to CCB, CIB and AWM segment and Corporate
results on pages 73–76, pages 77–83, pages 84–87,
and pages 88–90, respectively; Allowance for Credit
Losses on pages 137–139; Critical Accounting
Estimates Used by the Firm on pages 161–164; and
Notes 12 and 13 for additional information on the credit
portfolio and the allowance for credit losses.
JPMorgan Chase & Co./2024 Form 10-K
61

Noninterest expense
Year ended December 31,
(in millions)
2024
2023
2022
Compensation expense
$ 51,357
$ 46,465 $ 41,636
Noncompensation expense:
Occupancy

5,026

4,590
4,696
Technology, communications
and equipment(a)

9,831

9,246
9,358
Professional and outside
services
11,057
10,235
10,174
Marketing

4,974

4,591
3,911
Other expense

9,552
(c) 12,045
6,365
Total noncompensation
expense
40,440
40,707 34,504
Total noninterest expense
$ 91,797
$ 87,172 $ 76,140
Certain components of other
expense(b)
Legal expense
$
740
$ 1,436 $
266
FDIC-related expense

1,893

4,203
860
Operating losses

1,417

1,228
1,101
(a) Includes depreciation expense associated with auto operating
lease assets. Refer to Note 18 for additional information.
(b) Refer to Note 6 for additional information.
(c) Included a $1.0 billion contribution of Visa shares to the
JPMorgan Chase Foundation recorded in the second quarter of
2024. Refer to Notes 2 and 6 for additional information.
2024 compared with 2023
Compensation expense increased driven by:
• higher revenue-related compensation across the
LOBs,
• growth in the number of employees across the LOBs
and Corporate, primarily in front office and
technology, and
• the impact of First Republic, predominantly in CCB,
reflecting timing and the classification of the prior-
year expense, which was recognized in other
expense in Corporate in the second quarter of 2023
as the individuals associated with First Republic
were not employees of the Firm until July 2023.
Noncompensation expense decreased as a result of:
• lower FDIC-related expense recognized in
Corporate, which included the impact of a $2.9
billion special assessment recognized in the fourth
quarter of 2023, compared with a $725 million
increase to the FDIC special assessment recognized
in the first quarter of 2024, and
• lower legal expense, reflecting the net impact of
declines in CCB, CIB and Corporate, and an increase
in AWM,
predominantly offset by
• a $1.0 billion contribution of Visa shares to the
JPMorgan Chase Foundation recorded in the second
quarter of 2024 in Corporate,
• higher investments in technology in the businesses,
as well as marketing, predominantly in CCB,
• higher occupancy expense, which included the
impact of net additions to the Firm's properties,
• higher distribution fees in AWM and brokerage
expense in CIB, and
• the timing impact associated with First Republic,
offset by the alignment of expense to compensation
expense, as noted above.
Refer to Notes 2 and 6 for additional information on
Visa shares; Note 6 for additional information on other
expense; and Note 34 for additional information on the
First Republic acquisition.
Income tax expense
Year ended December 31,
(in millions, except rate)
2024
2023
2022
Income before income tax
expense
$ 75,081
$ 61,612
$ 46,166
Income tax expense

16,610
(a) 12,060

8,490
Effective tax rate
22.1 %
19.6 %
18.4 %
(a) Effective January 1, 2024, as a result of adopting updates to the
Accounting for Investments in Tax Credit Structures guidance,
the amortization of certain of the Firm’s alternative energy tax-
oriented investments is now recognized in income tax expense.
Refer to Notes 1, 6, 14 and 25 for additional information.
2024 compared with 2023
The effective tax rate increased predominantly driven
by:
• the adoption of updates to the Accounting for
Investments in Tax Credit Structures guidance on
January 1, 2024, and
• a higher level of pretax income and changes in the
mix of income and expenses subject to U.S. federal,
state and local taxes, including the impact of the net
gain on Visa shares and the contribution of Visa
shares to the JPMorgan Chase Foundation recorded
in the second quarter of 2024.
The prior year included the impact to income tax
expense associated with the First Republic acquisition
that was reflected in the estimated bargain purchase
gain, and an income tax benefit related to the
finalization of certain income tax regulations, both of
which resulted in a reduction in the Firm's effective tax
rate.
Refer to Note 25 for additional information.
62
JPMorgan Chase & Co./2024 Form 10-K

CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS
Consolidated balance sheets analysis
The following is a discussion of the significant changes between December 31, 2024 and 2023. Refer to pages 161–
164 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Balance
Sheets.
Selected Consolidated balance sheets data
December 31, (in millions)
2024
2023
Change
Assets
Cash and due from banks
$
23,372
$
29,066
(20) %
Deposits with banks

445,945

595,085
(25)
Federal funds sold and securities purchased under resale agreements

295,001

276,152
7
Securities borrowed

219,546

200,436
10
Trading assets

637,784

540,607
18
Available-for-sale securities

406,852

201,704
102
Held-to-maturity securities

274,468

369,848
(26)
Investment securities, net of allowance for credit losses

681,320

571,552
19
Loans

1,347,988

1,323,706
2
Allowance for loan losses

(24,345)

(22,420)
9
Loans, net of allowance for loan losses

1,323,643

1,301,286
2
Accrued interest and accounts receivable

101,223

107,363
(6)
Premises and equipment

32,223

30,157
7
Goodwill, MSRs and other intangible assets

64,560

64,381
—
Other assets

178,197

159,308
12
Total assets
$
4,002,814
$
3,875,393
3 %
Cash and due from banks and deposits with banks
decreased driven by higher investment securities in
Treasury and CIO, and Markets activities in CIB.
Federal funds sold and securities purchased under
resale agreements increased driven by Markets,
reflecting higher client-driven market-making
activities.
Securities borrowed increased driven by Markets,
reflecting a higher demand for securities to cover
short positions.
Refer to Note 11 for additional information on securities
purchased under resale agreements and securities
borrowed.
Trading assets increased predominantly due to higher
levels of debt and equity instruments in Markets
related to client-driven market-making activities. Refer
to Notes 2 and 5 for additional information.
Investment securities increased due to:
• higher available-for-sale ("AFS") securities, reflecting
net purchases, primarily U.S. Treasuries and non-
U.S. government debt securities, partially offset by
maturities and paydowns, and
• lower held to-maturity (“HTM”) securities driven by
maturities and paydowns.
Refer to Corporate results on pages 88–90,
Investment Portfolio Risk Management on page 140,
and Notes 2 and 10 for additional information.
Loans increased, reflecting:
• higher outstanding balances in Card Services driven
by growth in new accounts and normalization of
revolving balances,
• higher wholesale loans in CIB, and
• higher securities-based lending in AWM due to
higher client demand,
partially offset by
• a decline in Home Lending as paydowns and loan
sales outpaced originations.
The allowance for loan losses increased, reflecting a
net addition to the allowance for loan losses of $1.9
billion, consisting of:
• $2.1 billion net addition in consumer, primarily in
Card Services, predominantly driven by loan growth,
reflecting higher revolving balances, including the
seasoning of vintages originated in recent years,
partially offset by a net reduction in Home Lending in
the first quarter of 2024, and
• a net reduction of $176 million in wholesale,
reflecting:
– changes in certain macroeconomic variables, an
update to loss assumptions on certain loans in
JPMorgan Chase & Co./2024 Form 10-K
63

Markets, and a reduction due to charge-offs
largely from collateral-dependent loans,
predominantly offset by
– net downgrade activity, primarily in Real Estate,
and the impact of incorporating the First Republic
portfolio into the Firm’s modeled credit loss
estimates in the second quarter of 2024.
There was also a $128 million net addition to the
allowance for lending-related commitments
recognized in other liabilities on the Consolidated
balance sheets.
Refer to Consolidated Results of Operations and Credit
and Investment Risk Management on pages 59–62
and pages 117–140, respectively, Critical Accounting
Estimates Used by the Firm on pages 161–164, and
Notes 2, 3, 12 and 13 for additional information on loans
and the total allowance for credit losses.
Accrued interest and accounts receivable decreased
primarily driven by lower receivables in Payments
related to the timing of processing payment activities,
due to December 31, 2023 falling on a weekend, as well
as lower client receivables related to client-driven
activities in Markets.
Premises and equipment increased primarily as a
result of the construction-in-process associated with
the Firm's headquarters, and purchases of properties.
Refer to Notes 16 and 18 for additional information.
Goodwill, MSRs and other intangibles: Refer to Note
15 for additional information.
Other assets increased primarily due to higher cash
collateral placed with central counterparties ("CCP") in
Markets, the impact of the adoption of updates to the
Accounting for Investments in Tax Credit Structures
guidance effective January 1, 2024, and higher auto
operating lease assets in CCB. Refer to Notes 1, 6, 14
and 25 for additional information on updates to the
accounting guidance.
Selected Consolidated balance sheets data (continued)
December 31, (in millions)
2024
2023
Change
Liabilities
Deposits
$ 2,406,032
$
2,400,688
—
Federal funds purchased and securities loaned or sold under repurchase agreements

296,835

216,535
37
Short-term borrowings

52,893

44,712
18
Trading liabilities

192,883

180,428
7
Accounts payable and other liabilities

280,672

290,307
(3)
Beneficial interests issued by consolidated variable interest entities (“VIEs”)

27,323

23,020
19
Long-term debt

401,418

391,825
2
Total liabilities

3,658,056

3,547,515
3
Stockholders’ equity

344,758

327,878
5
Total liabilities and stockholders’ equity
$
4,002,814
$
3,875,393
3 %
Deposits increased, reflecting:
• an increase in CIB due to net inflows predominantly
in Payments, largely offset by net maturities of
structured notes in Markets,
• an increase in AWM as a result of growth in balances
in new and existing client accounts, reflecting the
impact of higher-yielding product offerings, largely
offset by continued migration into other
investments, and
• a decline in CCB primarily driven by a decrease in
balances in existing accounts due to increased
customer spending and migration into higher-
yielding investments, predominantly offset by new
accounts.
Federal funds purchased and securities loaned or
sold under repurchase agreements increased driven
by Markets, reflecting higher client-driven market-
making activities and higher secured financing of
trading assets.
Short-term borrowings increased driven by Markets,
reflecting net issuance of structured notes due to
client demand, and higher financing requirements.
Refer to Liquidity Risk Management on pages 108–115
for additional information on deposits, federal funds
purchased and securities loaned or sold under
repurchase agreements, and short-term borrowings;
Notes 2 and 17 for deposits; and Note 11 for federal
funds purchased and securities loaned or sold under
repurchase agreements.
Trading liabilities increased due to client-driven
market-making activities primarily in Fixed Income
Markets, which resulted in higher levels of short
positions in debt instruments. Refer to Notes 2 and 5
for additional information.
64
JPMorgan Chase & Co./2024 Form 10-K

Accounts payable and other liabilities decreased
primarily driven by lower payables in Payments related
to the timing of processing payment activities, due to
December 31, 2023 falling on a weekend, as well as
lower client payables related to client-driven activities
in Markets, partially offset by the impact of the
adoption of updates to the Accounting for Investments
in Tax Credit Structures guidance effective January 1,
2024. Refer to Note 19 for additional information on
accounts payable; and Notes 1, 6, 14 and 25 for
additional information on updates to the accounting
guidance.
Beneficial interests issued by consolidated VIEs
increased driven by the issuance of credit card
securitizations in Treasury and CIO, and activity in
municipal bond vehicles in CIB.
Refer to Liquidity Risk Management on pages 108–115;
and Notes 14 and 28 for additional information on
Firm-sponsored VIEs and loan securitization trusts.
Long-term debt increased, primarily driven by:
• net issuances of structured notes in Markets due to
client demand,
partially offset by
• a decline in Treasury and CIO, reflecting the net
impact of lower FHLB advances and higher long-
term debt from net issuances.
Refer to Liquidity Risk Management on pages 108–115
and Note 34 for additional information on the First
Republic acquisition.
Stockholders’ equity increased, reflecting:
• net income,
largely offset by
• the impact of capital actions, including repurchases
of common shares, the declaration of common and
preferred stock dividends, and net redemption of
preferred stock, and
• net unrealized losses in AOCI, including the impact
of higher interest rates on cash flow hedges in
Treasury and CIO.
Refer to Consolidated Statements of changes in
stockholders’ equity on page 175, Capital Actions on
page 105, and Note 24 for additional information.
JPMorgan Chase & Co./2024 Form 10-K
65

Consolidated cash flows analysis
The following is a discussion of cash flow activities
during the years ended December 31, 2024 and 2023.
Refer to Consolidated cash flows analysis on page 61
of the Firm’s 2023 Form 10-K for a discussion of the
2022 activities.
(in millions)
Year ended December 31,
2024
2023
2022
Net cash provided by/
(used in)
Operating activities
$ (42,012) $ 12,974
$ 107,119
Investing activities
(163,403)
67,643
(137,819)
Financing activities

63,447
(25,571) (126,257)
Effect of exchange rate
changes on cash

(12,866)
1,871

(16,643)
Net increase/(decrease) in
cash and due from banks
and deposits with banks
$ (154,834) $ 56,917
$ (173,600)
Operating activities
JPMorganChase’s operating assets and liabilities
primarily support the Firm’s lending and capital
markets activities. These assets and liabilities can vary
significantly in the normal course of business due to
the amount and timing of cash flows, which are
affected by client-driven and risk management
activities and market conditions. The Firm believes
that cash flows from operations, available cash and
other liquidity sources, and its capacity to generate
cash through secured and unsecured sources, are
sufficient to meet its operating liquidity needs.
• In 2024, cash used resulted from higher trading
assets and higher securities borrowed, largely offset
by net income.
• In 2023, cash provided primarily reflected net
income, lower other assets, and accrued interest and
accounts receivable, predominantly offset by higher
trading assets, lower accounts payable and other
liabilities, and higher securities borrowed.
Investing activities
The Firm’s investing activities predominantly include
originating held-for-investment loans, investing in the
investment securities portfolio and other short-term
instruments.
• In 2024, cash used resulted from net purchases of
investment securities, net loan originations and
higher securities purchased under resale
agreements, partially offset by proceeds from sales
and securitizations of loans held-for-investment.
• In 2023, cash provided resulted from net proceeds
from investment securities, proceeds from sales and
securitizations of loans held-for-investment, and
lower securities purchased under resale
agreements, largely offset by net originations of
loans and net cash used in the First Republic Bank
acquisition.
Financing activities
The Firm’s financing activities include acquiring
customer deposits and issuing long-term debt and
preferred stock.
• In 2024, cash provided primarily reflected higher
securities loaned or sold under repurchase
agreements and net proceeds from long- and short-
term borrowings, partially offset by net redemption
of preferred stock.
• In 2023, cash used reflected lower deposits, which
included the impact of the repayment of the
deposits provided to First Republic Bank by the
consortium of large U.S. banks that the Firm
assumed as part of the First Republic acquisition,
partially offset by higher securities loaned under
repurchase agreements and net proceeds from
long- and short-term borrowings.
• For both periods, cash was used for repurchases of
common stock and cash dividends on common and
preferred stock.
* * *
Refer to Consolidated Balance Sheets Analysis on
pages 63–65, Capital Risk Management on pages 97–
107, and Liquidity Risk Management on pages 108–115,
and the Consolidated Statements of Cash Flows on
page 176 for a further discussion of the activities
affecting the Firm’s cash flows.
66
JPMorgan Chase & Co./2024 Form 10-K

EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures
The Firm prepares its Consolidated Financial
Statements in accordance with U.S. GAAP; these
financial statements appear on pages 172–176. That
presentation, which is referred to as “reported” basis,
provides the reader with an understanding of the
Firm’s results that can be tracked consistently from
year-to-year and enables a comparison of the Firm’s
performance with the U.S. GAAP financial statements
of other companies.
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 as a whole, and for each of the reportable
business segments and Corporate, 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. 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 each of the lines of business and
Corporate.
Management also uses certain non-GAAP financial
measures at the Firm and business-segment levels
because these other non-GAAP financial measures
provide information to investors about the underlying
operational performance and trends of the Firm or of
the particular business segment, as the case may be,
and therefore facilitate a comparison of the Firm or the
business segment with the performance of its relevant
competitors. Refer to Business Segment & Corporate
Results on pages 70–90 for additional information on
these non-GAAP measures. Non-GAAP financial
measures used by the Firm may not be comparable to
similarly named non-GAAP financial measures used by
other companies.
The following summary table provides a reconciliation from the Firm’s reported U.S. GAAP results to managed
basis.
2024
2023
2022
Year ended
December 31,
(in millions, except ratios) Reported
Fully taxable-
equivalent
adjustments
(b)
Managed
basis
Reported
Fully taxable-
equivalent
adjustments
(b) Managed
basis
Reported
Fully taxable-
equivalent
adjustments
(b) Managed
basis
Other income
$ 12,462
(a) $
2,560
(a) $ 15,022
$ 5,609
$
3,782 $ 9,391
$ 4,322
$
3,148 $ 7,470
Total noninterest
revenue
84,973

2,560
87,533
68,837

3,782 72,619
61,985

3,148 65,133
Net interest income
92,583

477
93,060
89,267

480 89,747
66,710

434 67,144
Total net revenue
177,556

3,037
180,593
158,104

4,262 162,366
128,695

3,582 132,277
Total noninterest
expense
91,797
NA
91,797
87,172
NA
87,172
76,140
NA
76,140
Pre-provision profit
85,759

3,037
88,796
70,932

4,262 75,194
52,555

3,582 56,137
Provision for credit
losses
10,678
NA
10,678
9,320
NA
9,320
6,389
NA
6,389
Income before
income tax expense
75,081

3,037
78,118
61,612

4,262 65,874
46,166

3,582 49,748
Income tax expense
16,610
(a)
3,037
(a) 19,647
12,060

4,262 16,322
8,490

3,582 12,072
Net income
$ 58,471
NA
$ 58,471
$ 49,552
NA
$ 49,552
$ 37,676
NA
$ 37,676
Overhead ratio

52 %
NM

51 %
55 %
NM

54 %
59 %
NM

58 %
(a) Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures guidance, under the modified
retrospective method. Refer to Notes 1, 6, 14 and 25 for additional information.
(b) Predominantly recognized in CIB and Corporate.
JPMorgan Chase & Co./2024 Form 10-K
67

Net interest income, net yield, and noninterest
revenue excluding Markets
In addition to reviewing net interest income, net yield,
and noninterest revenue on a managed basis,
management also reviews these metrics excluding
Markets, as shown below. Markets consists of CIB’s
Fixed Income Markets and Equity Markets. 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. Management
believes that these measures provide investors and
analysts with alternative measures to analyze the
revenue trends of the Firm.
Year ended December 31,
(in millions, except rates)
2024
2023
2022
Net interest income –
reported
(a)
$ 92,583
$
89,267
$
66,710
Fully taxable-equivalent
adjustments

477

480

434
Net interest income –
managed basis
$ 93,060
$
89,747
$
67,144
Less: Markets net interest
income
(b)

641

(294)

4,789
Net interest income
excluding Markets
$
92,419
$
90,041
$
62,355
Average interest-
earning assets
(a)
$ 3,537,567
$ 3,325,708
$ 3,349,079
Less: Average Markets
interest-earning
assets
(b)
1,128,153

985,777

953,195
Average interest-
earning assets
excluding Markets
$ 2,409,414
$ 2,339,931
$ 2,395,884
Net yield on average
interest-earning assets
– managed basis
2.63 %
2.70 %
2.00 %
Net yield on average
Markets interest-
earning assets
(b)
0.06
(0.03)
0.50
Net yield on average
interest-earning assets
excluding Markets
3.84 %
3.85 %
2.60 %
Noninterest revenue –
reported
(c)
$
84,973 $
68,837 $
61,985
Fully taxable-equivalent
adjustments
(c)

2,560
3,782
3,148
Noninterest revenue –
managed basis
$
87,533 $
72,619 $
65,133
Less: Markets
noninterest revenue
(b)(d)

29,366
28,258
24,373
Noninterest revenue
excluding Markets
$
58,167 $
44,361 $
40,760
Memo: Total Markets
net revenue(b)
$
30,007 $
27,964 $
29,162
(a) Includes the effect of derivatives that qualify for hedge
accounting. Taxable-equivalent amounts are used, also where
applicable. Refer to Note 5 for additional information on hedge
accounting.
(b) Refer to pages 81–82 for further information on Markets.
(c) Effective January 1, 2024, the Firm adopted updates to the
Accounting for Investment in Tax Credit Stricture guidance,
under the modified retrospective method. Refer to Notes 1, 6, 14
and 25 for additional information.
(d) Includes the market-related revenues of the former Commercial
Banking business segment. Prior-period amounts have been
revised to conform with the current presentation.
Calculation of certain U.S. GAAP and non-GAAP financial
measures
Certain U.S. GAAP and non-GAAP financial measures are
calculated as follows:
Book value per share (“BVPS”)
Common stockholders’ equity at period-end /
Common shares at period-end
Overhead ratio
Total noninterest expense / Total net revenue
ROA
Reported net income / Total average assets
ROE
Net income* / Average common stockholders’ equity
ROTCE
Net income* / Average tangible common equity
TBVPS
Tangible common equity at period-end / Common shares at
period-end
* Represents net income applicable to common equity
In addition, the Firm reviews other non-GAAP
measures such as:
• Adjusted expense, which represents noninterest
expense excluding Firmwide legal expense, and
• Pre-provision profit, which represents total net
revenue less total noninterest expense.
Management believes that these measures help
investors to understand the effect of these items on
reported results and provide an alternative
presentation of the Firm’s performance.
68
JPMorgan Chase & Co./2024 Form 10-K

TCE, ROTCE and TBVPS
TCE, ROTCE and 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 MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s net income applicable to common
equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares
at period-end. TCE, ROTCE and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the
Firm’s use of equity.
The following summary table provides a reconciliation from the Firm’s common stockholders’ equity to TCE.
Period-end
Average
Dec 31,
2024
Dec 31,
2023
Year ended December 31,
(in millions, except per share and ratio data)
2024
2023
2022
Common stockholders’ equity
$
324,708 $
300,474
$ 312,370
$ 282,056
$ 253,068
Less: Goodwill

52,565
52,634

52,627

52,258

50,952
Less: Other intangible assets

2,874
3,225

3,042

2,572

1,112
Add: Certain deferred tax liabilities(a)

2,943
2,996

2,970

2,883

2,505
Tangible common equity
$
272,212 $
247,611
$ 259,671
$ 230,109
$ 203,509
Return on tangible common equity
NA
NA
22 %
21 %
18 %
Tangible book value per share
$
97.30 $
86.08
NA
NA
NA
(a) Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which
are netted against goodwill and other intangibles when calculating TCE.
JPMorgan Chase & Co./2024 Form 10-K
69

BUSINESS SEGMENT & CORPORATE RESULTS
The Firm is managed on an LOB basis. Effective in the second quarter of 2024, the Firm reorganized its reportable
business segments by combining the former Corporate & Investment Bank and Commercial Banking business
segments to form one reportable segment, the Commercial & Investment Bank (“CIB”). As a result of the
reorganization, the Firm has three reportable business segments – Consumer & Community Banking, Commercial &
Investment Bank, and Asset & Wealth Management – with the remaining activities in Corporate.
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 evaluated by the Firm’s Operating Committee,
whose members act collectively as the Firm’s chief operating decision maker. Segment results are presented on a
managed basis. Refer to Explanation and Reconciliation of the Firm’s use of Non-GAAP Financial Measures, on
pages 67–69 for a definition of managed basis.
The following table depicts the Firm’s reportable business segments.
Description of business segment reporting methodology
Results of the reportable business segments are
intended to present each segment as if it were a stand-
alone business. The management reporting process
that derives business segment results includes the
allocation of certain income and expense items. The
Firm periodically assesses the assumptions,
methodologies and reporting classifications used for
segment reporting, and therefore further refinements
may be implemented in future periods. The Firm also
assesses the level of capital required for each LOB on
at least an annual basis. The Firm’s LOBs also provide
various business metrics which are utilized by the Firm
and its investors and analysts in assessing
performance.
Revenue sharing
When business segments or businesses within each
segment join efforts to sell products and services to
the Firm’s clients and customers, the participating
businesses may agree to share revenue from those
transactions. Revenue is generally recognized in the
segment responsible for the related product or
service, with allocations to the other segments or
businesses involved in the transaction. The segment
and business results reflect these revenue-sharing
agreements.
70
JPMorgan Chase & Co./2024 Form 10-K

Expense allocation
Where business segments use services provided by
Corporate support units, or another business segment,
the costs of those services are allocated to the
respective business segments. The expense is
generally allocated based on the actual cost and use of
services provided. In contrast, certain costs and
investments related to Corporate that are not currently
utilized by any LOB are not allocated to the business
segments and are retained in Corporate. Expense
retained in Corporate generally includes costs that
would not be incurred if the segments were stand-
alone businesses, and other items not solely aligned
with a particular reportable business segment.
Funds transfer pricing
Funds transfer pricing (“FTP”) is the process by which
the Firm allocates interest income and expense to the
LOBs and Other Corporate and transfers the primary
interest rate risk and liquidity risk to Treasury and CIO.
The funds transfer pricing process considers the
interest rate and liquidity risk characteristics of assets
and liabilities and off-balance sheet products.
Periodically, the methodology and assumptions
utilized in the FTP process are adjusted to reflect
economic conditions and other factors, which may
impact the allocation of net interest income to the
segments. Effective in the fourth quarter of 2024, the
Firm updated its FTP with respect to consumer
deposits, which resulted in an increase in the funding
benefit reflected within CCB’s net interest income that
is fully offset in Corporate, with no effect on the Firm’s
net interest income.
As a result of higher average interest rates, the cost of
funds for assets and the FTP benefit earned for
liabilities have generally increased in the current year,
impacting the net interest income of the business
segments. During the period ended December 31,
2024, this has resulted in a higher cost of funds for
loans and Markets activities. In addition, rates paid to
deposit holders increased more than the FTP benefit
increase during the year, resulting in deposit margin
compression.
Foreign exchange risk
Foreign exchange risk is transferred from the LOBs
and Other Corporate to Treasury and CIO for certain
revenues and expenses. Treasury and CIO manages
these risks centrally and reports the impact of foreign
exchange rate movements related to the transferred
risk in its results. Refer to Market Risk Management on
page 149 for additional information.
Debt expense and preferred stock dividend allocation
As part of the FTP process, almost all of the cost of the
credit spread component of outstanding unsecured
long-term debt and preferred stock dividends is
allocated to the reportable business segments, while
the balance of the cost is retained in Corporate. The
methodology to allocate the cost of unsecured long-
term debt and preferred stock dividends to the
business segments is aligned with the relevant
regulatory capital requirements and funding needs of
the LOBs, as applicable. The allocated cost of
unsecured long-term debt is included in a business
segment’s net interest income, and net income is
reduced by preferred stock dividends, to arrive at a
business segment’s net income applicable to common
equity. Refer to Capital Risk Management on pages
97–107 for additional information.
Capital allocation
The amount of capital assigned to each LOB and
Corporate is referred to as equity. The Firm’s current
equity allocation methodology incorporates Basel III
Standardized risk-weighted assets (“RWA”) and the
global systemically important banks (“GSIB”)
surcharge, both under rules currently in effect, as well
as a simulation of capital depletion in a severe stress
environment. At least annually, the assumptions,
judgments and methodologies used to allocate capital
are reassessed and, as a result, the capital allocated to
the LOBs and Corporate may change. Refer to Line of
business and Corporate equity on page 104 for
additional information on capital allocation.
JPMorgan Chase & Co./2024 Form 10-K
71

Segment & Corporate Results – Managed Basis
The following tables summarize the Firm’s results by business segments and Corporate for the periods indicated.
Year ended December 31,
Consumer & Community Banking
Commercial & Investment Bank
Asset & Wealth Management
(in millions, except ratios)

2024

2023

2022

2024

2023

2022

2024

2023

2022
Total net revenue
$ 71,507
$ 70,148
$ 54,814
(a) $ 70,114
$ 64,353
$ 59,635
(a) $ 21,578
$ 19,827
$ 17,748
Total noninterest expense
38,036

34,819

31,208
(a) 35,353

33,972
32,069
(a) 14,414

12,780

11,829
Pre-provision profit/(loss)

33,471

35,329

23,606
34,761

30,381
27,566

7,164

7,047

5,919
Provision for credit losses

9,974

6,899

3,813

762

2,091

2,426

(68)

159

128
Net income/(loss)

17,603

21,232

14,916
(a) 24,846

20,272

19,138
(a)
5,421

5,227

4,365
Return on equity (“ROE”)
32 %
38 %
29 %
18 %
14 %
14 %

34 %
31 %
25 %
Year ended December 31,
Corporate
Total
(in millions, except ratios)

2024

2023

2022

2024

2023

2022
Total net revenue
$ 17,394
(b) $ 8,038
$
80
$ 180,593
(b) $ 162,366
$ 132,277
Total noninterest expense

3,994
(c)
5,601

1,034

91,797
(c)
87,172

76,140
Pre-provision profit/(loss)

13,400

2,437

(954)
88,796

75,194

56,137
Provision for credit losses

171

10,678

9,320

6,389
Net income/(loss)

10,601

2,821

(743)

58,471

49,552

37,676
Return on equity (“ROE”)
NM
NM
NM
18 %
17 %
14 %
(a) 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.
(b) Included a $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional
information.
(c) Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Notes
2 and 6 for additional information.
Refer to Note 32 for further details on total net revenue and total noninterest expense.
The following sections provide a comparative discussion of the Firm’s results by business segments and Corporate
as of or for the years ended December 31, 2024 and 2023, unless otherwise specified.
72
JPMorgan Chase & Co./2024 Form 10-K

CONSUMER & COMMUNITY BANKING
Consumer & Community Banking offers products
and services to consumers and small businesses
through bank branches, ATMs, digital (including
mobile and online) and telephone banking. CCB is
organized into Banking & Wealth Management
(including Consumer Banking, Business Banking
and J.P. Morgan Wealth Management), Home
Lending (including Home Lending Production,
Home Lending Servicing and Real Estate
Portfolios) and Card Services & Auto. Banking &
Wealth Management offers deposit, investment
and lending products, cash management,
payments and services. Home Lending includes
mortgage origination and servicing activities, as
well as portfolios consisting of residential
mortgages and home equity loans. Card Services
issues credit cards and offers travel services. Auto
originates and services auto loans and leases.
Selected income statement data
Year ended December 31,
(in millions, except ratios)
2024
2023
2022
Revenue
Lending- and deposit-
related fees
$ 3,387
$ 3,356
$
3,316
Asset management fees

4,014

3,282

2,734
Mortgage fees and
related income

1,378

1,175

1,236
Card income

3,139

2,532

2,469
All other income(a)

4,731

4,773

5,131
Noninterest revenue
16,649

15,118
14,886
Net interest income
54,858
55,030
39,928
Total net revenue
71,507
70,148
54,814
Provision for credit losses

9,974

6,899

3,813
Noninterest expense
Compensation expense
17,045

15,171

13,092
Noncompensation
expense
(b)
20,991
19,648

18,116
Total noninterest
expense
38,036
34,819
(d) 31,208
Income before income
tax expense
23,497
28,430

19,793
Income tax expense

5,894

7,198

4,877
Net income
$ 17,603
$ 21,232
$ 14,916
Revenue by business
Banking & Wealth
Management
$ 40,943
$ 43,199
$ 30,059
Home Lending

5,097

4,140

3,674
Card Services & Auto
25,467
22,809

21,081
Mortgage fees and
related income details:
Production revenue

627

421

497
Net mortgage servicing
revenue
(c)

751

754

739
Mortgage fees and
related income
$ 1,378
$
1,175
$
1,236
Financial ratios
Return on equity
32 %
38 %
29 %
Overhead ratio
53
50
57
(a) Primarily includes operating lease income and commissions and
other fees. Operating lease income was $2.8 billion, $2.8 billion
and $3.6 billion for the years ended December 31, 2024, 2023
and 2022, respectively.
(b) Included depreciation expense on leased assets of $1.7 billion,
$1.7 billion and $2.4 billion for the years ended December 31,
2024, 2023 and 2022, respectively.
(c) Included MSR risk management results of $159 million, $131
million and $93 million for the years ended December 31, 2024,
2023 and 2022, respectively.
(d) In the second quarter of 2023, substantially all of the expense
associated with First Republic was reported in Corporate.
Commencing in the third quarter of 2023, the expense was
aligned to the appropriate LOB.
JPMorgan Chase & Co./2024 Form 10-K
73

2024 compared with 2023
Net income was $17.6 billion, down 17%.
Net revenue was $71.5 billion, up 2%.
Net interest income was $54.9 billion, flat when
compared with the prior year, reflecting:
• lower NII in Banking & Wealth Management ("BWM"),
predominantly driven by deposit margin
compression and lower average deposits,
offset by
• higher Card Services NII, predominantly driven by
higher revolving balances, and
• the timing impact of First Republic in Home Lending.
Noninterest revenue was $16.6 billion, up 10%,
predominantly driven by:
• higher asset management fees reflecting higher
average market levels, including the timing impact
of First Republic and, to a lesser extent, net inflows,
as well as higher commissions from annuity sales in
BWM,
• higher card income, driven by higher net
interchange reflecting increased debit and credit
card sales volume, and higher annual fees, partially
offset by an increase in amortization related to new
account origination costs, as well as
• higher production revenue in Home Lending,
including the timing impact of First Republic.
Refer to Note 6 for additional information on card
income, asset management fees, and commissions
and other fees; and Critical Accounting Estimates on
pages 161–164 for additional information on the credit
card rewards liability.
Refer to Executive Overview on page 54 and Note 34
for additional information on First Republic.
Noninterest expense was $38.0 billion, up 9%,
reflecting First Republic-related expense that was
aligned to CCB from Corporate starting in the third
quarter of 2023, impacting both compensation and
noncompensation expense.
The increase in expense also reflected:
• higher compensation expense, largely driven by
higher revenue-related compensation
predominantly for advisors and bankers, and an
increase in the number of employees, including in
technology, and
• higher noncompensation expense, largely driven by
continued investments in technology and marketing,
as well as higher operating losses, partially offset by
lower legal expense.
The provision for credit losses was $10.0 billion,
reflecting:
• net charge-offs of $7.9 billion, up $2.6 billion,
including $2.4 billion in Card Services, reflecting the
seasoning of vintages originated in recent years,
credit normalization and balance growth, and
• a $2.0 billion net addition to the allowance for credit
losses, consisting of:
– $2.2 billion in Card Services, predominantly driven
by loan growth, reflecting higher revolving
balances, including the seasoning of vintages
originated in recent years,
partially offset by
– a $125 million net reduction in Home Lending,
primarily due to improvements in the outlook for
home prices in the first quarter of 2024.
The provision in the prior year was $6.9 billion,
reflecting net charge-offs of $5.3 billion, a $1.2 billion
net addition to the allowance for credit losses,
predominantly driven by Card Services, and a $408
million net addition to the allowance for credit losses
to establish the allowance for the First Republic loans
and lending-related commitments in the second
quarter of 2023.
Refer to Credit and Investment Risk Management on
pages 117–140 and Allowance for Credit Losses on
pages 137–139 for a further discussion of the credit
portfolios and the allowance for credit losses.
74
JPMorgan Chase & Co./2024 Form 10-K

Selected metrics
As of or for the year ended
December 31,
(in millions, except
employees)
2024
2023
2022
Selected balance sheet
data (period-end)
Total assets
$ 650,268
$ 642,951
$ 514,085
Loans:
Banking & Wealth
Management

33,221

31,142

29,008
Home Lending(a)
246,498

259,181

172,554
Card Services
233,016

211,175

185,175
Auto

73,619

77,705

68,191
Total loans
586,354
579,203

454,928
Deposits(b)
1,056,652
1,094,738

1,131,611
Equity

54,500

55,500

50,000
Selected balance sheet
data (average)
Total assets
$ 631,648
$ 584,367
$ 497,263
Loans:
Banking & Wealth
Management

31,544

30,142

31,545
Home Lending
(c)
252,542

232,115

176,285
Card Services
214,139

191,424

163,335
Auto

75,009

72,674

68,098
Total loans
573,234
526,355

439,263
Deposits
(b)
1,064,215
1,126,552
1,162,680
Equity

54,500

54,349

50,000
Employees
144,989

141,640

135,347
(a) At December 31, 2024, 2023 and 2022, Home Lending loans
held-for-sale and loans at fair value were $8.1 billion, $3.4 billion
and $3.0 billion, respectively.
(b) In the fourth quarter of 2023, CCB transferred approximately
$18.8 billion of deposits associated with First Republic to AWM
and CIB.
(c) Average Home Lending loans held-for-sale and loans at fair
value were $7.1 billion, $4.8 billion and $7.3 billion for the years
ended December 31, 2024, 2023 and 2022, respectively.
Selected metrics
As of or for the year ended
December 31,
(in millions, except ratio
data)
2024
2023
2022
Credit data and quality
statistics
Nonaccrual loans(a)
$ 3,366
$ 3,740
$ 3,899
Net charge-offs/(recoveries)
Banking & Wealth
Management

442

340

370
Home Lending

(106)

(56)

(229)
Card Services

7,148
4,699
2,403
Auto

444

357

144
Total net charge-offs/
(recoveries)
$ 7,928
$ 5,340
$ 2,688
Net charge-off/(recovery)
rate
Banking & Wealth
Management
1.40 %
1.13 %
1.17 %
Home Lending
(0.04)
(0.02)
(0.14)
Card Services
3.34
2.45

1.47
Auto
0.59
0.49
0.21
Total net charge-off/
(recovery) rate
1.40 %
1.02 %
0.62 %
30+ day delinquency rate
Home Lending
(b)
0.78 %
0.66 %
0.83 %
Card Services
2.17
2.14

1.45
Auto
1.43
1.19

1.01
90+ day delinquency rate -
Card Services
1.14 %
1.05 %
0.68 %
Allowance for loan losses
Banking & Wealth
Management
$
764
$ 685
$
722
Home Lending

447

578

867
Card Services
14,608
12,453
11,200
Auto

692

742

715
Total allowance for loan
losses
$ 16,511
$ 14,458
$ 13,504
(a) Excludes mortgage loans past due and insured by U.S.
government agencies, which are primarily 90 or more days past
due. These loans have been excluded based upon the
government guarantee. At December 31, 2024, 2023 and 2022,
mortgage loans 90 or more days past due and insured by U.S.
government agencies were $84 million, $123 million and $187
million, respectively. In addition, the Firm’s policy is generally to
exempt credit card loans from being placed on nonaccrual
status as permitted by regulatory guidance
(b) At December 31, 2024, 2023 and 2022, excluded mortgage
loans insured by U.S. government agencies of $122 million, $176
million and $258 million, respectively, that are 30 or more days
past due. These amounts have been excluded based upon the
government guarantee.
JPMorgan Chase & Co./2024 Form 10-K
75

Selected metrics
As of or for the year
ended December 31,
(in billions, except ratios
and where otherwise
noted)
2024
2023
2022
Business Metrics
CCB Consumer
customers (in millions)

84.4

82.1

79.2
CCB Small business
customers (in millions)

7.0

6.4

5.7
Number of branches

4,966

4,897

4,787
Active digital customers
(in thousands)(a)
70,813
66,983
63,136
Active mobile customers
(in thousands)(b)
57,821
53,828
49,710
Debit and credit card
sales volume
$ 1,805.4
$ 1,678.6
$ 1,555.4
Total payments
transaction volume (in
trillions)(c)

6.4

5.9

5.6
Banking & Wealth
Management
Average deposits
$ 1,049.3
$ 1,111.7
$ 1,145.7
Deposit margin

2.66 %
2.84 %
1.71 %
Business Banking
average loans
$
19.5
$
19.6
$
22.3
Business Banking
origination volume

4.5

4.8

4.3
Client investment
assets
(d)
1,087.6

951.1

647.1
Number of client advisors
5,755

5,456

5,029
Home Lending
Mortgage origination
volume by channel
Retail
$
25.5
$
22.4
$
38.5
Correspondent

15.3

12.7

26.9
Total mortgage
origination volume
(e)
$
40.8
$
35.1
$
65.4
Third-party mortgage
loans serviced (period-
end)
$ 648.0
$ 631.2
$ 584.3
MSR carrying value
(period-end)

9.1

8.5

8.0
Card Services
Sales volume, excluding
commercial card
$ 1,259.3
$ 1,163.6
$ 1,064.7
Net revenue rate

10.03 %
9.72 %
9.87 %
Net yield on average
loans
9.73
9.61
9.77
New credit card accounts
opened (in millions)

10.0

9.6
Auto
Loan and lease
origination volume
$
40.3
$
41.3
$
30.4
Average auto
operating lease assets

11.1

10.9

14.3
(a) Users of all web and/or mobile platforms who have logged in
within the past 90 days.
(b) Users of all mobile platforms who have logged in within the past
90 days.
(c) Total payments transaction volume includes debit and credit
card sales volume and gross outflows of ACH, ATM, teller, wires,
BillPay, PayChase, Zelle, person-to-person and checks.
(d) Includes assets invested in managed accounts and J.P. Morgan
mutual funds where AWM is the investment manager. Refer to
AWM segment results on pages 84–87 for additional
information.
(e) Firmwide mortgage origination volume was $47.4 billion, $41.4
billion and $81.8 billion for the years ended December 31, 2024,
2023 and 2022, respectively.
76
JPMorgan Chase & Co./2024 Form 10-K

COMMERCIAL & INVESTMENT BANK(a)
The Commercial & Investment Bank is comprised of
the Banking & Payments and Markets & Securities
Services businesses. These businesses offer
investment banking, lending, payments, market-
making, financing, custody and securities products
and services to a global base of corporate and
institutional clients. Banking & Payments offers
products and services in all major capital markets,
including advising on corporate strategy and
structure, capital-raising in equity and debt
markets, and loan origination and syndication.
Banking & Payments also provides services that
enable clients to manage payments globally across
liquidity and account solutions, commerce
solutions, clearing, trade, and working capital.
Markets & Securities Services includes Markets,
which is a global market-maker across products,
including cash and derivative instruments, and also
offers sophisticated risk management solutions,
lending, prime brokerage, clearing and research.
Markets & Securities Services also includes
Securities Services, a leading global custodian that
provides custody, fund services, liquidity and
trading services, and data solutions products.
(a) Reflects the reorganization of the Firm's business segments in
the second quarter of 2024. Refer to Business Segment &
Corporate Results on pages 70–90 for additional information.
Selected income statement data
Year ended December 31,
(in millions)
2024
2023
2022
Revenue
Investment banking fees
$ 9,116
$ 6,631
$ 6,977
Principal transactions
24,382
23,794
19,792
Lending- and deposit-related fees

3,914

3,423

3,662
Commissions and other fees

5,278

4,879

5,113
Card income

2,310

2,213

1,934
All other income

3,253

2,869

2,060
Noninterest revenue
48,253
43,809
39,538
Net interest income
21,861
20,544
20,097
Total net revenue(a)
70,114
64,353
59,635
Provision for credit losses

762

2,091

2,426
Noninterest expense
Compensation expense
18,191
17,105
16,214
Noncompensation expense
17,162
16,867
15,855
Total noninterest expense
35,353
33,972
32,069
Income before income tax
expense
33,999
28,290
25,140
Income tax expense

9,153

8,018

6,002
Net income
$ 24,846 $ 20,272
$ 19,138
(a) Included tax equivalent adjustments primarily from income tax
credits from investments in alternative energy, affordable
housing and new markets, income from tax-exempt securities
and loans, and the related amortization and other tax benefits of
the investments in alternative energy and affordable housing of
$2.8 billion, $4.0 billion and $3.3 billion for the years ended
December 31, 2024, 2023 and 2022, respectively. Effective
January 1, 2024, the Firm adopted updates to the Accounting for
Investments in Tax Credit Structures Using the Proportional
Amortization Method guidance, under the modified
retrospective method. Refer to Notes 1, 6, 14 and 25 for
additional information.
Selected income statement data
Year ended December 31,
(in millions, except ratios)
2024
2023
2022
Financial ratios
Return on equity
18 %
14 %
14 %
Overhead ratio
50
53
54
Compensation expense as
percentage of total net
revenue
26
27
27
Revenue by business
Investment Banking
$ 9,636
$ 7,076
$ 7,205
Payments
18,085
17,818
13,490
Lending
7,470

6,896

5,882
Other

107

244
Total Banking & Payments
35,267
31,897
26,821
Fixed Income Markets
(a)
20,066
19,180
19,074
Equity Markets
(a)

9,941

8,784
10,088
Securities Services
5,084

4,772
4,488
Credit Adjustments & Other
(b)

(244)

(280)

(836)
Total Markets & Securities
Services
34,847
32,456
32,814
Total net revenue
$ 70,114
$ 64,353
$ 59,635
(a) In the fourth quarter of 2024, certain net funding costs that were
previously allocated to Fixed Income Markets were reclassified
to Equity Markets. Prior-period amounts have been revised to
conform with the current presentation.
(b) Consists primarily of centrally-managed credit valuation
adjustments (“CVA”), funding valuation adjustments (“FVA”) on
derivatives, other valuation adjustments, and certain
components of fair value option elected liabilities, which are
primarily reported in principal transactions revenue. Results are
presented net of associated hedging activities and net of CVA
and FVA amounts allocated to Fixed Income Markets and Equity
Markets. Refer to Notes 2, 3 and 24 for additional information.
JPMorgan Chase & Co./2024 Form 10-K
77

Banking & Payments Revenue by Client Coverage
Segment:
(a)
Global Corporate Banking & Global Investment
Banking provides banking products and services
generally to large corporations, financial institutions
and merchants.
Commercial Banking provides banking products and
services generally to middle market clients, including
start-ups, small and mid-sized companies, local
governments, municipalities, and nonprofits, as well
as to commercial real estate clients.
Other includes amounts related to credit protection
purchased against certain retained loans and
lending-related commitments in Lending, the impact
of equity investments in Payments and revenues not
aligned with a primary client coverage segment.
(a) Global Banking is a client coverage view within the Banking &
Payments business and is comprised of the Global Corporate
Banking, Global Investment Banking and Commercial Banking
client coverage segments.
Selected income statement data
Year ended December 31,
(in millions)
2024
2023
2022
Banking & Payments revenue by client coverage segment
Global Corporate Banking & Global Investment Banking
$
24,549
$
21,700
$
19,325
Commercial Banking

11,487

11,050

7,906
Middle Market Banking

7,759

7,740

5,443
Commercial Real Estate Banking

3,728

3,310

2,463
Other

(769)
(853)
(410)
Total Banking & Payments revenue
$
35,267
$
31,897
$
26,821
78
JPMorgan Chase & Co./2024 Form 10-K

2024 compared with 2023
Net income was $24.8 billion, up 23%.
Net revenue was $70.1 billion, up 9%.
Banking & Payments revenue was $35.3 billion, up 11%.
• Investment Banking revenue was $9.6 billion, up
36%. Investment Banking fees were up 37%, driven
by higher fees across products. The Firm ranked #1
for Global Investment Banking fees, according to
Dealogic.
– Debt underwriting fees were $4.1 billion, up 55%,
predominantly driven by higher industry-wide
issuances in leveraged loans, and in high-grade
and high-yield bonds.
– Equity underwriting fees were $1.7 billion, up 47%,
driven by increased industry-wide fees and wallet
share gains in IPOs, and in follow-on and
convertible securities offerings.
– Advisory fees were $3.3 billion, up 17%, driven by
increased industry-wide M&A activity and wallet
share gains.
• Payments revenue was $18.1 billion, up 1%, driven by
fee growth on higher volumes as well as higher
average deposits, predominantly offset by deposit
margin compression, reflecting higher rates paid,
and higher deposit-related client credits.
• Lending revenue was $7.5 billion, up 8%,
predominantly driven by the impacts of higher rates
and the First Republic acquisition.
Markets & Securities Services revenue was $34.8
billion, up 7%. Markets revenue was $30.0 billion, up
7%.
• Equity Markets revenue was $9.9 billion, up 13%,
driven by higher revenue in Equity Derivatives and
Prime Finance.
• Fixed Income Markets revenue was $20.1 billion, up
5%, driven by higher revenue in the Securitized
Products Group, Currencies & Emerging Markets,
and Credit, largely offset by lower revenue in Rates
and Commodities.
• Securities Services revenue was $5.1 billion, up 7%,
predominantly driven by fee growth on higher client
activity and market levels.
• Credit Adjustments & Other was a loss of $244
million, compared with a loss of $280 million in the
prior year.
Noninterest expense was $35.4 billion, up 4%, driven
by higher compensation expense, including revenue-
related compensation and an increase in the number
of employees, as well as higher technology and
brokerage expense partially offset by lower legal
expense.
The provision for credit losses was $762 million,
reflecting:
• net charge-offs of $617 million, primarily in Real
Estate, largely concentrated in Office, and
• a $145 million net addition to the allowance for credit
losses, driven by
– net downgrade activity, primarily in Real Estate,
and the impact of incorporating the First Republic
portfolio into the Firm's modeled credit loss
estimates in the second quarter of 2024,
predominantly offset by
– changes in certain macroeconomic variables, an
update to loss assumptions on certain loans in
Markets, and a reduction due to charge-offs
predominantly from collateral-dependent loans.
The provision in the prior year was $2.1 billion,
reflecting a $1.5 billion net addition to the allowance for
credit losses, which included $608 million to establish
the allowance for the First Republic loans and lending-
related commitments in the second quarter of 2023,
and net charge-offs of $588 million.
JPMorgan Chase & Co./2024 Form 10-K
79

Selected metrics
As of or for the year ended
December 31, (in millions,
except employees)
2024
2023
2022
Selected balance sheet
data (period-end)
Total assets
$ 1,773,194
$ 1,638,493
$ 1,591,402
Loans:
Loans retained
483,043

475,186

421,521
Loans held-for-sale and
loans at fair value(a)

40,324

39,464

43,011
Total loans

523,367

514,650

464,532
Equity

132,000

138,000

128,000
Banking & Payments
loans by client coverage
segment (period-end)(b)
Global Corporate Banking
& Global Investment
Banking
$ 125,083
$ 128,097
$ 128,165
Commercial Banking

217,674

221,550

180,624
Middle Market Banking

72,814

78,043

72,625
Commercial Real Estate
Banking

144,860

143,507

107,999
Other

187

526

122
Total Banking &
Payments loans
342,944

350,173

308,911
Selected balance sheet
data (average)
Total assets
$ 1,912,466
$ 1,716,755
$ 1,649,358
Trading assets-debt and
equity instruments
624,032

508,792
405,948
Trading assets-derivative
receivables

57,028

63,862

77,822
Loans:
Loans retained
$ 475,426
$ 457,886
$ 395,015
Loans held-for-sale and
loans at fair value
(a)

43,621

40,891

48,196
Total loans
$ 519,047
$ 498,777
$ 443,211
Deposits
(c)
1,061,488

996,295
1,033,880
Equity

132,000

137,507

128,000
Banking & Payments
loans by client coverage
segment (average)
(b)
Global Corporate Banking
& Global Investment
Banking
$ 128,142
$
131,230
$ 122,174
Commercial Banking

220,285

209,244

173,289
Middle Market Banking

75,605

77,130

67,830
Commercial Real Estate
Banking

144,680

132,114

105,459
Other

354

331

168
Total Banking &
Payments loans
$ 348,781
$ 340,805
$ 295,631
Employees

93,231

92,271

88,139
(a) Loans held-for-sale and loans at fair value primarily reflect
lending-related positions originated and purchased in Markets,
including loans held for securitization.
(b) Refer to page 78 for a description of each of the client coverage
segments.
(c) In the fourth quarter of 2023, certain deposits associated with
First Republic were transferred to CIB from CCB.
Selected metrics
As of or for the year ended
December 31, (in millions,
except ratios)
2024
2023
2022
Credit data and quality
statistics
Net charge-offs/(recoveries) $ 689
(d)
$
588
$
166
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans
retained(a)
$ 3,258
$ 1,675
$ 1,484
Nonaccrual loans held-
for-sale and loans at fair
value(b)
1,502

828

848
Total nonaccrual loans
4,760

2,503
2,332
Derivative receivables

145

364

296
Assets acquired in loan
satisfactions

213

169

87
Total nonperforming assets $ 5,118
$ 3,036
$ 2,715
Allowance for credit losses:
Allowance for loan losses
$ 7,294
$ 7,326
$ 5,616
Allowance for lending-
related commitments
1,976

1,849
2,278
Total allowance for credit
losses
$ 9,270
$ 9,175
$ 7,894
Net charge-off/(recovery)
rate
(c)
0.14 %
0.13 %
0.04 %
Allowance for loan losses to
period-end loans
retained
1.51
1.54
1.33
Allowance for loan losses to
nonaccrual loans
retained
(a)
224
437
378
Nonaccrual loans to total
period-end loans
0.91
0.49
0.50
(a) Allowance for loan losses of $435 million, $251 million and $257
million were held against these nonaccrual loans at December
31, 2024, 2023 and 2022, respectively.
(b) Excludes mortgage loans past due and insured by U.S.
government agencies, which are primarily 90 or more days past
due. These loans have been excluded based upon the
government guarantee. At December 31, 2024, 2023 and 2022,
mortgage loans 90 or more days past due and insured by U.S.
government agencies were $37 million, $59 million and $115
million, respectively.
(c) Loans held-for-sale and loans at fair value were excluded when
calculating the net charge-off/(recovery) rate.
(d) Includes $72 million related to a purchased credit deteriorated
(“PCD”) loan that was charged off in the fourth quarter of 2024.
80
JPMorgan Chase & Co./2024 Form 10-K

Investment banking fees
Year ended December 31,
(in millions)
2024
2023
2022
Advisory
$
3,290
$
2,814
$
3,051
Equity underwriting

1,692

1,151

1,034
Debt underwriting(a)

4,134

2,666

2,892
Total investment banking fees
$
9,116
$
6,631
$
6,977
(a) Represents long-term debt and loan syndications.
League table results – wallet share
2024
2023
2022
Year ended December 31,
Rank
Share
Rank
Share
Rank
Share
Based on fees(a)
M&A(b)
Global
#
1
9.6 %
#
2
9.0 %
#
2
7.9 %
U.S.

1
11.4

2
10.9

2
8.9
Equity and equity-related(c)
Global

1
11.0

1
7.7

2
5.7
U.S.

1
14.7

1
14.4

1
14.0
Long-term debt
(d)
Global

1
7.6

1
7.0

1
6.9
U.S.

1
11.4

1
10.9

1
12.1
Loan syndications
Global

1
10.2

1
11.9

1
11.0
U.S.

1
11.8

1
15.1

1
12.9
Global investment banking fees
(e)
#
1
9.3 %
#
1
8.6 %
#
1
7.8 %
(a) Source: Dealogic as of January 2, 2025. Reflects the ranking of revenue wallet and market share.
(b) Global M&A excludes any withdrawn transactions. U.S. M&A revenue wallet represents wallet from client parents based in the U.S.
(c) Global equity and equity-related ranking includes rights offerings and Chinese A-Shares.
(d) Long-term debt rankings include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, asset-backed
securities ("ABS") and mortgage-backed securities ("MBS"); and exclude money market, short-term debt and U.S. municipal securities.
(e) Global investment banking fees exclude money market, short-term debt and shelf securities.
Markets revenue
The following table summarizes selected income
statement data for the Markets businesses. Markets
includes both Fixed Income Markets and Equity
Markets. Markets revenue consists of principal
transactions, fees, commissions and other income, as
well as net interest income. The Firm assesses its
Markets business performance on a total revenue
basis, as offsets generally occur across revenue line
items. For example, securities that generate net
interest income may be risk-managed by derivatives
that are reflected at fair value in principal transactions
revenue. Refer to Notes 6 and 7 for a description of the
composition of these income statement line items.
Principal transactions reflects revenue on financial
instruments and commodities transactions that arise
from client-driven market-making activity. Principal
transactions revenue includes amounts recognized
upon executing new transactions with market
participants, as well as “inventory-related revenue,”
which is revenue recognized from gains and losses on
derivatives and other instruments that the Firm has
been holding in anticipation of, or in response to, client
demand, and changes in the fair value of instruments
used by the Firm to actively manage the risk exposure
arising from such inventory. Principal transactions
revenue recognized upon executing new transactions
with market participants is affected by many factors
including the level of client activity, the bid-offer
spread (which is the difference between the price at
which a market participant is willing and able to sell an
instrument to the Firm and the price at which another
market participant is willing and able to buy it from the
Firm, and vice versa), market liquidity and
volatility. These factors are interrelated and sensitive
to the same factors that drive inventory-related
revenue, which include general market conditions,
such as interest rates, foreign exchange rates, credit
spreads, and equity and commodity prices, as well as
other macroeconomic conditions.
JPMorgan Chase & Co./2024 Form 10-K
81

For the periods presented below, the primary source of principal transactions revenue was the amount recognized
upon executing new transactions.
2024
2023
2022
Year ended December 31,
(in millions, except where otherwise
noted)
Fixed
Income
Markets
Equity
Markets
Total
Markets
Fixed
Income
Markets(c)
Equity
Markets(c)
Total
Markets
Fixed
Income
Markets(c)
Equity
Markets(c)
Total
Markets
Principal transactions
$ 10,603 $ 13,526 $ 24,129
$
13,198 $ 10,380 $ 23,578
$ 12,244 $
8,284 $ 20,528
Lending- and deposit-related fees

391
100
491

307
40
347

303
22
325
Commissions and other fees

605
2,086
2,691

596
1,908
2,504

550
1,975
2,525
All other income

2,120
(65)
2,055

1,908
(79)
1,829

1,083
(88)
995
Noninterest revenue

13,719
15,647
29,366

16,009
12,249
28,258

14,180
10,193
24,373
Net interest income(a)

6,347
(5,706)
641

3,171
(3,465)
(294)
4,894
(105)
4,789
Total net revenue
$ 20,066 $
9,941 $ 30,007
$
19,180 $
8,784 $ 27,964
$ 19,074 $ 10,088 $ 29,162
Loss days(b)
1
2
7
(a) The decline in Equity Markets net interest income was driven by higher funding costs.
(b) Markets consists of Fixed Income Markets and Equity Markets. Loss days represent the number of days for which Markets recorded losses in
total net revenue, which includes revenue related to both trading and non-trading positions. The loss days determined under this measure
differ from the measure used to determine backtesting gains and losses. Daily backtesting gains and losses include positions in the Firm’s
Risk Management value-at-risk ("VaR") measure and exclude certain components of total net revenue, which may more than offset
backtesting gains or losses on a particular day. For more information on daily backtesting gains and losses, refer to the VaR discussion on
pages 143–145.
(c) In the fourth quarter of 2024, certain net funding costs that were previously allocated to Fixed Income Markets were reclassified to Equity
Markets. Prior-period amounts have been revised to conform with the current presentation.
Selected metrics
As of or for the year ended December 31,
(in millions, except where otherwise noted)
2024
2023
2022
Assets under custody ("AUC") by asset class (period-end) (in billions):
Fixed Income
$
16,409
$
15,543
$
14,361
Equity

14,848

12,927

10,748
Other
(a)

4,023

3,922

3,526
Total AUC
$
35,280
$
32,392
$
28,635
Client deposits and other third-party liabilities (average)
(b)
$
961,646
$
912,859
$
981,653
(a) Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts.
(b) Client deposits and other third-party liabilities pertain to the Payments and Securities Services businesses.
82
JPMorgan Chase & Co./2024 Form 10-K

International metrics
As of or for the year ended December 31,
(in millions, except where otherwise noted)
2024
2023
2022
Total net revenue(a)
Europe/Middle East/Africa
$
15,191
$
14,418
$
15,716
Asia-Pacific

8,867

7,891

8,043
Latin America/Caribbean

2,427

2,161

2,288
Total international net revenue

26,485

24,470

26,047
North America

43,629

39,883

33,588
Total net revenue
$
70,114
$
64,353
$
59,635
Loans retained (period-end)(a)
Europe/Middle East/Africa
$
44,374
$
44,793
$
40,715
Asia-Pacific

16,107

15,506

16,764
Latin America/Caribbean

10,331

8,610

8,866
Total international loans

70,812

68,909

66,345
North America

412,231

406,277

355,176
Total loans retained
$
483,043
$
475,186
$
421,521
Client deposits and other third-party liabilities (average)
(b)
Europe/Middle East/Africa
$
264,227
$
247,804
$
265,061
Asia-Pacific

141,042

135,388

136,539
Latin America/Caribbean

42,716

39,861

40,531
Total international
$
447,985
$
423,053
$
442,131
North America

513,661

489,806

539,522
Total client deposits and other third-party liabilities
$
961,646
$
912,859
$
981,653
AUC (period-end)
(b)
(in billions)
North America
$
23,845
$
21,792
$
19,219
All other regions

11,435

10,600

9,416
Total AUC
$
35,280
$
32,392
$
28,635
(a) Total net revenue and loans retained (excluding loans held-for-sale and loans at fair value) are based on the location of the trading desk,
booking location, or domicile of the client, as applicable.
(b) Client deposits and other third-party liabilities pertaining to the Payments and Securities Services businesses, and AUC, are based on the
domicile of the client or booking location, as applicable.
JPMorgan Chase & Co./2024 Form 10-K
83

ASSET & WEALTH MANAGEMENT
Asset & Wealth Management, with client assets of
$5.9 trillion, is a global leader in investment and
wealth management.
Asset Management
Offers multi-asset investment management
solutions across equities, fixed income, alternatives
and money market funds to institutional and retail
investors providing for a broad range of clients’
investment needs.
Global Private Bank
Provides retirement products and services,
brokerage, custody, estate planning, lending,
deposits and investment management to high net
worth clients.
The majority of AWM’s client assets are in actively
managed portfolios.
Selected income statement data
Year ended December 31,
(in millions, except ratios)
2024
2023
2022
Revenue
Asset management fees
$ 13,693
$ 11,826
$ 11,510
Commissions and other fees

874

697
$ 662
All other income

456
(a) 1,037
(a)(b)
335
Noninterest revenue
15,023
13,560
12,507
Net interest income
6,555
6,267
5,241
Total net revenue
21,578
19,827
17,748
Provision for credit losses

(68)

159

128
Noninterest expense
Compensation expense
7,984

7,115
6,336
Noncompensation expense
6,430
5,665
5,493
Total noninterest expense
14,414
12,780
11,829
Income before income tax
expense
7,232
6,888
5,791
Income tax expense

1,811
1,661
1,426
Net income
$ 5,421
$ 5,227
$ 4,365
Revenue by line of business
Asset Management
$ 10,175
$ 9,129
$ 8,818
Global Private Bank
11,403
10,698
8,930
Total net revenue
$ 21,578
$ 19,827
$ 17,748
Financial ratios
Return on equity

34 %

31 %
25 %
Overhead ratio

64
67
Pre-tax margin ratio:
Asset Management

30
Global Private Bank

35
Asset & Wealth
Management

33
(a) Includes the amortization of the fair value discount on certain
acquired lending-related commitments associated with First
Republic. The discount is deferred in other liabilities and
recognized on a straight-line basis over the commitment period
and was largely recognized in 2023 as the commitments were
generally short term. Refer to Note 34 for additional information.
(b) Includes the gain on the original minority interest in CIFM upon
the Firm’s acquisition of the remaining 51% interest in the entity.
2024 compared with 2023
Net income was $5.4 billion, up 4%.
Net revenue was $21.6 billion, up 9%. Net interest
income was $6.6 billion, up 5%. Noninterest revenue
was $15.0 billion, up 11%.
Revenue from Asset Management was $10.2 billion, up
11%, driven by:
• higher asset management fees, reflecting higher
average market levels and strong net inflows, as well
as
• higher performance fees.
The prior year included a gain of $339 million on the
original minority interest in CIFM upon the Firm’s
acquisition of the remaining 51% interest in the entity.
Revenue from Global Private Bank was $11.4 billion, up
7%, driven by:
• higher noninterest revenue, reflecting:
– higher management fees on strong net inflows and
higher average market levels, as well as higher
brokerage fees,
partially offset by
– a decline in the amortization of the fair value
discount on certain acquired lending-related
commitments associated with First Republic that
have expired, and
• higher net interest income driven by:
– higher average deposits associated with First
Republic, which were transferred to AWM from
CCB in the fourth quarter of 2023, as well as wider
spreads on loans and higher average loans,
largely offset by
– deposit margin compression reflecting higher
rates paid.
The prior year included net investment valuation
losses.
Noninterest expense was $14.4 billion, up 13%,
predominantly driven by:
• higher compensation, including revenue-related
compensation, and continued growth in private
banking advisor teams, and
• higher distribution fees and legal expense,
The provision for credit losses was a net benefit of $68
million.
The provision in the prior year was $159 million,
reflecting a $146 million addition to the allowance for
credit losses to establish the allowance for the First
Republic loans and lending-related commitments in
the second quarter of 2023.
84
JPMorgan Chase & Co./2024 Form 10-K

Asset Management has two high-level measures
of its overall fund performance.
• Percentage of active mutual fund and active ETF assets under
management in funds rated 4- or 5-star: Mutual fund rating
services rank funds based on their risk adjusted performance
over various periods. A 5-star rating is the best rating and
represents the top 10% of industry-wide ranked funds. A 4-star
rating represents the next 22.5% of industry-wide ranked funds.
A 3-star rating represents the next 35% of industry-wide ranked
funds. A 2-star rating represents the next 22.5% of industry-
wide ranked funds. A 1-star rating is the worst rating and
represents the bottom 10% of industry-wide ranked funds. An
overall Morningstar rating is derived from a weighted average of
the performance associated with a fund’s three-, five and ten-
year (if applicable) Morningstar Rating metrics. For U.S.-
domiciled funds, separate star ratings are provided at the
individual share class level. The Nomura “star rating” is based
on three-year risk-adjusted performance only. Funds with fewer
than three years of history are not rated and hence excluded
from these rankings. All ratings, the assigned peer categories
and the asset values used to derive these rankings are sourced
from the applicable fund rating provider. Where applicable, the
fund rating providers redenominate asset values into U.S.
dollars. The percentage of AUM is based on star ratings at the
share class level for U.S.-domiciled funds, and at a “primary
share class” level to represent the star rating of all other funds,
except for Japan, for which Nomura provides ratings at the fund
level. The performance data may have been different if all share
classes had been included. Past performance is not indicative of
future results.
• Percentage of active mutual fund and active ETF assets under
management in funds ranked in the 1st or 2nd quartile (one,
three and five years):All quartile rankings, the assigned peer
categories and the asset values used to derive these rankings
are sourced from the fund rating providers. Quartile rankings
are based on the net-of-fee absolute return of each fund. Where
applicable, the fund rating providers redenominate asset values
into U.S. dollars. The percentage of AUM is based on fund
performance and associated peer rankings at the share class
level for U.S.-domiciled funds, at a “primary share class” level to
represent the quartile ranking for U.K., Luxembourg and Hong
Kong SAR funds and at the fund level for all other funds. The
performance data may have been different if all share classes
had been included. Past performance is not indicative of future
results.
“Primary share class” means the C share class for European
funds and Acc share class for Hong Kong SAR and Taiwan
funds. If these share classes are not available, the oldest share
class is used as the primary share class.
Selected metrics
As of or for the year
ended December 31,
(in millions, except
ranking data, ratios and
employees)
2024
2023
2022
% of JPM mutual fund
assets and ETFs rated
as 4- or 5-star(a)
69 %
69 %
73 %
% of JPM mutual fund
assets and ETFs ranked
in 1st or 2nd
quartile:(b)
1 year
73
40
68
3 years
75
67
76
5 years
77
71
81
Selected balance sheet
data (period-end)(c)
Total assets
$ 255,385
$ 245,512
$ 232,037
Loans
236,303
227,929
214,006
Deposits
248,287
233,232
(d) 233,130
Equity
15,500
17,000
17,000
Selected balance sheet
data (average)
(c)
Total assets
$ 246,254
$ 240,222
$ 232,438
Loans
227,676
220,487
215,582
Deposits
235,146
216,178
(d) 261,489
Equity
15,500

16,671
17,000
Employees
29,403
28,485
26,041
Number of Global
Private Bank client
advisors
3,775
3,515
3,137
Credit data and quality
statistics
(c)
Net charge-offs/
(recoveries)
$
21
$
13
$
(7)
Nonaccrual loans

700

650

459
Allowance for credit
losses:
Allowance for loan
losses
$
539
$
633
$
494
Allowance for lending-
related commitments

20
Total allowance for
credit losses
$
574
$
661
$
514
Net charge-off/(recovery)
rate

0.01 %

— %
Allowance for loan losses
to period-end loans

0.23

0.28

0.23
Allowance for loan losses
to nonaccrual loans

108
Nonaccrual loans to
period-end loans

0.30

0.29

0.21
(a) Represents the Morningstar Rating for all domiciled funds except
for Japan domiciled funds which use Nomura. Includes only Asset
Management retail active open-ended mutual funds and active
ETFs that have a rating. Excludes money market funds,
Undiscovered Managers Fund, and Brazil domiciled funds.
JPMorgan Chase & Co./2024 Form 10-K
85

(b) Quartile ranking sourced from Morningstar, Lipper and Nomura
based on country of domicile. Includes only Asset Management
retail active open-ended mutual funds and active ETFs that are
ranked by the aforementioned sources. Excludes money market
funds, Undiscovered Managers Fund, and Brazil domiciled funds.
(c) Loans, deposits and related credit data and quality statistics
relate to the Global Private Bank business.
(d) In the fourth quarter of 2023, certain deposits associated with
First Republic were transferred to AWM from CCB.
Client assets
2024 compared with 2023
Assets under management were $4.0 trillion and client
assets were $5.9 trillion, each up 18%, driven by
continued net inflows and higher market levels.
Client assets
December 31,
(in billions)
2024
2023
2022
Assets by asset class
Liquidity
$
1,083 $
926 $
654
Fixed income

851
751
638
Equity

1,128
868
670
Multi-asset

764
680
603
Alternatives

219
197
201
Total assets under
management

4,045
3,422
2,766
Custody/brokerage/
administration/deposits

1,887
1,590
1,282
Total client assets
(a)
$ 5,932 $
5,012 $
4,048
Assets by client segment
Private Banking
$
1,234 $
974 $
751
Global Institutional

1,692
1,488
1,252
Global Funds

1,119
960
763
Total assets under
management
$ 4,045 $
3,422 $
2,766
Private Banking
$ 2,974 $
2,452 $
1,964
Global Institutional

1,820
1,594
1,314
Global Funds

1,138
966
770
Total client assets
(a)
$ 5,932 $
5,012 $
4,048
(a) Includes CCB client investment assets invested in managed
accounts and J.P. Morgan mutual funds where AWM is the
investment manager.
Client assets (continued)
Year ended December 31,
(in billions)
2024
2023
2022
Assets under management
rollforward
Beginning balance
$ 3,422 $
2,766 $
3,113
Net asset flows:
Liquidity

140
242
(55)
Fixed income

91
70
13
Equity

114
70
35
Multi-asset

19
1
(9)
Alternatives

10
(1)
8
Market/performance/other
impacts

249
274
(339)
Ending balance, December 31
$ 4,045 $
3,422 $
2,766
Client assets rollforward
Beginning balance
$
5,012 $
4,048 $
4,295
Net asset flows

486
490
49
Market/performance/other
impacts

434
474
(296)
Ending balance, December 31
$ 5,932 $
5,012 $
4,048
Selected Metrics
As of December 31,
2024
2023
Change
Firmwide Wealth Management
Client assets (in billions)
(a)
$ 3,756
$
3,177
18 %
Number of client advisors

9,530

8,971
6
Stock Plan Administration
(b)
Number of stock plan
participants (in thousands)

1,327

974
36
Client assets (in billions)
$
270
$
230
17 %
(a) Consists of Global Private Bank in AWM and client investment
assets in J.P. Morgan Wealth Management in CCB.
(b) Relates to an equity plan administration business which was
acquired in 2022 with the Firm’s purchase of Global Shares. The
increase in 2024 includes the impact of onboarding participants
in the Firm’s employee stock plans during the fourth quarter of
2024.
86
JPMorgan Chase & Co./2024 Form 10-K

International metrics
Year ended December 31,
(in billions, except where
otherwise noted)
2024
2023
2022
Total net revenue (in millions)(a)
Europe/Middle East/Africa
$ 3,563 $
3,377 $
3,240
Asia-Pacific

2,023
1,876
1,836
Latin America/Caribbean

1,065
985
967
Total international net revenue

6,651
6,238
6,043
North America

14,927
13,589
11,705
Total net revenue
$ 21,578 $ 19,827 $ 17,748
Assets under management
Europe/Middle East/Africa
$
604 $
539 $
487
Asia-Pacific

302
263
218
Latin America/Caribbean

106
86
69
Total international assets under
management

1,012
888
774
North America

3,033
2,534
1,992
Total assets under
management
$ 4,045 $
3,422 $
2,766
Client assets
Europe/Middle East/Africa
$
841 $
740 $
610
Asia-Pacific

482
406
331
Latin America/Caribbean

254
232
189
Total international client assets

1,577
1,378
1,130
North America

4,355
3,634
2,918
Total client assets
$ 5,932 $
5,012 $
4,048
(a) Regional revenue is based on the domicile of the client.
JPMorgan Chase & Co./2024 Form 10-K
87

CORPORATE
Corporate consists of Treasury and Chief
Investment Office (“CIO”) and Other Corporate.
Treasury and CIO is predominantly responsible
for measuring, monitoring, reporting and
managing the Firm’s liquidity, funding, capital,
structural interest rate and foreign exchange
risks.
Other Corporate includes staff functions and
expense that is centrally managed as well as
certain Firm initiatives and activities not solely
aligned to a specific LOB. The major Other
Corporate functions include Real Estate,
Technology, Legal, Corporate Finance, Human
Resources, Internal Audit, Risk Management,
Compliance, Control Management, Corporate
Responsibility and various Other Corporate
groups.
Selected income statement and balance sheet data
Year ended
December 31,
(in millions, except
employees)
2024
2023
2022
Revenue
Principal
transactions
$
152
$
302
$
(227)
Investment securities
losses

(1,020)

(3,180)

(2,380)
All other income

8,476
(c)

3,010
(f)

809
Noninterest revenue
7,608

132

(1,798)
Net interest income

9,786

7,906

1,878
Total net revenue
(a)

17,394

8,038

80
Provision for credit
losses

171

22
Noninterest
expense

3,994
(d)(e)
5,601
(e)(g)
1,034
Income/(loss)
before income tax
expense/(benefit)

13,390

2,266

(976)
Income tax expense/
(benefit)

2,789

(555)
(h)

(233)
Net income/(loss)
$
10,601
$
2,821
$
(743)
Total net revenue
Treasury and CIO

9,638

6,072

(439)
Other Corporate

7,756

1,966

519
Total net revenue
$
17,394
$
8,038
$
80
Net income/(loss)
Treasury and CIO

7,013

4,206

(197)
Other Corporate

3,588
(e)

(1,385) (e)

(546)
Total net income/
(loss)
$
10,601
$
2,821
$
(743)
Total assets (period-
end)
$ 1,323,967
$ 1,348,437
$ 1,328,219
Loans (period-end)

1,964

1,924

2,181
Deposits
(b)

27,581

21,826

14,203
Employees

49,610

47,530

44,196
(a) Included tax-equivalent adjustments, predominantly driven by
tax-exempt income from municipal bonds, of $182 million, $211
million and $235 million for the years ended December 31, 2024,
2023 and 2022, respectively.
(b) Predominantly relates to the Firm's international consumer
initiatives.
(c) Included the net gain related to Visa shares of $7.9 billion
recorded in the second quarter of 2024. Refer to Notes 2 and 6
for additional information.
(d) Included a $1.0 billion contribution of Visa shares to the
JPMorgan Chase Foundation recorded in the second quarter of
2024. Refer to Notes 2 and 6 for additional information.
(e) The first quarter of 2024 included an increase of $725 million to
the FDIC special assessment reflecting the FDIC's revised
estimate of Deposit Insurance Fund losses. The fourth quarter of
2023 included the $2.9 billion FDIC special assessment.
(f) Included the estimated bargain purchase gain of $2.8 billion for
the year ended December 31, 2023 associated with the First
Republic acquisition. Refer to Notes 6 and 34 for additional
information.
(g) In the second quarter of 2023, substantially all of the expense
associated with First Republic was reported in Corporate.
Commencing in the third quarter of 2023, the expense was
aligned to the appropriate LOBs.
(h) Income taxes associated with the First Republic acquisition were
reflected in the estimated bargain purchase gain.
88
JPMorgan Chase & Co./2024 Form 10-K

2024 compared with 2023
Net income was $10.6 billion, compared with $2.8
billion in the prior year.
Net revenue was $17.4 billion, compared with $8.0
billion in the prior year.
Net interest income was $9.8 billion, up 24%, driven by
the impact of balance sheet actions, primarily
reinvestments in the investment securities portfolio,
partially offset by the net impact of rates.
Noninterest revenue was $7.6 billion, compared with
$132 million in the prior year. Excluding the $7.9 billion
net gain related to Visa shares recorded in the second
quarter of 2024 and the prior-year $2.8 billion
estimated bargain purchase gain associated with the
First Republic acquisition, revenue was up $2.4 billion,
predominantly driven by lower investment securities
losses, primarily on sales of U.S. Treasuries and U.S.
GSE and government agency MBS, associated with
repositioning the investment securities portfolio in
Treasury and CIO.
Noninterest expense was $4.0 billion, down 29%,
driven by:
• a lower FDIC special assessment,
• lower expense associated with the First Republic
acquisition as the prior year expense in Corporate
included individuals associated with First Republic
who were not employees of the Firm until July 2023,
and this expense was subsequently aligned to the
appropriate LOBs starting in the third quarter of
2023, and
• lower legal expense,
partially offset by
• a $1.0 billion contribution of Visa shares to the
JPMorgan Chase Foundation recorded in the second
quarter of 2024, and
• higher costs associated with the Firm's international
consumer initiatives.
The provision for credit losses was $10 million.
The provision in the prior year was $171 million,
reflecting a net addition to the allowance for credit
losses related to a single name exposure, which was
subsequently charged off upon the restructuring of a
loan.
Refer to Note 10 and Note 13 for additional information
on the investment securities portfolio and the
allowance for credit losses.
The current period income tax expense was driven by
changes in the level and mix of income and expenses
subject to U.S. federal and state and local taxes,
including the impact of the net gain on Visa shares and
the contribution of Visa shares to the JPMorgan Chase
Foundation recorded in the second quarter of 2024,
partially offset by benefits related to tax audit
settlements.
Other Corporate includes the Firm's international
consumer initiatives, which primarily consists of Chase
U.K., Nutmeg, and an ownership stake in C6 Bank.
The deposits within Corporate relate to the Firm’s
international consumer initiatives and have increased
as a result of growth in client accounts, reflecting the
impact of additional product offerings.
JPMorgan Chase & Co./2024 Form 10-K
89

Treasury and CIO overview
Treasury and CIO is predominantly responsible for
measuring, monitoring, reporting and managing the
Firm’s liquidity, funding, capital, structural interest rate
and foreign exchange risks. The risks managed by
Treasury and CIO arise from the activities undertaken
by the Firm’s three reportable business segments to
serve their respective client bases, which generate
both on- and off-balance sheet assets and liabilities.
Treasury and CIO seeks to achieve the Firm’s asset-
liability management objectives generally by investing
in high quality securities that are managed for the
longer-term as part of the Firm’s investment securities
portfolio. Treasury and CIO also uses derivatives to
meet the Firm’s asset-liability management objectives.
Refer to Note 5 for further information on derivatives.
In addition, Treasury and CIO manages the Firm’s cash
position primarily through deposits at central banks
and investments in short-term instruments. Refer to
Liquidity Risk Management on pages 108–115 for
further information on liquidity and funding risk. Refer
to Market Risk Management on pages 141–149 for
information on interest rate and foreign exchange
risks.
The investment securities portfolio predominantly
consists of U.S. and non-U.S. government securities,
U.S. GSE and government agency and nonagency
mortgage-backed securities, collateralized loan
obligations, obligations of U.S. states and
municipalities and other ABS. At December 31, 2024,
the Treasury and CIO investment securities portfolio,
net of the allowance for credit losses, was $678.3
billion, and the average credit rating of the securities
comprising the portfolio was AA+ (based upon
external ratings where available and, where not
available, based primarily upon internal risk ratings).
Refer to Note 10 for further information on the Firm’s
investment securities portfolio and internal risk
ratings.
Selected income statement and balance sheet data
As of or for the year ended
December 31, (in millions)
2024
2023
2022
Investment securities losses
$ (1,020) $
(3,180) $ (2,380)
Available-for-sale securities
(average)
$ 287,260
$ 200,708
$ 239,924
Held-to-maturity securities
(average)(a)
321,384
402,010

412,180
Investment securities
portfolio (average)
$ 608,644
$ 602,718
$ 652,104
Available-for-sale securities
(period-end)
$ 403,796
$ 199,354
$ 203,981
Held-to-maturity securities
(period–end)(a)
274,468
369,848
425,305
Investment securities
portfolio, net of allowance
for credit losses (period–
end)(b)
$ 678,264
$ 569,202
$ 629,286
(a) Effective January 1, 2023, the Firm adopted the portfolio layer
method hedge accounting guidance. As permitted by the
guidance, the Firm elected to transfer $7.1 billion of investment
securities from HTM to AFS. During 2022, the Firm transferred
$78.3 billion of investment securities from AFS to HTM for
capital management purposes. Refer to Note 1 and Note 10 for
additional information on the portfolio layer method hedge
accounting guidance.
(b) As of December 31, 2024, 2023 and 2022, the allowance for
credit losses on investment securities was $105 million,
$94 million and $67 million, respectively.
90
JPMorgan Chase & Co./2024 Form 10-K

FIRMWIDE RISK MANAGEMENT
Risk is an inherent part of JPMorganChase’s business
activities. When the Firm extends a consumer or
wholesale loan, advises customers and clients on their
investment decisions, makes markets in securities, or
offers other products or services, the Firm takes on
some degree of risk. The Firm’s overall objective is to
manage its business, and the associated risks, in a
manner that balances serving the interests of its
clients, customers and investors, and protecting the
safety and soundness of the Firm.
The Firm believes that effective risk management
requires, among other things:
• Acceptance of responsibility, including identification
and escalation of risks by all individuals within the
Firm;
• Ownership of risk identification, assessment, data
and management within each of the LOBs and
Corporate; and
• A Firmwide risk governance and oversight structure.
The Firm follows a disciplined and balanced
compensation framework with strong internal
governance and independent oversight by the Board
of Directors (the “Board”). The impact of risk and
control issues is carefully considered in the Firm’s
performance evaluation and incentive compensation
processes.
Risk governance framework
The Firm’s risk governance framework involves
understanding drivers of risks, types of risks and
impacts of risks.
Drivers of risks are factors that cause a risk to exist.
Drivers of risks include the economic environment,
regulatory or government policy, competitor or market
evolution, business decisions, process or judgment
error, deliberate wrongdoing, dysfunctional markets
and natural disasters.
Types of risks are categories by which risks manifest
themselves. The Firm’s risks are generally categorized
in the following four risk types:
•
Strategic risk is the risk to earnings, capital,
liquidity or reputation associated with poorly-
designed or failed business plans or an inadequate
response to changes in the operating environment.
• Credit and investment risk is the risk associated with
the default or change in credit profile of a client,
counterparty or customer; or loss of principal or a
reduction in expected returns on investments,
including consumer credit risk, wholesale credit risk
and investment portfolio risk.
• Market risk is the risk associated with the effect of
changes in market factors, such as interest and
foreign exchange rates, equity and commodity
prices, credit spreads or implied volatilities, on the
value of assets and liabilities held for both the short
and long term.
• Operational risk is the risk of an adverse outcome
resulting from inadequate or failed internal
processes or systems; human factors; or external
events impacting the Firm’s processes or systems.
Operational risk includes cybersecurity, compliance,
conduct, legal, and estimations and model risk.
Impacts of risks are consequences of risks, both
quantitative and qualitative. There may be many
consequences when risks manifest themselves,
including quantitative impacts such as a reduction in
earnings and capital, liquidity outflows, and fines or
penalties, or qualitative impacts such as damage to the
Firm’s reputation, loss of clients and customers, and
regulatory and enforcement actions.
The Firm’s risk governance framework is managed on
a Firmwide basis. The Firm has an Independent Risk
Management (“IRM”) function, which is comprised of
Risk Management and Compliance. The Firm’s Chief
Executive Officer (“CEO”) appoints, subject to approval
by the Risk Committee of the Board of Directors (the
“Board Risk Committee”), the Firm’s Chief Risk Officer
(“CRO”) to lead the IRM function and maintain the risk
governance framework of the Firm. The framework is
subject to approval by the Board Risk Committee
through its review and approval of the Risk
Governance and Oversight Policy.
The Firm’s CRO oversees and delegates authority to
the Firmwide Risk Executives (“FREs”), the Chief Risk
Officers of the LOBs and Corporate (“LOB CROs”), and
the Firm’s Chief Compliance Officer (“CCO”), who, in
turn, establish Risk Management and Compliance
organizations, develop the Firm’s risk governance
policies and standards, and define and oversee the
implementation of the Firm’s risk governance
framework. The LOB CROs oversee risks that arise in
their LOBs and Corporate, while FREs oversee risks
that span across the LOBs and Corporate, as well as
functions and regions. Each area of the Firm that gives
rise to risk is expected to operate within the
parameters identified by the IRM function, and within
the risk and control standards established by its own
management.
JPMorgan Chase & Co./2024 Form 10-K
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Three lines of defense
The Firm’s “three lines of defense” are as follows:
The first line of defense consists of each LOB, Treasury
and CIO, and certain Other Corporate initiatives,
including their aligned Operations, Technology and
Control Management. The first line of defense owns
the risks, and identification of risks, associated with
their respective activities and the design and
execution of controls to manage those risks.
Responsibilities also include adherence to applicable
laws, rules and regulations and implementation of the
risk governance framework established by IRM, which
may include policies, standards, limits, thresholds and
controls.
The second line of defense is the IRM function, which is
separate from the first line of defense and is
responsible for independently measuring risk, as well
as assessing and challenging the risk management
activities of the first line of defense. IRM is also
responsible for the identification of risks within its
organization, its own adherence to applicable laws,
rules and regulations and for the development and
implementation of policies and standards with respect
to its own processes.
The third line of defense is Internal Audit, an
independent function that provides objective
assessment of the adequacy and effectiveness of
Firmwide processes, controls, governance and risk
management. The Internal Audit function is led by the
General Auditor, who reports to the Audit Committee
and administratively to the CEO.
In addition, there are other functions that contribute to
the Firmwide control environment but are not
considered part of a particular line of defense,
including Corporate Finance, Human Resources and
Legal. These other functions are responsible for the
identification of risks within their respective
organizations, adherence to applicable laws, rules and
regulations and implementation of the risk governance
framework established by IRM.
Risk identification and ownership
The LOBs and Corporate are responsible for the
identification of risks within their respective
organizations, as well as the design and execution of
controls, including IRM-specified controls, to manage
those risks. To support this activity, the Firm has a risk
identification framework designed to facilitate the
responsibility of each LOB and Corporate to identify
material risks inherent to the Firm’s businesses and
operational activities, catalog them in a central
repository and review material risks on a regular basis.
The IRM function reviews and challenges the risks
identified by each LOB and Corporate, maintains the
central repository and provides the consolidated
Firmwide results to the Firmwide Risk Committee
(“FRC”) and the Board Risk Committee.
Risk appetite
The Firm’s overall appetite for risk is governed by Risk
Appetite frameworks for quantitative and qualitative
risks. The Firm’s risk appetite is periodically set and
approved by senior management (including the CEO
and CRO) and approved by the Board Risk Committee.
Quantitative and qualitative risks are assessed to
monitor and measure the Firm’s capacity to take risk
consistent with its stated risk appetite. Risk appetite
results are reported to the Board Risk Committee.
Management’s discussion and analysis
92
JPMorgan Chase & Co./2024 Form 10-K

Risk governance and oversight structure
The independent status of the IRM function is supported by a risk governance and oversight structure that provides
channels for the escalation of risks and issues to senior management, the FRC and the Board of Directors, as
appropriate.
The chart below illustrates the principal standing committees of the Board of Directors and key senior
management-level committees in the Firm’s risk governance and oversight structure. In addition, there are other
committees, forums and channels of escalation that support the oversight of risk that are not shown in the chart
below or described in this Form 10-K.
The Firm’s Operating Committee, which consists of the
Firm’s CEO, CRO, Chief Financial Officer (“CFO”),
General Counsel, CEOs of the LOBs and other senior
executives, is accountable to and may refer matters to
the Firm’s Board of Directors. The Operating
Committee and certain other members of senior
management are responsible for escalating to the
Board the information necessary to facilitate the
Board’s exercise of its duties.
Board oversight
The Firm’s Board of Directors actively oversees the
business and affairs of the Firm. This includes
monitoring the Firm’s financial performance and
condition and reviewing the strategic objectives and
plans of the Firm. The Board carries out a significant
portion of its oversight responsibilities through its
principal standing committees, each of which consists
solely of independent members of the Board. The
Board Risk Committee is the principal committee that
oversees risk matters. The Audit Committee oversees
the control environment, and the Compensation &
Management Development Committee oversees
compensation and other management-related
matters. Each committee of the Board oversees
reputation risks, conduct risks, and environmental,
social and governance (“ESG”) matters within its scope
of responsibility.
The JPMorgan Chase Bank, N.A. Board of Directors is
responsible for the oversight of management of the
bank, which it discharges both acting directly and
through the principal standing committees of the
Firm’s Board of Directors. Risk and control oversight
on behalf of JPMorgan Chase Bank N.A. is primarily the
responsibility of the Board Risk Committee and the
Audit Committee, respectively, and, with respect to
compensation and other management-related
matters, the Compensation & Management
Development Committee.
The Board Risk Committee assists the Board in its
oversight of management’s responsibility to
implement a global risk management framework
reasonably designed to identify, assess and manage
the Firm’s risks. The Board Risk Committee’s
responsibilities include approval of applicable primary
risk policies and review of certain associated
frameworks, analysis and reporting established by
JPMorgan Chase & Co./2024 Form 10-K
93

management. Breaches in risk appetite and
parameters, issues that may have a material adverse
impact on the Firm, including capital and liquidity
issues, and other significant risk-related matters are
escalated to the Board Risk Committee, as
appropriate.
The Audit Committee assists the Board in its oversight
of management’s responsibilities to ensure that there
is an effective system of controls reasonably designed
to safeguard the Firm’s assets and income, ensure the
integrity of the Firm’s financial statements, and
maintain compliance with the Firm’s ethical standards,
policies, plans and procedures, and with laws and
regulations. It also assists the Board in its oversight of
the qualifications, independence and performance of
the Firm’s independent registered public accounting
firm, and of the performance of the Firm’s Internal
Audit function.
The Compensation & Management Development
Committee (“CMDC”) assists the Board in its oversight
of the Firm’s compensation principles and practices.
The CMDC reviews and approves the Firm’s
compensation and qualified benefits programs. The
Committee reviews the performance of Operating
Committee members against their goals, and
approves their compensation awards. In addition, the
CEO’s compensation award is subject to ratification by
the independent directors of the Board. The CMDC
also reviews the development of and succession for
key executives. As part of the Board’s role of
reinforcing, demonstrating and communicating the
“tone at the top,” the CMDC oversees the Firm’s
culture, including reviewing updates from
management regarding significant conduct issues and
any related actions with respect to employees,
including compensation actions.
The Public Responsibility Committee oversees and
reviews the Firm's positions and practices on public
responsibility matters such as community investment,
fair lending, sustainability, consumer practices and
other public policy issues that reflect the Firm's values
and character and could impact the Firm's reputation
among its stakeholders. The Committee also provides
guidance on these matters to management and the
Board, as appropriate.
The Corporate Governance & Nominating Committee
exercises general oversight with respect to the
governance of the Board of Directors. It reviews the
qualifications of and recommends to the Board
proposed nominees for election to the Board. The
Committee evaluates and recommends to the Board
corporate governance practices applicable to the
Firm. It also reviews the framework for assessing the
Board’s performance and self-evaluation.
Management oversight
The Firm’s senior management-level committees that
are primarily responsible for key risk-related functions
include:
The Firmwide Risk Committee (“FRC”) is the Firm’s
highest management-level risk committee. It oversees
the risks inherent in the Firm’s business and provides a
forum for discussion of risk-related and other topics
and issues that are raised or escalated by its members
and other committees.
The Firmwide Control Committee (“FCC”) is an
escalation committee for senior management to
review and discuss the Firmwide compliance and
operational risk environment, including identified
issues, compliance and operational risk metrics and
significant events that have been escalated.
Line of Business and Regional Risk Committees are
responsible for overseeing the governance, limits and
controls that have been established within the scope
of their respective activities. These committees review
the ways in which the particular LOB or the businesses
operating in a particular region could be exposed to
adverse outcomes, with a focus on identifying,
accepting, escalating and/or requiring remediation of
matters brought to these committees.
Management’s discussion and analysis
94
JPMorgan Chase & Co./2024 Form 10-K

Line of Business and Corporate Function Control
Committees oversee the risk and control environment
of their respective business or function, inclusive of
Operational Risk, Compliance and Conduct Risks. As
part of that mandate, they are responsible for
reviewing indicators of elevated or emerging risks and
other data that may impact the level of compliance and
operational risk in a business or function, addressing
key compliance and operational risk issues, with an
emphasis on processes with control concerns, and
overseeing control remediation.
The Asset and Liability Committee (“ALCO”) is
responsible for overseeing the Firm’s asset and liability
management (“ALM”), including the activities and
frameworks supporting management of the balance
sheet, liquidity risk, interest rate risk and capital risk.
The Firmwide Valuation Governance Forum (“VGF”) is
composed of senior finance and risk executives and is
responsible for overseeing the management of risks
arising from valuation activities conducted across the
Firm.
Risk governance and oversight functions
The Firm monitors and measures its risk through risk
governance and oversight functions. The scope of a
particular function or business activity may include
one or more drivers, types and/or impacts of risk. For
example, Country Risk Management oversees country
risk which may be a driver of risk or an aggregation of
exposures that could give rise to multiple risk types
such as credit or market risk.
The following sections discuss the risk governance
and oversight functions that have been established to
oversee the risks inherent in the Firm’s business
activities.
Risk governance and oversight functions
Page
Strategic Risk
96
Capital Risk
97–107
Liquidity Risk
108-115
Reputation Risk
116
Consumer Credit Risk
120-125
Wholesale Credit Risk
126-136
Investment Portfolio Risk
140
Market Risk
141-149
Country Risk
150-151
Climate Risk
152
Operational Risk
153-156
Compliance Risk
157
Conduct Risk
158
Legal Risk
159
Estimations and Model Risk
160
JPMorgan Chase & Co./2024 Form 10-K
95

STRATEGIC RISK MANAGEMENT
Strategic risk is the risk to earnings, capital, liquidity or
reputation associated with poorly-designed or failed
business plans or an inadequate response to changes
in the operating environment.
Management and oversight
The Operating Committee, together with the senior
leadership of each LOB and Corporate, are responsible
for managing the Firm’s most significant strategic
risks. IRM engages regularly in strategic business
discussions and decision-making, including
participation in relevant business reviews and senior
management meetings, risk and control committees
and other relevant governance forums, and review of
acquisitions and new business initiatives. The Board of
Directors oversees management’s strategic decisions,
and the Board Risk Committee oversees IRM and the
Firm’s risk governance framework.
In the process of developing business plans and
strategic initiatives, LOB and Corporate senior
management identify the associated risks that are
incorporated into the Firmwide Risk Identification
framework and their impact on risk appetite.
In addition, IRM conducts a qualitative assessment of
the LOB and Corporate strategic initiatives to assess
their impact on the risk profile of the Firm.
The Firm’s strategic planning process, which includes
the development of the Firm’s strategic plan and other
strategic initiatives, is one component of managing the
Firm’s strategic risk. The strategic plan outlines the
Firm’s strategic framework and initiatives, and
includes components such as budget, risk appetite,
capital, earnings and asset-liability management
objectives. Guided by the Firm’s Business Principles,
the Operating Committee and senior management
teams in each LOB and Corporate review and update
the strategic plan periodically, including evaluating the
strategic framework and performance of strategic
initiatives, assessing the operating environment,
refining existing strategies and developing new
strategies.
The Firm’s strategic plan, together with IRM’s
assessment, are provided to the Board as part of its
review and approval of the Firm’s strategic plan, and
the plan is also reflected in the Firm's budget.
The Firm’s balance sheet strategy, which focuses on
risk-adjusted returns, strong capital and robust
liquidity, is also a component in the management of
strategic risk. Refer to Capital Risk Management on
pages 97–107 for further information on capital risk.
Refer to Liquidity Risk Management on pages 108–115
for further information on liquidity risk. Refer to
Reputation Risk Management on page 116 for further
information on reputation risk.
Management’s discussion and analysis
96
JPMorgan Chase & Co./2024 Form 10-K

CAPITAL RISK MANAGEMENT
Capital risk is the risk that the Firm has an insufficient
level or composition of capital to support the Firm’s
business activities and associated risks during normal
economic environments and under stressed
conditions.
A strong capital position is essential to the Firm’s
business strategy and competitive position.
Maintaining a strong balance sheet to manage through
economic volatility is a strategic imperative of the
Firm’s Board of Directors, CEO and Operating
Committee. The Firm’s “fortress balance sheet”
philosophy focuses on risk-adjusted returns, strong
capital and robust liquidity. The Firm’s capital risk
management strategy focuses on maintaining long-
term stability to enable the Firm to build and invest in
market-leading businesses, including in highly
stressed environments. Senior management considers
the implications on the Firm’s capital prior to making
significant decisions that could impact future business
activities. In addition to considering the Firm’s
earnings outlook, senior management evaluates all
sources and uses of capital with a view to ensuring the
Firm’s capital strength.
Capital risk management
The Firm has a Capital Risk Management function
whose primary objective is to provide independent
oversight of capital risk across the Firm.
Capital Risk Management’s responsibilities include:
• Defining, monitoring and reporting capital risk
metrics;
• Establishing, calibrating and monitoring capital risk
limits and indicators, including capital risk appetite;
• Developing processes to classify, monitor and report
capital limit breaches;
• Performing assessments of the Firm’s capital
management activities, including changes made to
the Contingency Capital Plan described below; and
• Conducting assessments of the Firm's regulatory
capital framework intended to ensure compliance
with applicable regulatory capital rules.
Capital management
Treasury and CIO is responsible for capital
management.
The primary objectives of the Firm’s capital
management are to:
• Maintain sufficient capital in order to continue to
build and invest in the Firm’s businesses through
normal economic cycles and in stressed
environments;
• Retain flexibility to take advantage of future
investment opportunities;
• Promote the Parent Company’s ability to serve as a
source of strength to its subsidiaries;
• Ensure the Firm operates above the minimum
regulatory capital ratios as well as maintain “well-
capitalized” status for the Firm and its principal
insured depository institution (“IDI”) subsidiary,
JPMorgan Chase Bank, N.A., at all times under
applicable regulatory capital requirements;
• Meet capital distribution objectives; and
• Maintain sufficient capital resources to operate
throughout a resolution period in accordance with
the Firm’s preferred resolution strategy.
The Firm addresses these objectives through:
• Establishing internal minimum capital requirements
and maintaining a strong capital governance
framework. The internal minimum capital levels
consider the Firm’s regulatory capital requirements
as well as an internal assessment of capital
adequacy, in normal economic cycles and in stress
events;
• Retaining flexibility in order to react to a range of
potential events; and
• Regularly monitoring the Firm’s capital position and
following prescribed escalation protocols, both at
the Firm and material legal entity levels.
Governance
Committees responsible for overseeing the Firm’s
capital management include the Capital Governance
Committee, the Firmwide ALCO as well as regional
ALCOs, and the CIO, Treasury and Corporate (“CTC”)
Risk Committee. In addition, the Board Risk Committee
periodically reviews the Firm’s capital risk tolerance.
Refer to Firmwide Risk Management on pages 91–95
for additional discussion of the Firmwide ALCO and
other risk-related committees.
Capital planning and stress testing
Comprehensive Capital Analysis and Review
The Federal Reserve requires the Firm, as a large Bank
Holding Company (“BHC”), to submit at least annually
a capital plan that has been reviewed and approved by
the Board of Directors. The Federal Reserve uses
Comprehensive Capital Analysis and Review (“CCAR”)
and other stress testing processes to assess whether
large BHCs, such as the Firm, have sufficient capital
during periods of economic and financial stress, and
have robust, forward-looking capital assessment and
planning processes in place that address each BHC’s
unique risks to enable it to absorb losses under certain
stress scenarios. Through CCAR, the Federal Reserve
evaluates each BHC’s capital adequacy and internal
capital adequacy assessment processes (“ICAAP”), as
well as its plans to make capital distributions, such as
dividend payments or stock repurchases. The Federal
JPMorgan Chase & Co./2024 Form 10-K
97

Reserve uses results under the severely adverse
scenario from its supervisory stress test to determine
each firm’s Stress Capital Buffer (“SCB”) requirement
for the coming year.
The Firm's current SCB requirement is 3.3% and will
remain in effect until September 30, 2025. The Firm’s
Standardized CET1 capital ratio requirement, including
regulatory buffers, was 12.3% as of December 31, 2024.
Refer to Capital actions on page 105 for information on
actions taken by the Firm’s Board of Directors.
Internal Capital Adequacy Assessment Process
Annually, the Firm prepares the ICAAP, which informs
the Board of Directors of the ongoing assessment of
the Firm’s processes for managing the sources and
uses of capital as well as compliance with supervisory
expectations for capital planning and capital
adequacy. The Firm’s ICAAP integrates stress testing
protocols with capital planning. The Firm’s Audit
Committee is responsible for reviewing and approving
the capital planning framework.
Stress testing assesses the potential impact of
alternative economic and business scenarios on the
Firm’s earnings and capital. Economic scenarios, and
the parameters underlying those scenarios, are
defined centrally and applied uniformly across the
businesses. These scenarios are articulated in terms of
macroeconomic factors, which are key drivers of
business results; global market shocks, which
generate short-term but severe trading losses; and
idiosyncratic operational risk events. The scenarios
are intended to capture and stress key vulnerabilities
and idiosyncratic risks facing the Firm. In addition to
CCAR and other periodic stress testing, management
also considers tailored stress scenarios and sensitivity
analyses, as necessary.
Contingency Capital Plan
The Firm’s Contingency Capital Plan establishes the
capital management framework for the Firm and
specifies the principles underlying the Firm’s approach
towards capital management in normal economic
conditions and in stressed environments. The
Contingency Capital Plan defines how the Firm
calibrates its targeted capital levels and meets
minimum capital requirements, monitors the ongoing
appropriateness of planned capital distributions, and
sets out the capital contingency actions that are
expected to be taken or considered at various levels of
capital depletion during a period of stress.
Regulatory capital
The Federal Reserve establishes capital requirements,
including well-capitalized standards, for the Firm as a
consolidated financial holding company. The Office of
the Comptroller of the Currency ("OCC") establishes
similar minimum capital requirements and standards
for the Firm’s principal IDI subsidiary, JPMorgan Chase
Bank, N.A. The U.S. capital requirements generally
follow the Capital Accord of the Basel Committee, as
amended from time to time.
Basel III Overview
The capital rules under Basel III establish minimum
capital ratios and overall capital adequacy standards
for large and internationally active U.S. BHCs and
banks, including the Firm and JPMorgan Chase Bank,
N.A. The minimum amount of regulatory capital that
must be held by BHCs and banks is determined by
calculating RWA, which are on-balance sheet assets
and off-balance sheet exposures, weighted according
to risk. Under the rules currently in effect, two
comprehensive approaches are prescribed for
calculating RWA: a standardized approach (“Basel III
Standardized”), and an advanced approach (“Basel III
Advanced”).
For each of these risk-based capital ratios, the capital
adequacy of the Firm is evaluated against the lower of
the Standardized or Advanced approaches compared
to their respective regulatory capital ratio
requirements.
The current Basel III rules establish capital
requirements for calculating credit risk RWA and
market risk RWA, and in the case of Basel III Advanced,
operational risk RWA. Key differences in the
calculation of credit risk RWA between the
Standardized and Advanced approaches are that for
Basel III Advanced, credit risk RWA is based on risk-
sensitive approaches which largely rely on the use of
internal credit models and parameters, whereas for
Basel III Standardized, credit risk RWA is generally
based on supervisory risk-weightings which vary
primarily by counterparty type and asset class. Market
risk RWA is generally calculated consistently between
Basel III Standardized and Basel III Advanced. In
addition to the RWA calculated under these
approaches, the Firm may supplement such amounts
to incorporate management judgment and feedback
from its regulators.
As of December 31, 2024, the Firm’s Basel III
Standardized ratios risk-based ratios were more
binding than the Basel III Advanced risk-based ratios.
Additionally, Basel III requires that Advanced
Approaches banking organizations, including the Firm,
calculate their SLRs.
Refer to page 104 for additional information on SLR.
Management’s discussion and analysis
98
JPMorgan Chase & Co./2024 Form 10-K

Key Regulatory Developments
U.S. Basel III Finalization
In July 2023, the Federal Reserve, the OCC and the
FDIC released a proposal to amend the risk-based
capital framework, entitled "Regulatory capital rule:
Amendments applicable to large banking
organizations and to banking organizations with
significant trading activity", which is referred to in this
Form 10-K as the "U.S. Basel III proposal". Under this
proposal, changes to the framework would include
replacement of the Advanced approach with an
expanded risk-based approach for the calculation of
RWA. In addition, the stress capital buffer requirement
would be applicable to both the expanded risk-based
approach and the Standardized approach.
GSIB Surcharge and TLAC and Eligible LTD
Requirements
In July 2023, the Federal Reserve released a proposal
to amend the calculation of the GSIB surcharge. Under
the proposal, the annual GSIB surcharge would be
based on an average of the quarterly surcharge
calculations throughout the calendar year, with daily
averaging required for certain measures. The proposal
would also reduce surcharge increments from 50 bps
to 10 bps and includes other technical amendments to
the “Method 2” calculation. The proposed changes
would revise risk-based capital requirements for the
Firm and other U.S. GSIBs. Refer to Risk-based Capital
Regulatory Requirements on page 100 for further
information on the GSIB surcharge.
Additionally, in August 2023, the Federal Reserve, the
FDIC and the OCC released a proposal to expand the
eligible long-term debt ("eligible LTD") and clean
holding company requirements under the existing
total loss-absorbing capacity ("TLAC") rule to apply to
non-GSIB banks with $100 billion or more in total
consolidated assets. The proposal would also reduce
the amount of LTD with remaining maturities of less
than two years that count towards a U.S. GSIB's TLAC
requirement and expand the existing capital deduction
framework for LTD issued by GSIBs to include LTD
issued by non-GSIB banks subject to the LTD
requirements.
Finalization of the above proposals, including the
required implementation dates, is uncertain. The Firm
continues to monitor developments and potential
impacts.
JPMorgan Chase & Co./2024 Form 10-K
99

Risk-based Capital Regulatory Requirements
The following chart presents the Firm’s Basel III CET1 capital ratio requirements under the Basel III rules currently in
effect.
All banking institutions are currently required to have a
minimum CET1 capital ratio of 4.5% of risk-weighted
assets.
Certain banking organizations, including the Firm, are
required to hold additional levels of capital to serve as
a “capital conservation buffer”. The capital
conservation buffer incorporates a GSIB surcharge, a
discretionary countercyclical capital buffer and a fixed
capital conservation buffer of 2.5% for Advanced
regulatory capital requirements, as well as a variable
SCB requirement, floored at 2.5%, for Standardized
regulatory capital requirements.
Under the Federal Reserve’s GSIB rule, the Firm is
required to assess its GSIB surcharge on an annual
basis under two separately prescribed methods based
on data for the previous fiscal year-end, and is subject
to the higher of the two. “Method 1” reflects the GSIB
surcharge as prescribed by the Basel Committee’s
assessment methodology, and is calculated across
five criteria: size, cross-jurisdictional activity,
interconnectedness, complexity and substitutability.
“Method 2” modifies the Method 1 requirements to
include a measure of short-term wholesale funding in
place of substitutability, and introduces a GSIB score
“multiplication factor”.
The following table presents the Firm’s effective GSIB
surcharge for the years ended December 31, 2024 and
2023. For 2025, the Firm’s effective regulatory
minimum GSIB surcharge calculated under both
Method 1 and Method 2 remains unchanged at 2.5%
and 4.5%, respectively.
2024
2023
Method 1
2.5 %
2.5 %
Method 2
4.5 %
4.0 %
The U.S. federal regulatory capital standards include a
framework for setting a discretionary countercyclical
capital buffer taking into account the macro financial
environment in which large, internationally active
banks function. As of December 31, 2024, the U.S.
countercyclical capital buffer remained at 0%. The
Federal Reserve will continue to review the buffer at
least annually. The buffer can be increased if the
Federal Reserve, the FDIC and the OCC determine that
systemic risks are meaningfully above normal and can
be calibrated up to an additional 2.5% of RWA subject
to a 12-month implementation period.
Failure to maintain regulatory capital equal to or in
excess of the risk-based regulatory capital minimum
plus the capital conservation buffer (inclusive of the
GSIB surcharge) and any countercyclical buffer will
result in limitations to the amount of capital that the
Firm may distribute, such as through dividends and
common share repurchases, as well as on
discretionary bonus payments for certain executive
officers.
Management’s discussion and analysis
100
JPMorgan Chase & Co./2024 Form 10-K

Total Loss-Absorbing Capacity
The Federal Reserve’s TLAC rule requires the U.S.
GSIB top-tier holding companies, including the Firm, to
maintain minimum levels of external TLAC and eligible
LTD. Refer to TLAC on page 106 for additional
information.
Leverage-based Capital Regulatory Requirements
Supplementary leverage ratio
Banking organizations subject to the Basel III
Advanced approach are currently required to have a
minimum SLR of 3.0%. Certain banking organizations,
including the Firm, are also required to hold an
additional 2.0% leverage buffer. The SLR is defined as
Tier 1 capital under Basel III divided by the Firm’s total
leverage exposure. Total leverage exposure is
calculated by taking the Firm’s total average on-
balance sheet assets, less amounts permitted to be
deducted for Tier 1 capital, and adding certain off-
balance sheet exposures, as defined in regulatory
capital rules. Refer to SLR on page 104 for additional
information.
Failure to maintain an SLR equal to or greater than the
regulatory requirement will result in limitations on the
amount of capital that the Firm may distribute such as
through dividends and common share repurchases, as
well as on discretionary bonus payments for certain
executive officers.
Other regulatory capital
In addition to meeting the capital ratio requirements of
Basel III, the Firm and its principal IDI subsidiary,
JPMorgan Chase Bank, N.A., must also maintain
minimum capital and leverage ratios in order to be
“well-capitalized” under the regulations issued by the
Federal Reserve and the Prompt Corrective Action
requirements of the FDIC Improvement Act,
respectively. Refer to Note 27 for additional
information.
Additional information regarding the Firm’s capital
ratios, as well as the U.S. federal regulatory capital
standards to which the Firm is subject, is presented in
Note 27. Refer to the Firm’s Pillar 3 Regulatory Capital
Disclosures reports, which are available on the Firm’s
website, for further information on the Firm’s current
capital measures.
JPMorgan Chase & Co./2024 Form 10-K
101

Selected capital and RWA data
The following tables present the Firm’s risk-based capital metrics under both the Basel III Standardized and
Advanced approaches and leverage-based capital metrics. Refer to Note 27 for JPMorgan Chase Bank, N.A.’s risk-
based and leverage-based capital metrics. First Republic Bank was not subject to Advanced approach regulatory
capital requirements. As a result, for certain exposures associated with the First Republic acquisition, Advanced
RWA and any impact on Advanced Total capital is calculated under the Standardized approach as permitted by the
transition provisions in the U.S. capital rules. Refer to Note 34 for additional information on the First Republic
acquisition.
Standardized
Advanced
(in millions, except ratios)
December 31,
2024
December 31,
2023
Capital ratio
requirements
(b)
December 31,
2024
December 31,
2023
Capital ratio
requirements
(b)
Risk-based capital metrics:
(a)
CET1 capital
$
275,513
$
250,585
$
275,513
$
250,585
Tier 1 capital

294,881

277,306

294,881

277,306
Total capital

325,589

308,497

311,898
(c)
295,417
(c)
Risk-weighted assets

1,757,460

1,671,995

1,740,429
(c)
1,669,156
(c)
CET1 capital ratio
15.7 %
15.0 %
12.3 %
15.8 %
15.0 %
11.5 %
Tier 1 capital ratio
16.8
16.6
13.8
16.9
16.6
13.0
Total capital ratio
18.5
18.5
15.8
17.9
17.7
15.0
(a) The capital metrics reflect the CECL capital transition provisions. As of December 31, 2024, CET1 capital reflected the remaining $720 million
CECL benefit and were fully phased in as of January 1, 2025; as of December 31, 2023, CET1 capital reflected a $1.4 billion benefit. Refer to
Note 27 for additional information.
(b) Represents minimum requirements and regulatory buffers applicable to the Firm for the period ended December 31, 2024. For the period
ended December 31, 2023, the Basel III Standardized CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 11.4%,
12.9%, and 14.9%, respectively; the Basel III Advanced CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 11.0%,
12.5%, and 14.5%, respectively. Refer to Note 27 for additional information.
(c) Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by
the transition provisions in the U.S. capital rules.
Three months ended
(in millions, except ratios)
December 31, 2024
December 31, 2023
Capital ratio
requirements(c)
Leverage-based capital metrics:(a)
Adjusted average assets(b)
$
4,070,499
$
3,831,200
Tier 1 leverage ratio
7.2 %
7.2 %
4.0 %
Total leverage exposure
$
4,837,568
$
4,540,465
SLR
6.1 %
6.1 %
5.0 %
(a) The capital metrics reflect the CECL capital transition provisions. Refer to Note 27 for additional information.
(b) Adjusted average assets, for purposes of calculating the leverage ratios, includes quarterly average assets adjusted for on-balance sheet
assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, and other
intangible assets.
(c) Represents minimum requirements and regulatory buffers applicable to the Firm. Refer to Note 27 for additional information.
Management’s discussion and analysis
102
JPMorgan Chase & Co./2024 Form 10-K

Capital components
The following table presents reconciliations of total
stockholders’ equity to Basel III CET1 capital, Tier 1
capital and Total capital as of December 31, 2024 and
2023.
(in millions)
December 31,
2024
December 31,
2023
Total stockholders’ equity
$
344,758
$
327,878
Less: Preferred stock

20,050

27,404
Common stockholders’ equity
324,708

300,474
Add:
Certain deferred tax
liabilities(a)

2,943

2,996
Other CET1 capital
adjustments(b)

4,499

4,717
Less:
Goodwill(c)

53,763

54,377
Other intangible assets

2,874

3,225
Standardized/Advanced
CET1 capital

275,513

250,585
Add: Preferred stock

20,050

27,404
Less: Other Tier 1 adjustments

682

683
Standardized/Advanced Tier
1 capital
$
294,881
$
277,306
Long-term debt and other
instruments qualifying as Tier
2 capital
$
10,312
$
11,779
Qualifying allowance for credit
losses
(d)

20,992

20,102
Other

(596)

(690)
Standardized Tier 2 capital
$
30,708
$
31,191
Standardized Total capital
$
325,589
$
308,497
Adjustment in qualifying
allowance for credit losses for
Advanced Tier 2 capital
(e)(f)

(13,691)

(13,080)
Advanced Tier 2 capital
$
17,017
$
18,111
Advanced Total capital
$
311,898
$
295,417
(a) Represents deferred tax liabilities related to tax-deductible
goodwill and to identifiable intangibles created in nontaxable
transactions, which are netted against goodwill and other
intangibles when calculating CET1 capital.
(b) As of December 31, 2024 and 2023, included a net benefit
associated with cash flow hedges and debit valuation
adjustments ("DVA") related to structured notes recorded in AOCI
of $5.2 billion and $4.3 billion and the benefit from the CECL
capital transition provisions of $720 million and $1.4 billion,
respectively.
(c) Goodwill deducted from capital includes goodwill associated with
equity method investments in nonconsolidated financial
institutions based on regulatory requirements. Refer to page 140
for additional information on principal investment risk.
(d) Represents the allowance for credit losses eligible for inclusion in
Tier 2 capital up to 1.25% of credit risk RWA, including the impact
of the CECL capital transition provision with any excess deducted
from RWA. Refer to Note 27 for additional information on the
CECL capital transition.
(e) Represents an adjustment to qualifying allowance for credit
losses for the excess of eligible credit reserves over expected
credit losses up to 0.6% of credit risk RWA, including the impact
of the CECL capital transition provision with any excess deducted
from RWA.
(f) As of December 31, 2024 and 2023, included an incremental $541
million and $655 million allowance for credit losses, respectively,
on certain assets associated with First Republic to which the
Standardized approach has been applied, as permitted by the
transition provisions in the U.S. capital rules.
Capital rollforward
The following table presents the changes in Basel III
CET1 capital, Tier 1 capital and Tier 2 capital for the
year ended December 31, 2024.
Year ended December 31, (in millions)
2024
Standardized/Advanced CET1 capital at December 31,
2023
$ 250,585
Net income applicable to common equity

57,212
Dividends declared on common stock

(13,786)
Net purchase of treasury stock

(17,801)
Changes in additional paid-in capital

783
Changes related to AOCI applicable to capital:
Unrealized gains/(losses) on investment securities

(87)
Translation adjustments, net of hedges(a)

(858)
Fair value hedges

(87)
Defined benefit pension and other postretirement
employee benefit (“OPEB”) plans

(63)
Changes related to other CET1 capital adjustments(b)

(385)
Change in Standardized/Advanced CET1 capital

24,928
Standardized/Advanced CET1 capital at
December 31, 2024
$ 275,513
Standardized/Advanced Tier 1 capital at December 31,
2023
$ 277,306
Change in CET1 capital
(b)

24,928
Net redemptions of noncumulative perpetual preferred
stock

(7,354)
Other

1
Change in Standardized/Advanced Tier 1 capital

17,575
Standardized/Advanced Tier 1 capital at December
31, 2024
$ 294,881
Standardized Tier 2 capital at December 31, 2023
$
31,191
Change in long-term debt and other instruments
qualifying as Tier 2

(1,467)
Change in qualifying allowance for credit losses
(b)

890
Other

94
Change in Standardized Tier 2 capital

(483)
Standardized Tier 2 capital at December 31, 2024
$ 30,708
Standardized Total capital at December 31, 2024
$ 325,589
Advanced Tier 2 capital at December 31, 2023
$
18,111
Change in long-term debt and other instruments
qualifying as Tier 2

(1,467)
Change in qualifying allowance for credit losses
(b)(c)

279
Other

94
Change in Advanced Tier 2 capital

(1,094)
Advanced Tier 2 capital at December 31, 2024
$
17,017
Advanced Total capital at December 31, 2024
$ 311,898
(a) Includes foreign currency translation adjustments and the
impact of related derivatives.
(b) Includes the impact of the CECL capital transition provisions and
the cumulative effect of changes in accounting principles. Refer
to Note 1 for additional information on changes in accounting
principles and Note 27 for additional information on the CECL
capital transition provisions.
(c) As of December 31, 2024 and 2023, included an incremental
$541 million and $655 million allowance for credit losses,
respectively, on certain assets associated with First Republic to
which the Standardized approach has been applied, as
permitted by the transition provisions in the U.S. capital rules.

JPMorgan Chase & Co./2024 Form 10-K
103

RWA rollforward
The following table presents changes in the components of RWA under Basel III Standardized and Advanced
approaches for the year ended December 31, 2024. The amounts in the rollforward categories are estimates, based
on the predominant driver of the change.
Standardized
Advanced
Year ended December 31,
2024
(in millions)
Credit risk
RWA(c)
Market risk
RWA
Total RWA
Credit risk
RWA(c)(d)
Market risk
RWA
Operational risk
RWA
Total RWA
December 31, 2023
$
1,603,851 $
68,144 $
1,671,995
$
1,155,261 $
68,603 $
445,292 $
1,669,156
Model & data changes(a)

4,743
(366)
4,377

4,811
(366)
—
4,445
Movement in portfolio
levels(b)

64,169
16,919
81,088

57,933
16,895
(8,000)
66,828
Changes in RWA

68,912
16,553
85,465

62,744
16,529
(8,000)
71,273
December 31, 2024
$ 1,672,763 $
84,697 $
1,757,460
$
1,218,005 $
85,132 $
437,292 $
1,740,429
(a) Model & data changes refer to material movements in levels of RWA as a result of revised methodologies and/or treatment per regulatory
guidance (exclusive of rule changes).
(b) Movement in portfolio levels (inclusive of rule changes) refers to: for Credit risk RWA, changes in book size, changes in composition and
credit quality, market movements, and deductions for excess eligible allowances for credit losses not eligible for inclusion in Tier 2 capital; for
Market risk RWA, changes in position and market movements; and for Operational risk RWA, updates to cumulative losses and
macroeconomic model inputs.
(c) As of December 31, 2024 and 2023, the Basel III Standardized Credit risk RWA included wholesale and retail off balance-sheet RWA of $208.0
billion and $208.5 billion, respectively; and the Basel III Advanced Credit risk RWA included wholesale and retail off balance-sheet RWA of
$192.1 billion and $188.5 billion, respectively.
(d) As of December 31, 2024 and 2023, Credit risk RWA reflected approximately $43.3 billion and $52.4 billion, respectively, of RWA calculated
under the Standardized approach for certain assets associated with First Republic as permitted by the transition provisions in the U.S. capital
rules.
Refer to the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for
further information on Credit risk RWA, Market risk RWA and Operational risk RWA.
Supplementary leverage ratio
The following table presents the components of the
Firm’s SLR.
Three months ended
(in millions, except ratio)
December 31,
2024
December 31,
2023
Tier 1 capital
$
294,881
$
277,306
Total average assets

4,125,167
3,885,632
Less: Regulatory capital
adjustments
(a)

54,668

54,432
Total adjusted average assets
(b)
4,070,499
3,831,200
Add: Off-balance sheet exposures
(c)
767,069

709,265
Total leverage exposure
$ 4,837,568
$ 4,540,465
SLR
6.1 %
6.1 %
(a) For purposes of calculating the SLR, includes quarterly average
assets adjusted for on-balance sheet assets that are subject to
deduction from Tier 1 capital, predominantly goodwill, inclusive
of estimated equity method goodwill, other intangible assets and
adjustments for the CECL capital transition provisions. Refer to
Note 27 for additional information on the CECL capital transition.
(b) Adjusted average assets used for the calculation of Tier 1
leverage ratio.
(c) Off-balance sheet exposures are calculated as the average of the
three month-end spot balances on applicable regulatory
exposures during the reporting quarter. Refer to the Firm’s Pillar
3 Regulatory Capital Disclosures reports for additional
information.
Line of business and Corporate equity
Each LOB and Corporate 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 an LOB’s performance.
The Firm’s current equity allocation methodology
incorporates Basel III Standardized RWA and the GSIB
surcharge, both under rules currently in effect, as well
as a simulation of capital depletion in a severe stress
environment. At least annually, the assumptions,
judgments and methodologies used to allocate capital
are reassessed and, as a result, the capital allocated to
the LOBs and Corporate may change. As of January 1,
2025, changes to the Firm’s capital allocations are
primarily a result of updates to the Firm’s current
capital requirements and changes in RWA for each
LOB under rules currently in effect. Any capital that the
Firm has accumulated in excess of these current
requirements, including the capital required to meet
the potential increased requirements of the U.S. Basel
III proposal, has been retained in Corporate in addition
to its allocated balance.
The following table presents the capital allocated to
each LOB and Corporate.
December 31,
(in billions)
January 1,
2025
2024
2023
Consumer & Community Banking $
56.0
$
54.5 $
55.5
Commercial & Investment Bank

149.5

132.0
138.0
Asset & Wealth Management

16.0

15.5
17.0
Corporate

103.2

122.7
90.0
Total common stockholders’
equity
$
324.7
$ 324.7 $ 300.5
Management’s discussion and analysis
104
JPMorgan Chase & Co./2024 Form 10-K

Capital actions
Common stock dividends
The Firm’s common stock dividends are planned as
part of the Capital Management governance
framework in line with the Firm’s capital management
objectives.
On December 9, 2024, the Firm announced that its
Board of Directors had declared a quarterly common
stock dividend of $1.25 per share, payable on January
31, 2025. The Firm’s dividends are subject to approval
by the Board of Directors on a quarterly basis.
Refer to Note 21 and Note 26 for information regarding
dividend restrictions.
The following table shows the common dividend
payout ratio based on net income applicable to
common equity.
Year ended December 31,
2024
2023
2022
Common dividend payout ratio
24 %
25 %
33 %
Common stock
On June 28, 2024, the Firm announced that its Board
of Directors had authorized a new $30 billion common
share repurchase program, effective July 1, 2024.
Through June 30, 2024, the Firm was authorized to
purchase up to $30 billion of common shares under its
previously-approved common share repurchase
program that was announced on April 13, 2022.
The following table sets forth the Firm’s repurchases of
common stock for the years ended December 31,
2024, 2023 and 2022.
Year ended December 31,
(in millions)
2024
2023
2022(b)
Total number of shares of common
stock repurchased

91.7

69.5

23.1
Aggregate purchase price of
common stock repurchases(a)
$ 18,841
$ 9,898
$
3,122
(a) Excludes excise tax and commissions. As part of the Inflation
Reduction Act of 2022, a 1% excise tax is imposed on net share
repurchases commencing January 1, 2023.
(b) In the second half of 2022, the Firm temporarily suspended
share repurchases, which it resumed in the first quarter of 2023
under its common share repurchase program.
The Board of Directors’ authorization to repurchase
common shares is utilized at management’s
discretion. The $30 billion common share repurchase
program approved by the Board of Directors does not
establish specific price targets or timetables.
Management determines the amount and timing of
common share repurchases based on various factors,
including market conditions; legal and regulatory
considerations affecting the amount and timing of
repurchase activity; the Firm’s capital position (taking
into account goodwill and intangibles); organic capital
generation; current and proposed future capital
requirements; and other investment opportunities. The
amount of common shares that the Firm repurchases
in any period may be substantially more or less than
the amounts estimated or actually repurchased in
prior periods, reflecting the dynamic nature of the
decision-making process. The Firm’s common share
repurchases may be suspended by management at
any time; and may be executed through open market
purchases or privately negotiated transactions, or
utilizing Rule 10b5-1 plans, which are written trading
plans that the Firm may enter into from time to time
under Rule 10b5-1 of the Securities Exchange Act of
1934 and which allow the Firm to repurchase its
common shares during periods when it may otherwise
not be repurchasing common shares — for example,
during internal trading blackout periods.
Refer to capital planning and stress testing on pages
97–98 for additional information.
Refer to Part II, Item 5: Market for Registrant’s
Common Equity, Related Stockholder Matters and
Issuer Purchases of Equity Securities on page 39 of
this 2024 Form 10-K for additional information
regarding repurchases of the Firm’s equity securities.
Preferred stock
Preferred stock dividends were $1.3 billion, $1.5 billion,
and $1.6 billion for the years ended December 31,
2024, 2023, and 2022, respectively.
During the year ended and subsequent to
December 31, 2024, the Firm issued and redeemed
certain series of non-cumulative preferred stock. Refer
to Note 21 for additional information on the Firm’s
preferred stock, including the issuance and
redemption of preferred stock.
Subordinated Debt
Refer to Long-term funding on page 114 and Note 20
for additional information on the Firm’s subordinated
debt.
JPMorgan Chase & Co./2024 Form 10-K
105

Other capital requirements
Total Loss-Absorbing Capacity
The Federal Reserve’s TLAC rule requires the U.S.
GSIB top-tier holding companies, including the Firm, to
maintain minimum levels of external TLAC and eligible
long-term debt.
The external TLAC requirements and the minimum
level of eligible long-term debt requirements are
shown below:
(a) RWA is the greater of Standardized and Advanced compared to
their respective regulatory capital ratio requirements.
Failure to maintain TLAC equal to or in excess of the
regulatory minimum plus applicable buffers will result
in limitations on the amount of capital that the Firm
may distribute, such as through dividends and
common share repurchases, as well as on
discretionary bonus payments for certain executive
officers.
The following table presents the eligible external TLAC
and eligible LTD amounts, as well as a representation
of these amounts as a percentage of the Firm’s total
RWA and total leverage exposure applying the impact
of the CECL capital transition provisions as of
December 31, 2024 and 2023.
December 31, 2024
December 31, 2023
(in billions, except
ratio)
External
TLAC
LTD
External
TLAC
LTD
Total eligible
amount
$ 546.6
$ 236.8
$ 513.8
$ 222.6
% of RWA
31.1 %
13.5 %
30.7 %
13.3 %
Regulatory
requirements
23.0
10.5
23.0
10.0
Surplus/(shortfall)
$ 142.3
$
52.3
$ 129.2
$
55.4
% of total leverage
exposure
11.3 %
4.9 %
11.3 %
4.9 %
Regulatory
requirements
9.5
4.5
9.5
4.5
Surplus/(shortfall)
$ 87.0
$
19.2
$
82.5
$
18.3
Effective January 1, 2024, the Firm's regulatory
requirement for its eligible LTD to RWA ratio increased
by 50 bps to 10.5%, due to the increase in the Firm’s
GSIB Method 2 requirements. The Firm's regulatory
requirement for its TLAC to RWA ratio remained at
23.0%. Refer to Risk-based Capital Regulatory
Requirements on pages 100–101 for further
information on the GSIB surcharge.
Refer to Liquidity Risk Management on pages 108–115
for further information on long-term debt issued by the
Parent Company.
Refer to Part I, Item 1A: Risk Factors on pages 10-37 of
this 2024 Form 10-K for information on the financial
consequences to holders of the Firm’s debt and equity
securities in a resolution scenario.
Management’s discussion and analysis
106
JPMorgan Chase & Co./2024 Form 10-K

U.S. broker-dealer regulatory capital
J.P. Morgan Securities
JPMorganChase’s principal U.S. broker-dealer
subsidiary is J.P. Morgan Securities. J.P. Morgan
Securities is subject to the regulatory capital
requirements of Rule 15c3-1 under the Securities
Exchange Act of 1934 (the “Net Capital Rule”). J.P.
Morgan Securities is also registered as a futures
commission merchant and is subject to regulatory
capital requirements, including those imposed by the
SEC, the Commodity Futures Trading Commission
(“CFTC”), the Financial Industry Regulatory Authority
(“FINRA”) and the National Futures Association
(“NFA”).
J.P. Morgan Securities has elected to compute its
minimum net capital requirements in accordance with
the “Alternative Net Capital Requirements” of the Net
Capital Rule.
The following table presents J.P. Morgan Securities’
net capital.
December 31, 2024
(in millions)
Actual
Minimum
Net Capital
$
24,980 $
5,999
J.P. Morgan Securities is registered with the SEC as a
security-based swap dealer and with the CFTC as a
swap dealer. As a result of additional SEC and CFTC
capital and financial reporting requirements for
security-based swap dealers and swap dealers, J.P.
Morgan Securities is subject to alternative minimum
net capital requirements and required to hold
“tentative net capital” in excess of $5.0 billion. J.P.
Morgan Securities is also required to notify the SEC
and CFTC in the event that its tentative net capital is
less than $6.0 billion. Tentative net capital is net
capital before deducting market and credit risk
charges as defined by the Net Capital Rule. As of
December 31, 2024, J.P. Morgan Securities maintained
tentative net capital in excess of the minimum and
notification requirements.
Non-U.S. subsidiary regulatory capital
J.P. Morgan Securities plc
J.P. Morgan Securities plc is a wholly-owned subsidiary
of JPMorgan Chase Bank, N.A. and has authority to
engage in banking, investment banking and broker-
dealer activities. J.P. Morgan Securities plc is jointly
regulated in the U.K. by the Prudential Regulation
Authority (“PRA”) and the Financial Conduct Authority
(“FCA”). J.P. Morgan Securities plc is subject to the
Capital Requirements Regulation (“CRR”), as adopted
and amended in the U.K., and the capital rules in the
PRA Rulebook. These requirements collectively
represent the U.K.’s implementation of the Basel III
standards. The PRA announced that it intends to delay
the U.K.’s implementation of the final Basel III
standards until January 1, 2027, with a three-year
transitional period for certain aspects.
The Bank of England requires that U.K. banks,
including U.K. regulated subsidiaries of overseas
groups, maintain minimum requirements for own
funds and eligible liabilities (“MREL”). As of
December 31, 2024, J.P. Morgan Securities plc was
compliant with its MREL requirements.
The following table presents J.P. Morgan Securities
plc’s risk-based and leverage-based capital metrics.
December 31, 2024
Regulatory
Minimum
ratios(a)
(in millions, except ratios)
Actual
Total capital
$
53,120
CET1 capital ratio
17.0 %
4.5 %
Tier 1 capital ratio
22.1
6.0
Total capital ratio
27.1
8.0
Tier 1 leverage ratio
7.1
3.3
(b)
(a) Represents minimum Pillar 1 requirements specified by the PRA.
J.P. Morgan Securities plc's capital ratios as of December 31,
2024 exceeded the minimum requirements, including the
additional capital requirements specified by the PRA.
(b) At least 75% of the Tier 1 leverage ratio minimum must be met
with CET1 capital.
J.P. Morgan SE
JPMSE is a wholly-owned subsidiary of JPMorgan
Chase Bank, N.A. and has authority to engage in
banking, investment banking and markets activities.
JPMSE is regulated by the European Central Bank
(“ECB”), the German Financial Supervisory Authority
and the German Central Bank, as well as the local
regulators in each of the countries in which it operates,
and it is subject to EU capital requirements under
Basel III. JPMSE is subject to the EU implementation of
the final Basel III standards. Those standards became
effective beginning on January 1, 2025, with the
exception of market risk aspects for which the
effective date is January 1, 2026.
JPMSE is required by the EU Single Resolution Board
to maintain MREL. As of December 31, 2024, JPMSE
was compliant with its MREL requirements.
The following table presents JPMSE’s risk-based and
leverage-based capital metrics.
December 31, 2024
Regulatory
Minimum
ratios
(a)
(in millions, except ratios)
Actual
Total capital
$
43,298
CET1 capital ratio
20.0 %
4.5 %
Tier 1 capital ratio
20.0
6.0
Total capital ratio
34.8
8.0
Tier 1 leverage ratio
6.1
3.0
(a) Represents minimum Pillar 1 requirements specified by the EU
CRR. J.P. Morgan SE’s capital and leverage ratios as of
December 31, 2024 exceeded the minimum requirements,
including the additional capital requirements specified by EU
regulators.
JPMorgan Chase & Co./2024 Form 10-K
107

LIQUIDITY RISK MANAGEMENT
Liquidity risk is the risk that the Firm will be unable to
meet its cash and collateral needs as they arise or that
it does not have the appropriate amount, composition
and tenor of funding and liquidity to support its assets
and liabilities.
Liquidity risk management
The Firm has a Liquidity Risk Management (“LRM”)
function whose primary objective is to provide
independent oversight of liquidity risk across the Firm.
Liquidity Risk Management’s responsibilities include:
• Defining, monitoring and reporting liquidity risk
metrics;
• Independently establishing and monitoring limits
and indicators, including liquidity risk appetite;
• Developing a process to classify, monitor and report
limit breaches;
• Performing an independent review of liquidity risk
management processes to evaluate their adequacy
and effectiveness;
• Monitoring and reporting internal Firmwide and legal
entity liquidity stress tests, regulatory defined
metrics, as well as liquidity positions, balance sheet
variances and funding activities; and
• Approving or escalating for review new or updated
liquidity stress assumptions.
Liquidity management
Treasury and CIO is responsible for liquidity
management.
The primary objectives of the Firm’s liquidity
management are to:
• Ensure that the Firm’s core businesses and material
legal entities are able to operate in support of client
needs and meet contractual and contingent financial
obligations through normal economic cycles as well
as during stress events, and
• Manage an optimal funding mix and availability of
liquidity sources.
The Firm addresses these objectives through:
• Analyzing and understanding the liquidity
characteristics of the assets and liabilities of the
Firm, LOBs, legal entities, as well as currencies,
taking into account legal, regulatory, and operational
restrictions;
• Developing and maintaining internal liquidity stress
testing assumptions;
• Defining and monitoring Firmwide and legal entity-
specific liquidity strategies, policies, reporting and
contingency funding plans;
• Managing liquidity within the Firm’s approved limits
and indicators, including liquidity risk appetite
tolerances;
• Managing compliance with regulatory requirements
related to funding and liquidity risk; and
• Setting FTP in accordance with underlying liquidity
characteristics of balance sheet assets and liabilities
as well as certain off-balance sheet items.
As part of the Firm’s overall liquidity management
strategy, the Firm manages liquidity and funding using
a centralized, global approach designed to:
• Optimize liquidity sources and uses;
• Monitor exposures;
• Identify constraints on the transfer of liquidity
between the Firm’s legal entities; and
• Maintain the appropriate amount of surplus liquidity
at a Firmwide and legal entity level, where relevant.
Governance
Committees responsible for liquidity governance
include the Firmwide ALCO, as well as regional ALCOs,
the Treasurer Committee, and the CTC Risk
Committee. In addition, the Board Risk Committee
reviews and recommends to the Board of Directors, for
approval, the Firm’s liquidity risk tolerances, liquidity
strategy, and liquidity policy. Refer to Firmwide Risk
Management on pages 91–95 for further discussion of
ALCO and other risk-related committees.
Internal stress testing
The Firm conducts internal liquidity stress testing to
monitor liquidity positions at the Firm and its material
legal entities under a variety of adverse scenarios,
including scenarios analyzed as part of the Firm’s
resolution and recovery planning. Internal stress tests
are produced on a daily basis, and other stress tests
are performed in response to specific market events or
concerns. Liquidity stress tests assume all of the
Firm’s contractual financial obligations are met and
take into consideration:
• Varying levels of access to unsecured and secured
funding markets;
• Estimated non-contractual and contingent cash
outflows;
• Credit rating downgrades;
• Collateral haircuts; and
• Potential impediments to the availability and
transferability of liquidity between jurisdictions and
material legal entities such as regulatory, legal or
other restrictions.
Liquidity outflows are modeled across a range of time
horizons and currency dimensions and contemplate
both market and idiosyncratic stresses.
Results of stress tests are considered in the
formulation of the Firm’s funding plan and assessment
of its liquidity position. The Parent Company acts as a
source of funding for the Firm through equity and
Management’s discussion and analysis
108
JPMorgan Chase & Co./2024 Form 10-K

long-term debt issuances, and its intermediate holding
company, JPMorgan Chase Holdings LLC (the “IHC”),
provides funding to support the ongoing operations of
the Parent Company and its subsidiaries. The Firm
manages liquidity at the Parent Company, the IHC, and
operating subsidiaries at levels sufficient to comply
with liquidity risk tolerances and minimum liquidity
requirements, and to manage through periods of
stress when access to normal funding sources may be
disrupted.
Contingency funding plan
The Firm’s Contingency Funding Plan (“CFP”) sets out
the strategies for addressing and managing liquidity
resource needs during a liquidity stress event and
incorporates liquidity risk limits, indicators and risk
appetite tolerances. The CFP also identifies the
alternative contingent funding and liquidity resources
available to the Firm and its legal entities in a period of
stress.
LCR and HQLA
The LCR rule requires that the Firm and JPMorgan
Chase Bank, N.A. maintain an amount of eligible HQLA
that is sufficient to meet their respective estimated
total net cash outflows over a prospective 30 calendar-
day period of significant stress. Eligible HQLA, for
purposes of calculating the LCR, is the amount of
unencumbered HQLA that satisfy certain operational
considerations as defined in the LCR rule. HQLA
primarily consist of cash and certain high-quality liquid
securities as defined in the LCR rule.
Under the LCR rule, the amount of eligible HQLA held
by JPMorgan Chase Bank, N.A. that is in excess of its
stand-alone 100% minimum LCR requirement, and that
is not transferable to non-bank affiliates, must be
excluded from the Firm’s reported eligible HQLA.
Estimated net cash outflows are based on
standardized stress outflow and inflow rates
prescribed in the LCR rule, which are applied to the
balances of the Firm’s assets, sources of funds, and
obligations. The LCR for both the Firm and JPMorgan
Chase Bank, N.A. is required to be a minimum of 100%.
The following table summarizes the Firm and
JPMorgan Chase Bank, N.A.’s average LCR for the
three months ended December 31, 2024, September
30, 2024 and December 31, 2023 based on the Firm’s
interpretation of the LCR framework.
Three months ended
Average amount
(in millions)
December
31, 2024
September
30, 2024
December
31, 2023
JPMorgan Chase & Co.:
HQLA
Eligible cash(a)
$ 396,123
$ 412,389
$ 485,263
Eligible securities(b)(c)
464,877

453,899

313,365
Total HQLA(d)
$ 861,000
$ 866,288
$ 798,628
Net cash outflows
$ 763,648
$ 762,072
$ 704,857
LCR
113 %
114 %
113 %
Net excess eligible
HQLA(d)
$
97,352
$ 104,216
$
93,771
JPMorgan Chase Bank, N.A.:
LCR
124 %
121 %
129 %
Net excess eligible
HQLA
$ 193,682
$
168,137
$ 215,190
(a) Represents cash on deposit at central banks, primarily the
Federal Reserve Banks.
(b) Eligible HQLA securities may be reported in securities borrowed
or purchased under resale agreements, trading assets, or
investment securities on the Firm’s Consolidated balance sheets.
For purposes of calculating the LCR, HQLA securities are
included at fair value, which may differ from the accounting
treatment under U.S. GAAP.
(c) Predominantly U.S. Treasuries, U.S. GSE and government
agency MBS, and sovereign bonds net of regulatory haircuts
under the LCR rule.
(d) Excludes average excess eligible HQLA at JPMorgan Chase
Bank, N.A. that are not transferable to non-bank affiliates.
JPMorgan Chase Bank, N.A.'s average LCR increased
during the three months ended December 31, 2024,
compared with the three months ended September
30, 2024, driven by activities in CIB Markets, partially
offset by lower market values of HQLA-eligible
investment securities and funding maturities.
JPMorgan Chase Bank, N.A.’s average LCR for the
three months ended December 31, 2024 decreased
compared with the three months ended December 31,
2023, driven by dividend payments to the Parent
Company and lending activity, largely offset by higher
market values of HQLA-eligible investment securities,
a reduction in unencumbered non-HQLA AFS
securities, activities in CIB Markets, and long-term
debt issuances.
JPMorgan Chase & Co./2024 Form 10-K
109

Each of the Firm and JPMorgan Chase Bank, N.A.'s
average LCR may fluctuate from period to period due
to changes in their respective eligible HQLA and
estimated net cash outflows as a result of ongoing
business activity and from the impacts of Federal
Reserve actions as well as other factors. Refer to the
Firm’s U.S. LCR Disclosure reports, which are available
on the Firm’s website, for a further discussion of the
Firm’s LCR.
Liquidity sources
In addition to the assets reported in the Firm’s eligible
HQLA discussed above, the Firm had unencumbered
marketable securities, such as equity and debt
securities, that the Firm believes would be available to
raise liquidity. This includes excess eligible HQLA
securities at JPMorgan Chase Bank, N.A. that are not
transferable to non-bank affiliates. The fair value of
these securities was approximately $594 billion and
$649 billion as of December 31, 2024 and 2023,
respectively, although the amount of liquidity that
could be raised at any particular time would be
dependent on prevailing market conditions. The
decrease compared to December 31, 2023, was driven
by reductions in unencumbered AFS securities in
Treasury and CIO, excess eligible HQLA securities at
JPMorgan Chase Bank, N.A., and unencumbered CIB
trading assets.
The Firm had approximately $1.4 trillion of available
cash and securities as of both December 31, 2024 and
2023. For each respective period, the amount was
comprised of eligible end-of-period HQLA, excluding
the impact of regulatory haircuts, of approximately
$834 billion and $798 billion, and unencumbered
marketable securities with a fair value of
approximately $594 billion and $649 billion.
The Firm also had available borrowing capacity at the
Federal Home Loan Banks (“FHLBs”) and the discount
window at the Federal Reserve Banks as a result of
collateral pledged by the Firm to such banks of
approximately $413 billion and $340 billion as of
December 31, 2024 and 2023, respectively. This
borrowing capacity excludes the benefit of cash and
securities reported in the Firm’s eligible HQLA or other
unencumbered securities that are currently pledged at
the Federal Reserve Banks discount window and other
central banks. Available borrowing capacity increased
from December 31, 2023 primarily due to a higher
amount of commercial loans and credit card
receivables pledged at the Federal Reserve Banks.
Although available, the Firm does not view this
borrowing capacity at the Federal Reserve Banks
discount window and the other central banks as a
primary source of liquidity.
NSFR
The net stable funding ratio (“NSFR”) is a liquidity
requirement for large banking organizations that is
intended to measure the adequacy of “available”
stable funding that is sufficient to meet their “required”
amounts of stable funding over a one-year horizon.
For the three months ended December 31, 2024, both
the Firm and JPMorgan Chase Bank, N.A. were
compliant with the 100% minimum NSFR requirement,
based on the Firm’s interpretation of the final NSFR
rule. Refer to the Firm's U.S. NSFR Disclosure report on
the Firm’s website for additional information.
Management’s discussion and analysis
110
JPMorgan Chase & Co./2024 Form 10-K

Funding
Sources of funds
Management believes that the Firm’s unsecured and
secured funding capacity is sufficient to meet its on-
and off-balance sheet obligations, which includes both
short- and long-term cash requirements.
The Firm funds its global balance sheet through
diverse sources of funding including deposits, secured
and unsecured funding in the capital markets and
stockholders’ equity. Deposits are the primary funding
source for JPMorgan Chase Bank, N.A. Additionally,
JPMorgan Chase Bank, N.A. may access funding
through short- or long-term secured borrowings, the
issuance of unsecured long-term debt, or from
borrowings from the IHC. The Firm’s non-bank
subsidiaries are primarily funded from long-term
unsecured borrowings and short-term secured
borrowings which are primarily securities loaned or
sold under repurchase agreements. Excess funding is
invested by Treasury and CIO in the Firm’s investment
securities portfolio or deployed in cash or other short-
term liquid investments based on their interest rate
and liquidity risk characteristics.
Refer to Note 28 for additional information on off–
balance sheet obligations.
Deposits
The table below summarizes, by LOB and Corporate, the period-end and average deposit balances as of and for the
years ended December 31, 2024 and 2023.
As of or for the year ended December 31,
Average
(in millions)
2024
2023
2024
2023
Consumer & Community Banking
(a)
$ 1,056,652 $ 1,094,738
$
1,064,215 $
1,126,552
Commercial & Investment Bank
(a)

1,073,512
1,050,892

1,061,488
996,295
Asset & Wealth Management
(a)

248,287
233,232

235,146
216,178
Corporate

27,581
21,826

25,793
20,042
Total Firm
$ 2,406,032 $ 2,400,688
$ 2,386,642 $
2,359,067
(a) In the fourth quarter of 2023, CCB transferred certain deposits associated with First Republic to AWM and CIB.
The Firm believes that deposits provide a stable
source of funding and reduce the Firm’s reliance on
the wholesale funding markets. A significant portion of
the Firm’s deposits are consumer deposits and
wholesale operating deposits, which are both
considered to be stable sources of liquidity. Wholesale
operating deposits are generally considered to be
stable sources of liquidity because they are generated
from customers that maintain operating service
relationships with the Firm.
The Firm believes that average deposit balances are
generally more representative of deposit trends than
period-end deposit balances. However, during periods
of market disruption, average deposit trends may be
impacted.
The following discussion excludes the impact of the
transfer of certain First Republic deposits in the fourth
quarter of 2023 from CCB to the other LOBs as the
transfers had no net impact on Firmwide deposits.
Average deposits increased for the year ended
December 31, 2024 compared to the year ended
December 31, 2023, reflecting:
• an increase in CIB due to net inflows predominantly
in Payments and net issuances of structured notes
as a result of client demand in Markets, partially
offset by deposit attrition, which included actions
taken to reduce certain deposits,
• the timing impact of First Republic,
• an increase in AWM as a result of growth in balances
in new and existing client accounts, reflecting the
impact of higher-yielding product offerings, largely
offset by continued migration into other
investments, and
• a decline in CCB primarily driven by a decrease in
balances in existing accounts due to increased
customer spending, largely offset by new accounts.
Period-end deposits increased from December 31,
2023, reflecting:
• an increase in CIB due to net inflows predominantly
in Payments, largely offset by net maturities of
structured notes in Markets,
• an increase in AWM as a result of growth in balances
in new and existing client accounts, reflecting the
impact of higher-yielding product offerings, largely
offset by continued migration into other
investments, and
• a decline in CCB primarily driven by a decrease in
balances in existing accounts due to increased
customer spending and migration into higher-
yielding investments, predominantly offset by new
accounts.
Refer to the Firm’s Consolidated Balance Sheets
Analysis and the Business Segment & Corporate
Results on pages 63–65 and pages 70–90,
respectively, for further information on deposit and
liability balance trends, as well as Executive Overview
JPMorgan Chase & Co./2024 Form 10-K
111

on pages 54–58 and Note 34 for additional information
on the First Republic acquisition. Refer to Note 3 for
further information on structured notes.
Certain deposits are covered by insurance protection
that provides additional funding stability and results in
a benefit to the LCR. Deposit insurance protection may
be available to depositors in the countries in which the
deposits are placed. For example, the FDIC provides
deposit insurance protection for deposits placed in a
U.S. depository institution. At December 31, 2024 and
2023
(a), the Firmwide estimated uninsured deposits
were $1,414.0 billion and $1,347.8 billion, respectively,
primarily reflecting wholesale operating deposits.
Total uninsured deposits include time deposits. The
table below presents an estimate of uninsured U.S. and
non-U.S. time deposits, and their remaining maturities.
The Firm’s estimates of its uninsured U.S. time
deposits are based on data that the Firm calculates
periodically under applicable FDIC regulations. For
purposes of this presentation, all non-U.S. time
deposits are deemed to be uninsured.
(in millions)
December 31,
2024
December 31,
2023
U.S.
Non-U.S.
U.S.
Non-U.S.
Three months or
less
$ 119,333 $ 77,253 $ 98,606
(a)
$ 77,466
Over three
months but
within 6 months

11,040
12,229
17,736

5,358
Over six months
but within 12
months

7,056
1,542 10,294

4,820
Over 12 months

823
1,924
710

2,543
Total
$ 138,252 $ 92,948 $ 127,346 (a)
$ 90,187
(a) Prior-period amounts have been revised to include cash
collateral for certain derivatives to align with a change in the
methodology for calculating uninsured U.S. time deposits.
The table below shows the loan and deposit balances,
the loans-to-deposits ratios, and deposits as a
percentage of total liabilities, as of December 31, 2024
and 2023.
As of December 31,
(in billions except ratios)
2024
2023
Deposits
$
2,406.0
$
2,400.7
Deposits as a % of total liabilities
66 %
68 %
Loans
$
1,348.0
$
1,323.7
Loans-to-deposits ratio
56 %
55 %
The following table provides a summary of the average balances and average interest rates of JPMorganChase’s
deposits for the years ended December 31, 2024, 2023, and 2022.
Year ended December 31,
Average balances
Average interest rates
(in millions, except interest rates)
2024
2023
2022
2024
2023
2022
U.S. offices
Noninterest-bearing
$
611,734
$
635,791
$
691,206
NA
NA
NA
Interest-bearing
Demand(a)

282,533

279,725

324,512
3.90 %
3.50 %
0.92 %
Savings(b)

800,964

864,558

971,788
1.39
1.10
0.28
Time

223,503

145,827

62,022
4.93
4.74
2.07
Total interest-bearing deposits

1,307,000

1,290,110

1,358,322
2.54
2.03
0.52
Total deposits in U.S. offices

1,918,734

1,925,901

2,049,528
1.73
1.36
0.34
Non-U.S. offices
Noninterest-bearing

26,858

24,747

28,043
NA
NA
NA
Interest-bearing
Demand

346,179

321,976

324,740
3.13
2.71
0.57
Time

94,871

86,443

65,604
5.86
5.82
1.85
Total interest-bearing deposits

441,050

408,419

390,344
3.72
3.37
0.78
Total deposits in non-U.S. offices
467,908

433,166

418,387
3.50
3.18
0.73
Total deposits
$ 2,386,642
$ 2,359,067
$
2,467,915
2.08 %
1.70 %
0.41 %
(a) Includes Negotiable Order of Withdrawal accounts, and certain trust accounts.
(b) Includes Money Market Deposit Accounts.
Refer to Note 17 for additional information on deposits.
Management’s discussion and analysis
112
JPMorgan Chase & Co./2024 Form 10-K

The following table summarizes short-term and long-term funding, excluding deposits, as of December 31, 2024
and 2023, and average balances for the years ended December 31, 2024 and 2023. Refer to the Consolidated
Balance Sheets Analysis on pages 63–65 and Note 11 for additional information.
Sources of funds (excluding deposits)
As of or for the year ended December 31,
Average
(in millions)
2024
2023
2024
2023
Commercial paper
$
14,932
$
14,737 $
11,398
$
12,675
Other borrowed funds

13,018

8,200
12,040

9,712
Federal funds purchased

567

787
1,547

1,754
Total short-term unsecured funding
$
28,517
$
23,724 $
24,985
$
24,141
Securities sold under agreements to repurchase(a)
$
291,500
$
212,804 $
357,144
$
249,661
Securities loaned(a)

4,768

2,944
5,129

4,671
Other borrowed funds

24,943

21,775
25,504

22,010
Obligations of Firm-administered multi-seller conduits(b)

18,228

17,781
18,620

14,918
Total short-term secured funding
$
339,439
$
255,304 $
406,397
$
291,260
Senior notes
$
203,639
$
191,202 $
199,908
$
181,803
Subordinated debt

16,060

19,708
18,614

20,374
Structured notes(c)

98,792

86,056
93,483

76,574
Total long-term unsecured funding
$
318,491
$
296,966 $
312,005
$
278,751
Credit card securitization
(b)
$
5,312
$
2,998 $
5,138
$
1,634
FHLB advances

29,257

41,246
35,040
(g)
28,865
Purchase Money Note
(d)

49,207
$
48,989
$
49,090
$
32,829
Other long-term secured funding
(e)

4,463

4,624
4,676

4,513
Total long-term secured funding
$
88,239
$
97,857 $
93,944
$
67,841
Preferred stock
(f)
$
20,050
$
27,404 $
24,054
$
27,404
Common stockholders’ equity
(f)
$
324,708
$
300,474 $
312,370
$
282,056
(a) Primarily consists of short-term securities loaned or sold under agreements to repurchase.
(b) Included in beneficial interests issued by consolidated variable interest entities on the Firm’s Consolidated balance sheets.
(c) Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.
(d) Reflects the Purchase Money Note associated with the First Republic acquisition on May 1, 2023. Refer to Note 34 for additional information.
(e) Includes long-term structured notes that are secured.
(f) Refer to Capital Risk Management on pages 97–107, Consolidated statements of changes in stockholders’ equity on page 175, Note 21 and
Note 22 for additional information on preferred stock and common stockholders’ equity.
(g) Includes the timing impact of First Republic. Refer to the Executive Overview on pages 54–58 and Note 34 for additional information.
Short-term funding
The Firm’s primary source of short-term secured
funding is securities sold under agreements to
repurchase. These instruments are secured
predominantly by high-quality securities collateral,
including government-issued debt and U.S. GSE and
government agency MBS. Securities sold under
agreements to repurchase increased at December 31,
2024, compared with December 31, 2023, driven by
Markets, reflecting higher client-driven market-
making activities and higher secured financing of
trading assets.
The increase in secured other borrowed funds at
December 31, 2024 from December 31, 2023, as well
as the increase for the average year ended
December 31, 2024, compared to the prior year period,
were both due to higher financing requirements in
Markets, partially offset by FHLB maturities in
Treasury and CIO.
The balances associated with securities loaned or sold
under agreements to repurchase fluctuate over time
due to investment and financing activities of clients,
the Firm’s demand for financing, the ongoing
management of the mix of the Firm’s liabilities,
including its secured and unsecured financing (for
both the investment securities and market-making
portfolios), and other market and portfolio factors.
The Firm’s primary sources of short-term unsecured
funding consist of issuances of wholesale commercial
paper and other borrowed funds.
The decrease in average commercial paper for the
year ended December 31, 2024 compared to the prior
year period was due to lower issuances primarily as a
result of short-term liquidity management.
The increase in unsecured other borrowed funds at
December 31, 2024 from December 31, 2023, was
predominantly driven by net issuances of structured
notes in Markets.
JPMorgan Chase & Co./2024 Form 10-K
113

Long-term funding
Long-term funding provides an additional source of stable funding and liquidity for the Firm. The Firm’s long-term
funding plan is driven primarily by expected client activity, liquidity considerations and regulatory requirements,
including TLAC. Long-term funding objectives include maintaining diversification, maximizing market access and
optimizing funding costs. The Firm evaluates various funding markets, tenors and currencies in creating its optimal
long-term funding plan.
Unsecured funding and issuance
The significant majority of the Firm’s total outstanding long-term debt has been issued by the Parent Company to
provide flexibility in support of the funding needs of both bank and non-bank subsidiaries. The Parent Company
advances substantially all net funding proceeds to its subsidiary, the IHC. The IHC does not issue debt to external
counterparties. The increase in structured notes at December 31, 2024 from December 31, 2023, and for the
average year ended December 31, 2024, compared to the prior year period, was primarily driven by net issuances of
structured notes in Markets due to client demand.
The following table summarizes long-term unsecured issuance and maturities or redemptions for the years ended
December 31, 2024 and 2023. Refer to Note 20 for additional information on the IHC and long-term debt.
Long-term unsecured funding
Year ended December 31,
2024
2023
2024
2023
(Notional in millions)
Parent Company
Subsidiaries
Issuance
Senior notes issued in the U.S. market
$
37,000 $
14,256
$
— $
3,750
Senior notes issued in non-U.S. markets

4,079
2,141

—
—
Total senior notes

41,079
16,397

—
3,750
Structured notes
(a)

3,944
3,013

54,993
35,281
Total long-term unsecured funding – issuance
$
45,023 $
19,410
$
54,993 $
39,031
Maturities/redemptions
Senior notes
$
25,765 $
21,483
$
65 $
67
Subordinated debt

3,097
2,090

250
—
Structured notes

892
1,532

47,425
28,777
Total long-term unsecured funding – maturities/redemptions
$
29,754 $
25,105
$
47,740 $
28,844
(a) Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.
Secured funding and issuance
The Firm can also raise secured long-term funding through securitization of consumer credit card loans and FHLB
advances. The following table summarizes the securitization issuance, the FHLB advances and their respective
maturities or redemptions, as applicable for the years ended December 31, 2024 and 2023.
Long-term secured funding
Year ended December 31,
Issuance
Maturities/Redemptions
(in millions)
2024
2023
2024
2023
Credit card securitization
$
2,348
$
1,998
$
— $
1,000
FHLB advances

6,000

39,775
(c)
18,050
9,485
Purchase Money Note
(a)

—

50,000

— $
—
Other long-term secured funding
(b)

1,578

991

1,049
432
Total long-term secured funding
$
9,926
$
92,764
$
19,099 $
10,917
(a) Reflects the Purchase Money Note associated with the First Republic acquisition. Refer to Note 34 for additional information.
(b) Includes long-term structured notes that are secured.
(c) Includes FHLB advances associated with the First Republic acquisition on May 1, 2023. Refer to Note 34 for additional information.
The Firm’s wholesale businesses also securitize loans for client-driven transactions; those client-driven loan
securitizations are not considered to be a source of funding for the Firm and are not included in the table above.
Refer to Note 14 for a further description of client-driven loan securitizations.
Management’s discussion and analysis
114
JPMorgan Chase & Co./2024 Form 10-K

Credit ratings
The cost and availability of financing are influenced by
credit ratings. Reductions in these ratings could have
an adverse effect on the Firm’s access to liquidity
sources, increase the cost of funds, trigger additional
collateral or funding requirements and decrease the
number of investors and counterparties willing to lend
to the Firm. The nature and magnitude of the impact of
ratings downgrades depends on numerous
contractual and behavioral factors, which the Firm
believes are incorporated in its liquidity risk and stress
testing metrics. The Firm believes that it maintains
sufficient liquidity to withstand a potential decrease in
funding capacity due to ratings downgrades.
Additionally, the Firm’s funding requirements for VIEs
and other third-party commitments may be adversely
affected by a decline in credit ratings. Refer to Notes 5
and 14 for additional information.
The credit ratings of the Parent Company and certain of its principal subsidiaries as of December 31, 2024 were as
follows:
JPMorgan Chase & Co.
JPMorgan Chase Bank, N.A.
J.P. Morgan Securities LLC
J.P. Morgan Securities plc
J.P. Morgan SE(a)
December 31, 2024
Long-term
issuer
Short-term
issuer
Outlook
Long-term
issuer
Short-term
issuer
Outlook
Long-term
issuer
Short-term
issuer
Outlook
Moody’s Investors
Service(a)
A1
P-1
Positive
Aa2
P-1
Developing
Aa3
P-1
Positive
Standard & Poor’s(b)
A
A-1
Stable
AA-
A-1+
Stable
AA-
A-1+
Stable
Fitch Ratings
AA-
F1+
Stable
AA
F1+
Stable
AA
F1+
Stable
(a) On November 11, 2024, Moody’s (i) affirmed the credit ratings of the Parent Company, JPMorgan Chase Bank, N.A. and the other subsidiaries
listed above; (ii) revised its outlook for the Parent Company, J.P. Morgan Securities LLC and J.P. Morgan Securities plc from stable to positive;
(iii) revised its outlook for JPMorgan Chase Bank, N.A. from negative to developing, reflecting its view with respect to possible support from
the U.S. government; and (iv) assessed its outlook for J.P. Morgan SE as negative with an “(m)” modifier, reflecting a negative outlook for long-
term bank deposits and a positive outlook for the long-term issuer rating.
(b) The credit ratings of the Parent Company, JPMorgan Chase Bank, N.A. and the other subsidiaries presented in the table reflect ratings
upgrades by Standard & Poor’s on November 15, 2024. Standard & Poor’s also revised its outlook for the Parent Company and such
subsidiaries from positive to stable.
JPMorganChase’s unsecured debt does not contain
requirements that would call for an acceleration of
payments, maturities or changes in the structure of the
existing debt, provide any limitations on future
borrowings or require additional collateral, based on
unfavorable changes in the Firm’s credit ratings,
financial ratios, earnings, or stock price.
Critical factors in maintaining high credit ratings
include a stable and diverse earnings stream, strong
capital and liquidity ratios, strong credit quality and
risk management controls, and diverse funding
sources. Rating agencies continue to evaluate
economic and geopolitical trends, regulatory
developments, future profitability, risk management
practices, and litigation matters, as well as their
broader ratings methodologies. Changes in any of
these factors could lead to changes in the Firm’s credit
ratings.
JPMorgan Chase & Co./2024 Form 10-K
115

REPUTATION RISK MANAGEMENT
Reputation risk is the risk that an action or inaction
may negatively impact perception of the Firm’s
integrity and reduce confidence in the Firm’s
competence by various stakeholders, including clients,
counterparties, customers, communities, investors,
regulators, or employees.
The types of events that may result in reputation risk
are wide-ranging and can be introduced by the Firm’s
employees, business strategies and activities, clients,
customers and counterparties with which the Firm
does business. These events could contribute to
financial losses, litigation, regulatory enforcement
actions, fines, penalties or other sanctions, as well as
other harm to the Firm.
Organization and management
Reputation Risk Management is an independent risk
management function that establishes the governance
framework for managing reputation risk across the
Firm’s LOBs and Corporate. Reputation risk is
inherently challenging to identify, manage, and
quantify.
The Firm’s reputation risk management function
includes the following activities:
• Maintaining a Firmwide Reputation Risk Governance
policy and a standard consistent with the reputation
risk framework
• Providing oversight of the governance framework
through processes and infrastructure to support
consistent identification, escalation and monitoring
of reputation risk issues Firmwide
Governance and oversight
The Reputation Risk Governance policy establishes
the principles for managing reputation risk for the
Firm. It is the responsibility of each LOB and
Corporate, and the Firm’s employees, to consider the
reputation of the Firm when deciding whether to offer
a new product, engage in a transaction or client
relationship, enter a new jurisdiction, initiate a
business process or consider any other activity.
Environmental impacts and social concerns are
important considerations in assessing the Firm’s
reputation risk, and are a component of the Firm’s
reputation risk governance.
116
JPMorgan Chase & Co./2024 Form 10-K

CREDIT AND INVESTMENT RISK MANAGEMENT
Credit and investment risk is the risk associated with
the default or change in credit profile of a client,
counterparty or customer; or loss of principal or a
reduction in expected returns on investments,
including consumer credit risk, wholesale credit risk,
and investment portfolio risk.
Credit risk management
Credit risk is the risk associated with the default or
change in credit profile of a client, counterparty or
customer. The Firm provides credit to a variety of
clients and customers, ranging from large corporate
and institutional clients to individual consumers and
small businesses. In its consumer businesses, the Firm
is exposed to credit risk primarily through its home
lending, credit card, auto, and business banking
businesses. In its wholesale businesses, the Firm is
exposed to credit risk through its underwriting,
lending, market-making, and hedging activities with
and for clients and counterparties, as well as through
its operating services activities (such as cash
management and clearing activities), and securities
financing activities. The Firm is also exposed to credit
risk through its investment securities portfolio and
cash placed with banks.
Credit Risk Management monitors and measures
credit risk throughout the Firm, and defines credit risk
policies, procedures and limits. The Firm’s credit risk
management governance includes the following
activities:
• Maintaining a credit risk policy framework
• Monitoring and measuring credit risk across all
portfolio segments, including transaction and
exposure approval
• Setting industry and geographic concentration
limits, as appropriate, and setting guidelines for
credit review and analysis
• Assigning and maintaining credit approval
authorities in connection with the approval of credit
exposure
• Monitoring and independent assessment of
criticized exposures and delinquent loans, and
• Estimating credit losses and supporting appropriate
credit risk-based capital management
Risk identification and measurement
To measure credit risk, the Firm employs several
methodologies for estimating the likelihood of obligor
or counterparty default. Methodologies for measuring
credit risk vary depending on several factors, including
type of asset (e.g., consumer versus wholesale), risk
measurement parameters (e.g., delinquency status
and borrower’s credit score versus wholesale risk-
rating) and risk management and collection processes
(e.g., retail collection center versus centrally managed
workout groups). Credit risk measurement is based on
the probability of default of an obligor or counterparty,
the loss severity given a default event and the
exposure at default.
Based on these factors and the methodology and
estimates described in Note 13 and Note 10, the Firm
estimates credit losses for its exposures. The
allowance for loan losses reflects estimated credit
losses related to the consumer and wholesale held-for-
investment loan portfolios, the allowance for lending-
related commitments reflects estimated credit losses
related to the Firm’s lending-related commitments and
the allowance for investment securities reflects
estimated credit losses related to the investment
securities portfolio. Refer to Note 13, Note 10 and
Critical Accounting Estimates used by the Firm on
pages 161–164 for further information.
In addition, potential and unexpected credit losses are
reflected in the allocation of credit risk capital and
represent the potential volatility of actual losses
relative to the established allowances for loan losses
and lending-related commitments. The analyses for
these losses include stress testing that considers
alternative economic scenarios as described below.
Stress testing
Stress testing is important in measuring and managing
credit risk in the Firm’s credit portfolio. The stress
testing process assesses the potential impact of
alternative economic and business scenarios on
estimated credit losses for the Firm. Economic
scenarios and the underlying parameters are defined
centrally, articulated in terms of macroeconomic
factors and applied across the businesses. The stress
test results may indicate credit migration, changes in
delinquency trends and potential losses in the credit
portfolio. In addition to the periodic stress testing
processes, management also considers additional
stresses outside these scenarios, including industry
and country- specific stress scenarios, as appropriate.
The Firm uses stress testing to inform decisions on
setting risk appetite both at a Firm and LOB level, as
well as to assess the impact of stress on individual
counterparties.
JPMorgan Chase & Co./2024 Form 10-K
117

Risk monitoring and management
The Firm has developed policies and practices that are
designed to preserve the independence and integrity
of the approval and decision-making process for
extending credit so that credit risks are assessed
accurately, approved properly, monitored regularly
and managed actively at both the transaction and
portfolio levels. The policy framework establishes
credit approval authorities, concentration limits, risk-
rating methodologies, portfolio review parameters and
guidelines for management of distressed exposures. In
addition, certain models, assumptions and inputs used
in evaluating and monitoring credit risk are
independently validated by groups that are separate
from the LOBs.
Consumer credit risk is monitored for delinquency and
other trends, including any concentrations at the
portfolio level, as certain of these trends can be
addressed through changes in underwriting policies
and portfolio guidelines. Consumer Risk Management
evaluates delinquency and other trends against
business expectations, current and forecasted
economic conditions, and industry benchmarks.
Historical and forecasted economic performance and
trends are incorporated into the modeling of estimated
consumer credit losses and are part of the monitoring
of the credit risk profile of the portfolio.
Wholesale credit risk is monitored regularly at an
aggregate portfolio, industry, and individual client and
counterparty level with established concentration
limits that are reviewed and revised periodically as
deemed appropriate by management. Industry and
counterparty limits, as measured in terms of exposure
and economic risk appetite, are subject to stress-
based loss constraints.
Management of the Firm’s wholesale credit risk
exposure is accomplished through a number of means,
including:
• Loan underwriting and credit approval processes
• Loan syndications and participations
• Loan sales and securitizations
• Credit derivatives
• Master netting agreements, and
• Collateral and other risk-reduction techniques
In addition to Credit Risk Management, an
independent Credit Review function is responsible for:
• Independently assessing risk grades assigned to
exposures in the Firm’s wholesale credit portfolio
and the timeliness of risk grade changes initiated by
responsible business units; and
• Evaluating the effectiveness of the credit
management processes of the LOBs and Corporate,
including the adequacy of credit analyses and risk
grading/loss given default (“LGD”) rationales, proper
monitoring and management of credit exposures,
and compliance with applicable grading policies and
underwriting guidelines.
Refer to Note 12 for further discussion of consumer
and wholesale loans.
Risk reporting
To enable monitoring of credit risk and effective
decision-making, aggregate credit exposure, credit
quality forecasts, concentration levels and risk profile
changes are reported regularly to senior members of
Credit Risk Management. Detailed portfolio reporting
of industry, clients, counterparties and customers,
product and geography are prepared, and the
appropriateness of the allowance for credit losses is
reviewed by senior management at least on a quarterly
basis. Through the risk reporting and governance
structure, credit risk trends and limit exceptions are
provided regularly to, and discussed with, risk
committees, senior management and the Board of
Directors.
Management’s discussion and analysis
118
JPMorgan Chase & Co./2024 Form 10-K

CREDIT PORTFOLIO
Credit risk is the risk associated with the default or
change in credit profile of a client, counterparty or
customer.
In the following tables, total loans include loans
retained (i.e., held-for-investment); loans held-for-sale;
and certain loans accounted for at fair value. The
following tables do not include loans which the Firm
accounts for at fair value and classifies as trading
assets; refer to Notes 2 and 3 for further information
regarding these loans. Refer to Notes 12, 28, and 5 for
additional information on the Firm’s loans, lending-
related commitments and derivative receivables,
including the Firm’s related accounting policies.
Refer to Note 10 for information regarding the credit
risk inherent in the Firm’s investment securities
portfolio; and refer to Note 11 for information regarding
credit risk inherent in the securities financing portfolio.
Refer to Consumer Credit Portfolio on pages 120–125
and Note 12 for further discussions of the consumer
credit environment, consumer loans and
nonperforming exposure. Refer to Wholesale Credit
Portfolio on pages 126–136 and Note 12 for further
discussions of the wholesale credit environment and
wholesale loans.
Total credit portfolio
December 31,
(in millions)
Credit exposure
Nonperforming
(c)
2024
2023
2024
2023
Loans retained
$ 1,299,590 $ 1,280,870
$ 7,175 $ 5,989
Loans held-for-sale

7,048
3,985

160
184
Loans at fair value

41,350
38,851

1,502
744
Total loans
1,347,988 1,323,706

8,837
6,917
Derivative receivables

60,967
54,864

145
364
Receivables from
customers
(a)

51,929
47,625

—
—
Total credit-related
assets
1,460,884 1,426,195

8,982
7,281
Assets acquired in
loan satisfactions
Real estate owned
NA
NA

284
274
Other
NA
NA

34
42
Total assets acquired
in loan satisfactions
NA
NA

318
316
Lending-related
commitments
1,577,622 1,497,847

737
464
Total credit portfolio
$ 3,038,506 $ 2,924,042
$ 10,037 $ 8,061
Credit derivatives and
credit-related notes
used in credit portfolio
management
activities(b)
$ (41,367) $
(37,779) $
— $
—
Liquid securities and
other cash collateral
held against
derivatives

(28,160)
(22,461)
NA
NA
(a) Receivables from customers reflect held-for-investment margin
loans to brokerage clients in CIB, CCB and AWM; these are
reported within accrued interest and accounts receivable on the
Consolidated balance sheets.
(b) Represents the net notional amount of protection purchased and
sold through credit derivatives and credit-related notes used to
manage credit exposures.
(c) Excludes mortgage loans past due and insured by U.S.
government agencies, which are primarily 90 or more days past
due. These loans have been excluded based upon the
government guarantee. At December 31, 2024 and 2023,
mortgage loans 90 or more days past due and insured by U.S.
government agencies were $121 million and $182 million,
respectively. In addition, the Firm’s policy is generally to exempt
credit card loans from being placed on nonaccrual status as
permitted by regulatory guidance.
The following table provides information on Firmwide
nonaccrual loans to total loans.
December 31,
(in millions, except ratios)
2024
2023
Total nonaccrual loans
$
8,837
$
6,917
Total loans

1,347,988

1,323,706
Firmwide nonaccrual loans to total
loans outstanding
0.66 %
0.52 %
The following table provides information about the
Firm’s net charge-offs and recoveries.
December 31,
(in millions, except ratios)
2024
2023
Net charge-offs
$
8,638
$
6,209
Average retained loans

1,271,344

1,202,348
Net charge-off rates
0.68 %
0.52 %
JPMorgan Chase & Co./2024 Form 10-K
119

CONSUMER CREDIT PORTFOLIO
The Firm’s retained consumer portfolio consists
primarily of loans and lending-related commitments for
residential real estate, credit card, scored auto and
business banking. The consumer credit portfolio also
includes loans at fair value, predominantly in residential
real estate. The Firm’s focus is on serving primarily the
prime segment of the consumer credit market.
Originated mortgage loans are retained in the
residential real estate portfolio, securitized or sold to
U.S. government agencies and U.S. government-
sponsored enterprises; other types of consumer loans
are typically retained on the balance sheet. Refer to
Note 12 for further information on the consumer loan
portfolio. Refer to Note 28 for further information on
lending-related commitments.
Management’s discussion and analysis
120
JPMorgan Chase & Co./2024 Form 10-K

The following tables present consumer credit-related information with respect to the scored credit portfolio held in
CCB, AWM, CIB and Corporate.
Consumer credit portfolio
December 31,
(in millions)
Credit exposure
Nonaccrual loans(i)
2024
2023
2024
2023
Consumer, excluding credit card
Residential real estate(a)
$
309,513
$
326,409
$
2,984 $
3,466
Auto and other(b)(c)

66,821

70,866

249
177
Total loans - retained

376,334

397,275

3,233
3,643
Loans held-for-sale

945

487

155
95
Loans at fair value(d)

15,531

12,331

538
465
Total consumer, excluding credit card loans

392,810

410,093

3,926
4,203
Lending-related commitments(e)

44,844

45,403
Total consumer exposure, excluding credit card

437,654

455,496
Credit card
Loans retained(f)

232,860

211,123
NA
NA
Total credit card loans

232,860

211,123
NA
NA
Lending-related commitments
(e)(g)

1,001,311

915,658
Total credit card exposure

1,234,171

1,126,781
Total consumer credit portfolio
$ 1,671,825
$
1,582,277
$
3,926 $
4,203
Credit-related notes used in credit portfolio management activities
(h)
$
(479)
$
(790)
Year ended December 31,
(in millions, except ratios)
Net charge-offs/
(recoveries)
Average loans - retained
Net charge-off/(recovery)
rate
(j)
2024
2023
2024
2023
2024
2023
Consumer, excluding credit card
Residential real estate
$
(101) $
(52) $
316,042 $
296,515
(0.03) %
(0.02) %
Auto and other

775
684

67,959
67,546
1.14
1.01
Total consumer, excluding credit card - retained

674
632

384,001
364,061
0.18
0.17
Credit card - retained

7,142
4,698

214,033
191,412
3.34
2.45
Total consumer - retained
$
7,816 $
5,330
$
598,034 $
555,473
1.31 %
0.96 %
(a) Includes scored mortgage and home equity loans held in CCB and AWM.
(b) At December 31, 2024 and 2023, excluded operating lease assets of $12.8 billion and $10.4 billion, respectively. These operating lease assets
are included in other assets on the Firm’s Consolidated balance sheets. Refer to Note 18 for further information.
(c) Includes scored auto and business banking loans, and overdrafts.
(d) Includes scored mortgage loans held in CCB and CIB, and other consumer unsecured loans in CIB.
(e) Credit card, home equity and certain business banking lending-related commitments represent the total available lines of credit for these
products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. Refer to Note
28 for further information.
(f) Includes billed interest and fees.
(g) Also includes commercial card lending-related commitments primarily in CIB.
(h) Represents the notional amount of protection obtained through the issuance of credit-related notes that reference certain pools of residential
real estate and auto loans in the retained consumer portfolio.
(i)
Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have
been excluded based upon the government guarantee. At December 31, 2024 and 2023, mortgage loans 90 or more days past due and insured
by U.S. government agencies were $121 million and $182 million, respectively. In addition, the Firm’s policy is generally to exempt credit card
loans from being placed on nonaccrual status, as permitted by regulatory guidance.
(j)
Average consumer loans held-for-sale and loans at fair value were $17.2 billion and $12.9 billion for the years ended December 31, 2024 and
2023, respectively. These amounts were excluded when calculating net charge-off/(recovery) rates.
JPMorgan Chase & Co./2024 Form 10-K
121

Maturities and sensitivity to changes in interest rates
The table below sets forth loan maturities by scheduled repayments, by class of loan and the distribution between
fixed and floating interest rates based on the stated terms of the loan agreements. The Firm estimated the principal
repayment amounts for both the residential real estate and auto and other loan classes by calculating the weighted-
average loan balance and interest rates for loan pools based on remaining loan term. Refer to Note 12 for further
information on loan classes.
December 31, 2024
(in millions)
Within
1 year(a)
1-5
years
5-15
years
After 15
years
Total
Consumer, excluding credit card
Residential real estate
$ 21,442
$ 26,712
$ 109,608
$ 166,715
$ 324,477
Auto and other

19,404
(b)

43,701

5,224

68,333
Total consumer, excluding credit card loans
$ 40,846
$ 70,413
$ 114,832
$ 166,719
$ 392,810
Total credit card loans
$ 231,799
$
1,048
$
13
$
—
$ 232,860
Total consumer loans
$ 272,645
$ 71,461
$ 114,845
$ 166,719
$ 625,670
Loans due after one year at fixed interest rates
Residential real estate
$ 19,639
$ 57,351
$ 77,865
Auto and other

43,565

2,957

4
Credit card

1,048

—
Loans due after one year at variable interest rates
Residential real estate
$
7,073
$ 52,257
$ 88,850
Auto and other

136

2,267

—
Total consumer loans
$ 71,461
$ 114,845
$ 166,719
(a) Includes loans held-for-sale and loans at fair value.
(b) Includes overdrafts.
Management’s discussion and analysis
122
JPMorgan Chase & Co./2024 Form 10-K

Consumer, excluding credit card
Portfolio analysis
Loans decreased from December 31, 2023 driven by
residential real estate loans and scored auto loans.
The following discussions provide information
concerning individual loan products. Refer to Note 12
for further information about this portfolio, including
information about delinquencies, loan modifications
and other credit quality indicators.
Residential real estate: The residential real estate
portfolio, including loans held-for-sale and loans at fair
value, predominantly consists of prime mortgage
loans and home equity lines of credit.
Retained loans decreased compared to December 31,
2023, predominantly driven by paydowns and loan
sales, net of originations. Retained nonaccrual loans
decreased compared to December 31, 2023,
predominantly driven by loan sales. Net recoveries
were higher for the year ended December 31, 2024
compared to the prior year, driven by loan sales.
Loans held-for-sale and nonaccrual loans held-for-sale
increased from December 31, 2023, predominantly
driven by transfers of certain retained loans in
anticipation of securitization and loan sales,
respectively.
Loans at fair value increased from December 31, 2023,
predominantly driven by higher Home Lending loans,
as originations outpaced warehouse loan sales.
Nonaccrual loans at fair value increased compared to
December 31, 2023, driven by CIB.
At December 31, 2024 and 2023, the carrying values of
retained interest-only residential mortgage loans were
$88.9 billion and $90.6 billion, respectively. These
loans have an interest-only payment period generally
followed by an adjustable-rate or fixed-rate fully
amortizing payment period to maturity and are
typically originated as higher-balance loans to higher-
income borrowers. The credit performance of this
portfolio is comparable to the performance of the
broader prime mortgage portfolio.
The carrying value of retained home equity lines of
credit outstanding was $14.5 billion at December 31,
2024, including $3.8 billion of HELOCs that have
recast from interest-only to fully amortizing payments
or have been modified, and $3.6 billion of interest-only
balloon HELOCs, which primarily mature after 2030.
The Firm manages the risk of HELOCs during their
revolving period by reducing or canceling the undrawn
line in accordance with the contract or to the extent
otherwise permitted by law, including when there has
been a demonstrable decline in the creditworthiness
of the borrower or significant decrease in the value of
the underlying property.
The following table provides a summary of the Firm’s
residential mortgage portfolio insured and/or
guaranteed by U.S. government agencies,
predominantly loans held-for-sale and loans at fair
value. The Firm monitors its exposure to certain
potential unrecoverable claim payments related to
government-insured loans and considers this
exposure in estimating the allowance for loan losses.
(in millions)
December 31,
2024
December 31,
2023
Current
$
462 $
446
30-89 days past due

72
102
90 or more days past due

121
182
Total government guaranteed
loans
$
655 $
730
Geographic composition and current estimated
loan-to-value ratio of residential real estate loans
At December 31, 2024, $217.7 billion, or 70% of the
total retained residential real estate loan portfolio, was
concentrated in California, New York, Florida, Texas
and Massachusetts, compared to $228.4 billion, or
70% at December 31, 2023.
Average current estimated loan-to-value (“LTV”) ratios
have improved, reflecting an increase in home prices.
Refer to Note 12 for information on the geographic
composition and current estimated LTVs of the Firm’s
residential real estate loans.
JPMorgan Chase & Co./2024 Form 10-K
123

Auto and other: The auto and other loan portfolio,
including loans at fair value, generally consists of
prime-quality scored auto and business banking loans,
other consumer unsecured loans, and overdrafts. The
portfolio decreased when compared to December 31,
2023, predominantly due to loan securitizations. Net
charge-offs increased compared to the prior year,
predominantly due to net charge-offs of scored auto
loans of $445 million compared to $357 million for the
year ended December 31, 2023, reflecting a decline in
used vehicle valuations. Refer to Note 14 for further
information on securitization activity.
Nonperforming assets
The following table presents information as of
December 31, 2024 and 2023, about consumer,
excluding credit card, nonperforming assets.
Nonperforming assets(a)
December 31,
(in millions)
2024
2023
Nonaccrual loans
Residential real estate
$
3,665 $
4,015
Auto and other

261
188
Total nonaccrual loans

3,926
4,203
Assets acquired in loan satisfactions
Real estate owned

78
120
Other

34
42
Total assets acquired in loan
satisfactions

112
162
Total nonperforming assets
$
4,038 $
4,365
(a) Excludes mortgage loans past due and insured by U.S.
government agencies, which are primarily 90 or more days past
due. These loans have been excluded based upon the
government guarantee. At December 31, 2024 and 2023,
mortgage loans 90 or more days past due and insured by U.S.
government agencies were $121 million and $182 million,
respectively.
Nonaccrual loans
The following table presents changes in consumer,
excluding credit card, nonaccrual loans for the years
ended December 31, 2024 and 2023.
Nonaccrual loan activity
Year ended December 31,
(in millions)
2024
2023
Beginning balance
$
4,203 $
4,325
Additions:

3,225
2,894
Reductions:
Principal payments and other

894
1,030
Sales

803
276
Charge-offs

665
472
Returned to performing status

963
1,052
Foreclosures and other liquidations

177
186
Total reductions

3,502
3,016
Net changes

(277)
(122)
Ending balance
$
3,926 $
4,203
Refer to Note 12 for further information about the
consumer credit portfolio, including information about
delinquencies, other credit quality indicators and loans
that were in the process of active or suspended
foreclosure.
Management’s discussion and analysis
124
JPMorgan Chase & Co./2024 Form 10-K

Credit card
Total credit card loans increased from December 31,
2023 reflecting growth from new accounts and
revolving balances. The December 31, 2024 30+ and
90+ day delinquency rates of 2.17% and 1.14%,
respectively, increased compared to the December 31,
2023 30+ and 90+ day delinquency rates of 2.14% and
1.05%, respectively, in line with the Firm’s
expectations. Net charge-offs increased for the year
ended December 31, 2024 compared to the prior year
reflecting the seasoning of vintages originated in
recent years, credit normalization and balance growth.
Consistent with the Firm’s policy, all credit card loans
typically remain on accrual status until charged off.
However, the Firm’s allowance for loan losses includes
the estimated uncollectible portion of accrued and
billed interest and fee income.
Geographic and FICO composition of credit card
loans
At December 31, 2024, $109.0 billion, or 47% of the
total retained credit card loan portfolio, was
concentrated in California, Texas, New York, Florida
and Illinois, compared to $98.1 billion, or 46%, at
December 31, 2023.
Refer to Note 12 for further information about this
portfolio, including information about delinquencies,
geographic and FICO composition.
JPMorgan Chase & Co./2024 Form 10-K
125

WHOLESALE CREDIT PORTFOLIO
In its wholesale businesses, the Firm is exposed to
credit risk primarily through its underwriting, lending,
market-making, and hedging activities with and for
clients and counterparties, as well as through various
operating services (such as cash management and
clearing activities), securities financing activities and
cash placed with banks. A portion of the loans
originated or acquired by the Firm’s wholesale
businesses is generally retained on the balance sheet.
The Firm distributes a significant percentage of the
loans that it originates into the market as part of its
syndicated loan business and to manage portfolio
concentrations and credit risk. The wholesale portfolio
is actively managed, in part by conducting ongoing, in-
depth reviews of client credit quality and transaction
structure, inclusive of collateral where applicable, and
of industry, product and client concentrations. Refer to
the industry discussion on pages 128–131 for further
information.
The Firm’s wholesale credit portfolio includes
exposure held in CIB, AWM and Corporate, and risk-
rated exposure held in CCB, for which the wholesale
methodology is applied when determining the
allowance for loan losses.
As of December 31, 2024, loans increased $19.8 billion,
driven by higher loans in CIB and higher securities-
based lending in AWM. Lending-related commitments
decreased $5.3 billion, with decreases in AWM and
CCB, largely offset by higher commitments in CIB.
As of December 31, 2024, nonperforming exposure
increased by $2.3 billion, predominantly driven by Real
Estate, concentrated in Office, Healthcare and
Consumer & Retail, in each case resulting from
downgrades.
For the year ended December 31, 2024, wholesale net
charge-offs were $822 million, largely driven by Real
Estate, concentrated in Office, and client-specific
charge-offs across multiple industries including
Consumer & Retail and Individuals.
Wholesale credit portfolio
December 31,
(in millions)
Credit exposure
Nonperforming
2024
2023
2024
2023
Loans retained
$ 690,396 $ 672,472
$ 3,942 $ 2,346
Loans held-for-sale

6,103
3,498

5
89
Loans at fair value

25,819
26,520

964
279
Loans

722,318
702,490

4,911
2,714
Derivative
receivables

60,967
54,864

145
364
Receivables from
customers(a)

51,929
47,625

—
—
Total wholesale
credit-related
assets

835,214
804,979
5,056
3,078
Assets acquired in
loan satisfactions
Real estate owned
NA
NA

206
154
Other
NA
NA

—
—
Total assets
acquired in loan
satisfactions
NA
NA

206
154
Lending-related
commitments

531,467
536,786

737
464
Total wholesale
credit portfolio
$ 1,366,681 $ 1,341,765
$ 5,999 $ 3,696
Credit derivatives
and credit-related
notes used in credit
portfolio
management
activities
(b)
$ (40,888) $ (36,989)
$
— $
—
Liquid securities and
other cash
collateral held
against derivatives

Wholesale credit exposure – maturity and ratings profile
The following tables present the maturity and internal risk ratings profiles of the wholesale credit portfolio as of
December 31, 2024 and 2023. The Firm generally considers internal ratings with qualitative characteristics
equivalent to BBB-/Baa3 or higher as investment grade, and takes into consideration collateral and structural
support when determining the internal risk rating for each credit facility. Refer to Note 12 for further information on
internal risk ratings.
Maturity profile
(d)
Ratings profile
December 31, 2024
(in millions, except ratios)
1 year or
less
After 1 year
through
5 years
After 5
years
Total
Investment-
grade
Noninvestment-
grade
Total
Total %
of IG
Loans retained
$ 225,982 $ 289,199 $ 175,215 $ 690,396
$
471,670 $
218,726 $ 690,396
68 %
Derivative receivables

60,967

60,967
Less: Liquid securities and other cash collateral
held against derivatives

(28,160)

(28,160)
Total derivative receivables, net of collateral

11,515
7,418
13,874
32,807

24,707
8,100
32,807
75
Lending-related commitments

121,283
384,529
25,655
531,467

352,082
179,385
531,467
66
Subtotal
358,780
681,146
214,744 1,254,670

848,459
406,211 1,254,670
68
Loans held-for-sale and loans at fair value
(a)

31,922

31,922
Receivables from customers

51,929

51,929
Total exposure – net of liquid securities and other
cash collateral held against derivatives
$ 1,338,521
$ 1,338,521
Credit derivatives and credit-related notes used in
credit portfolio management activities
(b)(c)
$
(5,442) $
(33,751) $
(1,695) $ (40,888)
$
(31,691) $
(9,197) $
(40,888)
78 %
Maturity profile
(d)
Ratings profile
December 31, 2023
(in millions, except ratios)
1 year or
less
After 1 year
through
5 years
After 5
years
Total
Investment-
grade
Noninvestment-
grade
Total
Total %
of IG
Loans retained
$
211,104 $
280,821 $ 180,547 $ 672,472
$
458,838 $
213,634 $ 672,472
68 %
Derivative receivables

54,864

54,864
Less: Liquid securities and other cash collateral
held against derivatives

(22,461)

(22,461)
Total derivative receivables, net of collateral

8,007
8,970
15,426
32,403

24,919
7,484
32,403
77
Lending-related commitments

143,337
368,646
24,803
536,786

341,611
195,175
536,786
64
Subtotal

362,448
658,437
220,776 1,241,661

825,368
416,293
1,241,661
66
Loans held-for-sale and loans at fair value
(a)

30,018

30,018
Receivables from customers

47,625

47,625
Total exposure – net of liquid securities and other
cash collateral held against derivatives
$ 1,319,304
$ 1,319,304
Credit derivatives and credit-related notes used in
credit portfolio management activities
(b)(c)
$
(3,311) $
(28,353) $
(5,325) $ (36,989)
$
(28,869) $
(8,120) $
(36,989)
78 %
(a) Loans held-for-sale are primarily related to syndicated loans and loans transferred from the retained portfolio.
(b) These derivatives do not qualify for hedge accounting under U.S. GAAP.
(c) The notional amounts are presented on a net basis by underlying reference entity and the ratings profile shown is based on the ratings of the
reference entity on which protection has been purchased. Predominantly all of the credit derivatives entered into by the Firm where it has
purchased protection used in credit portfolio management activities are executed with investment-grade counterparties. In addition, the Firm
obtains credit protection against certain loans in the retained loan portfolio through the issuance of credit-related notes.
(d) The maturity profile of retained loans, lending-related commitments and derivative receivables is generally based on remaining contractual
maturity. Derivative contracts that are in a receivable position at December 31, 2024, may become payable prior to maturity based on their
cash flow profile or changes in market conditions.
JPMorgan Chase & Co./2024 Form 10-K
127

Wholesale credit exposure – industry exposures
The Firm focuses on the management and diversification of its industry exposures, and pays particular attention to
industries with actual or potential credit concerns.
Exposures that are deemed to be criticized align with the U.S. banking regulators’ definition of criticized exposures,
which consist of the special mention, substandard and doubtful categories. Total criticized exposure, excluding
loans held-for-sale and loans at fair value, was $44.7 billion and $41.4 billion at December 31, 2024 and 2023,
representing approximately 3.5% and 3.3% of total wholesale credit exposure, respectively; of the $44.7 billion,
$39.9 billion was performing. The increase in criticized exposure was driven by Real Estate resulting from
downgrades, primarily in Multifamily and Office, and new commitments in Technology and Media, partially offset by
Consumer & Retail resulting from net portfolio activity and upgrades.
The table below summarizes by industry the Firm’s exposures as of December 31, 2024 and 2023. The industry of
risk category is generally based on the client or counterparty’s primary business activity. Refer to Note 4 for
additional information on industry concentrations.
Wholesale credit exposure – industries
(a)
Selected metrics
Noninvestment-grade
30 days or
more past
due and
accruing
loans
Net
charge-offs/
(recoveries)
Credit
derivative
and
credit-
related
notes
(h)
Liquid securities
and other cash
collateral held
against
derivative
receivables
As of or for the year ended
December 31, 2024
(in millions)
Credit
exposure
(f)(g)
Investment-
grade
Noncriticized
Criticized
performing
Criticized
nonperforming
Real Estate
$ 207,050 $
143,803 $
50,865 $
10,858 $
1,524 $
913 $
345 $
(584) $
—
Individuals and Individual
Entities
(b)

144,145
118,650
24,831
217
447
831
122
—
—
Asset Managers

135,541
101,150
34,148
206
37
375
2
—
(9,194)
Consumer & Retail

129,815
62,800
60,141
6,055
819
252
123
(4,320)
—
Technology, Media &
Telecommunications

84,716
45,021
28,629
10,592
474
79
94
(4,800)
—
Industrials

72,530
37,572
30,912
3,807
239
185
91
(2,312)
—
Healthcare

64,224
44,135
17,062
2,219
808
245
56
(3,286)
(34)
Banks & Finance Companies

61,287
36,884
24,119
257
27
36
—
(702)
(729)
Utilities

35,871
24,205
10,256
1,273
137
1
—
(2,700)
—
State & Municipal Govt
(c)

35,039
33,303
1,711
9
16
90
—
(2)
(1)
Automotive

34,336
22,015
11,353
931
37
121
1
(997)
—
Oil & Gas

31,724
19,053
12,479
188
4
9
(3)
(1,711)
(2)
Insurance

24,267
17,847
6,198
222
—
2
—
(1,077)
(9,184)
Chemicals & Plastics

20,782
11,013
8,152
1,521
96
31
14
(1,164)
—
Transportation

17,019
9,462
7,135
391
31
17
(20)
(658)
—
Metals & Mining

15,860
7,373
7,860
590
37
9
—
(246)
(2)
Central Govt

13,862
13,580
157
125
—
4
—
(1,490)
(2,051)
Securities Firms

9,443
5,424
4,014
5
—
—
—
(13)
(2,635)
Financial Markets
Infrastructure

4,446
4,201
245
—
—
—
—
(1)
—
All other
(d)

140,873
117,986
22,398
398
91
10
(3)
(14,825)
(4,328)
Subtotal
$ 1,282,830 $
875,477 $
362,665 $
39,864 $
4,824 $
3,210 $
822 $ (40,888) $
(28,160)
Loans held-for-sale and loans
at fair value

31,922
Receivables from customers

51,929
Total
(e)
$ 1,366,681
Management’s discussion and analysis
128
JPMorgan Chase & Co./2024 Form 10-K

Selected metrics
Noninvestment-grade
30 days or
more past
due and
accruing
loans
Net
charge-offs/
(recoveries)
Credit
derivative
and
credit-
related
notes
(h)
Liquid securities
and other cash
collateral held
against
derivative
receivables
As of or for the year ended
December 31, 2023
(in millions)
Credit
exposure
(f)(g)
Investment-
grade
Noncriticized
Criticized
performing
Criticized
nonperforming
Real Estate
$
208,261 $
148,866 $
50,190 $
8,558 $
647 $
717 $
275 $
(574) $
—
Individuals and Individual
Entities
(b)

145,849
110,673
34,261
334
581
861
10
—
—
Asset Managers

129,574
83,857
45,623
90
4
201
1
—
(7,209)
Consumer & Retail

127,086
60,168
58,606
7,863
449
318
161
(4,204)
—
Technology, Media &
Telecommunications

77,296
40,468
27,094
9,388
346
36
81
(4,287)
—
Industrials

75,092
40,951
30,586
3,419
136
213
31
(2,949)
—
Healthcare

65,025
43,163
18,396
3,005
461
130
17
(3,070)
—
Banks & Finance Companies

57,177
33,881
22,744
545
7
9
277
(511)
(412)
Utilities

36,061
25,242
9,929
765
125
1
(3)
(2,373)
—
State & Municipal Govt
(c)

35,986
33,561
2,390
27
8
31
—
(4)
—
Automotive

33,977
23,152
10,060
640
125
59
—
(653)
—
Oil & Gas

34,475
18,276
16,076
111
12
45
11
(1,927)
(5)
Insurance

20,501
14,503
5,700
298
—
2
—
(961)
(6,898)
Chemicals & Plastics

20,773
11,353
8,352
916
152
106
2
(1,045)
—
Transportation

16,060
8,865
5,943
1,196
56
23
(26)
(574)
—
Metals & Mining

15,508
8,403
6,514
536
55
12
44
(229)
—
Central Govt

17,704
17,264
312
127
1
—
—
(3,490)
(2,085)
Securities Firms

8,689
4,570
4,118
1
—
—
—
(14)
(2,765)
Financial Markets
Infrastructure

4,251
4,052
199
—
—
—
—
—
—
All other
(d)

134,777
115,711
18,618
439
9
21
(2)
(10,124)
(3,087)
Subtotal
$
1,264,122 $
846,979 $
375,711 $
38,258 $
3,174 $
2,785 $
879 $ (36,989) $
(22,461)
Loans held-for-sale and
loans at fair value

30,018
Receivables from customers

47,625
Total
(e)
$
1,341,765
(a) The industry rankings presented in the table as of December 31, 2023, are based on the industry rankings of the corresponding exposures at
December 31, 2024, not actual rankings of such exposures at December 31, 2023.
(b) Individuals and Individual Entities predominantly consists of Global Private Bank clients within AWM and J.P. Morgan Wealth Management
within CCB, and includes exposure to personal investment companies and personal and testamentary trusts.
(c) In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at December 31, 2024 and 2023, noted
above, the Firm held: $6.1 billion and $5.9 billion, respectively, of trading assets; $17.9 billion and $21.4 billion, respectively, of AFS securities;
and $9.3 billion and $9.9 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 10
for further information.
(d) All other includes: SPEs and Private education and civic organizations, representing approximately 94% and 6%, respectively, at both
December 31, 2024 and 2023.
(e) Excludes cash placed with banks of $459.2 billion and $614.1 billion, at December 31, 2024 and 2023, respectively, which is predominantly
placed with various central banks, primarily Federal Reserve Banks.
(f) Credit exposure is net of risk participations and excludes the benefit of credit derivatives and credit-related notes used in credit portfolio
management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative
receivables.
(g) Credit exposure includes held-for-sale and fair value option elected lending-related commitments.
(h) Represents the net notional amounts of protection purchased and sold through credit derivatives and credit-related notes used to manage
the credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. The All other category includes purchased
credit protection on certain credit indices.
JPMorgan Chase & Co./2024 Form 10-K
129

Presented below is additional detail on certain of the Firm’s industry exposures.
Real Estate
Real Estate exposure was $207.1 billion as of December 31, 2024. Criticized exposure increased by $3.2 billion from
$9.2 billion at December 31, 2023 to $12.4 billion at December 31, 2024, predominantly driven by downgrades,
primarily in Multifamily and Office.
December 31, 2024
(in millions, except ratios)
Loans and
Lending-
related
Commitments
Derivative
Receivables
Credit
exposure
%
Investment-
grade
% Drawn(d)
Multifamily(a)
$
124,074
$
7
$
124,081
77 %
92 %
Industrial

19,092

19,109
65
72
Other Income Producing Properties(b)

16,411

158

16,569
50
63
Office

16,331

16,360
47
81
Services and Non Income Producing

14,047

14,104
62
46
Retail

12,230

12,253
77
75
Lodging

4,555

4,574
31
53
Total Real Estate Exposure(c)
$
206,740
$
310
$
207,050
69 %
82 %
December 31, 2023
(in millions, except ratios)
Loans and
Lending-
related
Commitments
Derivative
Receivables
Credit
exposure
%
Investment-
grade
% Drawn
(d)
Multifamily
(a)
$
121,946
$
21
$
121,967
79 %
90 %
Industrial

20,254

20,272
70
72
Other Income Producing Properties
(b)

15,542

208

15,750
55
63
Office

16,462

16,494
51
81
Services and Non Income Producing

16,145

16,219
62
46
Retail

12,763

12,811
75
73
Lodging

4,729

4,748
30
48
Total Real Estate Exposure
$
207,841
$
420
$
208,261
71 %
80 %
(a) Total Multifamily exposure is approximately 99% performing. Multifamily exposure is largely in California.
(b) Other Income Producing Properties consists of clients with diversified property types or other property types outside of categories listed in
the table above.
(c) Real Estate exposure is approximately 84% secured; unsecured exposure is largely investment-grade primarily to Real Estate Investment
Trusts (“REITs”) and Real Estate Operating Companies (“REOCs”) whose underlying assets are generally diversified.
(d) Represents drawn exposure as a percentage of credit exposure.
Management’s discussion and analysis
130
JPMorgan Chase & Co./2024 Form 10-K

Consumer & Retail
Consumer & Retail exposure was $129.8 billion as of December 31, 2024. Criticized exposure decreased by
$1.4 billion from $8.3 billion at December 31, 2023 to $6.9 billion at December 31, 2024, driven by net portfolio
activity and upgrades, largely offset by downgrades.
December 31, 2024
(in millions, except ratios)
Loans and
Lending-
related
Commitments
Derivative
Receivables
Credit
exposure
%
Investment-
grade
% Drawn(d)
Food and Beverage
$
34,774
$
683
$
35,457
61 %
34 %
Retail

34,917

261

35,178
51
31
Business and Consumer Services(a)

34,534

412

34,946
42
41
Consumer Hard Goods

13,796

208

14,004
43
35
Leisure(b)

10,186

10,230
26
43
Total Consumer & Retail(c)
$
128,207
$
1,608
$
129,815
48 %
36 %
December 31, 2023
(in millions, except ratios)
Loans and
Lending-
related
Commitments
Derivative
Receivables
Credit
exposure
%
Investment-
grade
% Drawn
(d)
Food and Beverage
$
32,256
$
930
$
33,186
57 %
36 %
Retail

36,042

334

36,376
51
30
Business and Consumer Services
(a)

34,822

392

35,214
42
42
Consumer Hard Goods

13,169

197

13,366
43
33
Leisure
(b)

8,784

160

8,944
25
47
Total Consumer & Retail
$
125,073
$
2,013
$
127,086
47 %
36 %
(a) Retail consists of Home Improvement & Specialty Retailers, Restaurants, Discount & Drug Stores, Specialty Apparel, Department Stores and
Supermarkets.
(b) Leisure consists of Arts & Culture, Travel Services, Gaming and Sports & Recreation. As of December 31, 2024, approximately 90% of the
noninvestment-grade Leisure portfolio is secured.
(c) Consumer & Retail exposure is approximately 57% secured; unsecured exposure is approximately 80% investment-grade.
(d) Represents drawn exposure as a percent of credit exposure.
Oil & Gas
Oil & Gas exposure was $31.7 billion as of December 31, 2024. Criticized exposure was $192 million and $123 million
at December 31, 2024 and 2023, respectively.
December 31, 2024
(in millions, except ratios)
Loans and
Lending-
related
Commitments
Derivative
Receivables
Credit
exposure
%
Investment-
grade
% Drawn
(c)
Exploration & Production ("E&P") and Oil field Services $
14,265
$
848
$
15,113
55 %
27 %
Other Oil & Gas
(a)

16,306

305

16,611
65
19
Total Oil & Gas
(b)
$
30,571
$
1,153
$
31,724
60 %
23 %
December 31, 2023
(in millions, except ratios)
Loans and
Lending-
related
Commitments
Derivative
Receivables
Credit
exposure
%
Investment-
grade
% Drawn
(c)
Exploration & Production ("E&P") and Oil field Services $
18,121
$
536
$
18,657
51 %
26 %
Other Oil & Gas
(a)

15,649

169

15,818
55
22
Total Oil & Gas
$
33,770
$
705
$
34,475
53 %
25 %
(a) Other Oil & Gas includes Integrated Oil & Gas companies, Midstream/Oil Pipeline companies and refineries.
(b) Oil & Gas exposure is approximately 33% secured, and includes reserve-based lending to the Exploration & Production sub-sector;
unsecured exposure is approximately 69% investment-grade.
(c) Represents drawn exposure as a percent of credit exposure.
JPMorgan Chase & Co./2024 Form 10-K
131

Loans
In its wholesale businesses, the Firm provides loans to
a variety of clients, ranging from large corporate and
institutional clients to high-net-worth individuals. Refer
to Note 12 for a further discussion on loans, including
information about delinquencies, loan modifications
and other credit quality indicators.
The following table presents the change in the
nonaccrual loan portfolio for the years ended
December 31, 2024 and 2023. Since December 31,
2023, nonaccrual loan exposure increased by $2.2
billion, predominantly driven by Real Estate,
concentrated in Office, Healthcare and Consumer &
Retail, in each case resulting from downgrades.
Wholesale nonaccrual loan activity
Year ended December 31,
(in millions)
2024
2023
Beginning balance
$
2,714 $
2,395
Additions

5,841
3,543
Reductions:
Paydowns and other

2,387
1,336
Gross charge-offs

780
965
Returned to performing status

392
616
Sales

85
307
Total reductions

3,644
3,224
Net changes

2,197
319
Ending balance
$
4,911 $
2,714
The following table presents net charge-offs/
recoveries, which are defined as gross charge-offs less
recoveries, for the years ended December 31, 2024
and 2023. The amounts in the table below do not
include gains or losses from sales of nonaccrual loans
recognized in noninterest revenue.
Wholesale net charge-offs/(recoveries)
Year ended December 31,
(in millions, except ratios)
2024
2023
Loans
Average loans retained
$ 673,310
$ 646,875
Gross charge-offs

1,022

1,011
Gross recoveries collected

(200)

(132)
Net charge-offs/(recoveries)

822

879
Net charge-off/(recovery) rate
0.12 %
0.14 %
Management’s discussion and analysis
132
JPMorgan Chase & Co./2024 Form 10-K

Maturities and sensitivity to changes in interest rates
The table below sets forth wholesale loan maturities and the distribution between fixed and floating interest rates
based on the stated terms of the loan agreements by loan class. Refer to Note 12 for further information on loan
classes.
December 31, 2024
(in millions, except ratios)
1 year or
less(b)
After 1 year
through 5 years
After 5 years
through 15 years
After 15
years
Total
Wholesale loans:
Secured by real estate
$ 12,474
$
57,125
$
57,967
$ 42,597
$ 170,163
Commercial and industrial

55,731

109,839

8,587

94
174,251
Other
182,722

150,346

36,281

8,555
377,904
Total wholesale loans
$ 250,927
$
317,310
$
102,835
$ 51,246
$ 722,318
Loans due after one year at fixed interest rates
Secured by real estate
$
13,119
$
17,943
$
935
Commercial and industrial

3,964

1,231

7
Other

26,929

15,542

5,824
Loans due after one year at variable interest rates(a)
Secured by real estate
$
44,006
$
40,024
$ 41,662
Commercial and industrial

105,875

7,356

87
Other

123,417

20,739

2,731
Total wholesale loans
$
317,310
$
102,835
$ 51,246
(a) Includes loans that have an initial fixed interest rate that resets to a variable rate as the variable rate will be the prevailing rate over the life of
the loan.
(b) Includes loans held-for-sale, demand loans and overdrafts.
The following table presents net charge-offs/recoveries, average retained loans and net charge-off/recovery rate by
loan class for the years ended December 31, 2024 and 2023.
Year ended December 31,
Secured by real
estate
Commercial
and industrial
Other
Total
(in millions, except ratios)
2024
2023
2024
2023
2024
2023
2024
2023
Net charge-offs/(recoveries)
$
313
$
178
$
381
$
370
$
128
$
331
$
822
$
879
Average retained loans
162,653
151,214
169,363
170,503
341,294
325,158
673,310
646,875
Net charge-off/(recovery) rate
0.19 %
0.12 %
0.22 %
0.22 %
0.04 %
0.10 %
0.12 %
0.14 %
JPMorgan Chase & Co./2024 Form 10-K
133

Lending-related commitments
The Firm uses lending-related financial instruments,
such as commitments (including revolving credit
facilities) and guarantees, to address the financing
needs of its clients. The contractual amounts of these
financial instruments represent the maximum possible
credit risk should the clients draw down on these
commitments or when the Firm fulfills its obligations
under these guarantees, and the clients subsequently
fail to perform according to the terms of these contracts.
Most of these commitments and guarantees have
historically been refinanced, extended, cancelled, or
expired without being drawn upon or a default
occurring. As a result, the Firm does not believe that the
total contractual amount of these wholesale lending-
related commitments is representative of the Firm’s
expected future credit exposure or funding
requirements. Refer to Note 28 for further information
on wholesale lending-related commitments.
Receivables from customers
Receivables from customers reflect held-for-investment
margin loans to brokerage clients in CIB, CCB and AWM
that are collateralized by assets maintained in the
clients’ brokerage accounts (including cash on deposit,
and primarily liquid and readily marketable debt or
equity securities). To manage its credit risk, the Firm
establishes margin requirements and monitors the
required margin levels on an ongoing basis, and requires
clients to deposit additional cash or other collateral, or
to reduce positions, when appropriate. Credit risk arising
from lending activities subject to collateral maintenance
requirements is generally mitigated by factors such as
the short-term nature of the activity, the fair value of
collateral held and the Firm’s right to call for, and the
borrower’s obligation to provide, additional margin when
the fair value of the collateral declines. Because of these
mitigating factors, these receivables generally do not
require an allowance for credit losses. However, if in
management’s judgment, an allowance for credit losses
is required, the Firm estimates expected credit losses
based on the value of the collateral and probability of
borrower default. These receivables are reported within
accrued interest and accounts receivable on the Firm’s
Consolidated balance sheets.
Refer to Note 13 for further information on the Firm’s
accounting policies for the allowance for credit losses.
Derivative contracts
Derivatives enable clients and counterparties to manage
risk, including credit risk and risks arising from
fluctuations in interest rates, foreign exchange and
equities and commodities prices. The Firm makes
markets in derivatives in order to meet these needs and
uses derivatives to manage certain risks associated with
net open risk positions from its market-making
activities, including the counterparty credit risk arising
from derivative receivables. The Firm also uses
derivative instruments to manage its own credit risk and
other market risk exposure. The nature of the
counterparty and the settlement mechanism of the
derivative affect the credit risk to which the Firm is
exposed. For over-the-counter (“OTC”) derivatives, the
Firm is exposed to the credit risk of the derivative
counterparty. For exchange-traded derivatives (“ETD”),
such as futures and options, and cleared over-the-
counter (“OTC-cleared”) derivatives, the Firm can also
be exposed to the credit risk of the relevant CCP. Where
possible, the Firm seeks to mitigate its credit risk
exposures arising from derivative contracts through the
use of legally enforceable master netting arrangements
and collateral agreements. The percentage of the Firm’s
OTC derivative transactions subject to collateral
agreements — excluding foreign exchange spot trades,
which are not typically covered by collateral agreements
due to their short maturity and centrally cleared trades
that are settled daily — was approximately 86% and 87%
at December 31, 2024 and 2023, respectively. Refer to
Note 5 for additional information on the Firm’s use of
collateral agreements and for a further discussion of
derivative contracts, counterparties and settlement
types.
The fair value of derivative receivables reported on the
Consolidated balance sheets was $61.0 billion and $54.9
billion at December 31, 2024 and 2023, respectively. The
increase was primarily as a result of market movements.
Derivative receivables represent the fair value of the
derivative contracts after giving effect to legally
enforceable master netting agreements and the related
cash collateral held by the Firm.
In addition, the Firm holds liquid securities and other
cash collateral that may be used as security when the
fair value of the client’s exposure is in the Firm’s favor.
For these purposes, the definition of liquid securities is
consistent with the definition of high quality liquid assets
as defined in the LCR rule.
In management’s view, the appropriate measure of
current credit risk should also take into consideration
other collateral, which generally represents securities
that do not qualify as high quality liquid assets under the
LCR rule. The benefits of these additional collateral
amounts for each counterparty are subject to a legally
enforceable master netting agreement and limited to the
net amount of the derivative receivables for each
counterparty.
The Firm also holds additional collateral (primarily cash,
G7 government securities, other liquid government
agency and guaranteed securities, and corporate debt
and equity securities) delivered by clients at the
initiation of transactions, as well as collateral related to
contracts that have a non-daily call frequency and
collateral that the Firm has agreed to return but has not
yet settled as of the reporting date. Although this
collateral does not reduce the receivables balances and
is not included in the tables below, it is available as
security against potential exposure that could arise
should the fair value of the client’s derivative contracts
move in the Firm’s favor. Refer to Note 5 for additional
information on the Firm’s use of collateral agreements
for derivative transactions.
Management’s discussion and analysis
134
JPMorgan Chase & Co./2024 Form 10-K

The following tables summarize the net derivative receivables and the internal ratings profile for the periods presented.
Derivative receivables
December 31, (in millions)
2024
2023
Total, net of cash collateral
$
60,967 $
54,864
Liquid securities and other cash collateral held against derivative receivables

(28,160)
(22,461)
Total, net of liquid securities and other cash collateral
$
32,807 $
32,403
Other collateral held against derivative receivables

(1,021)
(993)
Total, net of collateral
$
31,786 $
31,410
Ratings profile of derivative receivables
2024
2023
December 31,
(in millions, except ratios)
Exposure net of
collateral
% of exposure net
of collateral
Exposure net of
collateral
% of exposure net
of collateral
Investment-grade
$
23,783
75 %
$
24,004
76 %
Noninvestment-grade

8,003
25

7,406
24
Total
$
31,786
100 %
$
31,410
100 %
While useful as a current view of credit exposure, the
net fair value of the derivative receivables does not
capture the potential future variability of that credit
exposure. To capture this variability, the Firm
calculates, on a client-by-client basis, three measures
of potential derivatives-related credit loss: Peak,
Derivative Risk Equivalent (“DRE”), and Average
exposure (“AVG”). These measures all incorporate
netting and collateral benefits, where applicable.
Peak represents a conservative measure of potential
derivative exposure, including the benefit of collateral,
to a counterparty calculated in a manner that is
broadly equivalent to a 97.5% confidence level over the
life of the transaction. Peak is the primary measure
used by the Firm for setting credit limits for derivative
contracts, senior management reporting and
derivatives exposure management.
DRE exposure is a measure that expresses the risk of
derivative exposure, including the benefit of collateral,
on a basis intended to be equivalent to the risk of loan
exposures. DRE is a less extreme measure of potential
credit loss than Peak.
Finally, AVG is a measure of the expected fair value of
the Firm’s derivative exposures, including the benefit
of collateral, at future time periods. AVG over the total
life of the derivative contract is used as the primary
metric for pricing purposes and is used to calculate
credit risk capital and CVA, as further described below.
The fair value of the Firm’s derivative receivables
incorporates CVA to reflect the credit quality of
counterparties. CVA is based on the Firm’s AVG to a
counterparty and the counterparty’s credit spread in
the credit derivatives market. The Firm believes that
active risk management is essential to controlling the
dynamic credit risk in the derivatives portfolio. In
addition, the Firm’s risk management process for
derivatives exposures takes into consideration the
potential impact of wrong-way risk, which is broadly
defined as the risk that exposure to a counterparty is
positively correlated with the impact of a default by the
same counterparty, which could cause exposure to
increase at the same time as the counterparty’s
capacity to meet its obligations is decreasing. Many
factors may influence the nature and magnitude of
these correlations over time. To the extent that these
correlations are identified, the Firm may adjust the
CVA associated with a particular counterparty’s AVG.
The Firm risk manages exposure to changes in CVA by
entering into credit derivative contracts, as well as
interest rate, foreign exchange, equity and commodity
derivative contracts.
The below graph shows exposure profiles to the Firm’s
current derivatives portfolio over the next 10 years as
calculated by the Peak, DRE and AVG metrics. The
three measures generally show that exposure will
decline after the first year, if no new trades are added
to the portfolio.
Exposure profile of derivatives measures
December 31, 2024
(in billions)
AVG
DR E
Peak
1
year
2
years
5
years
10
years
0
20
40
60
80
100
120
140
JPMorgan Chase & Co./2024 Form 10-K
135

Credit derivatives
The Firm uses credit derivatives for two primary
purposes: first, in its capacity as a market-maker, and
second, as an end-user to manage the Firm’s own
credit risk associated with various exposures.
Credit portfolio management activities
Included in the Firm’s end-user activities are credit
derivatives used to mitigate the credit risk associated
with traditional lending activities (loans and lending-
related commitments) and derivatives counterparty
exposure in the Firm’s wholesale businesses
(collectively, “credit portfolio management activities”).
Information on credit portfolio management activities
is provided in the table below.
The Firm also uses credit derivatives as an end-user to
manage other exposures, including credit risk arising
from certain securities held in the Firm’s market-
making businesses. These credit derivatives are not
included in credit portfolio management activities.
Credit derivatives and credit-related notes used in
credit portfolio management activities
Notional amount of protection
purchased and sold(a)
December 31, (in millions)
2024
2023
Credit derivatives and credit-
related notes used to manage:
Loans and lending-related
commitments
$
25,216 $
24,157
Derivative receivables

15,672
12,832
Credit derivatives and credit-
related notes used in credit
portfolio management activities $
40,888 $
36,989
(a) Amounts are presented net, considering the Firm’s net
protection purchased or sold with respect to each underlying
reference entity or index.
The credit derivatives used in credit portfolio
management activities do not qualify for hedge
accounting under U.S. GAAP; these derivatives are
reported at fair value, with gains and losses recognized
in principal transactions revenue. In contrast, the loans
and lending-related commitments being risk-
managed are accounted for on an accrual basis. This
asymmetry in accounting treatment, between loans
and lending-related commitments and the credit
derivatives used in credit portfolio management
activities, causes earnings volatility that is not
representative, in the Firm’s view, of the true changes
in value of the Firm’s overall credit exposure.
The effectiveness of credit default swaps (“CDS”) as a
hedge against the Firm’s exposures may vary
depending on a number of factors, including the
named reference entity (i.e., the Firm may experience
losses on specific exposures that are different than the
named reference entities in the purchased CDS); the
contractual terms of the CDS (which may have a
defined credit event that does not align with an actual
loss realized by the Firm); and the maturity of the
Firm’s CDS protection (which in some cases may be
shorter than the Firm’s exposures). However, the Firm
generally seeks to purchase credit protection with a
maturity date that is the same or similar to the maturity
date of the exposure for which the protection was
purchased, and remaining differences in maturity are
actively monitored and managed by the Firm. Refer to
Credit derivatives in Note 5 for further information on
credit derivatives and derivatives used in credit
portfolio management activities.
Management’s discussion and analysis
136
JPMorgan Chase & Co./2024 Form 10-K

ALLOWANCE FOR CREDIT LOSSES
The Firm’s allowance for credit losses represents
management's estimate of expected credit losses over
the remaining expected life of the Firm's financial
assets measured at amortized cost and certain off-
balance sheet lending-related commitments. The
Firm's allowance for credit losses generally consists of:
• the allowance for loan losses, which covers the
Firm’s retained loan portfolios (scored and risk-
rated) and is presented separately on the
Consolidated balance sheets,
• the allowance for lending-related commitments,
which is reflected in accounts payable and other
liabilities on the Consolidated balance sheets, and
• the allowance for credit losses on investment
securities, which is reflected in investment securities
on the Consolidated balance sheets.
Discussion of changes in the allowance
The allowance for credit losses as of December 31,
2024 was $26.9 billion, reflecting a net addition of $2.1
billion from December 31, 2023.
The net addition to the allowance for credit losses
included:
• $2.1 billion in consumer, reflecting:
– a $2.2 billion net addition in Card Services,
predominantly driven by loan growth, reflecting
higher revolving balances, including the seasoning
of vintages originated in recent years,
partially offset by
– a $125 million net reduction in Home Lending in
the first quarter of 2024, and
• a net reduction of $30 million in wholesale,
reflecting:
– changes in certain macroeconomic variables, an
update to loss assumptions on certain loans in
Markets, and a reduction due to charge-offs
largely from collateral-dependent loans,
predominantly offset by
– net downgrade activity, primarily in Real Estate,
and the impact of incorporating the First Republic
portfolio into the Firm’s modeled credit loss
estimates in the second quarter of 2024.
The Firm’s qualitative adjustments continued to
include additional weight placed on the adverse
scenarios to reflect ongoing uncertainties and
downside risks related to the geopolitical and
macroeconomic environment.
The Firm's allowance for credit losses is estimated
using a weighted average of five internally developed
macroeconomic scenarios. The adverse scenarios
incorporate more punitive macroeconomic factors
than the central case assumptions provided in the
table below, resulting in:
• a weighted average U.S. unemployment rate peaking
at 5.5% in the fourth quarter of 2025, and
• a weighted average U.S. real GDP level that is 1.9%
lower than the central case at the end of the second
quarter of 2026.
The following table presents the Firm’s central case
assumptions for the periods presented:
Central case assumptions
at December 31, 2024
2Q25
4Q25
2Q26
U.S. unemployment rate(a)
4.5 %
4.3 %
4.3 %
YoY growth in U.S. real GDP(b)
2.0 %
1.9 %
1.8 %
Central case assumptions
at December 31, 2023
2Q24
4Q24
2Q25
U.S. unemployment rate(a)
4.1 %
4.4 %
4.1 %
YoY growth in U.S. real GDP
(b)
1.8 %
0.7 %
1.0 %
(a) Reflects quarterly average of forecasted U.S. unemployment
rate.
(b) The year over year growth in U.S. real GDP in the forecast
horizon of the central scenario is calculated as the percentage
change in U.S. real GDP levels from the prior year.
Subsequent changes to this forecast and related
estimates will be reflected in the provision for credit
losses in future periods.
Refer to Consumer Credit Portfolio on pages 120–125,
Wholesale Credit Portfolio on pages 126–136 and Note
12 for additional information on the consumer and
wholesale credit portfolios.
Refer to Critical Accounting Estimates Used by the
Firm on pages 161–164 for further information on the
allowance for credit losses and related management
judgments.
JPMorgan Chase & Co./2024 Form 10-K
137

Allowance for credit losses and related information
2024
2023
Year ended December 31,
Consumer,
excluding
credit card
Credit card
Wholesale
Total
Consumer,
excluding
credit card
Credit card
Wholesale
Total
(in millions, except ratios)
Allowance for loan losses
Beginning balance at January 1,
$ 1,856
$ 12,450
$
8,114
$ 22,420
$ 2,040
$ 11,200
$ 6,486
$
19,726
Cumulative effect of a change in
accounting principle(a)
NA
NA
NA
NA

(489)

(100)

(587)
Gross charge-offs

1,299

8,198

1,022

10,519

1,151

5,491

1,011

7,653
Gross recoveries collected

(625)

(1,056)

(200)

(1,881)

(519)

(793)

(132)

(1,444)
Net charge-offs

674

7,142

822

8,638

632

4,698

879

6,209
Provision for loan losses

624

9,292

578

10,494

936

6,048

2,484

9,468
Other

—

22
Ending balance at December 31,
$ 1,807
$ 14,600
$ 7,938
$ 24,345
$
1,856
$ 12,450
$
8,114
$ 22,420
Allowance for lending-related
commitments
Beginning balance at January 1,
$
75
$
—
$ 1,899
$
1,974
$
76
$
—
$ 2,306
$
2,382
Provision for lending-related
commitments

—

121

128

(1)

—

(407)

(408)
Other

—

(1)

—

—
Ending balance at December 31,
$
82
$
—
$ 2,019
$
2,101
$
75
$
—
$
1,899
$
1,974
Impairment methodology
Asset-specific
(b)
$
(728)
$
—
$
526
$
(202)
$
(876)
$
—
$
392
$
(484)
Portfolio-based

2,535
14,600

7,412

24,547

2,732

12,450

7,722

22,904
Total allowance for loan losses
$ 1,807
$ 14,600
$ 7,938
$ 24,345
$
1,856
$ 12,450
$
8,114
$ 22,420
Impairment methodology
Asset-specific
$
—
$
—
$
109
$
109
$
—
$
—
$
89
$
89
Portfolio-based

—

1,910

1,992

—

1,810

1,885
Total allowance for lending-related
commitments
$
82
$
—
$ 2,019
$
2,101
$
75
$
—
$
1,899
$
1,974
Total allowance for investment
securities
NA
NA
NA
$
152
NA
NA
NA
$
128
Total allowance for credit losses
(c)
$ 1,889
$ 14,600
$ 9,957
$ 26,598
$
1,931
$ 12,450
$ 10,013
$
24,522
Memo:
Retained loans, end of period
$ 376,334
$ 232,860
$ 690,396
$ 1,299,590
$ 397,275
$ 211,123
$ 672,472
$ 1,280,870
Retained loans, average
384,001
214,033
673,310
1,271,344
364,061
191,412
646,875
1,202,348
Credit ratios
Allowance for loan losses to retained
loans
0.48 %
6.27 %
1.15 %
1.87 %
0.47 %
5.90 %
1.21 %
1.75 %
Allowance for loan losses to retained
nonaccrual loans
(d)
56
NA
201
339
51
NA
346
374
Allowance for loan losses to retained
nonaccrual loans excluding credit
card
56
NA
201
136
51
NA
346
166
Net charge-off rates
0.18
3.34
0.12
0.68
0.17
2.45
0.14
0.52
(a) Represents the impact to the allowance for loan losses upon the adoption of the Financial Instruments - Credit Losses: Troubled Debt
Restructurings accounting guidance. Refer to Note 1 for further information.
(b) Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans.
(c) At December 31, 2024 and 2023, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit
losses of $268 million and $243 million, respectively, associated with certain accounts receivable in CIB.
(d) The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.
Management’s discussion and analysis
138
JPMorgan Chase & Co./2024 Form 10-K

Allocation of allowance for loan losses
The table below presents a breakdown of the allowance for loan losses by loan class. Refer to Note 12 for further
information on loan classes.
2024
2023
December 31,
(in millions, except ratios)
Allowance for loan losses
Percent of retained loans
to total retained loans
Allowance for loan losses
Percent of retained loans
to total retained loans
Residential real estate
$
666
24 %
$
817
25 %
Auto and other

1,141
5

1,039
6
Consumer, excluding credit card
1,807
29

1,856
31
Credit card

14,600
18

12,450
16
Total consumer

16,407
47

14,306
47
Secured by real estate

2,978
12

2,997
13
Commercial and industrial

3,350
13

3,519
13
Other

1,610
28

1,598
27
Total wholesale

7,938
53

8,114
53
Total
$
24,345
100 %
$
22,420
100 %
JPMorgan Chase & Co./2024 Form 10-K
139

INVESTMENT PORTFOLIO RISK MANAGEMENT
Investment portfolio risk is the risk associated with the
loss of principal or a reduction in expected returns on
investments arising from the investment securities
portfolio or from principal investments. The
investment securities portfolio is predominantly held
by Treasury and CIO in connection with the Firm's
balance sheet and asset-liability management
objectives. Principal investments are predominantly
privately-held financial instruments and are managed
in the LOBs and Corporate. Investments are typically
intended to be held over extended periods and,
accordingly, the Firm has no expectation for short-
term realized gains with respect to these investments.
Investment securities risk
Investment securities risk includes the exposure
associated with a default in the payment of principal
and interest. This risk is mitigated given that the
investment securities portfolio held by Treasury and
CIO predominantly consists of high-quality securities.
At December 31, 2024, the Treasury and CIO
investment securities portfolio, net of the allowance for
credit losses, was $678.3 billion, and the average
credit rating of the securities comprising the portfolio
was AA+ (based upon external ratings where available,
and where not available, based primarily upon internal
risk ratings). Refer to Corporate results on pages 88–
90 and Note 10 for further information on the
investment securities portfolio and internal risk
ratings. Refer to Liquidity Risk Management on pages
108–115 for further information on related liquidity risk.
Refer to Market Risk Management on pages 141–149
for further information on the market risk inherent in
the portfolio.
Governance and oversight
Investment securities risks are governed by the Firm’s
Risk Appetite framework, and reviewed at the CTC
Risk Committee with regular updates provided to the
Board Risk Committee.
The Firm’s independent control functions are
responsible for reviewing the appropriateness of the
carrying value of investment securities in accordance
with relevant policies. Approved levels for investment
securities are established for each risk category,
including capital and credit risks.
Principal investment risk
Principal investments are typically privately-held
financial instruments representing ownership interests
or other forms of junior capital. In general, principal
investments include tax-oriented investments and
investments made to enhance or accelerate the Firm’s
business strategies and exclude those that are
consolidated on the Firm's balance sheets. These
investments are made by dedicated investing
businesses or as part of a broader business strategy.
The Firm’s principal investments are managed by the
LOBs and Corporate and are reflected within their
respective financial results. The Firm’s investments will
continue to evolve based on market circumstances
and in line with its strategic initiatives.
The table below presents the aggregate carrying
values of the principal investment portfolios as of
December 31, 2024 and 2023.
(in billions)
December 31,
2024
December 31,
2023
Tax-oriented investments,
primarily in alternative energy
and affordable housing
(a)
$
33.3
$
28.8
Private equity, various debt and
equity instruments, and real
assets

9.1

10.5
Total carrying value
$
42.4
$
39.3
(a) Effective January 1, 2024, the Firm adopted updates to the
Accounting for Investments in Tax Credit Structures guidance.
Refer to Notes 1, 6, 14 and 25 for additional information.
Governance and oversight
The Firm’s approach to managing principal investment
risk is consistent with the Firm’s risk governance
structure. The Firm has established a Firmwide risk
policy framework for all principal investing activities
that includes approval by executives who are
independent from the investing businesses, as
appropriate.
The Firm’s independent control functions are
responsible for reviewing the appropriateness of the
carrying value of investments in accordance with
relevant policies. As part of the risk governance
structure, approved levels for investments are
established and monitored for each relevant business
or segment in order to manage the overall size of the
portfolios. The Firm also conducts stress testing on
these portfolios using specific scenarios that estimate
losses based on significant market moves and/or
other risk events.
Management’s discussion and analysis
140
JPMorgan Chase & Co./2024 Form 10-K

MARKET RISK MANAGEMENT
Market risk is the risk associated with the effect of
changes in market factors such as interest and foreign
exchange rates, equity and commodity prices, credit
spreads or implied volatilities, on the value of assets
and liabilities held for both the short and long term.
Market Risk Management
Market Risk Management monitors market risks
throughout the Firm and defines market risk policies
and procedures.
Market Risk Management seeks to facilitate efficient
risk/return decisions, reduce volatility in operating
performance and provide transparency into the Firm’s
market risk profile for senior management, the Board
of Directors and regulators. Market Risk Management
is responsible for the following functions:
• Maintaining a market risk policy framework
• Independently measuring and monitoring LOB,
Corporate, and Firmwide market risk
• Defining, approving and monitoring limits
• Performing stress testing and qualitative risk
assessments
Risk measurement
Measures used to capture market risk
There is no single measure to capture market risk and
therefore Market Risk Management uses various
metrics, both statistical and nonstatistical, to assess
risk including:
• Value-at-risk
• Stress testing
• Profit and loss drawdowns
• Earnings-at-risk
• Economic Value Sensitivity
• Other sensitivity-based measures
Risk monitoring and control
Market risk exposure is managed primarily through a
series of limits set in the context of the market
environment and business strategy. In setting limits,
Market Risk Management takes into consideration
factors such as market volatility, product liquidity,
accommodation of client business, and management
judgment. Market Risk Management maintains
different levels of limits. Firm level limits include VaR
and stress limits. Similarly, LOB and Corporate limits
include VaR and stress limits and may be
supplemented by certain nonstatistical risk measures
such as profit and loss drawdowns. Limits may also be
set within the LOBs and Corporate, as well as at the
legal entity level.
Market Risk Management sets limits and regularly
reviews and updates them as appropriate. Senior
management is responsible for reviewing and
approving certain of these risk limits on an ongoing
basis. Limits that have not been reviewed within
specified time periods by Market Risk Management
are reported to senior management. The LOBs and
Corporate are responsible for adhering to established
limits against which exposures are monitored and
reported.
Limit breaches are required to be reported in a timely
manner to limit approvers, which include Market Risk
Management and senior management. In the event of
a breach, Market Risk Management consults with
senior members of appropriate groups within the Firm
to determine the suitable course of action required to
return the applicable positions to compliance, which
may include a reduction in risk in order to remedy the
breach or granting a temporary increase in limits to
accommodate an expected increase in client activity
and/or market volatility. Firm, Corporate or LOB-level
limit breaches are escalated as appropriate.
Models used to measure market risk are inherently
imprecise and are limited in their ability to measure
certain risks or to predict losses. This imprecision may
be heightened when sudden or severe shifts in market
conditions occur. For additional discussion on model
uncertainty refer to Estimations and Model Risk
Management on page 160.
Market Risk Management periodically reviews the
Firm’s existing market risk measures to identify
opportunities for enhancement, and to the extent
appropriate, will calibrate those measures accordingly
over time.
JPMorgan Chase & Co./2024 Form 10-K
141

The following table summarizes the predominant business activities and related market risks, as well as positions
which give rise to market risk and certain measures used to capture those risks, for each LOB and Corporate.
In addition to the predominant business activities, each LOB and Corporate may engage in principal investing
activities. To the extent principal investments are deemed market risk sensitive, they are reflected in relevant risk
measures and captured in the table below. Refer to Investment Portfolio Risk Management on page 140 for additional
discussion on principal investments.
LOBs and
Corporate
Predominant
business activities
Related market risks
Positions included in Risk
Management VaR
Positions included in
earnings-at-risk
Positions included in other
sensitivity-based measures
CCB
•
Originates and
services
mortgage loans
•
Originates loans
and takes
deposits
•
Risk from changes in
the probability of
newly originated
mortgage
commitments
closing
•
Interest rate risk and
prepayment risk
•
Mortgage commitments,
classified as derivatives
•
Warehouse loans that are fair
value option elected, classified
as loans – debt instruments
•
MSRs
•
Hedges of mortgage
commitments, warehouse
loans and MSRs, classified as
derivatives
•
Interest-only and mortgage-
backed securities, classified as
trading assets debt
instruments, and related
hedges, classified as
derivatives
•
Fair value option elected
liabilities(b)
•
Retained and held-for-
sale loan portfolios
•
Deposits
•
Fair value option elected
liabilities DVA
(b)
CIB(a)
•
Makes markets
and services
clients across
fixed income,
foreign
exchange,
equities and
commodities
•
Originates loans
and takes
deposits
•
Risk of loss from
adverse movements
in market prices and
implied volatilities
across interest rate,
foreign exchange,
credit, commodity
and equity
instruments
•
Basis and
correlation risk from
changes in the way
asset values move
relative to one
another
•
Interest rate risk and
prepayment risk
•
Trading assets/liabilities – debt
and marketable equity
instruments, and derivatives,
including hedges of the
retained loan portfolio
•
Certain securities purchased,
loaned or sold under resale
agreements and securities
borrowed
•
Fair value option elected
liabilities(b)
•
Certain fair value option
elected loans
•
Derivative CVA and associated
hedges
•
Marketable equity investments
•
Retained and held-for-
sale loan portfolios
•
Deposits
•
Privately held equity and
other investments measured
at fair value; and certain real
estate-related fair value
option elected loans
•
Derivatives FVA and fair
value option elected
liabilities DVA(b)
•
Credit risk component of
CVA and associated hedges
for counterparties with credit
spreads that have widened
to elevated levels
AWM
•
Provides initial
capital
investments in
products such
as mutual funds
and capital
invested
alongside third-
party investors
•
Originates loans
and takes
deposits
•
Risk from adverse
movements in
market factors (e.g.,
market prices, rates
and credit spreads)
•
Interest rate risk and
prepayment risk
•
Debt securities held in advance
of distribution to clients,
classified as trading assets -
debt instruments
•
Trading assets/liabilities -
derivatives that hedge the
retained loan portfolio
•
Retained and held-for-
sale loan portfolios
•
Deposits
•
Initial seed capital
investments and related
hedges, classified as
derivatives
•
Certain deferred
compensation and related
hedges, classified as
derivatives
•
Capital invested alongside
third-party investors,
typically in privately
distributed collective
vehicles managed by AWM
(i.e., co-investments), as well
as in third-party funds
Corporate
•
Manages the
Firm’s liquidity,
funding, capital,
structural
interest rate and
foreign
exchange risks
•
Structural interest
rate risk from the
Firm’s traditional
banking activities
•
Structural non-USD
foreign exchange
risks
•
Derivative positions measured
through noninterest revenue in
earnings
•
Marketable equity investments
•
Deposits with banks and
financing activities
•
Investment securities
portfolio and related
interest rate hedges
•
Cash flow hedges on
retained loan portfolios
in the LOBs
•
Long-term and short-
term funding and related
interest rate hedges
•
Deposits
•
Foreign exchange
hedges of non-U.S. dollar
capital investments
•
Privately held equity and
other investments measured
at fair value
•
Foreign exchange exposure
related to Firm-issued non-
USD long-term debt (“LTD”)
and related hedges
(a) Effective in the second quarter of 2024, the Firm reorganized its reportable business segments by combining the former Corporate &
Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank (“CIB”).
Refer to Business Segment & Corporate Results on pages 70–90 for additional information.
(b) Reflects structured notes in Risk Management VaR and the DVA on structured notes in other sensitivity-based measures.
Management’s discussion and analysis
142
JPMorgan Chase & Co./2024 Form 10-K

Value-at-risk
JPMorganChase utilizes value-at-risk (“VaR”), a
statistical risk measure, to estimate the potential loss
from adverse market moves in the current market
environment. The Firm has a single VaR framework
used as a basis for calculating Risk Management VaR
and Regulatory VaR.
The framework is employed across the Firm using
historical simulation based on data for the previous 12
months. The framework’s approach assumes that
historical changes in market values are representative
of the distribution of potential outcomes in the
immediate future. The Firm believes the use of Risk
Management VaR provides a daily measure of risk that
is closely aligned to risk management decisions made
by the LOBs and Corporate and, along with other
market risk measures, provides the appropriate
information needed to respond to risk events.
The Firm’s Risk Management VaR is calculated
assuming a one-day holding period and an expected
tail-loss methodology which approximates a 95%
confidence level. Risk Management VaR provides a
consistent framework to measure risk profiles and
levels of diversification across product types and is
used for aggregating risks and monitoring limits
across businesses. VaR results are reported as
appropriate to various groups including senior
management, the Board Risk Committee and
regulators.
Underlying the overall VaR model framework are
individual VaR models that simulate historical market
returns for individual risk factors and/or product types.
To capture material market risks as part of the Firm’s
risk management framework, comprehensive VaR
model calculations are performed daily for businesses
whose activities give rise to market risk. These VaR
models are granular and incorporate numerous risk
factors and inputs to simulate daily changes in market
values over the historical period; inputs are selected
based on the risk profile of each portfolio, as
sensitivities and historical time series used to generate
daily market values may be different across product
types or risk management systems. The VaR model
results across all portfolios are aggregated at the Firm
level.
As VaR is based on historical data, it is an imperfect
measure of market risk exposure and potential future
losses. In addition, based on their reliance on available
historical data, limited time horizons, and other factors,
VaR measures are inherently limited in their ability to
measure certain risks and to predict losses,
particularly those associated with market illiquidity
and sudden or severe shifts in market conditions.
For certain products, specific risk parameters are not
captured in VaR due to the lack of liquidity and
availability of appropriate historical data. The Firm
uses proxies to estimate the VaR for these and other
products when daily time series are not available. It is
likely that using an actual price-based time series for
these products, if available, would affect the VaR
results presented. The Firm therefore considers other
nonstatistical measures such as stress testing, in
addition to VaR, to capture and manage its market risk
positions.
As VaR model calculations require daily data and a
consistent source for valuation, the daily market data
used may be different than the independent third-
party data collected for VCG price testing in its
monthly valuation process. For example, in cases
where market prices are not observable, or where
proxies are used in VaR historical time series, the data
sources may differ. Refer to Valuation process in Note
2 for further information on the Firm’s valuation
process.
The Firm’s VaR model calculations are periodically
evaluated and enhanced in response to changes in the
composition of the Firm’s portfolios, changes in
market conditions, improvements in the Firm’s
modeling techniques and measurements, and other
factors. Such changes may affect historical
comparisons of VaR results. Refer to Estimations and
Model Risk Management on page 160 for information
regarding model reviews and approvals.
The Firm calculates separately a daily aggregated VaR
in accordance with regulatory rules (“Regulatory
VaR”), which is used to derive the Firm’s regulatory
VaR-based capital requirements under Basel III capital
rules. This Regulatory VaR model framework currently
assumes a ten business-day holding period and an
expected tail-loss methodology which approximates a
99% confidence level. Regulatory VaR is applied to
“covered” positions as defined by Basel III capital rules,
which may be different than the positions included in
the Firm’s Risk Management VaR. For example, credit
derivative hedges of accrual loans are included in the
Firm’s Risk Management VaR, while Regulatory VaR
excludes these credit derivative hedges. In addition, in
contrast to the Firm’s Risk Management VaR,
Regulatory VaR currently excludes the diversification
benefit for certain VaR models.
Refer to JPMorganChase’s Basel III Pillar 3 Regulatory
Capital Disclosures reports, which are available on the
Firm’s website, for additional information on
Regulatory VaR and the other components of market
risk regulatory capital for the Firm (e.g., VaR-based
measure, stressed VaR-based measure and the
respective backtesting).
JPMorgan Chase & Co./2024 Form 10-K
143

The table below shows the results of the Firm’s Risk Management VaR measure using a 95% confidence level. VaR
can vary significantly as positions change, market volatility fluctuates, and diversification benefits change.
Total VaR
As of or for the year ended December 31,
2024
2023
(in millions)
Avg.
Min
Max
Avg.
Min
Max
CIB trading VaR by risk type(a)
Fixed income
$
34
$
26
$
53
$
49
$
31
$
71
Foreign exchange

26
Equities

11
Commodities and other

19
Diversification benefit to CIB trading VaR (b)

(32)
NM
NM

(42)
NM
NM
CIB trading VaR

55
Credit Portfolio VaR(c)

26
Diversification benefit to CIB VaR(b)

(16)
NM
NM

(11)
NM
NM
CIB VaR

58
CCB VaR

15
AWM VaR(d)

—

10
Corporate VaR(d)(e)

102

17
Diversification benefit to other VaR(b)

(10)
NM
NM

(6)
NM
NM
Other VaR

101

22
Diversification benefit to CIB and other VaR
(b)

(17)
NM
NM

(11)
NM
NM
Total VaR
$
47
$
30
$
91
$
43
$
26
$
57
(a) The impact of the business segment reorganization in the second quarter of 2024 was not material to Total CIB VaR. Prior periods have not
been revised. Refer to Business Segment & Corporate Results on pages 70–90 for additional information.
(b) Diversification benefit represents the difference between the portfolio VaR and the sum of its individual components. This reflects the non-
additive nature of VaR due to imperfect correlation across LOBs, Corporate, and risk types. For maximum and minimum VaR, diversification
benefit is not meaningful as the maximum and minimum VaR for each portfolio may have occurred on different trading days than the
components.
(c) Includes the derivative CVA, hedges of the CVA and credit protection purchased against certain retained loans and lending-related
commitments, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not
reported at fair value. In line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties
was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related
hedges were also removed to maintain consistency. This exposure is now reflected in other sensitivity-based measures.
(d) In the second quarter of 2024, the presentation of Corporate and other LOB VaR was updated to disaggregate AWM VaR due to the increase
associated with credit protection purchased against certain retained loans and lending-related commitments. The VaR does not include the
retained loan portfolio, which is not reported at fair value.
(e) Includes a legacy private equity position which is publicly traded, as well as Visa C shares which the Firm disposed of in the second and third
quarters of 2024. The impact of Visa C shares resulted in elevated average and maximum Corporate VaR, Other VaR and Total VaR. Refer to
Executive Overview on pages 54–58 for additional information.
2024 compared with 2023
Average Total VaR increased by $4 million for the year
ended December 31, 2024 when compared with the
prior year. The increase was predominantly driven by
the impact of the Firm’s receipt of Visa C shares on
Corporate VaR and increases associated with credit
protection purchased against certain retained loans
and lending-related commitments within Credit
Portfolio VaR and AWM VaR, largely offset by market
volatility rolling out of the one-year historical look-
back period impacting the Fixed income risk type.
The following graph presents daily Risk Management VaR for the four trailing quarters. The increase in VaR and
subsequent decline observed in the second quarter of 2024 was primarily driven by changes in Visa C share
exposure in the Firm's Corporate VaR.
Daily Risk Management VaR
$ millions
0
25
50
75
100
First Quarter
2024
Second Quarter
2024
Third Quarter
2024
Fourth Quarter
2024
Management’s discussion and analysis
144
JPMorgan Chase & Co./2024 Form 10-K

VaR backtesting
The Firm performs daily VaR model backtesting, which
compares the daily Risk Management VaR results with
the daily gains and losses that are utilized for VaR
backtesting purposes. The gains and losses depicted
in the chart below do not reflect the Firm’s reported
revenue as they exclude certain components of total
net revenue, such as those associated with the
execution of new transactions (i.e., intraday client-
driven trading and intraday risk management
activities), fees, commissions, other valuation
adjustments and net interest income. These excluded
components of total net revenue may more than offset
the backtesting gain or loss on a particular day. The
definition of backtesting gains and losses above is
consistent with the requirements for backtesting
under Basel III capital rules.
A backtesting exception occurs when the daily
backtesting loss exceeds the daily Risk Management
VaR for the prior day. Under the Firm’s Risk
Management VaR methodology, assuming current
changes in market values are consistent with the
historical changes used in the simulation, the Firm
would expect to incur VaR backtesting exceptions five
times every 100 trading days on average. The number
of VaR backtesting exceptions observed can differ
from the statistically expected number of backtesting
exceptions if the current level of market volatility is
materially different from the level of market volatility
during the 12 months of historical data used in the VaR
calculation.
For the 12 months ended December 31, 2024, the Firm
posted backtesting gains on 179 of the 260 days, and
observed eight VaR backtesting exceptions, of which
three were in the three months ended December 31,
2024. Firmwide backtesting loss days can differ from
the loss days for which Fixed Income Markets and
Equity Markets posted losses, as disclosed in CIB
Markets revenue, as the population of positions which
comprise each metric are different and due to the
exclusion of certain components of total net revenue in
backtesting gains and losses as described above.
The following chart presents the distribution of
Firmwide daily backtesting gains and losses for the
trailing 12 months and three months ended
December 31, 2024. The daily backtesting losses are
displayed as a percentage of the corresponding daily
Risk Management VaR. The count of days with
backtesting losses are shown in aggregate, in fifty
percentage point intervals. Backtesting exceptions are
displayed within the intervals that are greater than one
hundred percent. The results in the chart below differ
from the results of backtesting disclosed in the Market
Risk section of the Firm’s Basel III Pillar 3 Regulatory
Capital Disclosures reports, which are based on
Regulatory VaR applied to the Firm’s covered
positions.
Distribution of Daily Backtesting Gains and Losses
JPMorgan Chase & Co./2024 Form 10-K
145

Other risk measures
Stress testing
Along with VaR, stress testing is an important tool
used to assess risk. While VaR reflects the risk of loss
due to adverse changes in markets using recent
historical market behavior, stress testing reflects the
risk of loss from hypothetical changes in the value of
market risk sensitive positions applied simultaneously.
Stress testing measures the Firm’s vulnerability to
losses under a range of stressed but possible
economic and market scenarios. The results are used
to understand the exposures responsible for those
potential losses and are measured against limits.
The Firm’s stress framework covers market risk
sensitive positions in the LOBs and Corporate. The
framework is used to calculate multiple magnitudes of
potential stress for both market rallies and market sell-
offs, assuming significant changes in market factors
such as credit spreads, equity prices, interest rates,
currency rates and commodity prices, and combines
them in multiple ways to capture an array of
hypothetical economic and market scenarios.
The Firm generates a number of scenarios that focus
on tail events in specific asset classes and
geographies, including how the event may impact
multiple market factors simultaneously. Scenarios also
incorporate specific idiosyncratic risks and stress
basis risk between different products. The flexibility in
the stress framework allows the Firm to construct new
scenarios that can test the outcomes against possible
future stress events. Stress testing results are
reported periodically to senior management of the
Firm, as appropriate.
Stress methodologies are governed by the overall
stress framework, under the oversight of Market Risk
Management. The Firmwide Market Risk Stress
Methodology Committee reviews and approves
changes to stress testing methodology and scenarios
across the Firm. Significant changes to the framework
are escalated to senior management, as appropriate.
In addition, stress methodology and the models to
calculate the stress results are subject to the Firm’s
Estimations and Model Risk Management Policy
The Firm’s stress testing framework is utilized in
calculating the Firm’s CCAR and other stress test
results, which are reported periodically to the Board of
Directors. In addition, stress testing results are
incorporated into the Firm’s Risk Appetite framework,
and are reported periodically to the Board Risk
Committee.
Profit and loss drawdowns
Profit and loss drawdowns are used to highlight
trading losses above certain levels of risk tolerance. A
profit and loss drawdown is a decline in revenue from
its year-to-date peak level.
Structural interest rate risk management
The effect of interest rate exposure on the Firm’s
reported net income is important as interest rate risk
represents one of the Firm’s significant market risks.
Interest rate risk arises not only from trading activities
which are included in VaR, but also from the Firm’s
traditional banking activities, which include extension
of loans and credit facilities, taking deposits, issuing
debt, as well as the investment securities portfolio, and
associated derivative instruments. Refer to the table
on page 142 for a summary by LOB and Corporate
identifying positions included in earnings-at-risk.
Governance
The CTC Risk Committee establishes the Firm’s
interest rate risk management policy and related
limits, which are subject to approval by the Board Risk
Committee. Treasury and CIO, working in partnership
with the LOBs, calculates the Firm’s structural interest
rate risk profile and reviews it with senior
management, including the CTC Risk Committee. In
addition, oversight of structural interest rate risk is
managed through a dedicated risk function reporting
to the CTC CRO. This risk function is responsible for
providing independent oversight and governance
around assumptions and establishing and monitoring
limits for structural interest rate risk, including limits
related to Earnings-at-Risk and Economic Value
Sensitivity. The Firm manages structural interest rate
risk generally through its investment securities
portfolio and interest rate derivatives.
Key risk drivers and risk management process
Structural interest rate risk can arise due to a variety of
factors, including:
• Differences in timing among the maturity or
repricing of assets, liabilities and off-balance sheet
instruments
• Differences in the amounts of assets, liabilities and
off-balance sheet instruments that are maturing or
repricing at the same time
• Differences in the amounts by which short-term and
long-term market interest rates change (for
example, changes in the slope of the yield curve)
• The impact of changes in the maturity of various
assets, liabilities or off-balance sheet instruments as
interest rates change
The Firm manages interest rate exposure related to its
assets and liabilities on a consolidated, Firmwide
basis. Business units transfer their interest rate risk to
Treasury and CIO through funds transfer pricing,
which takes into account the elements of interest rate
exposure that can be risk-managed in financial
markets. These elements include asset and liability
balances and contractual rates of interest, contractual
principal payment schedules, expected prepayment
Management’s discussion and analysis
146
JPMorgan Chase & Co./2024 Form 10-K

experience, interest rate reset dates and maturities,
rate indices used for repricing, and any interest rate
ceilings or floors for adjustable rate products.
Earnings-at-Risk
One way that the Firm evaluates its structural interest
rate risk is through earnings-at-risk. Earnings-at-risk
estimates the Firm’s interest rate exposure for a given
interest rate scenario. It is presented as a sensitivity to
a baseline, which includes net interest income and
certain interest rate sensitive fees. The baseline uses
market interest rates and, in the case of deposits,
pricing assumptions. The Firm conducts simulations of
changes to this baseline for interest rate-sensitive
assets and liabilities denominated in U.S. dollars and
other currencies (“non-U.S. dollar” currencies). These
simulations primarily include retained and held-for-
sale loans, deposits, deposits with banks and financing
activities, investment securities, long-term debt,
related interest rate hedges, and funds transfer pricing
of other positions in risk management VaR and other
sensitivity-based measures as described on page 142.
Beginning in the fourth quarter of 2024, these
simulations also include hedges of non-U.S. dollar
foreign exchange exposures arising from capital
investments. Refer to non-U.S. dollar foreign exchange
risk on page 149 for more information.
Earnings-at-risk scenarios estimate the potential
change to a baseline over the following 12 months
utilizing multiple assumptions. These scenarios
include a parallel shift involving changes to both short-
term and long-term rates by an equal amount; a
steeper yield curve involving holding short-term rates
constant and increasing long-term rates; and a flatter
yield curve involving increasing short-term rates and
holding long-term rates constant or holding short-
term rates constant and decreasing long-term rates.
These scenarios consider many different factors,
including:
• The impact on exposures as a result of
instantaneous changes in interest rates from
baseline rates.
• Forecasted balance sheet, as well as modeled
prepayment and reinvestment behavior, but
excluding assumptions about actions that could be
taken by the Firm or its clients and customers in
response to instantaneous rate changes. Mortgage
prepayment assumptions are based on the interest
rates used in the scenarios compared with
underlying contractual rates, the time since
origination, and other factors which are updated
periodically based on historical experience. Deposit
forecasts are a key assumption in the Firm’s
earnings-at-risk. The baseline reflects certain
assumptions relating to the Federal Reserve’s
balance sheet policy (e.g., quantitative tightening
and usage at the Reverse Repurchase Facility) that
require management judgment. The amount of
deposits that the Firm holds at any given time may
be influenced by Federal Reserve actions, as well as
broader monetary conditions and competition for
deposits.
• The pricing sensitivity of deposits, known as deposit
betas, represent the amount by which deposit rates
paid could change upon a given change in market
interest rates. Actual deposit rates paid may differ
from the modeled assumptions, primarily due to
customer behavior and competition for deposits.
The Firm performs sensitivity analyses of the
assumptions used in earnings-at-risk scenarios,
including with respect to deposit betas and forecasts
of deposit balances, both of which are especially
significant in the case of consumer deposits. The
results of these sensitivity analyses are reported to the
CTC Risk Committee and the Board Risk Committee.
The Firm’s earnings-at-risk scenarios are periodically
evaluated and enhanced in response to changes in the
composition of the Firm’s balance sheet, changes in
market conditions, improvements in the Firm’s
simulation and other factors. In the second quarter of
2024, the Firm updated certain deposit rates paid
assumptions which take into account observed pricing
and client and customer behavior during the most
recent economic cycle. These updated deposit rates
paid assumptions impacted the U.S. dollar scenarios,
resulting in an increase in positive sensitivity in higher
interest rate scenarios, and an increase in negative
sensitivity in lower interest rate scenarios.
The Firm’s earnings-at-risk sensitivities are measures
of the Firm’s interest rate exposure. The Firm’s actual
net interest income for the rate changes presented
may differ as the earnings-at-risk scenarios are
modelled as instantaneous changes and exclude any
actions that could be taken by the Firm or its clients or
customers in response to rate changes. Other
significant assumptions in the earnings-at-risk
scenarios, including mortgage prepayments and
deposit rates paid, may also differ from actual results.
The Firm’s forecast for net interest income is included
in the Firm’s outlook on page 57.
JPMorgan Chase & Co./2024 Form 10-K
147

The Firm’s sensitivities are presented in the table
below.
December 31,
(in billions)
2024(a)
2023(b)
Parallel shift:
+100 bps shift in rates
$
2.3
$
3.1
-100 bps shift in rates

(2.5)

(2.8)
+200 bps shift in rates

4.6

6.2
-200 bps shift in rates

(4.9)

(6.1)
Steeper yield curve:
+100 bps shift in long-term rates

1.0

0.6
-100 bps shift in short-term rates

(1.4)

(2.2)
Flatter yield curve:
+100 bps shift in short-term rates

1.2

2.5
-100 bps shift in long-term rates

(1.1)

(0.6)
(a) Reflects the simultaneous shift of U.S. dollar and non-U.S. dollar
rates, and the inclusion of the hedges of non-U.S. dollar capital
investments. This inclusion had no impact on total sensitivities
but increased U.S. dollar and decreased non-U.S. dollar
sensitivities. Subsequent to this change, non-U.S. dollar
sensitivities were insignificant.
(b) At December 31, 2023, represents the total of the Firm’s U.S.
dollar and non-U.S. dollar sensitivities as previously reported.
The change in the Firm’s sensitivities as of December
31, 2024, compared to December 31, 2023, were
primarily driven by Treasury and CIO balance sheet
actions where the Firm added duration through
investment securities activity, cash flow hedges of
retained loans and fair value hedges of Firm debt. The
impact on the sensitivities of the Treasury and CIO
balance sheet actions were largely offset by the impact
of deposits, primarily from the second quarter of 2024
update of the deposit rates paid assumptions for
certain consumer and wholesale deposit products.
Additionally, the results as of December 31, 2024
reflected the update to include hedges of the Firm’s
non-U.S. dollar capital investments. Although total
results were not impacted, these hedges increase U.S.
dollar sensitivities and decrease non-U.S. dollar
sensitivities. In the absence of these updates the
Firm’s sensitivities as of December 31, 2024, would
have been different by the amounts reported in the
following table:
Amounts by which
reported sensitivities
would have been different
December 31, 2024
(in billions)
Impact from
update in
the second
quarter of
2024
Impact from
update in
the fourth
quarter of
2024
U.S. dollar:
Parallel shift:
+100 bps shift in rates
$
(1.0) $
(0.6)
-100 bps shift in rates

0.9
0.6
+200 bps shift in rates

(1.9)
(1.3)
-200 bps shift in rates

1.5
1.3
Steeper yield curve:
+100 bps shift in long-term rates

—
—
-100 bps shift in short-term rates

0.9
0.6
Flatter yield curve:
+100 bps shift in short-term rates

(1.0)
(0.6)
-100 bps shift in long-term rates

—
—
Non-U.S. dollar:
Parallel shift:

+100 bps shift in rates

—
0.6
-100 bps shift in rates

—
(0.6)
Economic Value Sensitivity
In addition to earnings-at-risk, which is measured as a
sensitivity to a baseline of earnings over the next 12
months, the Firm also measures Economic Value
Sensitivity (“EVS”). EVS stress tests the longer-term
economic value of equity by measuring the sensitivity
of the Firm’s current balance sheet, primarily retained
loans, deposits, debt and investment securities as well
as related hedges, under various interest rate
scenarios. The Firm's pricing and cash flow
assumptions associated with deposits, as well as
prepayment assumptions for loans and securities, are
significant factors in the EVS measure. In accordance
with the CTC interest rate risk management policy, the
Firm has established limits on EVS as a percentage of
TCE.
Certain assumptions used in the EVS measure may
differ from those required in the fair value
measurement note to the Consolidated Financial
Statements. For example, certain assets and liabilities
with no stated maturity, such as credit card
receivables and deposits, have longer assumed
durations in the EVS measure. Additional information
on long-term debt and held to maturity investment
securities is disclosed on page 201 in Note 2.
Management’s discussion and analysis
148
JPMorgan Chase & Co./2024 Form 10-K

Non-U.S. dollar foreign exchange risk
Non-U.S. dollar FX risk is the risk that changes in foreign exchange rates affect the value of the Firm’s assets or
liabilities or future results. The Firm has structural non-U.S. dollar FX exposures arising from capital investments,
forecasted expense and revenue, the investment securities portfolio and non-U.S. dollar-denominated debt
issuance. Treasury and CIO, working in partnership with the LOBs, primarily manage these risks on behalf of the
Firm. Treasury and CIO may hedge certain of these risks using derivatives. Refer to Business Segment & Corporate
Results on page 71 for additional information.
Other sensitivity-based measures
The Firm quantifies the market risk of certain debt and equity and credit and funding-related exposures by
assessing the potential impact on net revenue, other comprehensive income (“OCI”) and noninterest expense due to
changes in relevant market variables. Refer to the predominant business activities that give rise to market risk on
page 142 for additional information on the positions captured in other sensitivity-based measures.
The table below represents the potential impact to net revenue, OCI or noninterest expense for market risk sensitive
instruments that are not included in VaR or earnings-at-risk. Where appropriate, instruments used for hedging
purposes are reported net of the positions being hedged. The sensitivities disclosed in the table below may not be
representative of the actual gain or loss that would have been realized at December 31, 2024 and 2023, as the
movement in market parameters across maturities may vary and are not intended to imply management’s
expectation of future changes in these sensitivities.
Gain/(loss) (in millions)
Activity
Description
Sensitivity
measure
December 31,
2024
December 31,
2023
Debt and equity
(a)
Asset Management activities
Consists of seed capital and related hedges;
fund co-investments
(c); and certain deferred
compensation and related hedges
(d)
10% decline in
market value
$
(53) $
(61)
Other debt and equity
Consists of certain real estate-related fair
value option elected loans, privately held
equity and other investments held at fair
value
(c)
10% decline in
market value

(1,030)
(1,044)
Credit- and funding-related exposures
Non-USD LTD cross-currency basis
Represents the basis risk on derivatives
used to hedge the foreign exchange risk on
the non-USD LTD
(e)
1 basis point parallel
tightening of cross
currency basis

(10)
(12)
Non-USD LTD hedges foreign currency
(“FX”) exposure
Primarily represents the foreign exchange
revaluation on the fair value of the derivative
hedges
(e)
10% depreciation of
currency

28
16
Derivatives – funding spread risk
Impact of changes in the spread related to
derivatives FVA
(c)
1 basis point parallel
increase in spread

(2)
(3)
CVA - counterparty credit risk
(b)
Credit risk component of CVA and
associated hedges
10% credit spread
widening

—
—
Fair value option elected liabilities -
funding spread risk
Impact of changes in the spread related to
fair value option elected liabilities DVA(e)
1 basis point parallel
increase in spread

47
46
(a) Excludes equity securities without readily determinable fair values that are measured under the measurement alternative. Refer to Note 2 for
additional information.
(b) In line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from
Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also
removed to maintain consistency. This exposure is now reflected in the table above.
(c) Impact recognized through net revenue.
(d) Impact recognized through noninterest expense.
(e) Impact recognized through OCI.
JPMorgan Chase & Co./2024 Form 10-K
149

COUNTRY RISK MANAGEMENT
The Firm, through its LOBs and Corporate, may be
exposed to country risk resulting from financial,
economic, political or other significant developments
which adversely affect the value of the Firm’s
exposures related to a particular country or set of
countries. The Country Risk Management group
actively monitors the various portfolios which may be
impacted by these developments and measures the
extent to which the Firm’s exposures are diversified
given the Firm’s strategy and risk tolerance relative to
a country.
Organization and management
Country Risk Management is an independent risk
management function that assesses and monitors
exposure to country risk across the Firm.
The Firm’s country risk management function includes
the following activities:
• Maintaining policies, procedures and standards
consistent with a comprehensive country risk
framework
• Assigning sovereign ratings, assessing country risks
and establishing risk tolerance relative to a country
• Measuring and monitoring country risk exposure
and stress across the Firm
• Managing and approving country limits and
reporting trends and limit breaches to senior
management
• Developing surveillance tools, such as signaling
models and ratings indicators, for early identification
of potential country risk concerns
• Providing country risk scenario analysis
Sources and measurement
The Firm is exposed to country risk through its lending
and deposits, investing, and market-making activities,
whether cross-border or locally funded. Country
exposure includes activity with both government and
private-sector entities in a country.
Under the Firm’s internal country risk management
approach, attribution of exposure to an individual
country is based on the country where the largest
proportion of the assets of the counterparty, issuer,
obligor or guarantor are located or where the largest
proportion of its revenue is derived, which may be
different than the domicile (i.e. legal residence) or
country of incorporation.
Individual country exposures reflect an aggregation of
the Firm’s risk to an immediate default, with zero
recovery, of the counterparties, issuers, obligors or
guarantors attributed to that country. Activities which
result in contingent or indirect exposure to a country
are not included in the country exposure measure (for
example, providing clearing services or secondary
exposure to collateral on securities financing
receivables).
Assumptions are sometimes required in determining
the measurement and allocation of country exposure,
particularly in the case of certain non-linear or index
products, or where the nature of the counterparty,
issuer, obligor or guarantor is not suitable for
attribution to an individual country. The use of
different measurement approaches or assumptions
could affect the amount of reported country exposure.
Under the Firm’s internal country risk measurement
framework:
• Deposits with banks are measured as the cash
balances placed with central banks, commercial
banks, and other financial institutions
• Lending exposures are measured at the total
committed amount (funded and unfunded), net of
the allowance for credit losses and eligible cash and
marketable securities collateral received
• Securities financing exposures are measured at their
receivable balance, net of eligible collateral received
• Debt and equity securities are measured at the fair
value of all positions, including both long and short
positions
• Counterparty exposure on derivative receivables is
measured at the derivative’s fair value, net of the fair
value of the eligible collateral received
• Credit derivatives exposure is measured at the net
notional amount of protection purchased or sold for
the same underlying reference entity, inclusive of the
fair value of the derivative receivable or payable,
reflecting the manner in which the Firm manages
these exposures
The Firm’s internal country risk reporting differs from
the reporting provided under the FFIEC bank
regulatory requirements.
Management’s discussion and analysis
150
JPMorgan Chase & Co./2024 Form 10-K

Stress testing
Stress testing is an important component of the Firm’s
country risk management framework, which aims to
estimate and limit losses arising from a country crisis
by measuring the impact of adverse asset price
movements to a country based on market shocks
combined with counterparty specific assumptions.
Country Risk Management periodically designs and
runs tailored stress scenarios to test vulnerabilities to
individual countries or sets of countries in response to
specific or potential market events, sector
performance concerns, sovereign actions and
geopolitical risks. These tailored stress results are
used to inform potential risk reduction across the
Firm, as necessary.
Risk reporting
Country exposure and stress are measured and
reported regularly, and used by Country Risk
Management to identify trends and monitor high
usages and breaches against limits.
For country risk management purposes, the Firm may
report exposure to jurisdictions that are not fully
autonomous, including dependent territories and
Special Administrative Regions (“SAR”) such as Hong
Kong SAR, separately from the independent sovereign
states with which they are associated.
The following table presents the Firm’s top 20
exposures by country (excluding the U.S.) as of
December 31, 2024, and their comparative exposures
as of December 31, 2023. The top 20 country
exposures represent the Firm’s largest total exposures
by individual country. Country exposures may
fluctuate from period to period due to a variety of
factors, including client activity, market flows and
liquidity management activities undertaken by the
Firm.
The increase in exposure to Germany when compared
to December 31, 2023, was driven by an increase in
cash placed with the central bank of Germany,
predominantly due to client-driven market-making
activities and higher client deposits.
The increase in exposure to Japan when compared to
December 31, 2023, was driven by an increase in cash
placed with the central bank of Japan as a result of
client-driven market-making activities.
The Firm continues to monitor its exposure to Russia,
which corresponds to cash placed with the central
bank, but which excludes deposits placed on behalf of
clients at the Deposit Insurance Agency of Russia. The
Firm currently believes that its remaining exposure to
Russia is not material. Refer to Note 30 on pages 310–
311 for information concerning Russian litigation.
Top 20 country
exposures (excluding the U.S.)
(a)
December 31,
(in billions)
2024
2023
(f)
Deposits
with
banks
(b)
Lending
(c)
Trading
and
investing
(d)
Other
(e)
Total
exposure
Total
exposure
Germany
$ 89.7 $ 12.6 $
0.9 $ 0.7 $ 103.9
$
84.8
United
Kingdom

24.6
22.4
27.7 1.4
76.1

77.1
Japan

55.1
3.1
4.5 0.4
63.1

36.0
France

0.6
12.3
4.2 0.9
18.0

10.1
Canada

1.6
10.6
2.7 0.2
15.1

16.0
Brazil

3.5
4.2
7.0
—
14.7

16.7
Australia

5.0
7.4
1.9
—
14.3

18.3
Switzerland

4.7
4.2
1.4 3.3
13.6

10.9
Mainland
China

3.1
6.2
4.1
—
13.4

14.0
India

1.1
5.2
4.1 0.9
11.3

9.7
Italy

0.1
8.2
1.8 0.3
10.4

6.0
South Korea
0.6
2.9
6.3 0.5
10.3

7.8
Saudi Arabia
0.8
5.7
2.9
—
9.4

7.7
Singapore

1.5
2.0
3.5 0.4
7.4

9.8
Mexico

1.3
4.4
1.5
—
7.2

8.2
Spain

0.2
4.6
1.2 0.1
6.1

6.3
Netherlands
—
6.6
(0.9) 0.2
5.9

5.6
Belgium

4.0
1.3
0.1
—
5.4

8.0
Malaysia

2.1
0.2
1.0 0.3
3.6

4.2
Luxembourg
0.9
1.7
1.0
—
3.6

4.0
(a) Country exposures presented in the table reflect 89% and 88%
of total Firmwide non-U.S. exposure, where exposure is
attributed to an individual country based on the Firm’s internal
country risk management approach, at December 31, 2024 and
2023, respectively.
(b) Predominantly represents cash placed with central banks.
(c) Includes loans and accrued interest receivable, lending-related
commitments (net of eligible collateral and the allowance for
credit losses). Excludes intra-day and operating exposures, such
as those from settlement and clearing activities.
(d) Includes market-making positions and hedging, investment
securities, and counterparty exposure on derivative and
securities financings net of eligible collateral. Market-making
positions and hedging includes exposure from single reference
entity (“single-name”), index and other multiple reference entity
transactions for which one or more of the underlying reference
entities is in a country listed in the above table.
(e) Includes physical commodities inventory and clearing house
guarantee funds.
(f) The country rankings presented in the table as of December 31,
2023, are based on the country rankings of the corresponding
exposures at December 31, 2024, not actual rankings of such
exposures at December 31, 2023.
JPMorgan Chase & Co./2024 Form 10-K
151

CLIMATE RISK MANAGEMENT
Climate risk refers to the potential threats posed by
climate change to the Firm and its clients, customers,
operations and business strategy. Climate change is
viewed as a driver of risk that may impact existing
types of risks managed by the Firm. Climate risk is
categorized into physical risk and transition risk.
Physical risk involves economic costs and financial
losses due to a changing climate. Acute physical risk
drivers include the increased frequency or severity of
climate and weather events, such as floods, wildfires
and tropical cyclones. Chronic physical risk drivers
include more gradual shifts in the climate, such as sea
level rise, persistent changes in precipitation levels
and increases in average ambient temperatures.
Transition risk involves the financial and economic
consequences of society’s shift toward a lower-carbon
economy. Transition risk drivers include possible
changes in public policy, adoption of new technologies
and shifts in consumer preferences. Transition risks
may also be influenced by changes in the physical
climate.
Organization and management
The Firm has a Climate Risk Management function that
is responsible for establishing and maintaining the
Firmwide framework and strategy for managing
climate risks that may impact the Firm.
Other responsibilities of Climate Risk Management
include:
• Setting policies, standards, procedures and
processes to support identification, escalation,
monitoring and management of climate risk across
the Firm
• Developing metrics, scenarios and stress testing
mechanisms designed to assess the range of
potential climate-related financial and economic
impacts to the Firm
• Establishing a Firmwide climate risk data strategy
and the supporting climate risk technology
infrastructure
The LOBs and Corporate are responsible for the
identification, assessment and management of climate
risks present in their business activities and for the
adherence to applicable climate-related laws, rules
and regulations.
Governance and oversight
The Firm’s framework and strategy for managing
climate risk is integrated into the Firm’s risk
governance structure. This framework allows for the
escalation of significant climate risk-related issues to
LOB Risk Committees. The Board Risk Committee also
receives information on significant climate risks and
climate-related initiatives, as appropriate.
Management’s discussion and analysis
152
JPMorgan Chase & Co./2024 Form 10-K

OPERATIONAL RISK MANAGEMENT
Operational risk is the risk of an adverse outcome
resulting from inadequate or failed internal processes
or systems; human factors; or external events
impacting the Firm’s processes or systems.
Operational Risk includes compliance, conduct, legal,
and estimations and model risk. Operational risk is
inherent in the Firm’s activities and can manifest itself
in various ways, including fraudulent acts, business
disruptions (including those caused by extraordinary
events beyond the Firm's control), cyber attacks,
inappropriate employee behavior, failure to comply
with applicable laws, rules and regulations or failure of
vendors or other third party providers to perform in
accordance with their agreements. Operational Risk
Management attempts to manage operational risk at
appropriate levels in light of the Firm’s financial
position, the characteristics of its businesses, and the
markets and regulatory environments in which it
operates.
Operational Risk Management Framework
The Firm’s Compliance, Conduct, and Operational Risk
(“CCOR”) Management Framework is designed to
enable the Firm to govern, identify, measure, monitor
and test, manage and report on the Firm’s operational
risk.
Operational Risk Governance
The LOBs and Corporate are responsible for the
management of operational risk. The Control
Management Organization, which consists of control
managers within each LOB and Corporate, is
responsible for the day-to-day execution of the CCOR
Framework.
The Firm’s Global Chief Compliance Officer (“CCO”)
and FRE for Operational Risk and Qualitative Risk
Appetite is responsible for defining the CCOR
Management Framework and establishing the
minimum standards for its execution. The LOB and
Corporate aligned CCOR Lead Officers report to the
Global CCO and FRE for Operational Risk and
Qualitative Risk Appetite and are independent of the
respective businesses or functions they oversee. The
CCOR Management Framework is included in the Risk
Governance and Oversight Policy that is reviewed and
approved by the Board Risk Committee periodically.
Operational Risk Identification
The Firm utilizes a structured risk and control self-
assessment process that is executed by the LOBs and
Corporate. As part of this process, the LOBs and
Corporate evaluate the effectiveness of their
respective control environment to assess
circumstances in which controls have failed, and to
determine where remediation efforts may be required.
The Firm’s Operational Risk and Compliance
organization (“Operational Risk and Compliance”)
provides oversight of and challenge to these
evaluations and may also perform independent
assessments of significant operational risk events and
areas of concentrated or emerging risk.
Operational Risk Measurement
Operational Risk and Compliance performs an
independent assessment of the operational risks
inherent within the LOBs and Corporate, which
includes evaluating the effectiveness of the control
environments and reporting the results to senior
management.
In addition, Operational Risk and Compliance assesses
operational risks through quantitative means,
including operational risk-based capital and
estimation of operational risk losses under both
baseline and stressed conditions.
The primary component of the operational risk-based
capital estimate is the Loss Distribution Approach
(“LDA”) statistical model, which simulates the
projected frequency and severity of operational risk
losses based on historical data. The LDA model is used
to estimate an aggregate operational risk loss over a
one-year time horizon, at a 99.9% confidence level.
The LDA model incorporates actual internal
operational risk losses in the quarter following the
period in which those losses were realized, and the
calculation generally continues to reflect such losses
even after the issues or business activities giving rise
to the losses have been remediated or reduced.
As required under the Basel III capital framework, the
Firm’s operational risk capital methodology, which
uses the Advanced Measurement Approach (“AMA”),
incorporates internal and external losses as well as
management’s view of tail risk captured through
operational risk scenario analysis, and evaluation of
key business environment and internal control metrics.
The Firm does not reflect the impact of insurance in its
AMA estimate of operational risk capital.
The Firm considers the impact of stressed economic
conditions on operational risk losses and develops a
forward looking view of material operational risk
events that may occur in a stressed environment. The
Firm’s operational risk stress testing framework is
utilized in calculating results for the Firm’s CCAR and
other stress testing processes.
Refer to Capital Risk Management on pages 97–107 for
information related to operational risk RWA, and
CCAR.
Operational Risk Monitoring and Testing
The results of risk assessments performed by
Operational Risk and Compliance are used in
connection with their independent monitoring and
testing compliance of the LOBs and Corporate with
JPMorgan Chase & Co./2024 Form 10-K
153

laws, rules and regulations. Through monitoring and
testing, Operational Risk and Compliance
independently identify areas of heightened operational
risk and tests the effectiveness of controls within the
LOBs and Corporate.
Management of Operational Risk
The operational risk areas or issues identified through
monitoring and testing are escalated to the LOBs and
Corporate to be remediated through action plans, as
needed, to mitigate operational risk. Operational Risk
and Compliance may advise the LOBs and Corporate
in the development and implementation of action
plans.
Operational Risk Reporting
All employees of the Firm are expected to escalate
risks appropriately. Risks identified by Operational
Risk and Compliance are escalated to the appropriate
LOB and Corporate Control Committees, as needed.
Operational Risk and Compliance has established
standards designed to ensure that consistent
operational risk reporting and operational risk reports
are produced on a Firmwide basis as well as by the
LOBs and Corporate. Reporting includes the
evaluation of key risk and performance indicators
against established thresholds as well as the
assessment of different types of operational risk
against stated risk appetite. The standards establish
escalation protocols to senior management and to the
Board of Directors.
Insurance
One of the ways in which operational risk may be
mitigated is through insurance maintained by the Firm.
The Firm purchases insurance from commercial
insurers and maintains a wholly-owned captive insurer,
Park Assurance Company. Insurance may also be
required by third parties with whom the Firm does
business.
Subcategories and examples of operational risks
Operational risk can manifest itself in various ways.
Operational risk subcategories include Compliance
risk, Conduct risk, Legal risk, and Estimations and
Model risk. Refer to pages 157, 158, 159 and 160,
respectively for more information on Compliance,
Conduct, Legal, and Estimations and Model risk.
Details on other select examples of operational risks
such as business and technology resiliency, payment
fraud and third-party outsourcing, as well as
cybersecurity, are provided below.
Firmwide resiliency risk
Disruptions of the Firm’s business and operations can
occur due to forces beyond the Firm’s control such as
the spread of infectious diseases or pandemics, severe
weather, natural disasters, the effects of climate
change, power or telecommunications loss, failure of a
third party to provide expected services, cyberattacks,
civil or political unrest or terrorism. The Firm’s
resiliency framework is intended to enable the Firm to
prepare for and adapt to changing conditions and
withstand and recover from, and address adverse
effects on its operations caused by, disruptions that
may impact critical business functions and supporting
assets, including its staff, technology, data and
facilities, as well as those of third-party service
providers. The framework includes governance,
awareness training, planning and testing of recovery
strategies, as well as strategic and tactical initiatives to
identify, assess, and manage resiliency risks. The
framework operates in accordance with the Firm’s
overall approach to Operational Risk Management,
including alignment with technology, cybersecurity,
data, physical security, crisis management, real estate
and outsourcing programs.
Payment fraud risk
Payment fraud risk is the risk of external and internal
parties unlawfully obtaining personal monetary benefit
through misdirected or otherwise improper payment.
The Firm employs various controls for managing
payment fraud risk as well as providing employee and
client education and awareness trainings.
Third-party outsourcing risk
The Firm‘s Third-Party Oversight (“TPO”) and Inter-
affiliates Oversight (“IAO”) frameworks assist the LOBs
and Corporate in selecting, documenting, onboarding,
monitoring and managing their supplier relationships
including services provided by affiliates. The
objectives of the TPO framework are to hold suppliers
and other third parties to an appropriate standard of
operational performance and to mitigate key risks,
including data loss and business disruptions. The
Corporate Third-Party Oversight group is responsible
for Firmwide training, monitoring, reporting and
standards with respect to third-party outsourcing
risks.
Management’s discussion and analysis
154
JPMorgan Chase & Co./2024 Form 10-K

Cybersecurity risk
Cybersecurity risk is the risk of harm or loss resulting
from misuse or abuse of technology or the
unauthorized disclosure of data.
Overview
Cybersecurity risk is an important and continuously
evolving focus for the Firm. Significant resources are
devoted to protecting and enhancing the security of
computer systems, software, networks, storage
devices, and other technology. The Firm’s security
efforts are designed to protect against, among other
things, cybersecurity attacks that can result in
unauthorized access to confidential information, the
destruction of data, disruptions to or degradations of
service, the sabotaging of systems or other damage.
The Firm has experienced, and expects that it will
continue to experience, a higher volume and
complexity of cyber attacks against the backdrop of
heightened geopolitical tensions. The Firm has
implemented measures and controls reasonably
designed to address this evolving environment,
including enhanced threat monitoring. In addition, the
Firm continues to review and enhance its capabilities
to address associated risks, such as those relating to
the management of administrative access to systems.
Third parties with which the Firm does business, that
facilitate the Firm’s business activities (e.g., vendors,
supply chain, exchanges, clearing houses, central
depositories, and financial intermediaries) or that the
Firm has acquired are also sources of cybersecurity
risk to the Firm. Third party incidents such as system
breakdowns or failures, misconduct by the employees
of such parties, or cyber attacks, including
ransomware and supply-chain compromises, could
have a material adverse effect on the Firm, including in
circumstances in which an affected third party is
unable to deliver a product or service to the Firm or
where the incident delivers compromised software to
the Firm or results in lost or compromised information
of the Firm or its clients or customers.
Clients and customers are also sources of
cybersecurity risk to the Firm and its information
assets, particularly when their activities and systems
are beyond the Firm’s own security and control
systems. The Firm engages in periodic discussions
with its clients, customers and other external parties
concerning cybersecurity risks including opportunities
to improve cybersecurity.
Risks from cybersecurity threats, including any
previous cybersecurity events, have not materially
affected the Firm or its business strategy, results of
operations or financial condition. Notwithstanding the
comprehensive approach that the Firm takes to
address cybersecurity risk, the Firm may not be
successful in preventing or mitigating a future
cybersecurity incident that could have a material
adverse effect on the Firm or its business strategy,
results of operations or financial condition.
Organization and management
The Global Chief Information Security Officer (“CISO”)
reports to the Global Chief Information Officer, and is a
member of key cybersecurity governance forums. The
CISO leads the Global Cybersecurity and Technology
Controls organization, which is responsible for
identifying technology and cybersecurity risks and for
implementing and maintaining controls to manage
cybersecurity threats. The CISO and the members of
senior management within Global Technology and the
Cybersecurity and Technology Controls organizations
all have relevant expertise and experience in
cybersecurity and information technology risk
management, including relevant experience at the
Firm, at other financial services companies or in other
highly-regulated industries.
The CISO is responsible for the Firm’s Information
Security Program, which is designed to prevent, detect
and respond to cyber attacks in order to help
safeguard the confidentiality, integrity and availability
of the Firm's infrastructure, resources and information.
The program includes managing the Firm’s global
cybersecurity operations centers, providing training,
conducting cybersecurity event simulation exercises,
implementing the Firm’s policies and standards
relating to technology risk and cybersecurity
management, and enhancing, as needed, the Firm’s
cybersecurity capabilities.
The Firm’s Information Security Program includes the
following functions:
Cyber Operations, which is responsible for
implementing and maintaining controls designed to
detect and defend the Firm against cyber attacks, and
includes a dedicated function for incident response
and ongoing monitoring for cybersecurity threats and
vulnerabilities, including those among the Firm’s third-
party suppliers.
Technology Governance, Risk & Controls, which is
responsible for operationalizing technology risk and
control frameworks, analyzing regulatory
developments that may impact the Firm, and
developing control catalogs and assessments of
controls, as well as overseeing governance and
reporting of technology and cybersecurity risk.
Security Awareness, which provides awareness and
training that reinforces information risk and security
management practices and compliance with the Firm's
policies, standards and practices. The training is
mandatory for all employees globally on a periodic
basis, and it is supplemented by Firmwide testing
initiatives, including periodic phishing tests. The Firm
also provides specialized security training to
JPMorgan Chase & Co./2024 Form 10-K
155

employees in specific roles, such as application
developers. The Firm’s Global Privacy Program
requires all employees to take periodic training on
data privacy that focuses on confidentiality and
security, as well as responding to unauthorized access
to or use of information.
Technology Resiliency, which establishes control
requirements for planning and testing the prioritized
recovery of technology services in the event of
degradation or outage, including incident response
planning, data backup and retention, and recovery
readiness in support of the Firmwide Business
Resiliency Program and operational risk management
practices.
The Firm has a cybersecurity incident response plan
designed to enable the Firm to respond to attempted
cybersecurity incidents, coordinate as appropriate
with law enforcement and other government agencies,
notify clients and customers, as applicable, and
recover from such incidents. In addition, the Firm
actively partners with appropriate government and law
enforcement agencies and peer industry forums,
participating in discussions and simulations to assist in
understanding the full spectrum of cybersecurity risks
and in enhancing defenses and improving resiliency in
the Firm’s operating environment.
Governance and oversight
The governance structure for the Global Cybersecurity
and Technology Controls organization is designed to
appropriately identify, escalate and mitigate
cybersecurity risks. Cybersecurity risk management
and its governance and oversight are integrated into
the Firm’s operational risk management framework,
including through the escalation of key risk and control
issues to management and the development of risk
mitigation plans for heightened risk and control issues.
IRM independently assesses and challenges the
activities and risk management practices of the Global
Cybersecurity and Technology Controls organization
related to the identification, assessment,
measurement and mitigation of cybersecurity risk. As
needed, the Firm engages third-party assessors or
auditing firms with industry-recognized expertise on
cybersecurity matters to review specific aspects of the
Firm’s cybersecurity risk management framework,
processes and controls.
The governance and oversight for cybersecurity risk
management includes governance forums that inform
management of key areas of concern regarding the
prevention, detection, mitigation and remediation of
cybersecurity risks.
The Cybersecurity and Technology Controls Operating
Committee (“CTOC”) is the principal management
committee that oversees the Firm’s assessment and
management of cybersecurity risk, including oversight
of the implementation and maintenance of appropriate
controls in support of the Firm’s Information Security
Program. The membership of the CTOC includes
senior representatives from the Global Cybersecurity
and Technology Controls organization and relevant
corporate functions, including IRM and Internal Audit.
The CTOC escalates key operational risk and control
issues, as appropriate, to the Global Technology
Operating Committee (“GTOC”) or its business control
committee or to the appropriate LOB and Corporate
Control Committees. The GTOC is responsible for the
governance of the Firmwide Global Technology
organization, including oversight of Firmwide
technology strategies, the delivery of technology and
technology operations, the effective use of information
technology resources, and monitoring and resolving
key operational risk and control matters arising in the
Global Technology organization.
As part of its oversight of management’s
implementation and maintenance of the Firm’s risk
management framework, the Firm’s Board of Directors
receives periodic updates from the CIO, the CISO and
senior members of the CTOC concerning
cybersecurity matters. These updates generally
include information regarding cybersecurity and
technology developments, the Firm’s Information
Security Program and recommended changes to that
program, cybersecurity policies and practices, and
ongoing initiatives to improve information security, as
well as any significant cybersecurity incidents and the
Firm's efforts to address those incidents. The Audit
Committee and the Risk Committee assist the Board in
this oversight.
Management’s discussion and analysis
156
JPMorgan Chase & Co./2024 Form 10-K

COMPLIANCE RISK MANAGEMENT
Compliance risk, a subcategory of operational risk, is
the risk of failing to comply with laws, rules, regulations
or codes of conduct and standards of self-regulatory
organizations.
Overview
Each of the LOBs and Corporate hold primary
ownership of and accountability for managing their
compliance risk. The Firm’s Operational Risk and
Compliance Organization (“Operational Risk and
Compliance”), which is independent of the LOBs and
Corporate, provides independent review, monitoring
and oversight of business operations with a focus on
compliance with the laws, rules, and regulations
applicable to the delivery of the Firm’s products and
services to clients and customers.
These compliance risks relate to a wide variety of laws,
rules and regulations across the LOBs and Corporate,
and jurisdictions, and include risks related to financial
products and services, relationships and interactions
with clients and customers, and employee activities.
For example, compliance risks include those
associated with anti-money laundering compliance,
trading activities, market conduct, and complying with
the laws, rules, and regulations related to the offering
of products and services across jurisdictional borders.
Compliance risk is also inherent in the Firm’s fiduciary
activities, including the failure to exercise the
applicable standard of care to act in the best interest
of fiduciary clients and customers or to treat fiduciary
clients and customers fairly.
Other functions provide oversight of significant
regulatory obligations that are specific to their
respective areas of responsibility.
Operational Risk and Compliance implements policies
and standards designed to govern, identify, measure,
monitor and test, manage, and report on compliance
risk.
Governance and oversight
Operational Risk and Compliance is led by the Firm’s
Global CCO and FRE for Operational Risk and
Qualitative Risk Appetite.
The Firm maintains oversight and coordination of its
compliance risk through the CCOR Management
Framework. The Firm’s Global CCO and FRE for
Operational Risk and Qualitative Risk Appetite also
provides regular updates to the Board Risk Committee
and the Audit Committee on significant compliance
risk issues, as appropriate.
Code of Conduct
The Firm has a Code of Conduct (the “Code”) that sets
forth the Firm’s expectation that employees will
conduct themselves with integrity, at all times. The
Code provides the principles that help govern
employee conduct with clients, customers, suppliers,
vendors, shareholders, regulators, other employees, as
well as with the markets and communities in which the
Firm operates. The Code requires employees to
promptly report any potential or actual violation of the
Code, Firm policies, or laws, rules or regulations
applicable to the Firm’s business. It also requires
employees to report any illegal or unethical conduct,
or conduct that violates the underlying principles of
the Code, by any of the Firm’s employees, consultants,
clients, customers, suppliers, contract or temporary
workers, or business partners or agents. Training is
assigned to newly hired employees after joining the
Firm, and to current employees periodically thereafter.
Employees are required to affirm their compliance with
the Code annually.
Employees can report any potential or actual violations
of the Code through the Firm’s Conduct Hotline (the
“Hotline”) by phone, mobile device or the internet. The
Hotline is anonymous, where permitted by law, is
available at all times globally, has translation services,
and is administered by an outside service provider.
The Code prohibits retaliation against anyone who
raises an issue or concern in good faith or assists with
an inquiry or investigation. Periodically, the Audit
Committee receives reports on the Code of Conduct
program.
JPMorgan Chase & Co./2024 Form 10-K
157

CONDUCT RISK MANAGEMENT
Conduct risk, a subcategory of operational risk, is the
risk that any action or misconduct by an employee
could lead to unfair client or customer outcomes,
impact the integrity of the markets in which the Firm
operates, harm employees or the Firm, or compromise
the Firm’s reputation.
Overview
Each LOB and Corporate is accountable for identifying
and managing its conduct risk to provide appropriate
engagement, ownership and sustainability of a culture
consistent with the Firm’s Business Principles. The
Business Principles serve as a guide for how
employees are expected to conduct themselves. With
the Business Principles serving as a guide, the Firm’s
Code sets out the Firm’s expectations for each
employee and provides information and resources to
help employees conduct business ethically and in
compliance with applicable laws, rules and regulations
everywhere the Firm operates. Refer to Compliance
Risk Management on page 157 for further discussion of
the Code.
Governance and oversight
The Firm’s oversight and coordination of conduct risk
is managed in the same manner as Compliance risk.
Refer to Compliance Risk Management on page 157 for
further information.
Conduct risk management encompasses various
aspects of people management practices throughout
the employee life cycle, including recruiting,
onboarding, training and development, performance
management, promotion and compensation
processes. Each LOB, Treasury and CIO, and each
designated corporate function completes an
assessment of conduct risk periodically, reviews
metrics and issues which may involve conduct risk,
and provides conduct education as appropriate.
Management’s discussion and analysis
158
JPMorgan Chase & Co./2024 Form 10-K

LEGAL RISK MANAGEMENT
Legal risk, a subcategory of operational risk, is the risk
of loss primarily caused by the actual or alleged failure
to meet legal obligations that arise from the rule of law
in jurisdictions in which the Firm operates, agreements
with clients and customers, and products and services
offered by the Firm.
Overview
The global Legal function (“Legal”) provides legal
services and advice to the Firm. Legal is responsible
for managing the Firm’s exposure to legal risk by:
• managing actual and potential litigation and
enforcement matters, including internal reviews and
investigations related to such matters
• advising on products and services, including
contract negotiation and documentation
• advising on offering and marketing documents and
new business initiatives
• managing dispute resolution
• interpreting existing laws, rules and regulations, and
advising on changes to them
• advising on advocacy in connection with
contemplated and proposed laws, rules and
regulations, and
• providing legal advice to the LOBs, Corporate and
the Board.
Legal selects, engages and manages outside counsel
for the Firm on all matters in which outside counsel is
engaged. In addition, Legal advises the Firm’s Conflicts
Office which reviews the Firm’s wholesale transactions
that may have the potential to create conflicts of
interest for the Firm.
Governance and oversight
The Firm’s General Counsel reports to the CEO and is a
member of the Operating Committee, the Firmwide
Risk Committee and the Firmwide Control Committee.
The Firm’s General Counsel and other members of
Legal report on significant legal matters to the Firm’s
Board of Directors and to the Audit Committee.
Legal serves on and advises various committees and
advises the Firm’s LOBs and Corporate on potential
reputation risk issues.
JPMorgan Chase & Co./2024 Form 10-K
159

ESTIMATIONS AND MODEL RISK MANAGEMENT
Estimations and Model risk, a subcategory of
operational risk, is the potential for adverse
consequences from decisions based on incorrect or
misused estimation outputs.
The Firm uses models and other analytical and
judgment-based estimations, including those based
upon machine learning or artificial intelligence
techniques, across various businesses and functions.
The estimation methods are of varying levels of
sophistication and are used for many purposes, such
as the valuation of positions and measurement of risk,
assessing regulatory capital requirements, conducting
stress testing, evaluating the allowance for credit
losses and making business decisions. A dedicated
independent function, Model Risk Governance and
Review (“MRGR”), defines and governs the Firm’s
policies relating to the management of model risk and
risks associated with certain analytical and judgment-
based estimations, such as those used in risk
management, budget forecasting and capital planning
and analysis.
Model risks are owned by the users of the models
within the LOBs and Corporate based on the specific
purposes of such models. Users and developers of
models are responsible for developing, implementing
and testing their models, as well as referring models to
MRGR for review and approval. Once models have
been approved, model users and developers are
responsible for maintaining a robust operating
environment, and must monitor and evaluate the
performance of the models on an ongoing basis.
Model users and developers may seek to enhance
models in response to changes in the relevant
portfolios and in product and market developments, as
well as to capture improvements in available modeling
techniques and systems capabilities.
Models are tiered based on an internal standard
according to their complexity, the exposure associated
with the model and the Firm’s reliance on the model.
This tiering is subject to the approval of MRGR. In its
review of a model, MRGR considers whether the model
is suitable for the specific purposes for which it will be
used. When reviewing a model, MRGR analyzes and
challenges the model methodology and the
reasonableness of model assumptions, and may
perform or require additional testing, including back-
testing of model outcomes. Model reviews are
approved by the appropriate level of management
within MRGR based on the relevant model tier.
Under the Firm’s Estimations and Model Risk
Management Policy, MRGR reviews and approves new
models, as well as material changes to existing
models, prior to their use. In certain circumstances,
exceptions may be granted to the Firm’s policy to
allow a model to be used prior to review or approval.
MRGR may also require the user to take appropriate
actions to mitigate the model risk if it is to be used in
the interim. These actions will depend on the model
and may include, for example, limitation of trading
activity.
While models are inherently imprecise, the degree of
imprecision or uncertainty can be heightened by the
market or economic environment. This is particularly
true when the current and forecasted environments
are significantly different from the historical
environments upon which the models were developed.
This increased uncertainty may necessitate a greater
degree of judgment and analytics to inform any
adjustments that the Firm may make to model outputs
than would otherwise be the case. In addition, the Firm
may experience increased uncertainty in its estimates
if assets acquired differ from those used to develop
the models.
Refer to Critical Accounting Estimates Used by the
Firm on pages 161–164 and Note 2 for a summary of
model-based valuations and other valuation
techniques.
Management’s discussion and analysis
160
JPMorgan Chase & Co./2024 Form 10-K

CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM
JPMorganChase’s accounting policies and use of
estimates are integral to understanding its reported
results. The Firm’s most complex accounting
estimates require management’s judgment to
ascertain the appropriate carrying value of assets and
liabilities. The Firm has established policies and
control procedures intended to ensure that estimation
methods, including any judgments made as part of
such methods, are well-controlled, independently
reviewed and applied consistently from period to
period. The methods used and judgments made
reflect, among other factors, the nature of the assets or
liabilities and the related business and risk
management strategies, which may vary across the
Firm’s businesses and portfolios. In addition, the
policies and procedures are intended to ensure that
the process for changing methodologies occurs in an
appropriate manner. The Firm believes its estimates
for determining the carrying value of its assets and
liabilities are appropriate. The following is a brief
description of the Firm’s critical accounting estimates
involving significant judgments.
Allowance for credit losses
The Firm’s allowance for credit losses represents
management’s estimate of expected credit losses over
the remaining expected life of the Firm’s financial
assets measured at amortized cost and certain off-
balance sheet lending-related commitments. The
allowance for credit losses generally comprises:
• The allowance for loan losses, which covers the
Firm’s retained loan portfolios (scored and risk-
rated),
• The allowance for lending-related commitments,
and
• The allowance for credit losses on investment
securities.
The allowance for credit losses involves significant
judgment on a number of matters including
development and weighting of macroeconomic
forecasts, incorporation of historical loss experience,
assessment of risk characteristics, assignment of risk
ratings, valuation of collateral, and the determination
of remaining expected life. Refer to Note 10 and Note
13 for further information on these judgments as well
as the Firm’s policies and methodologies used to
determine the Firm’s allowance for credit losses.
One of the most significant judgments involved in
estimating the Firm’s allowance for credit losses
relates to the macroeconomic forecasts used to
estimate credit losses over the eight-quarter forecast
period within the Firm’s methodology. The eight-
quarter forecast incorporates hundreds of
macroeconomic variables (“MEVs”) that are relevant
for exposures across the Firm, with modeled credit
losses being driven primarily by a subset of less than
twenty variables. The specific variables that have the
greatest effect on the modeled losses vary by portfolio
and geography.
• Key MEVs for the consumer portfolio include
regional U.S. unemployment rates and U.S. HPI.
• Key MEVs for the wholesale portfolio include U.S.
unemployment, U.S. real GDP, U.S. equity prices, U.S.
interest rates, U.S. corporate credit spreads, oil
prices, U.S. commercial real estate prices and U.S.
HPI.
Changes in the Firm’s assumptions and forecasts of
economic conditions could significantly affect its
estimate of expected credit losses in the portfolio at
the balance sheet date or lead to significant changes in
the estimate from one reporting period to the next.
As a result of the First Republic acquisition, the Firm
recorded an allowance for credit losses for the loans
acquired and lending-related commitments assumed
as of May 1, 2023. Due to differences in risk rating
methodologies for the First Republic portfolio and the
ongoing integration of products and systems, the
allowance for credit losses for the acquired wholesale
portfolio was initially measured based on similar risk
characteristics from other facilities underwritten by
the Firm. Starting in the second quarter of 2024, the
acquired portfolio was incorporated into the Firm's
modeled credit loss estimates and is now reflected in
the wholesale sensitivity analysis below. Refer to Note
34 for additional information on the First Republic
acquisition.
It is difficult to estimate how potential changes in any
one factor or input might affect the overall allowance
for credit losses because management considers a
wide variety of factors and inputs in estimating the
allowance for credit losses. Changes in the factors and
inputs considered may not occur at the same rate and
may not be consistent across all geographies or
product types, and changes in factors and inputs may
be directionally inconsistent, such that improvement in
one factor or input may offset deterioration in others.
To consider the impact of a hypothetical alternate
macroeconomic forecast, the Firm compared the
modeled credit losses determined using its central
and relative adverse macroeconomic scenarios, which
are two of the five scenarios considered in estimating
the allowances for loan losses and lending-related
commitments. The central and relative adverse
scenarios each included a full suite of MEVs, but
differed in the levels, paths and peaks/troughs of
those variables over the eight-quarter forecast period.
For example, compared to the Firm’s central scenario
shown on page 137 and in Note 13, the Firm’s relative
adverse scenario assumes an elevated U.S.
JPMorgan Chase & Co./2024 Form 10-K
161

unemployment rate, averaging approximately 2.1%
higher over the eight-quarter forecast, with a peak
difference of approximately 3.0% in the fourth quarter
of 2025.
This analysis is not intended to estimate expected
future changes in the allowance for credit losses, for a
number of reasons, including:
• The allowance as of December 31, 2024, reflects
credit losses beyond those estimated under the
central scenario due to the weight placed on the
adverse scenarios.
• The impacts of changes in many MEVs are both
interrelated and nonlinear, so the results of this
analysis cannot be simply extrapolated for more
severe changes in macroeconomic variables.
• Expectations of future changes in portfolio
composition and borrower behavior can significantly
affect the allowance for credit losses.
To demonstrate the sensitivity of credit loss estimates
to macroeconomic forecasts as of December 31, 2024,
the Firm compared the modeled estimates under its
relative adverse scenario to its central scenario.
Without considering offsetting or correlated effects in
other qualitative components of the Firm’s allowance
for credit losses, the comparison between these two
scenarios for the exposures below reflect the following
differences:
• An increase of approximately $850 million for
residential real estate loans and lending-related
commitments
• An increase of approximately $3.7 billion for credit
card loans
• An increase of approximately $4.1 billion for
wholesale loans and lending-related commitments
This analysis relates only to the modeled credit loss
estimates and is not intended to estimate changes in
the overall allowance for credit losses as it does not
reflect any potential changes in other adjustments to
the quantitative calculation, which would also be
influenced by the judgment management applies to
the modeled lifetime loss estimates to reflect the
uncertainty and imprecision of these modeled lifetime
loss estimates based on then-current circumstances
and conditions.
Recognizing that forecasts of macroeconomic
conditions are inherently uncertain, the Firm believes
that its process to consider the available information
and associated risks and uncertainties is appropriately
governed and that its estimates of expected credit
losses were reasonable and appropriate for the period
ended December 31, 2024.
Fair value
JPMorganChase carries a portion of its assets and
liabilities at fair value. The majority of such assets and
liabilities are measured at fair value on a recurring
basis, including derivatives, structured note products
and certain securities financing agreements. Certain
assets and liabilities are measured at fair value on a
nonrecurring basis, including certain mortgage, home
equity and other loans, where the carrying value is
based on the fair value of the underlying collateral.
Assets measured at fair value
The following table includes the Firm’s assets
measured at fair value and the portion of such assets
that are classified within level 3 of the fair value
hierarchy. Refer to Note 2 for further information.
December 31, 2024
(in millions, except ratios)
Total assets
at fair value
Total level
3 assets
Federal funds sold and securities
purchased under resale agreements
$
286,771
$
—
Securities borrowed

83,962

—
Trading assets:
Trading-debt and equity
instruments

576,817

2,442
Derivative receivables
(a)

60,967

8,452
Total trading assets

637,784

10,894
AFS securities

406,852

8
Loans

41,350

2,416
MSRs

9,121

9,121
Other

14,073

1,344
Total assets measured at fair value
on a recurring basis

1,479,913
23,783
Total assets measured at fair value
on a nonrecurring basis

2,489

1,742
Total assets measured at fair value
$ 1,482,402
$ 25,525
Total Firm assets
$ 4,002,814
Level 3 assets at fair value as a
percentage of total Firm assets
(a)
1%
Level 3 assets at fair value as a
percentage of total Firm assets at
fair value
(a)
2%
(a) For purposes of the table above, the derivative receivables total
reflects the impact of netting adjustments; however, the $8.5
billion of derivative receivables classified as level 3 does not
reflect the netting adjustment as such netting is not relevant to a
presentation based on the transparency of inputs to the
valuation of an asset. The level 3 balances would be reduced if
netting were applied, including the netting benefit associated
with cash collateral.
Management’s discussion and analysis
162
JPMorgan Chase & Co./2024 Form 10-K

Valuation
Details of the Firm’s processes for determining fair
value are set out in Note 2. Estimating fair value
requires the application of judgment. The type and level
of judgment required is largely dependent on the
amount of observable market information available to
the Firm. For instruments valued using internally
developed valuation models and other valuation
techniques that use significant unobservable inputs and
are therefore classified within level 3 of the fair value
hierarchy, judgments used to estimate fair value are
more significant than those required when estimating
the fair value of instruments classified within levels 1
and 2.
In arriving at an estimate of fair value for an instrument
within level 3, management must first determine the
appropriate valuation model or other valuation
technique to use. Second, the lack of observability of
certain significant inputs requires management to
assess relevant empirical data in deriving valuation
inputs including, for example, transaction details, yield
curves, interest rates, prepayment speeds, default
rates, volatilities, correlations, prices (such as
commodity, equity or debt prices), valuations of
comparable instruments, foreign exchange rates and
credit curves. Refer to Note 2 for a further discussion of
the valuation of level 3 instruments, including
unobservable inputs used.
For instruments classified in levels 2 and 3,
management judgment must be applied to assess the
appropriate level of valuation adjustments to reflect
counterparty credit quality, the Firm’s creditworthiness,
market funding rates, liquidity considerations,
unobservable parameters, and for portfolios that meet
specified criteria, the size of the net open risk position.
The judgments made are typically affected by the type
of product and its specific contractual terms, and the
level of liquidity for the product or within the market as a
whole. In periods of heightened market volatility and
uncertainty judgments are further affected by the wider
variation of reasonable valuation estimates, particularly
for positions that are less liquid. Refer to Note 2 for a
further discussion of valuation adjustments applied by
the Firm.
Imprecision in estimating unobservable market inputs
or other factors can affect the amount of gain or loss
recorded for a particular position. Furthermore, while
the Firm believes its valuation methods are appropriate
and consistent with those of other market participants,
the methods and assumptions used reflect
management judgment and may vary across the Firm’s
businesses and portfolios.
The Firm uses various methodologies and assumptions
in the determination of fair value. The use of
methodologies or assumptions different than those
used by the Firm could result in a different estimate of
fair value at the reporting date. Refer to Note 2 for a
detailed discussion of the Firm’s valuation process and
hierarchy, and its determination of fair value for
individual financial instruments.
Goodwill impairment
Under U.S. GAAP, goodwill must be allocated to
reporting units and tested for impairment at least
annually. The Firm’s process and methodology used to
conduct goodwill impairment testing is described in
Note 15.
Management applies significant judgment when testing
goodwill for impairment. The goodwill associated with
each business combination is allocated to the related
reporting units for goodwill impairment testing.
For the year ended December 31, 2024, the Firm
reviewed current economic conditions, estimated
market cost of equity, as well as actual business results
and projections of business performance. Based on
such reviews, the Firm has concluded that goodwill was
not impaired as of December 31, 2024. For each of the
reporting units, fair value exceeded carrying value by at
least 10% and there was no indication of a significant
risk of goodwill impairment based on current
projections and valuations.
The projections for the Firm’s reporting units are
consistent with management’s current business outlook
assumptions in the short term, and the Firm’s best
estimates of long-term growth and return on equity in
the longer term. Where possible, the Firm uses third-
party and peer data to benchmark its assumptions and
estimates.
Refer to Note 15 for additional information on goodwill,
including the goodwill impairment assessment as of
December 31, 2024.
Credit card rewards liability
JPMorganChase offers credit cards with various
rewards programs which allow cardholders to earn
rewards points based on their account activity and the
terms and conditions of the rewards program.
Generally, there are no limits on the points that an
eligible cardholder can earn, nor do the points expire,
and the points can be redeemed for a variety of
rewards, including cash (predominantly in the form of
account credits), gift cards and travel. The Firm
maintains a rewards liability which represents the
estimated cost of rewards points earned and expected
to be redeemed by cardholders. The liability is accrued
as the cardholder earns the benefit and is reduced when
the cardholder redeems points. This liability was $14.4
billion and $13.2 billion at December 31, 2024 and 2023,
respectively, and is recorded in accounts payable and
other liabilities on the Consolidated balance sheets. The
increase in the liability was driven by continued growth
in rewards points earned on higher spend and
promotional offers outpacing redemptions throughout
2024.
The rewards liability is sensitive to redemption rate
(“RR”) and cost per point (“CPP”) assumptions. The RR
JPMorgan Chase & Co./2024 Form 10-K
163

assumption is used to estimate the number of points
earned by customers that will be redeemed over the life
of the account. The CPP assumption is used to estimate
the cost of future point redemptions. These
assumptions are evaluated periodically considering
historical actuals, cardholder redemption behavior and
management judgment. Updates to these assumptions
will impact the rewards liability. As of December 31,
2024, a combined increase of 25 basis points in RR and
1 basis point in CPP would increase the rewards liability
by approximately $442 million.
Income taxes
JPMorganChase is subject to the income tax laws of the
various jurisdictions in which it operates, including U.S.
federal, state and local, and non-U.S. jurisdictions.
These laws are often complex and may be subject to
different interpretations. To determine the financial
statement impact of accounting for income taxes,
including the provision for income tax expense and
unrecognized tax benefits, JPMorganChase must make
assumptions and judgments about how to interpret and
apply these complex tax laws to numerous transactions
and business events, as well as make judgments
regarding the timing of when certain items may affect
taxable income in the U.S. and non-U.S. tax jurisdictions.
JPMorganChase’s interpretations of tax laws around the
world are subject to review and examination by the
various taxing authorities in the jurisdictions where the
Firm operates, and disputes may occur regarding its
view on a tax position. These disputes over
interpretations with the various taxing authorities may
be settled by audit, administrative appeals or
adjudication in the court systems of the tax jurisdictions
in which the Firm operates. JPMorganChase regularly
reviews whether it may be assessed additional income
taxes as a result of the resolution of these matters, and
the Firm records additional unrecognized tax benefits,
as appropriate. In addition, the Firm may revise its
estimate of income taxes due to changes in income tax
laws, legal interpretations, and business strategies. It is
possible that revisions in the Firm’s estimate of income
taxes may materially affect the Firm’s results of
operations in any reporting period.
Deferred taxes arise from differences between assets
and liabilities measured for financial reporting versus
income tax return purposes. Deferred tax assets are
recognized if, in management’s judgment, their
realizability is determined to be more likely than not.
Deferred taxes are measured using enacted tax rates
expected to apply to taxable income in the years in
which those temporary differences are expected to be
recovered or settled. The effect on deferred taxes of a
change in tax rates is recognized within the provision
for income taxes in the period enacted.
The Firm has also recognized deferred tax assets in
connection with certain tax attributes, including net
operating loss (“NOL”) carryforwards and foreign tax
credit (“FTC”) carryforwards. The Firm performs regular
reviews to ascertain whether its deferred tax assets are
realizable. These reviews include management’s
estimates and assumptions regarding future taxable
income, including foreign source income, and may
incorporate various tax planning strategies, including
strategies that may be available to utilize NOLs and
FTCs before they expire. In connection with these
reviews, if it is determined that a deferred tax asset is
not realizable, a valuation allowance is established. The
valuation allowance may be reversed in a subsequent
reporting period if the Firm determines that, based on
revised estimates of future taxable income or changes
in tax planning strategies, it is more likely than not that
all or part of the deferred tax asset will become
realizable. As of December 31, 2024, management has
determined it is more likely than not that the Firm will
realize its deferred tax assets, net of the existing
valuation allowance.
The Firm adjusts its unrecognized tax benefits as
necessary when new information becomes available,
including changes in tax law and regulations, and
interactions with taxing authorities. Uncertain tax
positions that meet the more-likely-than-not
recognition threshold are measured to determine the
amount of benefit to recognize. An uncertain tax
position is measured at the largest amount of benefit
that management believes is more likely than not to be
realized upon settlement. It is possible that the
reassessment of JPMorganChase’s unrecognized tax
benefits may have a material impact on its effective
income tax rate in the period in which the reassessment
occurs. Although the Firm believes that its estimates
are reasonable, the final tax amount could be different
from the amounts reflected in the Firm’s income tax
provisions and accruals. To the extent that the final
outcome of these amounts is different than the amounts
recorded, such differences will generally impact the
Firm’s provision for income taxes in the period in which
such a determination is made.
The Firm’s provision for income taxes is composed of
current and deferred taxes. The current and deferred
tax provisions are calculated based on estimates and
assumptions that could differ from the actual results
reflected in income tax returns filed during the
subsequent year. Adjustments based on filed returns
are generally recorded in the period when the tax
returns are filed and the global tax implications are
known, which could impact the Firm’s effective tax rate.
Refer to Note 25 for additional information on income
taxes.
Litigation reserves
Refer to Note 30 for a description of the significant
estimates and judgments associated with establishing
litigation reserves.
Management’s discussion and analysis
164
JPMorgan Chase & Co./2024 Form 10-K

ACCOUNTING AND REPORTING DEVELOPMENTS
Financial Accounting Standards Board (“FASB”) Standards Adopted since January 1, 2024
Standard
Summary of guidance
Effects on financial statements
Fair Value
Measurement: Fair
Value Measurement
of Equity Securities
Subject to
Contractual Sale
Restrictions
Issued June 2022
• Clarifies that a contractual sale restriction is
not considered part of the unit of account of
the equity security and, therefore, is not
considered in measuring fair value.
• Requires disclosure for investments in equity
securities subject to contractual sale
restrictions, including: 1) fair value of these
investments, 2) nature and remaining
duration of the restriction(s) and 3)
circumstances that could cause a lapse in the
restriction(s).
• Adopted prospectively on January 1,
2024, with no impact to the Firm’s
Consolidated Financial Statements.
Investments - Equity
Method and Joint
Ventures:
Accounting for
Investments in Tax
Credit Structures
Using the
Proportional
Amortization Method
Issued March 2023
• Expands the ability to elect proportional
amortization on a program-by-program
basis, for additional types of tax-oriented
investments (beyond affordable housing tax
credit investments).
• May be adopted using a full retrospective
method, or a modified retrospective method
wherein the effect of adoption is reflected as
an adjustment to retained earnings at the
effective date.
• Adopted under the modified
retrospective method on January 1,
2024.
• Refer to Note 1 for further information.
Segment Reporting:
Improvements to
Reportable Segment
Disclosures
Issued November
2023
• Requires disclosure of significant segment
expenses that are readily provided to the
chief operating decision maker (“CODM”) and
included in segment profit or loss.
• Requires disclosure of the composition and
aggregate amount of other segment items,
which represent the difference between
profit or loss and segment revenues less
significant segment expenses.
• Requires disclosure of the title and position
of the CODM and an explanation of how the
CODM uses the reported segment measures
in assessing segment performance and
deciding how to allocate resources.
• Adopted retrospectively for the Firm’s
annual Consolidated Financial
Statements for the year ended
December 31, 2024.
(a)
• The adoption of this guidance resulted
in additional reportable segment
disclosures, primarily relating to
significant segment expenses and the
CODM. Refer to Note 32 for further
information.
(a) The accounting standards update applies to the Firm’s annual Consolidated Financial Statements for the year ended December 31, 2024, and
interim financial statements thereafter.
JPMorgan Chase & Co./2024 Form 10-K
165

FASB Standards Issued but not yet Adopted as of December 31, 2024
Standard
Summary of guidance
Effects on financial statements
Income Taxes:
Improvements to
Income Tax
Disclosures
Issued December
2023
• Requires disclosure of income taxes paid
disaggregated by 1) federal, state, and
foreign taxes and 2) individual jurisdiction on
the basis of a quantitative threshold of equal
to or greater than 5 percent of total income
taxes paid (net of refunds received).
• Requires disclosure of the effective tax rate
reconciliation by specific categories, at a
minimum, with accompanying qualitative
disclosures, and separate disclosure of
reconciling items based on quantitative
thresholds.
• Requires categories within the effective tax
rate reconciliation to be further
disaggregated if quantitative thresholds are
met.
• Required effective date: Annual financial
statements for the year ending
December 31, 2025.
• The guidance can be applied on a
prospective basis with the option to
apply the standard retrospectively.
• The Firm is evaluating the potential
impact on the Consolidated Financial
Statements disclosures.
Income Statement -
Reporting
Comprehensive
Income - Expense
Disaggregation
Disclosures:
Disaggregation of
Income Statement
Expenses
Issued November
2024
• Requires additional annual and interim
disclosures about specific types of expenses
presented in the Consolidated statements of
income.
• Required effective date: Annual financial
statements for the year ending
December 31, 2027, and interim financial
statements for the year ending
December 31, 2028.
(a)
• The guidance can be applied on a
prospective basis with the option to
apply the standard retrospectively.
• The Firm is evaluating the potential
impact on the Consolidated Financial
Statements disclosures, as well as the
Firm’s planned date of adoption.
(a) Early adoption is permitted.
Management’s discussion and analysis
166
JPMorgan Chase & Co./2024 Form 10-K

FORWARD-LOOKING STATEMENTS
From time to time, the Firm has made and will make
forward-looking statements. These statements can be
identified by the fact that they do not relate strictly to
historical or current facts. Forward-looking statements
often use words such as “anticipate,” “target,” “expect,”
“estimate,” “intend,” “plan,” “goal,” “believe,” or other
words of similar meaning. Forward-looking statements
provide JPMorganChase’s current expectations or
forecasts of future events, circumstances, results or
aspirations. JPMorganChase’s disclosures in this 2024
Form 10-K contain forward-looking statements within
the meaning of the Private Securities Litigation Reform
Act of 1995. The Firm also may make forward-looking
statements in its other documents filed or furnished with
the SEC. In addition, the Firm’s senior management may
make forward-looking statements orally to investors,
analysts, representatives of the media and others.
All forward-looking statements are, by their nature,
subject to risks and uncertainties, many of which are
beyond the Firm’s control. JPMorganChase’s actual
future results may differ materially from those set forth
in its forward-looking statements. While there is no
assurance that any list of risks and uncertainties or risk
factors is complete, below are certain factors which
could cause actual results to differ from those in the
forward-looking statements:
• Local, regional and global business, economic and
political conditions and geopolitical events, including
geopolitical tensions and hostilities;
• Changes in laws, rules and regulatory requirements,
including capital and liquidity requirements affecting
the Firm’s businesses, and the ability of the Firm to
address those requirements;
• Heightened regulatory and governmental oversight
and scrutiny of JPMorganChase’s business practices,
including dealings with retail customers;
• Changes in trade, monetary and fiscal policies and
laws;
• Changes in the level of inflation;
• Changes in income tax laws, rules, and regulations;
• Changes in FDIC assessments;
• Securities and capital markets behavior, including
changes in market liquidity and volatility;
• Changes in investor sentiment or consumer spending
or savings behavior;
• Ability of the Firm to manage effectively its capital and
liquidity;
• Changes in credit ratings assigned to the Firm or its
subsidiaries;
• Damage to the Firm’s reputation;
• Ability of the Firm to appropriately address social,
environmental and sustainability concerns that may
arise, including from its business activities;
• Ability of the Firm to deal effectively with an economic
slowdown or other economic or market disruption,
including, but not limited to, in the interest rate
environment;
• Technology changes instituted by the Firm, its
counterparties or competitors;
• The effectiveness of the Firm’s control agenda;
• Ability of the Firm to develop or discontinue products
and services, and the extent to which products or
services previously sold by the Firm require the Firm
to incur liabilities or absorb losses not contemplated
at their initiation or origination;
• Acceptance of the Firm’s new and existing products
and services by the marketplace and the ability of the
Firm to innovate and to increase market share;
• Ability of the Firm to attract and retain qualified
employees;
• Ability of the Firm to control expenses;
• Competitive pressures;
• Changes in the credit quality of the Firm’s clients,
customers and counterparties;
• Adequacy of the Firm’s risk management framework,
disclosure controls and procedures and internal
control over financial reporting;
• Adverse judicial or regulatory proceedings;
• Ability of the Firm to determine accurate values of
certain assets and liabilities;
• Occurrence of natural or man-made disasters or
calamities, including health emergencies, the spread
of infectious diseases, epidemics or pandemics, an
outbreak or escalation of hostilities or other
geopolitical instabilities, the effects of climate change
or extraordinary events beyond the Firm’s control, and
the Firm’s ability to deal effectively with disruptions
caused by the foregoing;
• Ability of the Firm to maintain the security of its
financial, accounting, technology, data processing and
other operational systems and facilities;
• Ability of the Firm to withstand disruptions that may
be caused by any failure of its operational systems or
those of third parties;
• Ability of the Firm to effectively defend itself against
cyber attacks and other attempts by unauthorized
parties to access information of the Firm or its
customers or to disrupt the Firm’s systems; and
• The other risks and uncertainties detailed in Part I,
Item 1A: Risk Factors in JPMorganChase’s 2024 Form
10-K.
Any forward-looking statements made by or on behalf of
the Firm speak only as of the date they are made, and
JPMorganChase does not undertake to update any
forward-looking statements. The reader should,
however, consult any further disclosures of a forward-
looking nature the Firm may make in any subsequent
Annual Reports on Form 10-Ks, Quarterly Reports on
Form 10-Qs, or Current Reports on Form 8-K.
JPMorgan Chase & Co./2024 Form 10-K
167

Management of JPMorgan Chase & Co.
(“JPMorganChase” or the “Firm”) is responsible for
establishing and maintaining adequate internal control
over financial reporting. Internal control over financial
reporting is a process designed by, or under the
supervision of, the Firm’s principal executive and
principal financial officers, or persons performing
similar functions, and effected by JPMorganChase’s
Board of Directors, management and other personnel,
to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of
financial statements for external purposes in
accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”).
JPMorganChase’s internal control over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance of records, that, in
reasonable detail, accurately and fairly reflect the
transactions and dispositions of the Firm’s assets; (2)
provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial
statements in accordance with U.S. GAAP, and that
receipts and expenditures of the Firm are being made
only in accordance with authorizations of
JPMorganChase’s management and directors; and (3)
provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use or
disposition of the Firm’s assets that could have a
material effect on the financial statements.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk
that controls may become inadequate because of
changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
Management has completed an assessment of the
effectiveness of the Firm’s internal control over financial
reporting as of December 31, 2024. In making the
assessment, management used the “Internal Control —
Integrated Framework” (“COSO 2013”) promulgated by
the Committee of Sponsoring Organizations of the
Treadway Commission (“COSO”).
Based upon the assessment performed, management
concluded that as of December 31, 2024,
JPMorganChase’s internal control over financial
reporting was effective based upon the COSO 2013
framework. Additionally, based upon management’s
assessment, the Firm determined that there were no
material weaknesses in its internal control over financial
reporting as of December 31, 2024.
The effectiveness of the Firm’s internal control over
financial reporting as of December 31, 2024, has been
audited by PricewaterhouseCoopers LLP, an
independent registered public accounting firm, as
stated in their report which appears herein.
James Dimon
Chairman and Chief Executive Officer
Jeremy Barnum
Executive Vice President and Chief Financial Officer
February 14, 2025
Management’s report on internal control over financial reporting
168
JPMorgan Chase & Co./2024 Form 10-K

To the Board of Directors and Shareholders of
JPMorgan Chase & Co.:
Opinions on the Financial Statements and Internal
Control over Financial Reporting
We have audited the accompanying consolidated
balance sheets of JPMorgan Chase & Co. and its
subsidiaries (the “Firm”) as of December 31, 2024 and
2023, and the related consolidated statements of
income, comprehensive income, changes in
stockholders’ equity and cash flows for each of the three
years in the period ended December 31, 2024, including
the related notes (collectively referred to as the
“consolidated financial statements”). We also have
audited the Firm’s internal control over financial
reporting as of December 31, 2024, based on criteria
established in Internal Control - Integrated Framework
(2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements
referred to above present fairly, in all material respects,
the financial position of the Firm as of December 31,
2024 and 2023, and the results of its operations and its
cash flows for each of the three years in the period
ended December 31, 2024 in conformity with
accounting principles generally accepted in the United
States of America. Also in our opinion, the Firm
maintained, in all material respects, effective internal
control over financial reporting as of December 31,
2024, based on criteria established in Internal Control –
Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Firm’s management is responsible for these
consolidated financial statements, for maintaining
effective internal control over financial reporting, and for
its assessment of the effectiveness of internal control
over financial reporting, included in the accompanying
Management’s report on internal control over financial
reporting. Our responsibility is to express opinions on
the Firm’s consolidated financial statements and on the
Firm’s internal control over financial reporting based on
our audits. We are a public accounting firm registered
with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be
independent with respect to the Firm in accordance with
the U.S. federal securities laws and the applicable rules
and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that
we plan and perform the audits to obtain reasonable
assurance about whether the consolidated financial
statements are free of material misstatement, whether
due to error or fraud, and whether effective internal
control over financial reporting was maintained in all
material respects.
Our audits of the consolidated financial statements
included performing procedures to assess the risks of
material misstatement of the consolidated financial
statements, whether due to error or fraud, and
performing procedures that respond to those risks.
Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also
included evaluating the accounting principles used and
significant estimates made by management, as well as
evaluating the overall presentation of the consolidated
financial statements. Our audit of internal control over
financial reporting included obtaining an understanding
of internal control over financial reporting, assessing the
risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of
internal control based on the assessed risk. Our audits
also included performing such other procedures as we
considered necessary in the circumstances. We believe
that our audits provide a reasonable basis for our
opinions.
Definition and Limitations of Internal Control over
Financial Reporting
A company’s internal control over financial reporting is a
process designed to provide reasonable assurance
regarding the reliability of financial reporting and the
preparation of financial statements for external
purposes in accordance with generally accepted
accounting principles. A company’s internal control over
financial reporting includes those policies and
procedures that (i) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of
the company; (ii) provide reasonable assurance that
transactions are recorded as necessary to permit
preparation of financial statements in accordance with
generally accepted accounting principles, and that
receipts and expenditures of the company are being
made only in accordance with authorizations of
management and directors of the company; and
(iii) provide reasonable assurance regarding prevention
or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a
material effect on the financial statements.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk
that controls may become inadequate because of
changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
PricewaterhouseCoopers LLP • 300 Madison Avenue • New York, NY 10017
Report of Independent Registered Public Accounting Firm
JPMorgan Chase & Co./2024 Form 10-K
169

Critical Audit Matters
The critical audit matters communicated below are
matters arising from the current period audit of the
consolidated financial statements that were
communicated or required to be communicated to the
audit committee and that (i) relate to accounts or
disclosures that are material to the consolidated
financial statements and (ii) involved our especially
challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter
in any way our opinion on the consolidated financial
statements, taken as a whole, and we are not, by
communicating the critical audit matters below,
providing separate opinions on the critical audit
matters or on the accounts or disclosures to which
they relate.
Allowance for Loan Losses – Portfolio-based
component of Wholesale Loan and Credit Card Loan
Portfolios
As described in Note 13 to the consolidated financial
statements, the allowance for loan losses for the
portfolio-based component of the wholesale and
credit card loan portfolios was $22.0 billion on total
portfolio-based retained loans of $919.3 billion at
December 31, 2024. The Firm’s allowance for loan
losses represents management’s estimate of expected
credit losses over the remaining expected life of the
Firm's loan portfolios and considers expected future
changes in macroeconomic conditions. The portfolio-
based component of the Firm’s allowance for loan
losses for the wholesale and credit card retained loan
portfolios begins with a quantitative calculation of
expected credit losses over the expected life of the
loan by applying credit loss factors to the estimated
exposure at default. The credit loss factors applied are
determined based on the weighted average of five
internally developed macroeconomic scenarios that
take into consideration the Firm's economic outlook as
derived through forecast macroeconomic variables,
the most significant of which are U.S. unemployment
and U.S. real gross domestic product. This quantitative
calculation is further adjusted to take into
consideration model imprecision, emerging risk
assessments, trends and other subjective factors that
are not yet otherwise reflected in the credit loss
estimate.
The principal considerations for our determination that
performing procedures relating to the allowance for
loan losses for the portfolio-based component of the
wholesale and credit card loan portfolios is a critical
audit matter are (i) the significant judgment and
estimation by management in the forecast of
macroeconomic variables, specifically U.S.
unemployment and U.S. real gross domestic product,
as the Firm’s forecasts of economic conditions
significantly affect its estimate of expected credit
losses at the balance sheet date, (ii) the significant
judgment and estimation by management in
determining the quantitative calculation utilized in
their credit loss estimates and the adjustments to take
into consideration model imprecision, emerging risk
assessments, trends and other subjective factors that
are not yet otherwise reflected in the credit loss
estimate, which in turn led to a high degree of auditor
judgment, subjectivity, and effort in performing
procedures and in evaluating audit evidence obtained
relating to the credit loss estimates and the
appropriateness of the adjustments to the credit loss
estimates, and (iii) the audit effort involved the use of
professionals with specialized skill and knowledge.
Addressing the matter involved performing
procedures and evaluating audit evidence in
connection with forming our overall opinion on the
consolidated financial statements. These procedures
included testing the effectiveness of controls relating
to the Firm’s allowance for loan losses, including
controls over model validation and generation of
macroeconomic scenarios. These procedures also
included, among others, testing management’s
process for estimating the allowance for loan losses,
which involved (i) evaluating the appropriateness of
the models and methodologies used in quantitative
calculations; (ii) evaluating the reasonableness of
forecasts of U.S. unemployment and U.S. real gross
domestic product; (iii) testing the completeness and
accuracy of data used in the estimate; and (iv)
evaluating the reasonableness of management’s
adjustments to the quantitative output for the impacts
of model imprecision, emerging risk assessments,
trends and other subjective factors that are not yet
otherwise reflected in the credit loss estimate. These
procedures also included the use of professionals with
specialized skill and knowledge to assist in evaluating
the appropriateness of certain models, methodologies
and macroeconomic variables.
Fair Value of Certain Level 3 Financial Instruments
As described in Notes 2 and 3 to the consolidated
financial statements, the Firm carries $1.5 trillion of its
assets and $586.2 billion of its liabilities at fair value on
a recurring basis. Included in these balances are $10.9
billion of trading assets and $51.8 billion of liabilities
measured at fair value on a recurring basis, collectively
financial instruments, which are classified as level 3 as
they contain one or more inputs to valuation which are
unobservable and significant to their fair value
measurement. The Firm utilized internally developed
valuation models and unobservable inputs to estimate
fair value of the level 3 financial instruments. The
unobservable inputs used by management to estimate
the fair value of certain of these financial instruments
include interest rate volatility, equity volatility,
Bermudan switch value and correlation relating to
interest rates, interest rate-to-foreign exchange,
Report of Independent Registered Public Accounting Firm
170
JPMorgan Chase & Co./2024 Form 10-K

equity prices, equity-to-foreign exchange and equity-
to-interest rate.
The principal considerations for our determination that
performing procedures relating to the fair value of
certain level 3 financial instruments is a critical audit
matter are (i) the significant judgment and estimation
by management in determining the inputs to estimate
fair value, which in turn led to a high degree of auditor
judgment, subjectivity, and effort in performing
procedures and in evaluating audit evidence obtained
related to the fair value of these financial instruments,
and (ii) the audit effort involved the use of
professionals with specialized skill and knowledge.
Addressing the matter involved performing
procedures and evaluating audit evidence in
connection with forming our overall opinion on the
consolidated financial statements. These procedures
included testing the effectiveness of controls relating
to the Firm’s determination of the fair value, including
controls over models, inputs, and data. These
procedures also included, among others, the
involvement of professionals with specialized skill and
knowledge to assist in developing an independent
estimate of fair value for a sample of these financial
instruments and comparing management’s estimate
to the independently developed estimate of fair value.
Developing the independent estimate involved testing
the completeness and accuracy of data provided by
management, developing independent inputs and, as
appropriate, evaluating and utilizing management’s
aforementioned unobservable inputs.
New York, New York
February 14, 2025
We have served as the Firm’s auditor since 1965.

Report of Independent Registered Public Accounting Firm
JPMorgan Chase & Co./2024 Form 10-K
171

Year ended December 31, (in millions, except per share data)
2024
2023
2022
Revenue
Investment banking fees
$
8,910
$
6,519
$
6,686
Principal transactions

24,787

24,460

19,912
Lending- and deposit-related fees

7,606

7,413

7,098
Asset management fees

17,801

15,220

14,096
Commissions and other fees

7,530

6,836

6,581
Investment securities losses

(1,021)
(3,180)
(2,380)
Mortgage fees and related income

1,401

1,176

1,250
Card income

5,497

4,784

4,420
Other income

12,462

5,609

4,322
Noninterest revenue

84,973

68,837

61,985
Interest income

193,933

170,588

92,807
Interest expense

101,350

81,321

26,097
Net interest income

92,583

89,267

66,710
Total net revenue

177,556

158,104

128,695
Provision for credit losses

10,678

9,320

6,389
Noninterest expense
Compensation expense

51,357

46,465

41,636
Occupancy expense

5,026

4,590

4,696
Technology, communications and equipment expense

9,831

9,246

9,358
Professional and outside services

11,057

10,235

10,174
Marketing

4,974

4,591

3,911
Other expense

9,552

12,045

6,365
Total noninterest expense

91,797

87,172

76,140
Income before income tax expense

75,081

61,612

46,166
Income tax expense

16,610

12,060

8,490
Net income
$
58,471
$
49,552
$
37,676
Net income applicable to common stockholders
$
56,868
$
47,760
$
35,892
Net income per common share data
Basic earnings per share
$
19.79
$
16.25
$
12.10
Diluted earnings per share

19.75

16.23

12.09
Weighted-average basic shares

2,873.9

2,938.6

2,965.8
Weighted-average diluted shares

2,879.0

2,943.1

2,970.0
The Notes to Consolidated Financial Statements are an integral part of these statements.
JPMorgan Chase & Co.
Consolidated statements of income
172
JPMorgan Chase & Co./2024 Form 10-K

Year ended December 31, (in millions)
2024
2023
2022
Net income
$
58,471
$
49,552
$
37,676
Other comprehensive income/(loss), after–tax
Unrealized gains/(losses) on investment securities

(87)
5,381

(11,764)
Translation adjustments, net of hedges

(858)
329

(611)
Fair value hedges

(87)
(101)
98
Cash flow hedges

(882)
1,724

(5,360)
Defined benefit pension and OPEB plans

(63)
373

(1,241)
DVA on fair value option elected liabilities

(36)
(808)
1,621
Total other comprehensive income/(loss), after–tax

(2,013)
6,898

(17,257)
Comprehensive income
$
56,458
$
56,450
$
20,419
The Notes to Consolidated Financial Statements are an integral part of these statements.
JPMorgan Chase & Co.
Consolidated statements of comprehensive income
JPMorgan Chase & Co./2024 Form 10-K
173

December 31, (in millions, except share data)
2024
2023
Assets
Cash and due from banks
$
23,372
$
29,066
Deposits with banks

445,945

595,085
Federal funds sold and securities purchased under resale agreements (included $286,771 and $259,813 at fair
value)

295,001

276,152
Securities borrowed (included $83,962 and $70,086 at fair value)

219,546

200,436
Trading assets (included assets pledged of $136,070 and $128,994)

637,784

540,607
Available-for-sale securities (amortized cost of $411,045 and $205,456; included assets pledged of $10,162
and $9,219)

406,852

201,704
Held-to-maturity securities

274,468

369,848
Investment securities, net of allowance for credit losses

681,320

571,552
Loans (included $41,350 and $38,851 at fair value)

1,347,988

1,323,706
Allowance for loan losses

(24,345)
(22,420)
Loans, net of allowance for loan losses

1,323,643

1,301,286
Accrued interest and accounts receivable

101,223

107,363
Premises and equipment

32,223

30,157
Goodwill, MSRs and other intangible assets

64,560

64,381
Other assets (included $15,122 and $12,306 at fair value and assets pledged of $6,288 and $6,764)

178,197

159,308
Total assets
(a)
$ 4,002,814
$
3,875,393
Liabilities
Deposits (included $33,768 and $78,384 at fair value)
$ 2,406,032
$ 2,400,688
Federal funds purchased and securities loaned or sold under repurchase agreements (included $226,329 and
$169,003 at fair value)

296,835

216,535
Short-term borrowings (included $26,521 and $20,042 at fair value)

52,893

44,712
Trading liabilities

192,883

180,428
Accounts payable and other liabilities (included $5,893 and $5,637 at fair value)

280,672

290,307
Beneficial interests issued by consolidated VIEs (included $1 and $1 at fair value)

27,323

23,020
Long-term debt (included $100,780 and $87,924 at fair value)

401,418

391,825
Total liabilities
(a)

3,658,056

3,547,515
Commitments and contingencies (refer to Notes 28, 29 and 30)
Stockholders’ equity
Preferred stock ($1 par value; authorized 200,000,000 shares: issued 2,005,375 and 2,740,375 shares)

20,050

27,404
Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)

4,105

4,105
Additional paid-in capital

90,911

90,128
Retained earnings

376,166

332,901
Accumulated other comprehensive losses

(12,456)
(10,443)
Treasury stock, at cost (1,307,313,494 and 1,228,275,301 shares)

(134,018)
(116,217)
Total stockholders’ equity

344,758

327,878
Total liabilities and stockholders’ equity
$ 4,002,814
$
3,875,393
(a) The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2024 and
2023. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have
recourse to the general credit of JPMorganChase. The assets and liabilities in the table below include third-party assets and liabilities of
consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 14 for a further discussion.
December 31, (in millions)
2024
2023
Assets
Trading assets
$
3,885
$
2,170
Loans

36,510

37,611
All other assets

681

591
Total assets
$
41,076
$
40,372
Liabilities
Beneficial interests issued by consolidated VIEs
$
27,323
$
23,020
All other liabilities

454

263
Total liabilities
$
27,777
$
23,283
The Notes to Consolidated Financial Statements are an integral part of these statements.
JPMorgan Chase & Co.
Consolidated balance sheets
174
JPMorgan Chase & Co./2024 Form 10-K

Year ended December 31, (in millions, except per share data)
2024
2023
2022
Preferred stock
Balance at January 1
$ 27,404
$
27,404
$
34,838
Issuance

2,496

—

—
Redemption

(9,850)
—

(7,434)
Balance at December 31

20,050

27,404

27,404
Common stock
Balance at January 1 and December 31

4,105

4,105
Additional paid-in capital
Balance at January 1

90,128

89,044

88,415
Shares issued and commitments to issue common stock for employee share-based compensation
awards, and related tax effects

768

1,084

629
Other

—

—
Balance at December 31

90,911

90,128

89,044
Retained earnings
Balance at January 1

332,901

296,456

272,268
Cumulative effect of change in accounting principles

(161)
449

—
Net income

58,471

49,552

37,676
Preferred stock dividends

(1,259)
(1,501)
(1,595)
Common stock dividends ($4.80, $4.10 and $4.00 per share for 2024, 2023 and 2022, respectively)

(13,786)
(12,055)
(11,893)
Balance at December 31

376,166

332,901

296,456
Accumulated other comprehensive income/(loss)
Balance at January 1

(10,443)
(17,341)
(84)
Other comprehensive income/(loss), after-tax

(2,013)
6,898

(17,257)
Balance at December 31

(12,456)
(10,443)
(17,341)
Treasury stock, at cost
Balance at January 1

(116,217)
(107,336)
(105,415)
Repurchase

(19,007)
(9,980)
(3,122)
Reissuance

1,206

1,099

1,201
Balance at December 31
(134,018)
(116,217)
(107,336)
Total stockholders’ equity
$ 344,758
$ 327,878
$ 292,332
Effective January 1, 2024, the Firm adopted the Equity Method and Joint Ventures: Accounting for Investments in Tax Credit
Structures Using the Proportional Amortization Method accounting guidance. Effective January 1, 2023, the Firm adopted the
Financial Instruments – Credit Losses: Troubled Debt Restructurings, and Derivatives and Hedging: Fair Value Hedging –
Portfolio Layer Method accounting guidance. Refer to Note 1 for further information.
The Notes to Consolidated Financial Statements are an integral part of these statements.
JPMorgan Chase & Co.
Consolidated statements of changes in stockholders’ equity
JPMorgan Chase & Co./2024 Form 10-K
175

Year ended December 31, (in millions)
2024
2023
2022
Operating activities
Net income
$
58,471
$
49,552
$
37,676
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses

10,678

9,320

6,389
Depreciation and amortization

7,938

7,512

7,051
Deferred tax (benefit)/expense

2,004

(4,534)

(2,738)
Estimated bargain purchase gain associated with the First Republic acquisition

(103)

(2,775)

—
Initial gain on the Visa share exchange

(7,990)

—

—
Other

1,985

4,301

5,174
Originations and purchases of loans held-for-sale
(212,238)

(115,245)

(149,167)
Proceeds from sales, securitizations and paydowns of loans held-for-sale
205,303

116,430

167,709
Net change in:
Trading assets

(95,729)

(74,091)

(31,449)
Securities borrowed

(18,762)

(14,902)

20,203
Accrued interest and accounts receivable

5,735

19,928

(22,970)
Other assets

(7,650)

32,970

(2,882)
Trading liabilities

2,276

5,315

11,170
Accounts payable and other liabilities

(90)

(25,388)

58,614
Other operating adjustments

6,160

4,581

2,339
Net cash (used in)/provided by operating activities

(42,012)

12,974

107,119
Investing activities
Net change in:
Federal funds sold and securities purchased under resale agreements

(18,706)

39,740

(54,278)
Held-to-maturity securities:
Proceeds from paydowns and maturities

99,363

53,056

48,626
Purchases

(4,709)

(4,141)

(33,676)
Available-for-sale securities:
Proceeds from paydowns and maturities

38,499

53,744

39,159
Proceeds from sales

104,625

108,434

84,616
Purchases
(352,712)

(115,499)

(126,258)
Proceeds from sales and securitizations of loans held-for-investment

57,921

47,312

44,892
Other changes in loans, net

(83,176)

(88,343)

(128,968)
Net cash used in First Republic Acquisition

(2,362)

(9,920)

—
All other investing activities, net

(2,146)

(16,740)

(11,932)
Net cash (used in)/provided by investing activities
(163,403)

67,643

(137,819)
Financing activities
Net change in:
Deposits

3,299

(32,196)

(136,895)
Federal funds purchased and securities loaned or sold under repurchase agreements

80,288

13,801

8,455
Short-term borrowings

7,439

(1,934)

(8,984)
Beneficial interests issued by consolidated VIEs

1,543

9,029

2,205
Proceeds from long-term borrowings

109,915

75,417

78,442
Payments of long-term borrowings

(96,605)

(64,880)

(45,556)
Proceeds from issuance of preferred stock

2,500

—

—
Redemption of preferred stock

(9,850)

—

(7,434)
Treasury stock repurchased

(18,830)

(9,824)

(3,162)
Dividends paid

(14,783)

(13,463)

(13,562)
All other financing activities, net

(1,469)

(1,521)

234
Net cash provided by/(used in) financing activities

63,447

(25,571)

(126,257)
Effect of exchange rate changes on cash and due from banks and deposits with banks

(12,866)

1,871

(16,643)
Net increase/(decrease) in cash and due from banks and deposits with banks
(154,834)

56,917

(173,600)
Cash and due from banks and deposits with banks at the beginning of the period

624,151

567,234

740,834
Cash and due from banks and deposits with banks at the end of the period
$ 469,317
$
624,151
$ 567,234
Cash interest paid
$ 99,642
$
77,114
$
23,143
Cash income taxes paid, net

11,715

9,908

4,355
The Notes to Consolidated Financial Statements are an integral part of these statements.
JPMorgan Chase & Co.
Consolidated statements of cash flows
176
JPMorgan Chase & Co./2024 Form 10-K

Note 1 – Basis of presentation
JPMorgan Chase & Co. (“JPMorganChase” or the
“Firm”), a financial holding company incorporated
under Delaware law in 1968, is a leading financial
services firm based in the U.S., with operations
worldwide. The Firm is a leader in investment banking,
financial services for consumers and small businesses,
commercial banking, financial transaction processing
and asset management. Refer to Note 32 for further
discussion of the Firm's reportable business
segments.
The accounting and financial reporting policies of
JPMorganChase and its subsidiaries conform to U.S.
GAAP. Additionally, where applicable, the policies
conform to the accounting and reporting guidelines
prescribed by regulatory authorities.
Consolidation
The Consolidated Financial Statements include the
accounts of JPMorganChase and other entities in
which the Firm has a controlling financial interest. All
material intercompany balances and transactions have
been eliminated.
Assets held for clients in an agency or fiduciary
capacity by the Firm are not assets of JPMorganChase
and are not included on the Consolidated balance
sheets.
The Firm determines whether it has a controlling
financial interest in an entity by first evaluating
whether the entity is a voting interest entity or a
variable interest entity.
Voting interest entities
Voting interest entities are entities that have sufficient
equity and provide the equity investors voting rights
that enable them to make significant decisions relating
to the entity’s operations. For these types of entities,
the Firm’s determination of whether it has a controlling
interest is primarily based on the amount of voting
equity interests held. Entities in which the Firm has a
controlling financial interest, through ownership of the
majority of the entities’ voting equity interests, or
through other contractual rights that give the Firm
control, are consolidated by the Firm.
Investments in companies in which the Firm has
significant influence over operating and financing
decisions (but does not own a majority of the voting
equity interests) are accounted for (i) in accordance
with the equity method of accounting, or (ii) at fair
value if the fair value option was elected. These
investments are generally included in other assets,
with income or loss included in noninterest revenue.
Certain Firm-sponsored asset management funds are
structured as limited partnerships or limited liability
companies. For many of these entities, the Firm is the
general partner or managing member, but the non-
affiliated partners or members have the ability to
remove the Firm as the general partner or managing
member without cause (i.e., kick-out rights), based on
a simple majority vote, or the non-affiliated partners or
members have rights to participate in important
decisions. Accordingly, the Firm does not consolidate
these voting interest entities. However, in the limited
cases where the non-managing partners or members
do not have substantive kick-out or participating
rights, the Firm evaluates the funds as VIEs and
consolidates the funds if the Firm is the general
partner or managing member and has both power and
a potentially significant interest.
The Firm’s investment companies and asset
management funds have investments in both publicly-
held and privately-held entities, including investments
in buyouts, growth equity and venture opportunities.
These investments are accounted for under
investment company guidelines and, accordingly,
irrespective of the percentage of equity ownership
interests held, are carried on the Consolidated balance
sheets at fair value, and are recorded in other assets,
with income or loss included in noninterest revenue. If
consolidated, the Firm retains the accounting under
such specialized investment company guidelines.
Variable interest entities
VIEs are entities that, by design, either (1) lack
sufficient equity to permit the entity to finance its
activities without additional subordinated financial
support from other parties, or (2) have equity investors
that do not have the ability to make significant
decisions relating to the entity’s operations through
voting rights, or do not have the obligation to absorb
the expected losses, or do not have the right to receive
the residual returns of the entity.
The most common type of VIE is an SPE. SPEs are
commonly used in securitization transactions in order
to isolate certain assets and distribute the cash flows
from those assets to investors. The basic SPE
structure involves a company selling assets to the SPE;
the SPE funds the purchase of those assets by issuing
securities to investors. The legal documents that
govern the transaction specify how the cash earned on
the assets must be allocated to the SPE’s investors
and other parties that have rights to those cash flows.
SPEs are generally structured to insulate investors
from claims on the SPE’s assets by creditors of other
entities, including the creditors of the seller of the
assets.
The primary beneficiary of a VIE (i.e., the party that has
a controlling financial interest) is required to
consolidate the assets and liabilities of the VIE. The
Notes to consolidated financial statements
JPMorgan Chase & Co./2024 Form 10-K
177

primary beneficiary is the party that has both (1) the
power to direct the activities of the VIE that most
significantly impact the VIE’s economic performance;
and (2) through its interests in the VIE, the obligation
to absorb losses or the right to receive benefits from
the VIE that could potentially be significant to the VIE.
To assess whether the Firm has the power to direct the
activities of a VIE that most significantly impact the
VIE’s economic performance, the Firm considers all
the facts and circumstances, including its role in
establishing the VIE and its ongoing rights and
responsibilities. This assessment includes, first,
identifying the activities that most significantly impact
the VIE’s economic performance; and second,
identifying which party, if any, has power over those
activities. In general, the parties that make the most
significant decisions affecting the VIE (such as asset
managers, collateral managers, servicers, or owners of
call options or liquidation rights over the VIE’s assets)
or have the right to unilaterally remove those decision-
makers are deemed to have the power to direct the
activities of a VIE.
To assess whether the Firm has the obligation to
absorb losses of the VIE or the right to receive benefits
from the VIE that could potentially be significant to the
VIE, the Firm considers all of its economic interests,
including debt and equity investments, servicing fees,
and derivatives or other arrangements deemed to be
variable interests in the VIE. This assessment requires
that the Firm apply judgment in determining whether
these interests, in the aggregate, are considered
potentially significant to the VIE. Factors considered in
assessing significance include: the design of the VIE,
including its capitalization structure; subordination of
interests; payment priority; relative share of interests
held across various classes within the VIE’s capital
structure; and the reasons why the interests are held
by the Firm.
The Firm performs on-going reassessments of: (1)
whether entities previously evaluated under the
majority voting-interest framework have become VIEs,
based on certain events, and are therefore subject to
the VIE consolidation framework; and (2) whether
changes in the facts and circumstances regarding the
Firm’s involvement with a VIE cause the Firm’s
consolidation conclusion to change.
Refer to Note 14 for further discussion of Firm-
sponsored VIEs.
Revenue recognition
Interest income
The Firm recognizes interest income on loans, debt
securities, and other debt instruments, generally on a
level-yield basis, based on the underlying contractual
rate. Refer to Note 7 for further information.
Revenue from contracts with customers
JPMorganChase recognizes noninterest revenue from
certain contracts with customers, in investment
banking fees, deposit-related fees, asset management
fees, commissions and other fees, and components of
card income, when the Firm’s related performance
obligations are satisfied. Refer to Note 6 for further
discussion of the Firm’s revenue from contracts with
customers.
Principal transactions revenue
JPMorganChase carries a portion of its assets and
liabilities at fair value. Changes in fair value are
reported primarily in principal transactions revenue.
Refer to Notes 2 and 3 for further discussion of fair
value measurement. Refer to Note 6 for further
discussion of principal transactions revenue.
Use of estimates in the preparation of consolidated
financial statements
The preparation of the Consolidated Financial
Statements requires management to make estimates
and assumptions that affect the reported amounts of
assets and liabilities, revenue and expense, and
disclosures of contingent assets and liabilities. Actual
results could be different from these estimates.
Foreign currency translation
JPMorganChase revalues assets, liabilities, revenue
and expense denominated in non-U.S. currencies into
U.S. dollars using applicable exchange rates.
Gains and losses relating to translating functional
currency financial statements for U.S. reporting are
included in the Consolidated statements of
comprehensive income. Gains and losses relating to
nonfunctional currency transactions, including non-
U.S. operations where the functional currency is the
U.S. dollar, are reported in the Consolidated
statements of income.
Offsetting assets and liabilities
U.S. GAAP permits entities to present derivative
receivables and derivative payables with the same
counterparty and the related cash collateral
receivables and payables on a net basis on the
Consolidated balance sheets when a legally
enforceable master netting agreement exists. U.S.
GAAP also permits securities sold and purchased
under repurchase agreements and securities
borrowed or loaned under securities loan agreements
to be presented net when specified conditions are met,
including the existence of a legally enforceable master
netting agreement. The Firm has elected to net such
balances where it has determined that the specified
conditions are met.
The Firm uses master netting agreements to mitigate
counterparty credit risk in certain transactions,
including derivative contracts, resale, repurchase,
securities borrowed and securities loaned
Notes to consolidated financial statements
178
JPMorgan Chase & Co./2024 Form 10-K

agreements. A master netting agreement is a single
agreement with a counterparty that permits multiple
transactions governed by that agreement to be
terminated or accelerated and settled through a single
payment in a single currency in the event of a default
(e.g., bankruptcy, failure to make a required payment
or securities transfer or deliver collateral or margin
when due). Upon the exercise of derivatives
termination rights by the non-defaulting party (i) all
transactions are terminated, (ii) all transactions are
valued and the positive values of “in the money”
transactions are netted against the negative values of
“out of the money” transactions and (iii) the only
remaining payment obligation is of one of the parties
to pay the netted termination amount. Upon exercise
of default rights under repurchase agreements and
securities loan agreements in general (i) all
transactions are terminated and accelerated, (ii) all
values of securities or cash held or to be delivered are
calculated, and all such sums are netted against each
other and (iii) the only remaining payment obligation is
of one of the parties to pay the netted termination
amount.
Typical master netting agreements for these types of
transactions also often contain a collateral/margin
agreement that provides for a security interest in, or
title transfer of, securities or cash collateral/margin to
the party that has the right to demand margin (the
“demanding party”). The collateral/margin agreement
typically requires a party to transfer collateral/margin
to the demanding party with a value equal to the
amount of the margin deficit on a net basis across all
transactions governed by the master netting
agreement, less any threshold. The collateral/margin
agreement grants to the demanding party, upon
default by the counterparty, the right to set-off any
amounts payable by the counterparty against any
posted collateral or the cash equivalent of any posted
collateral/margin. It also grants to the demanding
party the right to liquidate collateral/margin and to
apply the proceeds to an amount payable by the
counterparty.
Refer to Note 5 for further discussion of the Firm’s
derivative instruments. Refer to Note 11 for further
discussion of the Firm’s securities financing
agreements.
Statements of cash flows
For JPMorganChase’s Consolidated statements of
cash flows, cash is defined as those amounts included
in cash and due from banks and deposits with banks
on the Consolidated balance sheets.
Accounting standard adopted January 1, 2024
Equity Method and Joint Ventures: Accounting for
Investments in Tax Credit Structures Using the
Proportional Amortization Method
The guidance expanded the types of tax-oriented
investments, beyond affordable housing tax credit
investments, that the Firm can elect on a program by
program basis, to be accounted for using the
proportional amortization method. This method
requires the cost of eligible investments, within an
elected program, to be amortized in proportion to the
tax benefits received with the resulting amortization
reported directly in income tax expense, which aligns
with the associated tax credits and other tax benefits.
Eligible investments must meet certain criteria,
including that substantially all of the return is from
income tax credits and other income tax benefits.
This guidance was adopted on January 1, 2024 under
the modified retrospective method. The adoption of
this guidance resulted in a change to the classification
and timing of the amortization associated with certain
of the Firm's alternative energy tax-oriented
investments. As a result of the adoption, the
amortization of these investments that was previously
recognized in other income is now recognized in
income tax expense. The change in accounting
resulted in a decrease to retained earnings of $161
million and increased the Firm’s income tax expense
and the effective tax rate by approximately $450
million and two percentage points, respectively, in the
first quarter of 2024, with no material impact to net
income.
The guidance requires additional disclosure for all
investments that generate income tax credits and
other income tax benefits from a tax-oriented
investment program for which the Firm has elected to
apply the proportional amortization method. The
guidance also requires a reevaluation of eligible
investments when significant modifications or events
occur that result in a change in the nature of the
investment or a change in the Firm's relationship with
the underlying project.
Refer to Notes 6, 14 and 25 for additional information.
Accounting standards adopted January 1, 2023
Derivatives and Hedging: Fair Value Hedging –
Portfolio Layer Method
The adoption of this guidance expanded the ability to
hedge a portfolio of fixed-rate assets in a qualifying
hedge accounting relationship. As permitted by the
guidance, the Firm elected to transfer HTM securities
to AFS and designated those securities in a portfolio
layer method hedge upon adoption. The adoption
impact of the transfer on retained earnings was not
material.
JPMorgan Chase & Co./2024 Form 10-K
179

Financial Instruments – Credit Losses: Troubled
Debt Restructurings (“TDRs”)
The adoption of this guidance eliminated the
requirement to measure the allowance for TDRs using
a discounted cash flow (“DCF”) methodology and
allowed the option of a non-DCF portfolio-based
approach for modified loans to troubled borrowers.
The Firm elected this option for all portfolios of
modified loans to troubled borrowers except
collateral-dependent loans and nonaccrual risk-rated
loans, for which the Firm elected to continue applying
a DCF methodology. The adoption of this guidance
under the modified retrospective method on January 1,
2023, resulted in a $446 million increase to retained
earnings.
Significant accounting policies
The following table identifies JPMorganChase’s other
significant accounting policies and the Note and page
where a detailed description of each policy can be
found.
Fair value measurement
Note 2
page 181
Fair value option
Note 3
page 203
Derivative instruments
Note 5
page 209
Noninterest revenue and noninterest
expense
Note 6
page 225
Interest income and Interest expense
Note 7
page 229
Pension and other postretirement
employee benefit plans
Note 8
page 230
Employee share-based incentives
Note 9
page 233
Investment securities
Note 10
page 235
Securities financing activities
Note 11
page 240
Loans
Note 12
page 243
Allowance for credit losses
Note 13
page 266
Variable interest entities
Note 14
page 271
Goodwill, mortgage servicing rights, and
other intangible assets
Note 15
page 280
Premises and equipment
Note 16
page 285
Leases
Note 18
page 286
Accounts payable & other liabilities
Note 19
page 288
Long-term debt
Note 20
page 289
Earnings per share
Note 23
page 294
Income taxes
Note 25
page 296
Off–balance sheet lending-related
financial instruments, guarantees and
other commitments
Note 28
page 302
Litigation
Note 30
page 309
Notes to consolidated financial statements
180
JPMorgan Chase & Co./2024 Form 10-K

Note 2 – Fair value measurement
JPMorganChase carries a portion of its assets and
liabilities at fair value. These assets and liabilities are
predominantly carried at fair value on a recurring basis
(i.e., assets and liabilities that are measured and
reported at fair value on the Firm’s Consolidated
balance sheets). Certain assets, liabilities and
unfunded lending-related commitments are measured
at fair value on a nonrecurring basis; that is, they are
not measured at fair value on an ongoing basis but are
subject to fair value adjustments only in certain
circumstances (for example, when there is evidence of
impairment).
Fair value is defined as the price that would be
received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at
the measurement date. Fair value is based on quoted
market prices or inputs, where available. If prices or
quotes are not available, fair value is based on
valuation models and other valuation techniques that
consider relevant transaction characteristics (such as
maturity) and use, as inputs, observable or
unobservable market parameters, including yield
curves, interest rates, volatilities, prices (such as
commodity, equity or debt prices), correlations,
foreign exchange rates and credit curves. Fair value
may also incorporate valuation adjustments.
The level of precision in estimating unobservable
market inputs or other factors can affect the amount of
gain or loss recorded for a particular position.
Furthermore, while the Firm believes its valuation
methods are appropriate and consistent with those of
other market participants, the methods and
assumptions used reflect management judgment and
may vary across the Firm’s businesses and portfolios.
The Firm uses various methodologies and
assumptions in the determination of fair value. The use
of different methodologies or assumptions by other
market participants compared with those used by the
Firm could result in the Firm deriving a different
estimate of fair value at the reporting date.
Valuation process
Risk-taking functions are responsible for providing fair
value estimates for assets and liabilities carried on the
Consolidated balance sheets at fair value. The Firm’s
Valuation Control Group (“VCG”), which is part of the
Firm’s Finance function and independent of the risk-
taking functions, is responsible for verifying these
estimates and determining any fair value adjustments
that may be required to ensure that the Firm’s
positions are recorded at fair value. In addition, the
Firm’s Valuation Governance Forum (“VGF”), which is
composed of senior finance and risk executives, is
responsible for overseeing the management of risks
arising from valuation activities conducted across the
Firm. The Firmwide VGF is chaired by the Firmwide
head of the VCG (under the direction of the Firm’s
Controller), and includes sub-forums covering the CIB,
CCB, AWM and certain corporate functions including
Treasury and CIO.
Price verification process
The VCG verifies fair value estimates provided by the
risk-taking functions by leveraging independently
derived prices, valuation inputs and other market data,
where available. Where independent prices or inputs
are not available, the VCG performs additional review
to ensure the reasonableness of the estimates. The
additional review may include evaluating the limited
market activity including client unwinds,
benchmarking valuation inputs to those used for
similar instruments, decomposing the valuation of
structured instruments into individual components,
comparing expected to actual cash flows, reviewing
profit and loss trends, and reviewing trends in
collateral valuation. There are also additional levels of
management review for more significant or complex
positions.
The VCG determines any valuation adjustments that
may be required to the estimates provided by the risk-
taking functions. No adjustments to quoted prices are
applied for instruments classified within level 1 of the
fair value hierarchy (refer to the discussion of the fair
value hierarchy on page 182 for further information).
For other positions, judgment is required to assess the
need for valuation adjustments to appropriately reflect
liquidity considerations, unobservable parameters,
and, for certain portfolios that meet specified criteria,
the size of the net open risk position. The
determination of such adjustments follows a
consistent framework across the Firm:
• Liquidity valuation adjustments are considered
where an observable external price or valuation
parameter exists but is of lower reliability, potentially
due to lower market activity. Liquidity valuation
adjustments are made based on current market
conditions. Factors that may be considered in
determining the liquidity adjustment include
analysis of: (1) the estimated bid-offer spread for the
instrument being traded; (2) alternative pricing
points for similar instruments in active markets; and
(3) the range of reasonable values that the price or
parameter could take.
• The Firm manages certain portfolios of financial
instruments on the basis of net open risk exposure
and, as permitted by U.S. GAAP, has elected to
estimate the fair value of such portfolios on the basis
of a transfer of the entire net open risk position in an
orderly transaction. Where this is the case, valuation
adjustments may be necessary to reflect the cost of
exiting a larger-than-normal market-size net open
risk position. Where applied, such adjustments are
JPMorgan Chase & Co./2024 Form 10-K
181

based on factors that a relevant market participant
would consider in the transfer of the net open risk
position, including the size of the adverse market
move that is likely to occur during the period
required to sufficiently reduce the net open risk
position.
• Uncertainty adjustments related to unobservable
parameters may be made when positions are valued
using prices or input parameters to valuation models
that are unobservable due to a lack of market
activity or because they cannot be implied from
observable market data. Such prices or parameters
must be estimated and are, therefore, subject to
management judgment. Adjustments are made to
reflect the uncertainty inherent in the resulting
valuation estimate.
• Where appropriate, the Firm also applies
adjustments to its estimates of fair value in order to
appropriately reflect counterparty credit quality
(CVA), the Firm’s own creditworthiness (DVA) and
the impact of funding (FVA), using a consistent
framework across the Firm. Refer to Credit and
funding adjustments on page 198 of this Note for
more information on such adjustments.
Valuation model review and approval
If prices or quotes are not available for an instrument
or a similar instrument, fair value is generally
determined using valuation models that consider
relevant transaction terms such as maturity and use as
inputs market-based or independently sourced
parameters. Where this is the case the price
verification process described above is applied to the
inputs in those models.
Under the Firm’s Estimations and Model Risk
Management Policy, MRGR reviews and approves new
models, as well as material changes to existing
models, prior to implementation in the operating
environment. In certain circumstances exceptions may
be granted to the Firm’s policy to allow a model to be
used prior to review or approval. MRGR may also
require the user to take appropriate actions to mitigate
the model risk if it is to be used in the interim. These
actions will depend on the model and may include, for
example, limitation of trading activity.
Fair value hierarchy
A three-level fair value hierarchy has been established
under U.S. GAAP for disclosure of fair value
measurements. The fair value hierarchy is based on
the observability of inputs to the valuation of an asset
or liability as of the measurement date. The three
levels are defined as follows.
• Level 1 – inputs to the valuation methodology are
quoted prices (unadjusted) for identical assets or
liabilities in active markets.
• Level 2 – inputs to the valuation methodology
include quoted prices for similar assets and liabilities
in active markets, and inputs that are observable for
the asset or liability, either directly or indirectly, for
substantially the full term of the financial instrument.
• Level 3 – one or more inputs to the valuation
methodology are unobservable and significant to the
fair value measurement.
A financial instrument’s categorization within the fair
value hierarchy is based on the lowest level of input
that is significant to the fair value measurement.
Notes to consolidated financial statements
182
JPMorgan Chase & Co./2024 Form 10-K

The following table describes the valuation methodologies generally used by the Firm to measure its significant
products/instruments at fair value, including the general classification of such instruments pursuant to the fair value
hierarchy.
Product/instrument
Valuation methodology
Classifications in the fair
value hierarchy
Securities financing
agreements
Valuations are based on discounted cash flows, which consider:
Predominantly level 2
• Derivative features: refer to the discussion of derivatives
below for further information
• Market rates for the respective maturity
• Collateral characteristics
Loans and lending-related
commitments — wholesale
Loans carried at fair value
(trading loans and non-
trading loans) and
associated
lending-related
commitments
Where observable market data is available, valuations are based
on:
Level 2 or 3
• Observed market prices (circumstances are infrequent)
• Relevant broker quotes
• Observed market prices for similar instruments
Where observable market data is unavailable or limited,
valuations are based on discounted cash flows, which consider
the following:
• Credit spreads derived from the cost of CDS; or benchmark
credit curves developed by the Firm, by industry and credit
rating
• Prepayment speed
• Collateral characteristics
Loans — consumer
Fair value is based on observable market prices for mortgage-
backed securities with similar collateral and incorporates
adjustments to these prices to account for differences between
the securities and the value of the underlying loans, which
include credit characteristics, portfolio composition, and
liquidity.
Predominantly level 2
Loans carried at fair value
— residential mortgage
loans expected to be sold
Investment and trading
securities
Quoted market prices
Level 1
In the absence of quoted market prices, securities are valued
based on:
Level 2 or 3
• Observable market prices for similar securities
• Relevant broker quotes
• Discounted cash flows
In addition, the following inputs to discounted cash flows are
used for the following products:
Mortgage- and asset-backed securities specific inputs:
• Collateral characteristics
• Deal-specific payment and loss allocations
• Current market assumptions related to yield, prepayment
speed, conditional default rates and loss severity
Collateralized loan obligations (“CLOs”) specific inputs:
• Collateral characteristics
• Deal-specific payment and loss allocations
• Expected prepayment speed, conditional default rates, loss
severity
• Credit spreads
• Credit rating data
Physical commodities
Valued using observable market prices or data.
Predominantly Level 1 or 2
JPMorgan Chase & Co./2024 Form 10-K
183

Product/instrument
Valuation methodology
Classifications in the fair
value hierarchy
Derivatives
Actively traded derivatives, e.g., exchange-traded derivatives,
that are valued using quoted prices.
Level 1
Derivatives that are valued using models such as the Black-
Scholes option pricing model, simulation models, or a
combination of models that may use observable or
unobservable valuation inputs as well as considering the
contractual terms.
The key valuation inputs used will depend on the type of
derivative and the nature of the underlying instruments and may
include equity prices, commodity prices, foreign exchange
rates, volatilities, correlations, CDS spreads, recovery rates and
prepayment speed.
Level 2 or 3
In addition, specific inputs used for derivatives that are valued
based on models with significant unobservable inputs are as
follows:
Interest rate and FX exotic derivatives specific inputs include:
• Interest rate curve
• Interest rate volatility
• Interest rate spread volatility
• Bermudan switch value
• Interest rate correlation
• Interest rate-FX correlation
• Foreign exchange correlation
Credit derivatives specific inputs include:
• Credit correlation between the underlying debt instruments
Equity derivatives specific inputs include:
• Forward equity price
• Equity volatility
• Equity correlation
• Equity-FX correlation
• Equity-IR correlation
Commodity derivatives specific inputs include:
• Forward commodity price
• Commodity volatility
• Commodity correlation
Additionally, adjustments are made to reflect counterparty
credit quality (CVA) and the impact of funding (FVA). Refer to
page 198 of this Note.
Mortgage servicing rights
Refer to Mortgage servicing rights in Note 15.
Level 3
Private equity direct
investments
Fair value is estimated using all available information; the range
of potential inputs include:
Level 2 or 3
• Transaction prices
• Trading multiples of comparable public companies
• Operating performance of the underlying portfolio company
• Adjustments as required, since comparable public
companies are not identical to the company being valued,
and for company-specific issues including lack of liquidity
• Additional available inputs relevant to the investment
Notes to consolidated financial statements
184
JPMorgan Chase & Co./2024 Form 10-K

Product/instrument
Valuation methodology
Classification in the fair
value hierarchy
Fund investments (e.g.,
mutual/collective
investment funds, private
equity funds, hedge funds,
and real estate funds)
Net asset value
• NAV is supported by the ability to redeem and purchase at
the NAV level
Level 1
• Adjustments to the NAV as required, for restrictions on
redemption (e.g., lock-up periods or withdrawal limitations)
or where observable activity is limited
Level 2 or 3(a)
Beneficial interests issued
by consolidated VIEs
Valued using observable market information, where available.
Level 2 or 3
In the absence of observable market information, valuations are
based on the fair value of the underlying assets held by the VIE.
Structured notes (included
in deposits, short-term
borrowings and long-term
debt)
Valuations are based on discounted cash flow analyses that
consider the embedded derivative and the terms and payment
structure of the note.
The embedded derivative features are considered using models
such as the Black-Scholes option pricing model, simulation
models, or a combination of models that may use observable or
unobservable valuation inputs, depending on the embedded
derivative. The specific inputs used vary according to the nature
of the embedded derivative features, as described in the
discussion above regarding derivatives valuation. Adjustments
are then made to this base valuation to reflect the Firm’s own
credit risk (DVA). Refer to page 198 of this Note.
Level 2 or 3
(a) Excludes certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient.
JPMorgan Chase & Co./2024 Form 10-K
185

The following table presents the assets and liabilities reported at fair value as of December 31, 2024 and 2023, by
major product category and fair value hierarchy.
Assets and liabilities measured at fair value on a recurring basis
Fair value hierarchy
December 31, 2024 (in millions)
Level 1
Level 2
Level 3
Derivative
netting
adjustments(e)
Total fair value
Federal funds sold and securities purchased under resale agreements
$
— $
286,771
$
—
$
— $
286,771
Securities borrowed

—
83,962

—

—
83,962
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies(a)

—
104,312

488

—
104,800
Residential – nonagency

—
2,282

—
2,287
Commercial – nonagency

—
1,283

—
1,293
Total mortgage-backed securities

—
107,877

503

—
108,380
U.S. Treasury, GSEs and government agencies(a)

150,580
11,702

—

—
162,282
Obligations of U.S. states and municipalities

—
6,100

—
6,101
Certificates of deposit, bankers’ acceptances and commercial paper

—
3,950

—

—
3,950
Non-U.S. government debt securities

34,108
54,335

152

—
88,595
Corporate debt securities

—
33,591

390

—
33,981
Loans

—
10,228

1,088

—
11,316
Asset-backed securities

—
2,813

—
2,823
Total debt instruments

184,688
230,596

2,144

—
417,428
Equity securities

130,307
1,359

—
131,728
Physical commodities(b)

5,957
1,533

—
7,516
Other

—
19,935

210

—
20,145
Total debt and equity instruments(c)

320,952
253,423

2,442

—
576,817
Derivative receivables:
Interest rate

4,934
282,019

3,781

(265,789)
24,945
Credit

—
10,379

708

(10,273)
814
Foreign exchange

196
261,520

1,204

(237,608)
25,312
Equity

—
82,855

2,365

(79,935)
5,285
Commodity

—
15,232

394

(11,015)
4,611
Total derivative receivables

5,130
652,005

8,452

(604,620)
60,967
Total trading assets(d)

326,082
905,428

10,894

(604,620)
637,784
Available-for-sale securities:
Mortgage-backed securities:
U.S. GSEs and government agencies(a)

—
91,893

—

—
91,893
Residential – nonagency

—
4,811

—

—
4,811
Commercial – nonagency

—
4,057

—
4,065
Total mortgage-backed securities

—
100,761

—
100,769
U.S. Treasury and government agencies

234,491
288

—

—
234,779
Obligations of U.S. states and municipalities

—
17,913

—

—
17,913
Non-U.S. government debt securities

23,973
12,272

—

—
36,245
Corporate debt securities

—
70

—

—
70
Asset-backed securities:
Collateralized loan obligations

—
14,943

—

—
14,943
Other(a)

—
2,133

—

—
2,133
Total available-for-sale securities

258,464
148,380

—
406,852
Loans(e)

—
38,934

2,416

—
41,350
Mortgage servicing rights

—
—

9,121

—
9,121
Other assets(d)

5,732
6,997

1,344

—
14,073
Total assets measured at fair value on a recurring basis
$
590,278 $
1,470,472
$
23,783
$
(604,620) $
1,479,913
Deposits
$
— $
31,583
$
2,185
$
— $
33,768
Federal funds purchased and securities loaned or sold under repurchase
agreements

—
226,329

—

—
226,329
Short-term borrowings

—
23,045

3,476

—
26,521
Trading liabilities:
Debt and equity instruments(c)

120,719
32,457

—
153,222
Derivative payables:
Interest rate

3,981
266,767

3,480

(264,989)
9,239
Credit

—
12,725

1,071

(11,898)
1,898
Foreign exchange

187
253,196

1,184

(238,970)
15,597
Equity

—
90,908

5,231

(87,491)
8,648
Commodity

—
14,021

467

(10,209)
4,279
Total derivative payables

4,168
637,617

11,433

(613,557)
39,661
Total trading liabilities

124,887
670,074

11,479

(613,557)
192,883
Accounts payable and other liabilities

3,100
2,717

—
5,893
Beneficial interests issued by consolidated VIEs

—
1

—

—
1
Long-term debt

—
66,216

34,564

—
100,780
Total liabilities measured at fair value on a recurring basis
$
127,987 $
1,019,965
$
51,780
$
(613,557) $
586,175
Notes to consolidated financial statements
186
JPMorgan Chase & Co./2024 Form 10-K

Fair value hierarchy
December 31, 2023 (in millions)
Level 1
Level 2
Level 3
Derivative
netting
adjustments(e)
Total fair value
Federal funds sold and securities purchased under resale agreements
$
— $
259,813
$
—
$
—
$
259,813
Securities borrowed

—
70,086

—

70,086
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies(a)

—
73,840

758

—

74,598
Residential – nonagency

—
1,921

—

1,926
Commercial – nonagency

—
1,362

—

1,374
Total mortgage-backed securities

—
77,123

775

—

77,898
U.S. Treasury, GSEs and government agencies(a)

133,997
9,998

—

143,995
Obligations of U.S. states and municipalities

—
5,858

—

5,868
Certificates of deposit, bankers’ acceptances and commercial paper

—
756

—

756
Non-U.S. government debt securities

24,846
55,557

179

—

80,582
Corporate debt securities

—
32,854

484

—

33,338
Loans

—
7,872

684

—

8,556
Asset-backed securities

—
2,199

—

2,205
Total debt instruments

158,843
192,217

2,138

—

353,198
Equity securities

107,926
679

127

—

108,732
Physical commodities(b)

2,479
3,305

—

5,791
Other

—
17,879

101

—

17,980
Total debt and equity instruments(c)

269,248
214,080

2,373

—

485,701
Derivative receivables:
Interest rate

2,815
243,578

4,298

(224,367)

26,324
Credit

—
8,644

1,010

(9,103)

551
Foreign exchange

149
204,737

889

(187,756)

18,019
Equity

—
55,167

2,522

(52,761)

4,928
Commodity

—
15,234

205

(10,397)

5,042
Total derivative receivables

2,964
527,360

8,924

(484,384)

54,864
Total trading assets(d)

272,212
741,440

11,297

(484,384)

540,565
Available-for-sale securities:
Mortgage-backed securities:
U.S. GSEs and government agencies(a)

—
85,170

—

85,170
Residential – nonagency

—
3,639

—

3,639
Commercial – nonagency

—
2,803

—

2,803
Total mortgage-backed securities

—
91,612

—

91,612
U.S. Treasury and government agencies

57,683
122

—

57,805
Obligations of U.S. states and municipalities

—
21,367

—

21,367
Non-U.S. government debt securities

13,095
8,187

—

21,282
Corporate debt securities

—
100

—

100
Asset-backed securities:
Collateralized loan obligations

—
6,752

—

6,752
Other(a)

—
2,786

—

2,786
Total available-for-sale securities

70,778
130,926

—

201,704
Loans(e)

—
35,772

3,079

—

38,851
Mortgage servicing rights

—
—

8,522

—

8,522
Other assets(d)

6,635
3,929

758

—

11,322
Total assets measured at fair value on a recurring basis
$
349,625 $
1,241,966
$
23,656
$
(484,384)
$
1,130,863
Deposits
$
— $
76,551
$
1,833
$
—
$
78,384
Federal funds purchased and securities loaned or sold under repurchase agreements

—
169,003

—

169,003
Short-term borrowings

—
18,284

1,758

—

20,042
Trading liabilities:
Debt and equity instruments(c)

107,292
32,252

—

139,581
Derivative payables:
Interest rate

4,409
232,277

3,796

(228,586)

11,896
Credit

—
11,293

745

(10,949)

1,089
Foreign exchange

147
211,289

827

(199,643)

12,620
Equity

—
60,887

4,924

(56,443)

9,368
Commodity

—
15,894

484

(10,504)

5,874
Total derivative payables

4,556
531,640

10,776

(506,125)

40,847
Total trading liabilities

111,848
563,892

10,813

(506,125)

180,428
Accounts payable and other liabilities

3,968
1,617

—

5,637
Beneficial interests issued by consolidated VIEs

—
1

—

1
Long-term debt

—
60,198

27,726

—

87,924
Total liabilities measured at fair value on a recurring basis
$
115,816 $
889,546
$
42,182
$
(506,125)
$
541,419
(a) At December 31, 2024 and 2023, included total U.S. GSE obligations of $120.1 billion and $78.5 billion, respectively, which were mortgage-
related.
(b) Physical commodities inventories are generally accounted for at the lower of cost or net realizable value. “Net realizable value” is a term
defined in U.S. GAAP as not exceeding fair value less costs to sell (“transaction costs”). Transaction costs for the Firm’s physical commodities
inventories are either not applicable or immaterial to the value of the inventory. Therefore, net realizable value approximates fair value for the
Firm’s physical commodities inventories. When fair value hedging has been applied (or when net realizable value is below cost), the carrying
value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in
fair value. Refer to Note 5 for a further discussion of the Firm’s hedge accounting relationships. To provide consistent fair value disclosure
information, all physical commodities inventories have been included in each period presented.
JPMorgan Chase & Co./2024 Form 10-K
187

(c) Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short
positions).
(d) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not
required to be classified in the fair value hierarchy. At both December 31, 2024 and 2023, the fair values of these investments, which include
certain hedge funds, private equity funds, real estate and other funds, were $1.0 billion, primarily reported in other assets.
(e) As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral
received and paid when a legally enforceable master netting agreement exists. The level 3 balances would be reduced if netting were applied,
including the netting benefit associated with cash collateral.
Notes to consolidated financial statements
188
JPMorgan Chase & Co./2024 Form 10-K

Level 3 valuations
The Firm has established well-structured processes for
determining fair value, including for instruments where
fair value is estimated using significant unobservable
inputs (level 3). Refer to pages 181–185 of this Note for
further information on the Firm’s valuation process and
a detailed discussion of the determination of fair value
for individual financial instruments.
Estimating fair value requires the application of
judgment. The type and level of judgment required is
largely dependent on the amount of observable market
information available to the Firm. For instruments
valued using internally developed valuation models and
other valuation techniques that use significant
unobservable inputs and are therefore classified within
level 3 of the fair value hierarchy, judgments used to
estimate fair value are more significant than those
required when estimating the fair value of instruments
classified within levels 1 and 2.
In arriving at an estimate of fair value for an instrument
within level 3, management must first determine the
appropriate valuation model or other valuation
technique to use. Second, due to the lack of
observability of significant inputs, management must
assess relevant empirical data in deriving valuation
inputs including transaction details, yield curves,
interest rates, prepayment speed, default rates,
volatilities, correlations, prices (such as commodity,
equity or debt prices), valuations of comparable
instruments, foreign exchange rates and credit curves.
The following table presents the Firm’s primary level 3
financial instruments, the valuation techniques used to
measure the fair value of those financial instruments,
the significant unobservable inputs, the range of values
for those inputs and the weighted or arithmetic
averages of such inputs. While the determination to
classify an instrument within level 3 is based on the
significance of the unobservable inputs to the overall
fair value measurement, level 3 financial instruments
typically include observable components (that is,
components that are actively quoted and can be
validated to external sources) in addition to the
unobservable components. The level 1 and/or level 2
inputs are not included in the table. In addition, the Firm
manages the risk of the observable components of level
3 financial instruments using securities and derivative
positions that are classified within levels 1 or 2 of the fair
value hierarchy.
The range of values presented in the table is
representative of the highest and lowest level input
used to value the significant groups of instruments
within a product/instrument classification. Where
provided, the weighted averages of the input values
presented in the table are calculated based on the fair
value of the instruments that the input is being used to
value.
In the Firm’s view, the input range, weighted and
arithmetic average values do not reflect the degree of
input uncertainty or an assessment of the
reasonableness of the Firm’s estimates and
assumptions. Rather, they reflect the characteristics of
the various instruments held by the Firm and the
relative distribution of instruments within the range of
characteristics. For example, two option contracts may
have similar levels of market risk exposure and
valuation uncertainty, but may have significantly
different implied volatility levels because the option
contracts have different underlyings, tenors, or strike
prices. The input range and weighted and arithmetic
average values will therefore vary from period-to-
period and parameter-to-parameter based on the
characteristics of the instruments held by the Firm at
each balance sheet date.
JPMorgan Chase & Co./2024 Form 10-K
189

Level 3 inputs(a)
December 31, 2024
Product/Instrument
Fair value
(in millions)
Principal valuation
technique
Unobservable inputs(g)
Range of input values
Average(i)
Residential mortgage-backed securities
and loans
(b)
$
861
Discounted cash flows
Yield
0%
103%
8%
Prepayment speed
3%
13%
8%
Conditional default rate
0%
7%
0%
Loss severity
0%
110%
5%
Commercial mortgage-backed securities
and loans
(c)

1,424
Market comparables
Price
$0
$90
$81
Corporate debt securities

390
Market comparables
Price
$0
$148
$95
Loans
(d)

1,730
Market comparables
Price
$0
$107
$79
Non-U.S. government debt securities

152
Market comparables
Price
$0
$103
$95
Net interest rate derivatives

293
Option pricing
Interest rate volatility
9bps
1,097bps
115bps
Interest rate spread volatility
37bps
77bps
64bps
Bermudan switch value
0%
45%
17%
Interest rate correlation
(82)%
97%
64%
IR-FX correlation
(35)%
60%
8%

8
Discounted cash flows
Prepayment speed
0%
21%
7%
Net credit derivatives

(393)
Discounted cash flows
Credit correlation
31%
79%
47%
Credit spread
0bps
2,717bps
331bps
Recovery rate
10%
90%
61%

30
Market comparables
Price
$0
$115
$74
Net foreign exchange derivatives

62
Option pricing
IR-FX correlation
(40)%
60%
22%

(42)
Discounted cash flows
Prepayment speed
11%
11%
Interest rate curve
1%
27%
7%
Net equity derivatives

(2,866)
Option pricing
Forward equity price
(h)
76%
153%
100%
Equity volatility
5%
135%
32%
Equity correlation
17%
100%
56%
Equity-FX correlation
(80)%
65%
(32)%
Equity-IR correlation
5%
25%
14%
Net commodity derivatives

(73)
Option pricing
Oil commodity forward
$87 / BBL
$291 / BBL
$160 / BBL
Natural gas commodity forward
$2 / MMBTU
$7 / MMBTU
$4 / MMBTU
Commodity volatility
2%
43%
5%
Commodity correlation
(35)%
98%
(9)%
MSRs

9,121
Discounted cash flows
Refer to Note 15
Long-term debt, short-term borrowings,
and deposits
(e)

38,901
Option pricing
Interest rate volatility
9bps
1,097bps
115bps
Bermudan switch value
0%
45%
17%
Interest rate correlation
(82)%
97%
64%
IR-FX correlation
(35)%
60%
8%
Equity volatility
2%
137%
28%
Equity correlation
17%
100%
56%
Equity-FX correlation
(80)%
65%
(32)%
Equity-IR correlation
5%
25%
14%

1,324
Discounted cash flows
Credit correlation
30%
57%
46%
Credit spread
2bps
270bps
83bps
Recovery rate
20%
40%
35%
Yield
5%
20%
10%
Loss severity
0%
100%
50%
Other level 3 assets and liabilities, net
(f)

1,531
(a) The categories presented in the table have been aggregated based upon the product type, which may differ from their classification on the
Consolidated balance sheets. Furthermore, the inputs presented for each valuation technique in the table are, in some cases, not applicable to every
instrument valued using the technique as the characteristics of the instruments can differ.
(b) Comprises U.S. GSE and government agency securities of $488 million, nonagency securities of $5 million and non-trading loans of $368 million.
(c) Comprises nonagency securities of $18 million, trading loans of $65 million and non-trading loans of $1.3 billion.
(d) Comprises trading loans of $1.0 billion and non-trading loans of $707 million.
(e) Long-term debt, short-term borrowings and deposits include structured notes issued by the Firm that are financial instruments that typically contain
embedded derivatives. The estimation of the fair value of structured notes includes the derivative features embedded within the instrument. The
significant unobservable inputs are broadly consistent with those presented for derivative receivables.
(f)
Includes equity securities of $734 million including $672 million in Other assets, for which quoted prices are not readily available and the fair value is
generally based on internal valuation techniques such as EBITDA multiples and comparable analysis. All other level 3 assets and liabilities are
insignificant both individually and in aggregate.
(g) Price is a significant unobservable input for certain instruments. When quoted market prices are not readily available, reliance is generally placed on
price-based internal valuation techniques. The price input is expressed assuming a par value of $100.
(h) Forward equity price is expressed as a percentage of the current equity price.
(i)
Amounts represent weighted averages except for derivative related inputs where arithmetic averages are used.
Notes to consolidated financial statements
190
JPMorgan Chase & Co./2024 Form 10-K

Changes in and ranges of unobservable inputs
The following discussion provides a description of the
impact on a fair value measurement of a change in each
unobservable input in isolation, and the
interrelationship between unobservable inputs, where
relevant and significant. The impact of changes in
inputs may not be independent, as a change in one
unobservable input may give rise to a change in another
unobservable input. Where relationships do exist
between two unobservable inputs, those relationships
are discussed below. Relationships may also exist
between observable and unobservable inputs (for
example, as observable interest rates rise,
unobservable prepayment rates decline); such
relationships have not been included in the discussion
below. In addition, for each of the individual
relationships described below, the inverse relationship
would also generally apply.
The following discussion also provides a description of
attributes of the underlying instruments and external
market factors that affect the range of inputs used in
the valuation of the Firm’s positions.
Yield – The yield of an asset is the interest rate used to
discount future cash flows in a discounted cash flow
calculation. An increase in the yield, in isolation, would
result in a decrease in a fair value measurement.
Credit spread – The credit spread is the amount of
additional annualized return over the market interest
rate that a market participant would demand for taking
exposure to the credit risk of an instrument. The credit
spread for an instrument forms part of the discount rate
used in a discounted cash flow calculation. Generally,
an increase in the credit spread would result in a
decrease in a fair value measurement.
The yield and the credit spread of a particular
mortgage-backed security primarily reflect the risk
inherent in the instrument. The yield is also impacted by
the absolute level of the coupon paid by the instrument
(which may not correspond directly to the level of
inherent risk). Therefore, the range of yield and credit
spreads reflects the range of risk inherent in various
instruments owned by the Firm. The risk inherent in
mortgage-backed securities is driven by the
subordination of the security being valued and the
characteristics of the underlying mortgages within the
collateralized pool, including borrower FICO scores,
LTV ratios for residential mortgages and the nature of
the property and/or any tenants for commercial
mortgages. For corporate debt securities, obligations of
U.S. states and municipalities and other similar
instruments, credit spreads reflect the credit quality of
the obligor and the tenor of the obligation.
Prepayment speed – The prepayment speed is a
measure of the voluntary unscheduled principal
repayments of a prepayable obligation in a
collateralized pool. Prepayment speeds generally
decline as borrower delinquencies rise. An increase in
prepayment speeds, in isolation, would result in a
decrease in a fair value measurement of assets valued
at a premium to par and an increase in a fair value
measurement of assets valued at a discount to par.
Prepayment speeds may vary from collateral pool to
collateral pool, and are driven by the type and location
of the underlying borrower, and the remaining tenor of
the obligation as well as the level and type (e.g., fixed or
floating) of interest rate being paid by the borrower.
Typically collateral pools with higher borrower credit
quality have a higher prepayment rate than those with
lower borrower credit quality, all other factors being
equal.
Conditional default rate – The conditional default rate is
a measure of the reduction in the outstanding collateral
balance underlying a collateralized obligation as a
result of defaults. While there is typically no direct
relationship between conditional default rates and
prepayment speeds, collateralized obligations for which
the underlying collateral has high prepayment speeds
will tend to have lower conditional default rates. An
increase in conditional default rates would generally be
accompanied by an increase in loss severity and an
increase in credit spreads. An increase in the
conditional default rate, in isolation, would result in a
decrease in a fair value measurement. Conditional
default rates reflect the quality of the collateral
underlying a securitization and the structure of the
securitization itself. Based on the types of securities
owned in the Firm’s market-making portfolios,
conditional default rates are most typically at the lower
end of the range presented.
Loss severity – The loss severity (the inverse concept is
the recovery rate) is the expected amount of future
realized losses resulting from the ultimate liquidation of
a particular loan, expressed as the net amount of loss
relative to the outstanding loan balance. An increase in
loss severity is generally accompanied by an increase in
conditional default rates. An increase in the loss
severity, in isolation, would result in a decrease in a fair
value measurement.
The loss severity applied in valuing a mortgage-backed
security depends on factors relating to the underlying
mortgages, including the LTV ratio, the nature of the
lender’s lien on the property and other instrument-
specific factors.
JPMorgan Chase & Co./2024 Form 10-K
191

Correlation – Correlation is a measure of the
relationship between the movements of two variables.
Correlation is a pricing input for a derivative product
where the payoff is driven by one or more underlying
risks. Correlation inputs are related to the type of
derivative (e.g., interest rate, credit, equity, foreign
exchange and commodity) due to the nature of the
underlying risks. When parameters are positively
correlated, an increase in one parameter will result in an
increase in the other parameter. When parameters are
negatively correlated, an increase in one parameter will
result in a decrease in the other parameter. An increase
in correlation can result in an increase or a decrease in a
fair value measurement. Given a short correlation
position, an increase in correlation, in isolation, would
generally result in a decrease in a fair value
measurement.
The level of correlation used in the valuation of
derivatives with multiple underlying risks depends on a
number of factors including the nature of those risks.
For example, the correlation between two credit risk
exposures would be different than that between two
interest rate risk exposures. Similarly, the tenor of the
transaction may also impact the correlation input, as
the relationship between the underlying risks may be
different over different time periods. Furthermore,
correlation levels are dependent on market conditions
and could have a relatively wide range of levels within or
across asset classes over time, particularly in volatile
market conditions.
Volatility – Volatility is a measure of the variability in
possible returns for an instrument, parameter or market
index given how much the particular instrument,
parameter or index changes in value over time.
Volatility is a pricing input for options, including equity
options, commodity options, and interest rate options.
Given a long position in an option, an increase in
volatility, in isolation, would generally result in an
increase in a fair value measurement.
The level of volatility used in the valuation of a particular
option-based derivative depends on a number of
factors, including the nature of the risk underlying the
option (e.g., the volatility of a particular equity security
may be significantly different from that of a particular
commodity index), the tenor of the derivative as well as
the strike price of the option.
Bermudan switch value – The switch value is the
difference between the overall value of a Bermudan
swaption, which can be exercised at multiple points in
time, and its most expensive European swaption and
reflects the additional value that the multiple exercise
dates provide the holder. Switch values are dependent
on market conditions and can vary greatly depending
on a number of factors, such as the tenor of the
underlying swap as well as the strike price of the option.
An increase in switch value, in isolation, would generally
result in an increase in a fair value measurement.
Interest rate curve – The interest rate curve represents
the relationship of interest rates over differing tenors.
The interest rate curve is used to set interest rate and
foreign exchange derivative cash flows and is also a
pricing input used in the discounting of any derivative
cash flow.
Forward price – The forward price is the price at which
the buyer agrees to purchase the asset underlying a
forward contract on the predetermined future delivery
date, and is such that the value of the contract is zero at
inception.
The forward price is used as an input in the valuation of
certain derivatives and depends on a number of factors
including interest rates, the current price of the
underlying asset, and the expected income to be
received and costs to be incurred by the seller as a
result of holding that asset until the delivery date. An
increase in the forward can result in an increase or a
decrease in a fair value measurement.
Changes in level 3 recurring fair value measurements
The following tables include a rollforward of the
Consolidated balance sheets amounts (including
changes in fair value) for financial instruments classified
by the Firm within level 3 of the fair value hierarchy for
the years ended December 31, 2024, 2023 and 2022.
When a determination is made to classify a financial
instrument within level 3, the determination is based on
the significance of the unobservable inputs to the
overall fair value measurement. However, level 3
financial instruments typically include, in addition to the
unobservable or level 3 components, observable
components (that is, components that are actively
quoted and can be validated to external sources);
accordingly, the gains and losses in the table below
include changes in fair value due in part to observable
factors that are part of the valuation methodology. The
Firm risk-manages the observable components of level
3 financial instruments using securities and derivative
positions that are classified within level 1 or 2 of the fair
value hierarchy; as these level 1 and level 2 risk
management instruments are not included below, the
gains or losses in the following tables do not reflect the
effect of the Firm’s risk management activities related
to such level 3 instruments.
Notes to consolidated financial statements
192
JPMorgan Chase & Co./2024 Form 10-K

Fair value measurements using significant unobservable inputs
Year ended
December 31, 2024
(in millions)
Fair value
at Jan. 1,
2024
Total
realized/
unrealized
gains/
(losses)
Transfers
into
level 3
Transfers
(out of)
level 3
Fair
value at
Dec. 31,
2024
Change in
unrealized gains/
(losses) related
to financial
instruments held
at Dec. 31, 2024
Purchases
(g)
Sales
Settlements
(h)
Assets:
(a)
Federal funds sold and securities
purchased under resale agreements
$
— $
—
$
— $
—
$
— $
— $
— $
—
$
—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government
agencies

758
18

46 (260)

(81)
7
—
488

(3)
Residential – nonagency

5
7

—
(5)

(2)
4
(4)
5

—
Commercial – nonagency

12
(2)

—
—

—
—
—
10

(1)
Total mortgage-backed
securities

775
23

46 (265)

(83)
11
(4)
503

(4)
Obligations of U.S. states and
municipalities

10
—

—
—

(3)
—
(6)
1

—
Non-U.S. government debt
securities

179
(6)

175
(183)

—
17
(30)
152

(10)
Corporate debt securities

484
36

459 (354)

(181)
13
(67)
390

45
Loans

684
63

800 (642)

(74)
839
(582) 1,088

29
Asset-backed securities

6
—

9
(5)

(8)
8
—
10

—
Total debt instruments

2,138
116

1,489 (1,449)

(349)
888
(689) 2,144

60
Equity securities

127
(21)

138
(123)

(1)
85
(143)
62

(308)
Physical commodities

7
17

3
—

(1)
—
—
26

16
Other

101
144

53
—

(68)
28
(48)
210

108
Total trading assets – debt and
equity instruments

2,373
256
(c)

1,683 (1,572)

(419)
1,001
(880) 2,442

(124)
(c)
Net derivative receivables:
(b)
Interest rate

502
745

387
(197)

(608)
(172)
(356)
301

(362)
Credit

265 (208)

(2)
(17)

(333)
(61)
(7)
(363)

(265)
Foreign exchange

62
248

178 (538)

(30)
128
(28)
20

353
Equity

(2,402)
(321)

904 (2,488)

953
(91)
579 (2,866)

783
Commodity

(279)
64

32
(215)

310
15
—
(73)

102
Total net derivative receivables

(1,852)
528
(c)

1,499 (3,455)

292
(181)
188 (2,981)

611
(c)
Available-for-sale securities:
Mortgage-backed securities:
Commercial – nonagency

—
—

—
8
—
8

—
Corporate debt securities

—
—

—
—
—
—

—
Total available-for-sale securities

—
—
(d)

—
—

—
8
—
8

—
(d)
Loans

3,079
266
(c)

431
(756)

(993)
816
(427) 2,416

251
(c)
Mortgage servicing rights

8,522
762
(e)

926
(21)

(1,068)
—
—
9,121

762
(e)
Other assets

758
105
(c)

623
(62)

(58)
5
(27) 1,344

88
(c)
Fair value measurements using significant unobservable inputs
Year ended
December 31, 2024
(in millions)
Fair value
at Jan. 1,
2024
Total
realized/
unrealized
(gains)/
losses
Transfers
(out of)
level 3
Fair
value at
Dec. 31,
2024
Change in
unrealized
(gains)/losses
related to
financial
instruments held
at Dec. 31, 2024
Purchases
Sales
Issuances
Settlements
(h)
Transfers
into
level 3
Liabilities:
(a)
Deposits
$
1,833 $
(14)
(c)(f) $
— $
— $
2,006 $
(1,522) $
34 $
(152) $ 2,185
$
(44)
(c)(f)
Short-term borrowings

1,758
180
(c)(f)
—
—
7,752
(6,230)
23
(7) 3,476

58
(c)(f)
Trading liabilities – debt and equity
instruments

37
(47)
(c)

(45)
70
—
—
48
(17)
46

18
(c)
Accounts payable and other liabilities
52
(6)
(c)

(35)
63
—
—
5
(3)
76

(6)
(c)
Long-term debt

27,726 1,475
(c)(f)
—
—
23,920
(18,432)
738
(863) 34,564

1,212
(c)(f)
JPMorgan Chase & Co./2024 Form 10-K
193

Fair value measurements using significant unobservable inputs
Year ended
December 31, 2023
(in millions)
Fair
value at
Jan. 1,
2023
Total
realized/
unrealized
gains/
(losses)
Transfers
(out of)
level 3
Fair
value at
Dec. 31,
2023
Change in
unrealized
gains/(losses)
related to
financial
instruments held
at Dec. 31, 2023
Purchases
(g)
Sales
Settlements
(h)
Transfers
into
level 3
Assets:
(a)
Federal funds sold and securities
purchased under resale
agreements
$
— $
—
$
— $
—
$
— $
— $
— $
—
$
—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government
agencies

759
4

249
(133)

(107)
—
(14)
758

1
Residential – nonagency

5
6

—
(6)

(1)
1
—
5

1
Commercial – nonagency

7
6

—
—

(1)
8
(8)
12

7
Total mortgage-backed
securities

771
16

249
(139)

(109)
9
(22)
775

9
Obligations of U.S. states and
municipalities

7
—

1
—

(1)
3
—
10

—
Non-U.S. government debt
securities

155
74

217 (254)

—
22
(35)
179

74
Corporate debt securities

463
36

322
(172)

(41)
114
(238)
484

35
Loans

759
(15)

1,027 (499)

(441)
382
(529)
684

30
Asset-backed securities

23
—

7
(12)

(1)
5
(16)
6

—
Total debt instruments

2,178
111

1,823 (1,076)

(593)
535
(840)
2,138

148
Equity securities

665
(53)

164 (239)

(384)
192
(218)
127

(422)
Physical commodities

2
—

7
—

(2)
—
—
7

—
Other

64
(58)

141
—

(5)
1
(42)
101

(28)
Total trading assets – debt and
equity instruments

2,909
—

2,135 (1,315)

(984)
728
(1,100)
2,373

(302)
(c)
Net derivative receivables:
(b)
Interest rate

701
556

251 (255)

654
(1,117)
(288)
502

419
Credit

13
304

(60)
(25)

47
15
(29)
265

230
Foreign exchange

489
31

151
(144)

(187)
144
(422)
62

(80)
Equity

(384)
191

928 (1,931)

(1,306)
700
(600) (2,402)

(646)
Commodity

(146)
(59)

59 (290)

(51)
(11)
219
(279)

(144)
Total net derivative receivables

673 1,023
(c)

1,329 (2,645)

(843)
(269)
(1,120) (1,852)

(221)
(c)
Available-for-sale securities:
Mortgage-backed securities:
Commercial – nonagency

—
—

—
—
—
—

—
Corporate debt securities

239
24

— (225)

—
—
(38)
—

—
Total available-for-sale securities

239
24
(d)

— (225)

—
—
(38)
—

—
(d)
Loans

1,418
289
(c)

2,398
(120)

(1,147)
1,306
(1,065) 3,079

293
(c)
Mortgage servicing rights

7,973
467
(e)

1,281
(188)

(1,011)
—
— 8,522

467
(e)
Other assets

405
(36)
(c)

525
(20)

(147)
45
(14)
758

(82)
(c)
Fair value measurements using significant unobservable inputs
Year ended
December 31, 2023
(in millions)
Fair
value at
Jan. 1,
2023
Total
realized/
unrealized
(gains)/
losses

Transfers
(out of)
level 3
Fair
value at
Dec. 31,
2023
Change in
unrealized
(gains)/losses
related to
financial
instruments held
at Dec. 31, 2023
Purchases
Sales
Issuances
Settlements
(h)
Transfers
into
level 3
Liabilities:
(a)
Deposits
$ 2,162 $
95
(c)(f)
$
— $
— $
940 $
(1,043) $
— $
(321) $ 1,833
$
73
(c)(f)
Short-term borrowings

1,401
201
(c)(f)

—
—
4,522
(4,345)
3
(24)
1,758

14
(c)(f)
Trading liabilities – debt and equity
instruments

84
(21)
(c)

(32)
9
—
(2)
19
(20)
37

—
Accounts payable and other
liabilities

53
(4)
(c)

(16)
24
—
—
8
(13)
52

(4)
(c)
Long-term debt
24,092 3,010
(c)(f)

—
—
12,679
(11,555)
229
(729) 27,726

2,870
(c)(f)
Notes to consolidated financial statements
194
JPMorgan Chase & Co./2024 Form 10-K

Fair value measurements using significant unobservable inputs
Year ended
December 31, 2022
(in millions)
Fair
value at
Jan. 1,
2022
Total
realized/
unrealized
gains/
(losses)
Transfers
(out of)
level 3
Fair
value at
Dec. 31,
2022
Change in
unrealized
gains/
(losses)
related to
financial
instruments
held at Dec.
31, 2022
Purchases
(g)
Sales
Settlements
(h)
Transfers
into
level 3
Assets:
(a)
Federal funds sold and securities
purchased under resale agreements
$
— $
—
$
1
$
(1)
$
(1)
$
1 $
— $
—
$
—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government
agencies

265
31

673

(125)

(84)

4
(5)
759

29
Residential – nonagency

28
(1)

(5)

(12)

—
(12)
5

—
Commercial – nonagency

10
—

—

(1)

—

3
(5)
7

—
Total mortgage-backed
securities

303
30

680

(131)

(96)

7
(22)
771

29
Obligations of U.S. states and
municipalities

7
—

—

—
—
7

—
Non-U.S. government debt
securities

81
(92)

494

(338)

(4)

84
(70)
155

(153)
Corporate debt securities

332
(30)

404

(178)

(100)

357
(322)
463

(48)
Loans

708
(51)

652
(605)

(230)

925
(640)
759

(26)
Asset-backed securities

26
5

(24)

(1)

5
(7)
23

1
Total debt instruments

1,457
(138)

2,249
(1,276)

(431)

1,378
(1,061)
2,178

(197)
Equity securities

662 (1,036)

473

(377)

(2)

1,066
(121)
665

(840)
Physical commodities

—
(1)

—

—
—
2

(1)
Other

160
93

—

(221)

1
(6)
64

46
Total trading assets – debt and
equity instruments

2,279 (1,082)
(c)

2,762
(1,653)

(654)

2,445
(1,188) 2,909

(992)
(c)
Net derivative receivables:
(b)
Interest rate

(16)
187

325
(483)

329

732
(373)
701

332
Credit

74
226

(9)

(271)

5
(29)
13

170
Foreign exchange

(419)
726

215

(114)

3
(5)
489

459
Equity
(3,626) 5,016

1,226
(2,530)

(656)
90
(384)

3,435
Commodity

(907)
571

110

(331)

350

5
56
(146)

369
Total net derivative receivables
(4,894) 6,726
(c)

1,893
(3,467)

587

89
(261)
673

4,765
(c)
Available-for-sale securities:
Mortgage-backed securities:
Commercial – nonagency

—
—

—

—
—
—

—
Corporate debt securities

161
5

—

(15)

—
—
239

5
Total available-for-sale securities

161
5
(d)

—

(15)

—
—
239

5
(d)
Loans

1,933
(158)
(c)

568

(261)

(886)

1,053
(831)
1,418

(76)
(c)
Mortgage servicing rights
5,494 2,039
(e)

2,198

(822)

(936)

—
—
7,973

2,039
(e)
Other assets

306
194
(c)

(38)

(103)

2
(6)
405

191
(c)
Fair value measurements using significant unobservable inputs
Year ended
December 31, 2022
(in millions)
Fair
value at
Jan. 1,
2022
Total
realized/
unrealized
(gains)/
losses
Transfers
into
level 3
Transfers
(out of)
level 3
Fair
value at
Dec. 31,
2022
Change in
unrealized
(gains)/
losses related
to financial
instruments
held at Dec.
31, 2022
Purchases
Sales
Issuances
Settlements
(h)
Liabilities:
(a)
Deposits
$ 2,317 $ (292)
(c)(f) $
—
$
— $
531 $
(114)
$
— $
(280) $ 2,162
$
(76)
(c)(f)
Short-term borrowings

2,481
(358)
(c)(f)
—

—
3,963
(4,685)

15
(15)
1,401

90
(c)(f)
Trading liabilities – debt and equity
instruments

30
(31)
(c)

(41)

77
—
—

57
(8)
84

101
(c)
Accounts payable and other
liabilities

69
(16)
(c)

(37)

42
—
—

1
(6)
53

(16)
(c)
Long-term debt
24,374 (3,869)
(c)(f)
—

—
12,714
(8,876)

793
(1,044) 24,092
(3,447)
(c)(f)
JPMorgan Chase & Co./2024 Form 10-K
195

(a) Level 3 assets at fair value as a percentage of total Firm assets at fair value (including assets measured at fair value on a nonrecurring basis)
were 2% at December 31, 2024, 2023 and 2022. Level 3 liabilities at fair value as a percentage of total Firm liabilities at fair value (including
liabilities measured at fair value on a nonrecurring basis) were 9% at December 31, 2024, and 8% at both December 31, 2023 and 2022.
(b) All level 3 derivatives are presented on a net basis, irrespective of the underlying counterparty.
(c) Primarily reported in principal transactions revenue, except for changes in fair value for CCB mortgage loans and lending-related commitments
originated with the intent to sell, and mortgage loan purchase commitments, which are reported in mortgage fees and related income.
(d) Realized gains/(losses) on AFS securities are reported in investment securities gains/(losses). Unrealized gains/(losses) are reported in OCI.
Realized and unrealized gains/(losses) recorded on level 3 AFS securities were not material for the years ended December 31, 2024, 2023 and
2022.
(e) Changes in fair value for MSRs are reported in mortgage fees and related income.
(f) Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue, and were not material
for the years ended December 31, 2024, 2023 and 2022. Unrealized (gains)/losses are reported in OCI, and were $(50) million, $(158) million and
$(529) million for the years ended December 31, 2024, 2023 and 2022, respectively.
(g) Loan originations are included in purchases.
(h) Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications, deconsolidations associated
with beneficial interests in VIEs and other items.
Level 3 analysis
Consolidated balance sheets changes
The following describes significant changes to level 3
assets since December 31, 2023, for those items
measured at fair value on a recurring basis. Refer to
Assets and liabilities measured at fair value on a
nonrecurring basis on page 199 for further information
on changes impacting items measured at fair value on a
nonrecurring basis.
For the year ended December 31, 2024
Level 3 assets were $23.8 billion at December 31, 2024,
reflecting an increase of $127 million from December 31,
2023.
The increase for the year ended December 31, 2024 was
driven by:
• $599 million increase in MSRs.
• $586 million increase in other assets primarily due to
purchases,
offset by:
• $472 million decrease in gross derivative receivables
due to sales and settlements predominantly offset by
gains, purchases and net transfers.
• $663 million decrease in non-trading loans due to
sales and settlements largely offset by gains,
purchases and net transfers.
Refer to Note 15 for information on MSRs.
Refer to the sections below for additional information.
Transfers between levels for instruments carried at
fair value on a recurring basis
During the year ended December 31, 2024, significant
transfers from level 2 into level 3 included the following:
• $1.0 billion of total debt and equity instruments,
predominantly trading loans, driven by a decrease in
observability.
• $959 million of gross interest rate derivative
receivables and $1.1 billion of gross interest rate
derivative payables as a result of a decrease in
observability and an increase in the significance of
unobservable inputs.
• $1.6 billion of gross equity derivative receivables and
$1.7 billion of gross equity derivative payables as a
result of a decrease in observability and an increase in
the significance of unobservable inputs.
• $816 million of non-trading loans driven by a decrease
in observability.
During the year ended December 31, 2024, significant
transfers from level 3 into level 2 included the following:
• $880 million of total debt and equity instruments,
predominantly trading loans and equity securities,
driven by an increase in observability.
• $1.4 billion of gross equity derivative receivables and
$2.0 billion of gross equity derivative payables as a
result of an increase in observability and a decrease in
the significance of unobservable inputs.
• $863 million of long-term debt as a result of an
increase in observability and a decrease in the
significance of unobservable inputs.
During the year ended December 31, 2023, significant
transfers from level 2 into level 3 included the following:
• $951 million of gross interest rate derivative
receivables as a result of a decrease in observability
and an increase in the significance of unobservable
inputs and $2.1 billion of gross interest rate derivative
payables as a result of transition to term SOFR for
certain interest rate options.
• $1.5 billion of gross equity derivative receivables and
$829 million of gross equity derivative payables as a
result of a decrease in observability and an increase in
the significance of unobservable inputs.
• $1.3 billion of non-trading loans driven by a decrease
in observability.
Notes to consolidated financial statements
196
JPMorgan Chase & Co./2024 Form 10-K

During the year ended December 31, 2023, significant
transfers from level 3 into level 2 included the following:
• $1.1 billion of total debt and equity instruments,
partially due to trading loans, driven by an increase in
observability.
• $921 million of gross interest rate derivative
receivables as a result of an increase in observability
and a decrease in the significance of unobservable
inputs.
• $2.3 billion of gross equity derivative receivables and
$1.7 billion of gross equity derivative payables as a
result of an increase in observability and a decrease
in the significance of unobservable inputs.
• $1.1 billion of non-trading loans as a result of an
increase in observability and a decrease in the
significance of unobservable inputs.
During the year ended December 31, 2022, significant
transfers from level 2 into level 3 included the following:
• $2.4 billion of total debt and equity instruments,
predominantly due to equity securities of $1.1 billion
driven by a decrease in observability predominantly
as a result of restricted access to certain markets and
trading loans of $925 million driven by a decrease in
observability.
• $1.6 billion of gross interest rate derivative
receivables and $878 million of gross interest rate
derivative payables as a result of a decrease in
observability and an increase in the significance of
unobservable inputs.
• $1.6 billion of gross equity derivative receivables and
$2.3 billion of gross equity derivative payables as a
result of a decrease in observability and an increase
in the significance of unobservable inputs.
• $1.1 billion of non-trading loans driven by a decrease
in observability.
• $793 million of long-term debt driven by a decrease
in observability and an increase in the significance of
unobservable inputs for structured notes.
During the year ended December 31, 2022, significant
transfers from level 3 into level 2 included the following:
• $1.2 billion of total debt and equity instruments,
largely due to trading loans, driven by an increase in
observability.
• $1.2 billion of gross interest rate derivative
receivables and $807 million of gross interest rate
derivative payables as a result of an increase in
observability and a decrease in the significance of
unobservable inputs.
• $2.2 billion of gross equity derivative receivables and
$2.3 billion of gross equity derivative payables as a
result of an increase in observability and a decrease
in the significance of unobservable inputs.
• $831 million of non-trading loans driven by an
increase in observability.
• $1.0 billion of long-term debt driven by an increase in
observability and a decrease in the significance of
unobservable inputs for structured notes.
All transfers are based on changes in the observability
and/or significance of the valuation inputs and are
assumed to occur at the beginning of the quarterly
reporting period in which they occur.
Gains and losses
The following describes significant components of total
realized/unrealized gains/(losses) for instruments
measured at fair value on a recurring basis for the years
ended December 31, 2024, 2023 and 2022. These
amounts exclude any effects of the Firm’s risk
management activities where the financial instruments
are classified as level 1 and 2 of the fair value hierarchy.
Refer to Changes in level 3 recurring fair value
measurements rollforward tables on pages 192–196 for
further information on these instruments.
2024
• $1.9 billion of net gains on assets, predominantly
driven by gains in net interest rate derivative
receivables due to market movements and gains in
MSRs reflecting lower prepayment speeds on higher
rates.
• $1.6 billion of net losses on liabilities, predominantly
driven by losses in long-term debt due to market
movements.
2023
• $1.8 billion of net gains on assets, largely driven by
gains in net interest rate derivative receivables due to
market movements and gains in MSRs reflecting
lower prepayment speeds on higher rates.
• $3.3 billion of net losses on liabilities, predominantly
driven by losses in long-term debt due to market
movements.
2022
• $7.7 billion of net gains on assets, predominantly
driven by gains in net equity derivative receivables
due to market movements and gains in MSRs
reflecting lower prepayment speeds on higher rates.
• $4.6 billion of net gains on liabilities, predominantly
driven by a decline in the fair value of long-term debt
due to market movements.
Refer to Note 15 for information on MSRs.
JPMorgan Chase & Co./2024 Form 10-K
197

Credit and funding adjustments – derivatives
Derivatives are generally valued using models that use
as their basis observable market parameters. These
market parameters generally do not consider factors
such as counterparty nonperformance risk, the Firm’s
own credit quality, and funding costs. Therefore, it is
generally necessary to make adjustments to the base
estimate of fair value to reflect these factors.
CVA represents the adjustment, relative to the
relevant benchmark interest rate, necessary to reflect
counterparty nonperformance risk. The Firm
estimates CVA using a scenario analysis to estimate
the expected positive credit exposure across all of the
Firm’s existing positions with each counterparty, and
then estimates losses based on the probability of
default and estimated recovery rate as a result of a
counterparty credit event considering contractual
factors designed to mitigate the Firm’s credit
exposure, such as collateral and legal rights of offset.
The key inputs to this methodology are (i) the
probability of a default event occurring for each
counterparty, as derived from observed or estimated
CDS spreads; and (ii) estimated recovery rates implied
by CDS spreads, adjusted to consider the differences
in recovery rates as a derivative creditor relative to
those reflected in CDS spreads, which generally reflect
senior unsecured creditor risk.
FVA represents the adjustment to reflect the impact of
funding and is recognized where there is evidence that
a market participant in the principal market would
incorporate it in a transfer of the instrument. The
Firm’s FVA framework, applied to uncollateralized
(including partially collateralized) over-the-counter
(“OTC”) derivatives incorporates key inputs such as: (i)
the expected funding requirements arising from the
Firm’s positions with each counterparty and collateral
arrangements; and (ii) the estimated market funding
cost in the principal market which, for derivative
liabilities, considers the Firm’s credit risk (DVA). For
collateralized derivatives, the fair value is estimated by
discounting expected future cash flows at the relevant
overnight indexed swap rate given the underlying
collateral agreement with the counterparty, and
therefore a separate FVA is not necessary.
The following table provides the impact of credit and
funding adjustments on principal transactions revenue
in the respective periods, excluding the effect of any
associated hedging activities. The FVA presented
below includes the impact of the Firm’s own credit
quality on the inception value of liabilities as well as the
impact of changes in the Firm’s own credit quality over
time.
Year ended December 31,
(in millions)
2024
2023
2022
Credit and funding adjustments:
Derivatives CVA
$
29
$
221
$
22
Derivatives FVA

114

42
Valuation adjustments on fair value option elected
liabilities
The valuation of the Firm’s liabilities for which the fair
value option has been elected requires consideration
of the Firm’s own credit risk. DVA on fair value option
elected liabilities reflects changes (subsequent to the
issuance of the liability) in the Firm’s probability of
default and LGD, which are estimated based on
changes in the Firm’s credit spread observed in the
bond market. Realized (gains)/losses due to DVA for
fair value option elected liabilities are reported in
principal transactions revenue. Unrealized (gains)/
losses are reported in OCI. Refer to page 196 in this
Note and Note 24 for further information.
Notes to consolidated financial statements
198
JPMorgan Chase & Co./2024 Form 10-K

Assets and liabilities measured at fair value on a nonrecurring basis
The following tables present the assets held as of December 31, 2024 and 2023, for which nonrecurring fair value
adjustments were recorded during the years ended December 31, 2024 and 2023, by major product category and
fair value hierarchy. There were no liabilities measured at fair value on a nonrecurring basis at both December 31,
2024 and 2023.
December 31, 2024
(in millions)
Fair value hierarchy
Total fair
value
Level 1
Level 2
Level 3
Loans
$
—
$
738
$
694
$
1,432
Other assets(a)

—

1,048

1,057
Total assets measured at fair value on a nonrecurring basis
$
—
$
747
$
1,742

$
2,489
December 31, 2023
(in millions)
Fair value hierarchy
Total fair
value
Level 1
Level 2
Level 3
Loans
$
—
$
599
$
1,156
$
1,755
Other assets

—

1,334

1,386
Total assets measured at fair value on a nonrecurring basis
$
—
$
651
$
2,490
$
3,141
(a) Included equity securities without readily determinable fair values that were adjusted based on observable price changes in orderly
transactions from an identical or similar investment of the same issuer (measurement alternative). Of the $1.0 billion in level 3 assets
measured at fair value on a nonrecurring basis as of December 31, 2024, $668 million related to equity securities adjusted based on the
measurement alternative. These equity securities are classified as level 3 due to the infrequency of the observable prices and/or the
restrictions on the shares. Also, included impairments on certain equity method investments.
Nonrecurring fair value changes
The following table presents the total change in value
of assets and liabilities for which fair value adjustments
have been recognized for the years ended
December 31, 2024, 2023 and 2022, related to assets
and liabilities held at those dates.
December 31, (in millions)
2024
2023
2022
Loans
$ (302) $
(276) $
(55)
Other assets
(a)

(610)
(789)
(409)
Accounts payable and other
liabilities

—
—

(83)
Total nonrecurring fair value
gains/(losses)
$
(912) $ (1,065) $
(547)
(a) Included $(197) million, $(232) million and $(338) million for the
years ended December 31, 2024, 2023 and 2022, respectively, of
net gains/(losses) as a result of the measurement alternative.
The current period also included impairments on certain equity
method investments.
JPMorgan Chase & Co./2024 Form 10-K
199

Equity securities without readily determinable fair values
The Firm measures certain equity securities without readily determinable fair values at cost less impairment (if any),
plus or minus observable price changes from an identical or similar investment of the same issuer (i.e.,
measurement alternative), with such changes recognized in other income.
In its determination of the new carrying values upon observable price changes, the Firm may adjust the prices if
deemed necessary to arrive at the Firm’s estimated fair values. Such adjustments may include adjustments to
reflect the different rights and obligations of similar securities, and other adjustments that are consistent with the
Firm’s valuation techniques for private equity direct investments.
The following table presents the carrying value of equity securities without readily determinable fair values held as
of December 31, 2024 and 2023, that are measured under the measurement alternative and the related adjustments
recorded during the periods presented for those securities with observable price changes. These securities are
included in the nonrecurring fair value tables when applicable price changes are observable.
As of or for the year ended December 31,
(in millions)
2024
2023
Other assets
Carrying value(a)
$
3,737
$
4,457
Upward carrying value changes(b)

93
Downward carrying value changes/impairment
(c)

(286)

(325)
(a) The period-end carrying values reflect cumulative purchases and sales in addition to upward and downward carrying value changes.
(b) The cumulative upward carrying value changes between January 1, 2018 and December 31, 2024 were $1.1 billion.
(c) The cumulative downward carrying value changes/impairment between January 1, 2018 and December 31, 2024 were $(1.5) billion.
Included in other assets above is the Firm’s interest in approximately 18.6 million Visa Class B-2 common shares
("Visa B-2 shares") and 37.2 million Visa Class B common shares (“Visa B shares”) reflected in the Firm's principal
investment portfolio as of December 31, 2024 and 2023, respectively.
The Visa B shares were redenominated to Visa Class B-1 common shares (“Visa B-1 shares”) on January 24, 2024.
On April 8, 2024, Visa commenced an initial exchange offer for any and all outstanding Visa B-1 shares. On May 6,
2024, the Firm announced that Visa had accepted the Firm’s tender of its 37.2 million Visa B-1 shares in exchange
for a combination of Visa B-2 shares and Visa Class C common shares (“Visa C shares”), resulting in an initial gain of
$8.0 billion based on the fair value of the Visa C shares. In addition, the second quarter of 2024 also reflected other
Visa-related activity, including the fair value changes of the Visa C shares and derivative instruments, as well as
dividends, resulting in the $7.9 billion net gain on Visa shares in the quarter. As of September 30, 2024, the Firm had
disposed of all of its Visa C shares through sales in the second and third quarters of 2024 and through a $1.0 billion
contribution to the Firm’s Foundation in the second quarter of 2024.
The Visa B-2 shares are subject to certain transfer restrictions and are convertible into Visa Class A common shares
(“Visa A shares”) at a specified conversion rate upon final resolution of certain litigation matters involving Visa. The
conversion rate of Visa B-2 shares to Visa A shares was 1.5430 at December 31, 2024 and may be adjusted by Visa
depending on developments related to the litigation matters. The outcome of those litigation matters, and the effect
that the resolution of those matters may have on the conversion rate, is unknown. Accordingly, as of December 31,
2024, there is significant uncertainty regarding when the transfer restrictions on Visa B-2 shares may be terminated
and what the final conversion rate for the Visa B-2 shares will be. As a result of these considerations, as well as
differences in voting rights, Visa B-2 shares are not considered to be similar to Visa A shares, and are held at their
nominal carryover basis.
Separately, in connection with sales of Visa B shares prior to 2024, the Firm has entered into derivative instruments
with the purchasers of the shares under which the Firm retains the risk associated with changes in the conversion
rate. Under the terms of the derivative instruments, the Firm will (a) make or receive payments based on subsequent
changes in the conversion rate and (b) make periodic interest payments to the purchasers of the Visa B shares. The
payments under the derivative instruments will continue as long as the Visa B-2 shares associated with the
previously sold Visa B shares remain subject to transfer restrictions. The derivative instruments are accounted for at
fair value using a discounted cash flow methodology based upon the Firm’s estimate of the timing and magnitude of
final resolution of the litigation matters. The derivative instruments are recorded in trading liabilities, and changes in
fair value are recognized in other income. The notional amount of shares associated with those derivative
instruments has been adjusted as a result of the Visa exchange offer. As of December 31, 2024, the Firm held
derivative instruments associated with 11.6 million Visa B-2 shares related to Visa B share sales prior to 2024, which
are all subject to similar terms and conditions.
Notes to consolidated financial statements
200
JPMorgan Chase & Co./2024 Form 10-K

Additional disclosures about the fair value of
financial instruments that are not carried on the
Consolidated balance sheets at fair value
U.S. GAAP requires disclosure of the estimated fair
value of certain financial instruments, which are
included in the following table. However, this table
does not include other items, such as nonfinancial
assets, intangible assets, certain financial instruments,
and customer relationships. In the opinion of
management, these items, in the aggregate, add
significant value to JPMorganChase.
Financial instruments for which carrying value
approximates fair value
Certain financial instruments that are not carried at fair
value on the Consolidated balance sheets are carried
at amounts that approximate fair value, due to their
short-term nature and generally negligible credit risk.
These instruments include cash and due from banks,
deposits with banks, federal funds sold, securities
purchased under resale agreements and securities
borrowed, short-term receivables and accrued interest
receivable, short-term borrowings, federal funds
purchased, securities loaned and sold under
repurchase agreements, accounts payable, and
accrued liabilities. In addition, U.S. GAAP requires that
the fair value of deposit liabilities with no stated
maturity (i.e., demand, savings and certain money
market deposits) be equal to their carrying value;
recognition of the inherent funding value of these
instruments is not permitted.
The following table presents, by fair value hierarchy classification, the carrying values and estimated fair values at
December 31, 2024 and 2023, of financial assets and liabilities, excluding financial instruments that are carried at
fair value on a recurring basis, and their classification within the fair value hierarchy.
December 31, 2024
December 31, 2023
Estimated fair value hierarchy
Estimated fair value hierarchy
(in billions)
Carrying
value
Level 1
Level 2
Level 3
Total
estimated
fair value
Carrying
value
Level 1
Level 2
Level 3
Total
estimated
fair value
Financial assets
Cash and due from banks
$
23.4 $
23.4 $
— $
— $
23.4
$
29.1 $
29.1
$
—
$
— $
29.1
Deposits with banks

445.9
445.8
0.1
—
445.9

595.1
594.6

0.5

—
595.1
Accrued interest and
accounts receivable

101.1
—
101.0
0.1
101.1

107.1
—

107.0

0.1
107.1
Federal funds sold and
securities purchased under
resale agreements

8.2
—
8.2
—
8.2

16.3
—

16.3

—
16.3
Securities borrowed

135.6
—
135.6
—
135.6

130.3
—

130.3

—
130.3
Investment securities, held-
to-maturity

274.5
97.4
150.5
—
247.9

369.8
160.6

182.2

—
342.8
Loans, net of allowance for
loan losses
(a)
1,282.3
—
268.7 1,007.8
1,276.5
1,262.5
—

285.6

964.6
1,250.2
Other

82.7
—
81.3
1.6
82.9

76.1
—

74.9

1.4
76.3
Financial liabilities
Deposits
$ 2,372.3 $
— $ 2,372.5 $
— $ 2,372.5
$ 2,322.3 $
—
$ 2,322.6
$
— $ 2,322.6
Federal funds purchased and
securities loaned or sold
under repurchase
agreements

70.5
—
70.5
—
70.5

47.5
—

47.5

—
47.5
Short-term borrowings

26.4
—
26.3
—
26.3

24.7
—

24.7

—
24.7
Accounts payable and other
liabilities
(b)

232.8
—
219.6
12.6
232.2

241.8
—

233.3

8.1
241.4
Beneficial interests issued by
consolidated VIEs

27.3
—
27.4
—
27.4

23.0
—

23.0

—
23.0
Long-term debt

300.6
—
251.2
50.7
301.9

303.9
—

252.2

51.3
303.5
(a) Fair value is typically estimated using a discounted cash flow model that incorporates the characteristics of the underlying loans (including
principal, contractual interest rate and contractual fees) and other key inputs, including expected lifetime credit losses, interest rates,
prepayment rates, and primary origination or secondary market spreads. For certain loans, the fair value is measured based on the value of
the underlying collateral. Carrying value of the loan takes into account the loan’s allowance for loan losses, which represents the loan’s
expected credit losses over its remaining expected life. The difference between the estimated fair value and carrying value of a loan is
generally attributable to changes in market interest rates, including credit spreads, market liquidity premiums and other factors that affect
the fair value of a loan but do not affect its carrying value.
(b) Excludes lending-related commitments disclosed in the table below.
JPMorgan Chase & Co./2024 Form 10-K
201

The majority of the Firm’s lending-related commitments are not carried at fair value on a recurring basis on the
Consolidated balance sheets. The carrying value and the estimated fair value of these wholesale lending-related
commitments were as follows for the periods indicated.
December 31, 2024
December 31, 2023
Estimated fair value hierarchy
Estimated fair value hierarchy
(in billions)
Carrying
value(a)(b)(c)
Level 1
Level 2
Level 3
Total
estimated
fair value
Carrying
value(a)(b)(c)
Level 1
Level 2
Level 3
Total
estimated
fair value
Wholesale lending-
related
commitments
$
2.7 $
— $
— $
4.4 $
4.4
$
3.0 $
— $
— $
4.8 $
4.8
(a) Excludes the current carrying values of the guarantee liability and the offsetting asset, each of which is recognized at fair value at the
inception of the guarantees.
(b) Includes the wholesale allowance for lending-related commitments.
(c) As of December 31, 2024 and 2023, included fair value adjustments associated with First Republic for other unfunded commitments to
extend credit totaling $699 million and $1.1 billion, respectively, recorded in accounts payable and other liabilities on the Consolidated
balance sheets. Refer to Notes 28 and 34 for additional information.
The Firm does not estimate the fair value of consumer off-balance sheet lending-related commitments. In many cases, the
Firm can reduce or cancel these commitments with or without notice to the borrower, as permitted by law, or in
accordance with the contract. Refer to page 183 of this Note for a further discussion of the valuation of lending-related
commitments.
Notes to consolidated financial statements
202
JPMorgan Chase & Co./2024 Form 10-K

Note 3 – Fair value option
The fair value option provides an option to elect fair
value for selected financial assets, financial liabilities,
unrecognized firm commitments, and written loan
commitments.
The Firm has elected to measure certain instruments
at fair value for several reasons including to mitigate
income statement volatility caused by the differences
between the measurement basis of elected
instruments (e.g., certain instruments that otherwise
would be accounted for on an accrual basis) and the
associated risk management arrangements that are
accounted for on a fair value basis, as well as to better
reflect those instruments that are managed on a fair
value basis.
The Firm’s election of fair value includes the following
instruments:
• Loans purchased or originated as part of
securitization warehousing activity, subject to
bifurcation accounting, or managed on a fair value
basis, including lending-related commitments
• Certain securities financing agreements
• Owned beneficial interests in securitized financial
assets that contain embedded credit derivatives,
which would otherwise be required to be separately
accounted for as a derivative instrument
• Structured notes and other hybrid instruments,
which are predominantly financial instruments that
contain embedded derivatives, that are issued or
transacted as part of client-driven activities
• Certain long-term beneficial interests issued by
CIB’s consolidated securitization trusts where the
underlying assets are carried at fair value
JPMorgan Chase & Co./2024 Form 10-K
203

Changes in fair value under the fair value option election
The following table presents the changes in fair value included in the Consolidated statements of income for the
years ended December 31, 2024, 2023 and 2022, for items for which the fair value option was elected. The profit and
loss information presented below only includes the financial instruments that were elected to be measured at fair
value; related risk management instruments, which are required to be measured at fair value, are not included in the
table.
2024
2023
2022
December 31,
(in millions)
Principal
transactions
All other
income
Total
changes in
fair value
recorded(e)
Principal
transactions
All other
income
Total
changes in
fair value
recorded(e)
Principal
transactions
All other
income
Total
changes in
fair value
recorded(e)
Federal funds sold
and securities
purchased under
resale agreements
$
144 $ —
$
144
$
300
$ —
$
300
$
(384)
$ —
$
(384)
Securities borrowed

347
—

347

164

—

164

(499)

—

(499)
Trading assets:
Debt and equity
instruments,
excluding loans

7,205
—

7,205

3,656

—

3,656

(1,703)

—

(1,703)
Loans reported as
trading assets:
Changes in
instrument-
specific credit
risk

346
—

346

248

—

248

(136)

—

(136)
Other changes
in fair value

9
10
(c)

5
(c)

(59)

—

(59)
Loans:
Changes in
instrument-
specific credit
risk

517
(6)
(c)

511

322

(4)
(c)

318

(242)

21
(c)

(221)
Other changes in
fair value

75 371
(c)

446

427
216
(c)

643

(1,421)
(794)
(c)

(2,215)
Other assets

63
—

282

(4)
(d)

278

(6)
(d)

33
Deposits
(a)

(3,398)
—

(3,398)
(2,582)
—

(2,582)
901

—

901
Federal funds
purchased and
securities loaned or
sold under
repurchase
agreements

(12)
—

(12)
(121)
—

(121)
181

—

181
Short-term
borrowings
(a)

(922)
—

(922)
(567)
—

(567)
473

—

473
Trading liabilities

(1)
—

(1)
(24)
—

(24)
43

—

43
Beneficial interests
issued by
consolidated VIEs

—
—

—

(1)

—

(1)
Other liabilities

(11)
—

(11)
(16)
—

(16)
(11)

—

(11)
Long-term debt
(a)(b)

(2,711)
(6)
(c)(d)

(2,717)
(5,875) (78)
(c)(d)
(5,953)
8,990
98
(c)(d)
9,088
(a) Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected are
recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. Realized gains/(losses) due to instrument-
specific credit risk recorded in principal transactions revenue were not material for the years ended December 31, 2024, 2023 and 2022.
(b) Long-term debt measured at fair value predominantly relates to structured notes. Although the risk associated with the structured notes is
actively managed, the gains/(losses) reported in this table do not include the income statement impact of the risk management instruments
used to manage such risk.
(c) Reported in mortgage fees and related income.
(d) Reported in other income.
(e) Changes in fair value exclude contractual interest, which is included in interest income and interest expense for all instruments other than
certain hybrid financial instruments in CIB. Refer to Note 7 for further information regarding interest income and interest expense.
Notes to consolidated financial statements
204
JPMorgan Chase & Co./2024 Form 10-K

Determination of instrument-specific credit risk for
items for which the fair value option was elected
The following describes how the gains and losses that
are attributable to changes in instrument-specific
credit risk, were determined.
• Loans and lending-related commitments: For
floating-rate instruments, all changes in value are
attributed to instrument-specific credit risk. For
fixed-rate instruments, an allocation of the changes
in value for the period is made between those
changes in value that are interest rate-related and
changes in value that are credit-related. Allocations
are generally based on an analysis of borrower-
specific credit spread and recovery information,
where available, or benchmarking to similar entities
or industries.
• Long-term debt: Changes in value attributable to
instrument-specific credit risk were derived
principally from observable changes in the Firm’s
credit spread as observed in the bond market.
• Securities financing agreements: Generally, for these
types of agreements, there is a requirement that
collateral be maintained with a market value equal to
or in excess of the principal amount loaned; as a
result, there would be no adjustment or an
immaterial adjustment for instrument-specific credit
risk related to these agreements.
Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding
The following table reflects the difference between the aggregate fair value and the aggregate remaining
contractual principal balance outstanding as of December 31, 2024 and 2023, for loans, long-term debt and long-
term beneficial interests for which the fair value option has been elected.
2024
2023
December 31, (in millions)
Contractual
principal
outstanding
Fair value
Fair value over/
(under)
contractual
principal
outstanding
Contractual
principal
outstanding
Fair value
Fair value
over/(under)
contractual
principal
outstanding
Loans
Nonaccrual loans
Loans reported as trading assets
$
3,429
$
464 $
(2,965) $
2,987
$
588 $
(2,399)
Loans

1,711

1,492
(219)
838

732
(106)
Subtotal

5,140

1,956
(3,184)
3,825

1,320
(2,505)
90 or more days past due and
government guaranteed
Loans
(a)

45
(5)
65

59
(6)
All other performing loans
(b)
Loans reported as trading assets

12,171

10,852
(1,319)
9,547

7,968
(1,579)
Loans
(c)

40,342

39,813
(529)
38,948

38,060
(888)
Subtotal

52,513

50,665
(1,848)
48,495

46,028
(2,467)
Total loans
$
57,703
$
52,666 $
(5,037) $
52,385
$
47,407 $
(4,978)
Long-term debt
Principal-protected debt
$
57,414
(e)
$
47,780 $
(9,634) $
47,768
(e)
$
38,882 $
(8,886)
Nonprincipal-protected debt
(d)
NA

53,000
NA
NA

49,042
NA
Total long-term debt
NA
$ 100,780
NA
NA
$
87,924
NA
Long-term beneficial interests
Nonprincipal-protected debt
(d)
NA
$
1
NA
NA
$
1
NA
Total long-term beneficial interests
NA
$
1
NA
NA
$
1
NA
(a) These balances are excluded from nonaccrual loans as the loans are insured and/or guaranteed by U.S. government agencies.
(b) There were no performing loans that were ninety days or more past due as of December 31, 2024 and 2023.
(c) Includes loans insured and/or guaranteed by U.S. government agencies less than 90 days past due.
(d) Remaining contractual principal is not applicable to nonprincipal-protected structured notes and long-term beneficial interests. Unlike
principal-protected structured notes and long-term beneficial interests, for which the Firm is obligated to return a stated amount of principal
at maturity, nonprincipal-protected structured notes and long-term beneficial interests do not obligate the Firm to return a stated amount of
principal at maturity, but for structured notes to return an amount based on the performance of an underlying variable or derivative feature
embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal-
protected notes.
(e) Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflects the contractual principal payment at maturity
or, if applicable, the contractual principal payment at the Firm’s next call date.
At December 31, 2024 and 2023, the contractual amount of lending-related commitments for which the fair value
option was elected was $12.2 billion and $9.7 billion, respectively, with a corresponding fair value of $50 million and
$97 million, respectively. Refer to Note 28 for further information regarding off-balance sheet lending-related
financial instruments.
JPMorgan Chase & Co./2024 Form 10-K
205

Structured note products by balance sheet classification and risk component
The following table presents the fair value of structured notes, by balance sheet classification and the primary risk
type.
December 31, 2024
December 31, 2023
(in millions)
Long-
term debt
Short-term
borrowings
Deposits
Total
Long-
term debt
Short-term
borrowings
Deposits
Total
Risk exposure
Interest rate
$ 46,220
$
1,065
$ 28,871
$ 76,156
$ 38,604
$
654
$ 74,526
$ 113,784
Credit

6,213

1,242

—

7,455

5,444

350

—

5,794
Foreign exchange

2,309

1,058

416

3,783

2,605

941

187

3,733
Equity

44,149

7,881

2,986

55,016

38,685

5,483

2,905

47,073
Commodity

1,331

1
(a)
1,394

1,862

1
(a)
1,874
Total structured notes
$ 100,222
$
11,308
$ 32,274
$ 143,804
$ 87,200
$
7,439
$ 77,619
$ 172,258
(a) Excludes deposits linked to precious metals for which the fair value option has not been elected of $869 million and $627 million for the years
ended December 31, 2024 and 2023, respectively.
Notes to consolidated financial statements
206
JPMorgan Chase & Co./2024 Form 10-K

Note 4 – Credit risk concentrations
Concentrations of credit risk arise when a number of
clients, counterparties or customers are engaged in
similar business activities or activities in the same
geographic region, or when they have similar
economic features that would cause their ability to
meet contractual obligations to be similarly affected
by changes in economic conditions.
JPMorganChase regularly monitors various segments
of its credit portfolios to assess potential credit risk
concentrations and to obtain additional collateral
when deemed necessary and permitted under the
Firm’s agreements. Senior management is significantly
involved in the credit approval and review process, and
risk levels are adjusted as needed to reflect the Firm’s
risk appetite.
In the Firm’s consumer portfolio, concentrations are
managed primarily by product and by U.S. geographic
region, with a key focus on trends and concentrations
at the portfolio level, where potential credit risk
concentrations can be remedied through changes in
underwriting policies and portfolio guidelines. Refer to
Note 12 for additional information on the geographic
composition of the Firm’s consumer loan portfolios. In
the wholesale portfolio, credit risk concentrations are
evaluated primarily by industry and monitored
regularly on both an aggregate portfolio level and on
an individual client or counterparty basis.
The Firm’s wholesale exposure is managed through
loan syndications and participations, loan sales,
securitizations, credit derivatives, master netting
agreements, collateral and other risk-reduction
techniques. Refer to Note 12 for additional information
on loans.
The Firm does not believe that its exposure to any
particular loan product or industry segment results in
a significant concentration of credit risk.
Terms of loan products and collateral coverage are
included in the Firm’s assessment when extending
credit and establishing its allowance for credit losses.
Refer to Note 13 for additional information on the
allowance for credit losses.
JPMorgan Chase & Co./2024 Form 10-K
207

The table below presents both on–balance sheet and off–balance sheet consumer and wholesale credit exposure by
the Firm’s three credit portfolio segments as of December 31, 2024 and 2023. The wholesale industry of risk
category is generally based on the client or counterparty’s primary business activity.
2024
2023
Credit
exposure
(h)
On-balance sheet
Off-
balance
sheet
(i)
Credit
exposure
(h)
On-balance sheet
Off-
balance
sheet
(i)
December 31, (in millions)
Loans
Derivatives
Loans
Derivatives
Consumer, excluding credit card
$ 437,654 $ 392,810 $
— $ 44,844
$ 455,496 $ 410,093 $
— $
45,403
Credit card
(a)

1,234,171
232,860
— 1,001,311

1,126,781
211,123
—
915,658
Total consumer
(a)
1,671,825
625,670
— 1,046,155
1,582,277
621,216
—
961,061
Wholesale
(b)
Real Estate

207,050
169,506
310
37,234

208,261
166,372
420
41,469
Individuals and Individual Entities
(c)

144,145
130,317
1,259
12,569

145,849
126,339
725
18,785
Asset Managers

135,541
58,720
15,695
61,126

129,574
52,178
9,925
67,471
Consumer & Retail

129,815
46,509
1,608
81,698

127,086
46,274
2,013
78,799
Technology, Media & Telecommunications

84,716
21,449
2,448
60,819

77,296
22,450
2,451
52,395
Industrials

72,530
24,011
2,035
46,484

75,092
26,548
1,335
47,209
Healthcare

64,224
23,243
616
40,365

65,025
23,169
1,577
40,279
Banks & Finance Companies

61,287
40,239
3,890
17,158

57,177
33,941
2,898
20,338
Utilities

35,871
6,172
2,631
27,068

36,061
7,067
3,396
25,598
State & Municipal Govt(d)

35,039
19,279
372
15,388

35,986
20,019
442
15,525
Automotive

34,336
17,696
794
15,846

33,977
17,459
428
16,090
Oil & Gas

31,724
7,226
1,153
23,345

34,475
8,480
705
25,290
Insurance

24,267
2,533
9,703
12,031

20,501
2,535
7,138
10,828
Chemicals & Plastics

20,782
6,176
267
14,339

20,773
6,458
441
13,874
Transportation

17,019
5,380
769
10,870

16,060
5,080
555
10,425
Metals & Mining

15,860
4,425
564
10,871

15,508
4,655
274
10,579
Central Govt

13,862
4,715
6,285
2,862

17,704
5,463
10,669
1,572
Securities Firms

9,443
1,878
3,197
4,368

8,689
865
3,285
4,539
Financial Markets Infrastructure

4,446
16
2,410
2,020

4,251
86
2,155
2,010
All other(e)

140,873
100,906
4,961
35,006

134,777
97,034
4,032
33,711
Subtotal
1,282,830 690,396
60,967
531,467

1,264,122
672,472
54,864
536,786
Loans held-for-sale and loans at fair value

31,922
31,922
—
—

30,018
30,018
—
—
Receivables from customers(f)

51,929
—
—
—

47,625
—
—
—
Total wholesale
1,366,681
722,318
60,967
531,467

1,341,765
702,490
54,864
536,786
Total exposure
(g)
$ 3,038,506 $ 1,347,988 $
60,967 $ 1,577,622
$ 2,924,042 $ 1,323,706 $
54,864 $ 1,497,847
(a) Also includes commercial card lending-related commitments primarily in CIB.
(b) The industry rankings presented in the table as of December 31, 2023, are based on the industry rankings of the corresponding exposures at
December 31, 2024, not actual rankings of such exposures at December 31, 2023.
(c) Individuals and Individual Entities predominantly consists of Global Private Bank clients within AWM and J.P. Morgan Wealth Management
within CCB, and includes exposure to personal investment companies and personal and testamentary trusts.
(d) In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at December 31, 2024 and 2023, noted
above, the Firm held: $6.1 billion and $5.9 billion, respectively, of trading assets; $17.9 billion and $21.4 billion, respectively, of AFS securities;
and $9.3 billion and $9.9 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 10
for further information.
(e) All other includes: SPEs and Private education and civic organizations, representing approximately 94% and 6%, respectively, at both
December 31, 2024 and 2023. Refer to Note 14 for more information on exposures to SPEs.
(f) Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM that are collateralized by
assets maintained in the clients’ brokerage accounts (including cash on deposit, and primarily liquid and readily marketable debt or equity
securities).
(g) Excludes cash placed with banks of $459.2 billion and $614.1 billion, at December 31, 2024 and 2023, respectively, which is predominantly
placed with various central banks, primarily Federal Reserve Banks.
(h) Credit exposure is net of risk participations and excludes the benefit of credit derivatives used in credit portfolio management activities held
against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables.
(i)
Represents lending-related financial instruments.
Notes to consolidated financial statements
208
JPMorgan Chase & Co./2024 Form 10-K

Note 5 – Derivative instruments
Derivative contracts derive their value from underlying
asset prices, indices, reference rates, other inputs or a
combination of these factors and may expose
counterparties to risks and rewards of an underlying
asset or liability without having to initially invest in, own
or exchange the asset or liability. JPMorganChase
makes markets in derivatives for clients and also uses
derivatives to hedge or manage its own risk exposures.
Predominantly all of the Firm’s derivatives are entered
into for market-making or risk management purposes.
Market-making derivatives
The majority of the Firm’s derivatives are entered into
for market-making purposes. Clients use derivatives to
mitigate or modify interest rate, credit, foreign
exchange, equity and commodity risks. The Firm
actively manages the risks from its exposure to these
derivatives by entering into other derivative contracts
or by purchasing or selling other financial instruments
that partially or fully offset the exposure from client
derivatives.
Risk management derivatives
The Firm manages certain market and credit risk
exposures using derivative instruments, including
derivatives in hedge accounting relationships and other
derivatives that are used to manage risks associated
with specified assets and liabilities.
The Firm generally uses interest rate derivatives to
manage the risk associated with changes in interest
rates. Fixed-rate assets and liabilities appreciate or
depreciate in market value as interest rates change.
Similarly, interest income and expense increase or
decrease as a result of variable-rate assets and
liabilities resetting to current market rates, and as a
result of the repayment and subsequent origination or
issuance of fixed-rate assets and liabilities at current
market rates. Gains and losses on the derivative
instruments related to these assets and liabilities are
expected to substantially offset this variability.
Foreign currency derivatives are used to manage the
foreign exchange risk associated with certain foreign
currency–denominated (i.e., non-U.S. dollar) assets and
liabilities and forecasted transactions, as well as the
Firm’s net investments in certain non-U.S. subsidiaries
or branches whose functional currencies are not the
U.S. dollar. As a result of fluctuations in foreign
currencies, the U.S. dollar–equivalent values of the
foreign currency–denominated assets and liabilities or
the forecasted revenues or expenses increase or
decrease. Gains or losses on the derivative instruments
related to these foreign currency–denominated assets
or liabilities, or forecasted transactions, are expected to
substantially offset this variability.
Commodities derivatives are used to manage the price
risk of certain commodities inventories. Gains or losses
on these derivative instruments are expected to
substantially offset the depreciation or appreciation of
the related inventory.
Credit derivatives are used to manage the counterparty
credit risk associated with loans and lending-related
commitments. Credit derivatives compensate the
purchaser when the entity referenced in the contract
experiences a credit event, such as bankruptcy or a
failure to pay an obligation when due. Credit derivatives
primarily consist of CDS. Refer to the Credit derivatives
section on pages 222–224 of this Note for a further
discussion of credit derivatives.
Refer to the risk management derivatives gains and
losses table on page 221 and the hedge accounting
gains and losses tables on pages 218–221 of this Note
for more information about risk management
derivatives.
Derivative counterparties and settlement types
The Firm enters into OTC derivatives, which are
negotiated and settled bilaterally with the derivative
counterparty. The Firm also enters into, as principal,
certain ETD such as futures and options, and OTC-
cleared derivative contracts with CCPs. ETD contracts
are generally standardized contracts traded on an
exchange and cleared by the CCP, which is the Firm’s
counterparty from the inception of the transactions.
OTC-cleared derivatives are traded on a bilateral basis
and then novated to the CCP for clearing.
Derivative clearing services
The Firm provides clearing services for clients in which
the Firm acts as a clearing member at certain
exchanges and clearing houses. The Firm does not
reflect the clients’ derivative contracts in its
Consolidated Financial Statements. Refer to Note 28 for
further information on the Firm’s clearing services.
Accounting for derivatives
All free-standing derivatives that the Firm executes for
its own account are required to be recorded on the
Consolidated balance sheets at fair value.
As permitted under U.S. GAAP, the Firm nets derivative
assets and liabilities, and the related cash collateral
receivables and payables, when a legally enforceable
master netting agreement exists between the Firm and
the derivative counterparty. Refer to Note 1 for further
discussion of the offsetting of assets and liabilities. The
accounting for changes in value of a derivative depends
on whether or not the transaction has been designated
and qualifies for hedge accounting. Derivatives that are
not designated as hedges are reported and measured
at fair value through earnings. The tabular disclosures
on pages 213–221 of this Note provide additional
information on the amount of, and reporting for,
derivative assets, liabilities, gains and losses. Refer to
Notes 2 and 3 for a further discussion of derivatives
embedded in structured notes.
JPMorgan Chase & Co./2024 Form 10-K
209

Derivatives designated as hedges
The Firm applies hedge accounting to certain
derivatives executed for risk management purposes –
generally interest rate, foreign exchange and
commodity derivatives. However, JPMorganChase
does not seek to apply hedge accounting to all of the
derivatives associated with the Firm’s risk
management activities. For example, the Firm does
not apply hedge accounting to purchased CDS used to
manage the credit risk of loans and lending-related
commitments, because of the difficulties in qualifying
such contracts as hedges. For the same reason, the
Firm does not apply hedge accounting to certain
interest rate, foreign exchange, and commodity
derivatives used for risk management purposes.
To qualify for hedge accounting, a derivative must be
highly effective at reducing the risk associated with the
exposure being hedged. In addition, for a derivative to
be designated as a hedge, the risk management
objective and strategy must be documented. Hedge
documentation must identify the derivative hedging
instrument, the asset or liability or forecasted
transaction and type of risk to be hedged, and how the
effectiveness of the derivative is assessed
prospectively and retrospectively. To assess
effectiveness, the Firm uses statistical methods such
as regression analysis, nonstatistical methods such as
dollar-value comparisons of the change in the fair
value of the derivative to the change in the fair value or
cash flows of the hedged item, and qualitative
comparisons of critical terms and the evaluation of any
changes in those terms. The extent to which a
derivative has been, and is expected to continue to be,
highly effective at offsetting changes in the fair value
or cash flows of the hedged item must be assessed
and documented at least quarterly. If it is determined
that a derivative is not highly effective at hedging the
designated exposure, hedge accounting is
discontinued.
There are three types of hedge accounting
designations: fair value hedges, cash flow hedges and
net investment hedges. JPMorganChase uses fair
value hedges primarily to hedge fixed-rate long-term
debt, AFS securities and certain commodities
inventories. For qualifying fair value hedges, the
changes in the fair value of the derivative, and in the
value of the hedged item for the risk being hedged, are
recognized in earnings. Certain amounts excluded
from the assessment of effectiveness are recorded in
OCI and recognized in earnings over the life of the
derivative. If the hedge relationship is terminated, then
the adjustment to the hedged item continues to be
reported as part of the basis of the hedged item and,
for interest-bearing financial instruments, is amortized
to earnings as a yield adjustment. Derivative amounts
affecting earnings are recognized consistent with the
classification of the hedged item – primarily net
interest income and principal transactions revenue.
The Firm employs the portfolio layer method to
manage the interest rate risk of portfolios of fixed-rate
assets. Throughout the life of the open hedge, basis
adjustments are maintained at the portfolio level and
are only allocated to individual assets under certain
circumstances. These include instances where the
portfolio amount falls below the hedged layer
amounts, or in cases of voluntary de-designation.
JPMorganChase uses cash flow hedges primarily to
hedge the exposure to variability in forecasted cash
flows from floating-rate assets and liabilities and
foreign currency–denominated revenue and expense.
For qualifying cash flow hedges, changes in the fair
value of the derivative are recorded in OCI and
recognized in earnings as the hedged item affects
earnings. Derivative amounts affecting earnings are
recognized consistent with the classification of the
hedged item – primarily noninterest revenue, net
interest income and compensation expense. If the
hedge relationship is terminated, then the change in
value of the derivative recorded in AOCI is recognized
in earnings when the cash flows that were hedged
affect earnings. For hedge relationships that are
discontinued because a forecasted transaction is
expected to not occur according to the original hedge
forecast, any related derivative values recorded in
AOCI are immediately recognized in earnings.
JPMorganChase uses net investment hedges to
protect the value of the Firm’s net investments in
certain non-U.S. subsidiaries or branches whose
functional currencies are not the U.S. dollar. For
qualifying net investment hedges, changes in the fair
value of the derivatives due to changes in spot foreign
exchange rates are recorded in OCI as translation
adjustments. Amounts excluded from the assessment
of effectiveness are recorded directly in earnings.
Notes to consolidated financial statements
210
JPMorgan Chase & Co./2024 Form 10-K

The following table outlines the Firm’s primary uses of derivatives and the related hedge accounting designation or
disclosure category.
Type of Derivative
Use of Derivative
Designation and
disclosure
Affected
segment or
unit
Page
reference
Manage specifically identified risk exposures in qualifying hedge accounting relationships:
• Interest rate
Hedge fixed rate assets and liabilities
Fair value hedge
Corporate
218-219
• Interest rate
Hedge floating-rate assets and liabilities
Cash flow hedge
Corporate
220
• Foreign exchange
Hedge foreign currency-denominated assets and liabilities
Fair value hedge
Corporate
218-219
• Foreign exchange
Hedge foreign currency-denominated forecasted revenue and
expense
Cash flow hedge
Corporate
220
• Foreign exchange
Hedge the value of the Firm’s investments in non-U.S. dollar
functional currency entities
Net investment
hedge
Corporate
221
• Commodity
Hedge commodity inventory
Fair value hedge
CIB, AWM
218-219
Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships:
• Interest rate
Manage the risk associated with mortgage commitments,
warehouse loans and MSRs
Specified risk
management
CCB
221
• Credit
Manage the credit risk associated with wholesale lending exposures
Specified risk
management
CIB, AWM
221
• Interest rate and
foreign exchange
Manage the risk associated with certain other specified assets and
liabilities
Specified risk
management
Corporate, CIB
221
Market-making derivatives and other activities:
• Various
Market-making and related risk management
Market-making and
other
CIB
221
• Various
Other derivatives
Market-making and
other
CIB, AWM,
Corporate
221
JPMorgan Chase & Co./2024 Form 10-K
211

Notional amount of derivative contracts
The following table summarizes the notional amount of
free-standing derivative contracts outstanding as of
December 31, 2024 and 2023.
Notional amounts(b)
December 31, (in billions)
2024
2023
Interest rate contracts
Swaps
$
20,437
$
23,251
Futures and forwards

3,067

2,690
Written options

3,067

3,370
Purchased options

3,089

3,362
Total interest rate contracts

29,660

32,673
Credit derivatives(a)

1,191

1,045
Foreign exchange contracts
Cross-currency swaps

4,509

4,721
Spot, futures and forwards

7,005

6,957
Written options

1,015

830
Purchased options

984

798
Total foreign exchange contracts

13,513

13,306
Equity contracts
Swaps

850

639
Futures and forwards

206

157
Written options

914

778
Purchased options

788

698
Total equity contracts

2,758

2,272
Commodity contracts
Swaps

148

115
Spot, futures and forwards

191

157
Written options

137

130
Purchased options

125

115
Total commodity contracts

601

517
Total derivative notional amounts
$
47,723
$
49,813
(a) Refer to the Credit derivatives discussion on pages 222–224 for
more information on volumes and types of credit derivative
contracts.
(b) Represents the sum of gross long and gross short third-party
notional derivative contracts.
While the notional amounts disclosed above give an
indication of the volume of the Firm’s derivatives
activity, the notional amounts significantly exceed, in
the Firm’s view, the possible losses that could arise
from such transactions. For most derivative contracts,
the notional amount is not exchanged; it is simply a
reference amount used to calculate payments.
Notes to consolidated financial statements
212
JPMorgan Chase & Co./2024 Form 10-K

Impact of derivatives on the Consolidated balance sheets
The following table summarizes information on derivative receivables and payables (before and after netting
adjustments) that are reflected on the Firm’s Consolidated balance sheets as of December 31, 2024 and 2023, by
accounting designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships
or not) and contract type.
Free-standing derivative receivables and payables
(a)
Gross derivative receivables
Gross derivative payables
December 31, 2024
(in millions)
Not
designated
as hedges
Designated
as hedges
Total
derivative
receivables
Net
derivative
receivables(b)
Not
designated
as hedges
Designated
as hedges
Total
derivative
payables
Net
derivative
payables(b)
Trading assets and
liabilities
Interest rate
$ 290,734
$
—
$ 290,734
$
24,945
$ 274,226
$
2
$ 274,228
$
9,239
Credit

11,087

—

11,087

814

13,796

—

13,796

1,898
Foreign exchange

261,035

1,885

262,920

25,312

253,289

1,278

254,567

15,597
Equity

85,220

—

85,220

5,285

96,139

—

96,139

8,648
Commodity

15,490

136

15,626

4,611

14,415

14,488

4,279
Total fair value of trading
assets and liabilities
$ 663,566
$
2,021
$ 665,587
$
60,967
$ 651,865
$
1,353
$ 653,218
$
39,661
Gross derivative receivables
Gross derivative payables
December 31, 2023
(in millions)
Not
designated
as hedges
Designated
as hedges
Total
derivative
receivables
Net
derivative
receivables
(b)
Not
designated
as hedges
Designated
as hedges
Total
derivative
payables
Net
derivative
payables
(b)
Trading assets and
liabilities
Interest rate
$ 250,689
$
2
$
250,691
$
26,324
$ 240,482
$
—
$ 240,482
$
11,896
Credit

9,654

—

9,654

551

12,038

—

12,038

1,089
Foreign exchange

205,010

765

205,775

18,019

210,623

1,640

212,263

12,620
Equity

57,689

—

57,689

4,928

65,811

—

65,811

9,368
Commodity

15,228

211

15,439

5,042

16,286

16,378

5,874
Total fair value of trading
assets and liabilities
$ 538,270
$
978
$ 539,248
$
54,864
$ 545,240
$
1,732
$ 546,972
$
40,847
(a) Balances exclude structured notes for which the fair value option has been elected. Refer to Note 3 for further information.
(b) As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral
receivables and payables when a legally enforceable master netting agreement exists.
JPMorgan Chase & Co./2024 Form 10-K
213

Derivatives netting
The following tables present, as of December 31, 2024 and 2023, gross and net derivative receivables and payables
by contract and settlement type. Derivative receivables and payables, as well as the related cash collateral from the
same counterparty, have been netted on the Consolidated balance sheets where the Firm has obtained an
appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been
either sought or obtained, amounts are not eligible for netting on the Consolidated balance sheets, and those
derivative receivables and payables are shown separately in the tables.
In addition to the cash collateral received and transferred that is presented on a net basis with derivative receivables
and payables, the Firm receives and transfers additional collateral (financial instruments and cash). These amounts
mitigate counterparty credit risk associated with the Firm’s derivative instruments, but are not eligible for net
presentation:
• collateral that consists of liquid securities and other cash collateral held at third-party custodians, which are
shown separately as "Collateral not nettable on the Consolidated balance sheets" in the tables, up to the fair value
exposure amount. For the purpose of this disclosure, the definition of liquid securities is consistent with the
definition of high quality liquid assets as defined in the LCR rule;
• the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty
level, as of the date presented, which is excluded from the tables; and
• collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion
has not been either sought or obtained with respect to the master netting agreement, which is excluded from the
tables.
Notes to consolidated financial statements
214
JPMorgan Chase & Co./2024 Form 10-K

2024
2023
December 31, (in millions)
Gross
derivative
receivables
Amounts
netted on the
Consolidated
balance
sheets
Net
derivative
receivables
Gross
derivative
receivables
Amounts
netted on the
Consolidated
balance
sheets
Net
derivative
receivables
U.S. GAAP nettable derivative receivables
Interest rate contracts:
OTC
$
158,202 $ (134,791)
$
23,411
$
176,901 $ (152,703)
$
24,198
OTC–cleared

130,989
(130,810)

179

71,419
(71,275)

144
Exchange-traded(a)

190
(188)

402
(389)

13
Total interest rate contracts

289,381
(265,789)

23,592

248,722
(224,367)

24,355
Credit contracts:
OTC

8,680
(8,030)

650

7,637
(7,226)

411
OTC–cleared

2,267
(2,243)

1,904
(1,877)

27
Total credit contracts

10,947
(10,273)

674

9,541
(9,103)

438
Foreign exchange contracts:
OTC

259,608
(236,931)

22,677

203,624
(187,295)

16,329
OTC–cleared

685
(677)

469
(459)

10
Exchange-traded
(a)

34
—

6
(2)

4
Total foreign exchange contracts

260,327
(237,608)

22,719

204,099
(187,756)

16,343
Equity contracts:
OTC

33,269
(30,742)

2,527

25,001
(23,677)

1,324
Exchange-traded
(a)

51,040
(49,193)

1,847

30,462
(29,084)

1,378
Total equity contracts

84,309
(79,935)

4,374

55,463
(52,761)

2,702
Commodity contracts:
OTC

8,340
(5,848)

2,492

8,049
(5,084)

2,965
OTC–cleared

126
(84)

133
(123)

10
Exchange-traded
(a)

5,179
(5,083)

5,214
(5,190)

24
Total commodity contracts

13,645
(11,015)

2,630

13,396
(10,397)

2,999
Derivative receivables with appropriate legal
opinion

658,609
(604,620)

53,989
(d)
531,221 (484,384)

46,837
(d)
Derivative receivables where an appropriate
legal opinion has not been either sought or
obtained

6,978

8,027

8,027
Total derivative receivables recognized on the
Consolidated balance sheets
$
665,587
$
60,967
$
539,248
$
54,864
Collateral not nettable on the Consolidated
balance sheets
(b)(c)

(28,160)

(22,461)
Net amounts
$
32,807
$
32,403
JPMorgan Chase & Co./2024 Form 10-K
215

2024
2023
December 31, (in millions)
Gross
derivative
payables
Amounts
netted on the
Consolidated
balance
sheets
Net
derivative
payables
Gross
derivative
payables
Amounts
netted on the
Consolidated
balance
sheets
Net
derivative
payables
U.S. GAAP nettable derivative payables
Interest rate contracts:
OTC
$ 138,215 $ (130,375)
$
7,840
$
161,901 $ (152,467)
$
9,434
OTC–cleared

134,555 (134,262)

293

76,007
(75,729)

278
Exchange-traded(a)

363
(352)

436
(390)

46
Total interest rate contracts

273,133 (264,989)

8,144

238,344 (228,586)

9,758
Credit contracts:
OTC

11,381
(10,133)

1,248

10,332
(9,313)

1,019
OTC–cleared

1,779
(1,765)

1,639
(1,636)

3
Total credit contracts

13,160
(11,898)

1,262

11,971
(10,949)

1,022
Foreign exchange contracts:
OTC

251,860 (238,292)

13,568

209,386
(199,173)

10,213
OTC–cleared

772
(678)

552
(470)

82
Exchange-traded
(a)

14
—

6
—

6
Total foreign exchange contracts

252,646 (238,970)

13,676

209,944
(199,643)

10,301
Equity contracts:
OTC

44,394
(38,298)

6,096

29,999
(27,360)

2,639
Exchange-traded
(a)

49,578
(49,193)

385

33,137
(29,083)

4,054
Total equity contracts

93,972
(87,491)

6,481

63,136
(56,443)

6,693
Commodity contracts:
OTC

6,918
(5,206)

1,712

8,788
(5,192)

3,596
OTC–cleared

84
(84)

—

120
(120)

—
Exchange-traded
(a)

5,182
(4,919)

263

5,376
(5,192)

184
Total commodity contracts

12,184
(10,209)

1,975

14,284
(10,504)

3,780
Derivative payables with appropriate legal opinion
645,095 (613,557)

31,538
(d)
537,679
(506,125)

31,554
(d)
Derivative payables where an appropriate legal
opinion has not been either sought or obtained

8,123

9,293

9,293
Total derivative payables recognized on the
Consolidated balance sheets
$ 653,218
$
39,661
$ 546,972
$
40,847
Collateral not nettable on the Consolidated
balance sheets
(b)(c)

(10,163)

(4,547)
Net amounts
$
29,498
$
36,300
(a) Exchange-traded derivative balances that relate to futures contracts are settled daily.
(b) Includes liquid securities and other cash collateral held at third-party custodians related to derivative instruments where an appropriate legal
opinion has been obtained. For some counterparties, the collateral amounts of financial instruments may exceed the derivative receivables
and derivative payables balances. Where this is the case, the total amount reported is limited to the net derivative receivables and net
derivative payables balances with that counterparty.
(c) Derivative collateral relates only to OTC and OTC-cleared derivative instruments.
(d) Net derivatives receivable included cash collateral netted of $51.9 billion and $48.3 billion at December 31, 2024 and 2023, respectively. Net
derivatives payable included cash collateral netted of $60.8 billion and $70.0 billion at December 31, 2024 and 2023, respectively. Derivative
cash collateral relates to OTC and OTC-cleared derivative instruments.
Notes to consolidated financial statements
216
JPMorgan Chase & Co./2024 Form 10-K

Liquidity risk and credit-related contingent features
In addition to the specific market risks introduced by each derivative contract type, derivatives expose
JPMorganChase to credit risk — the risk that derivative counterparties may fail to meet their payment obligations
under the derivative contracts and the collateral, if any, held by the Firm proves to be of insufficient value to cover
the payment obligation. It is the policy of JPMorganChase to actively pursue, where possible, the use of legally
enforceable master netting arrangements and collateral agreements to mitigate derivative counterparty credit risk
inherent in derivative receivables.
While derivative receivables expose the Firm to credit risk, derivative payables expose the Firm to liquidity risk, as
the derivative contracts typically require the Firm to post cash or securities collateral with counterparties as the fair
value of the contracts moves in the counterparties’ favor or upon specified downgrades in the Firm’s and its
subsidiaries’ respective credit ratings. Certain derivative contracts also provide for termination of the contract,
generally upon a downgrade of either the Firm or the counterparty, at the fair value of the derivative contracts. The
following table shows the aggregate fair value of net derivative payables related to OTC and OTC-cleared
derivatives that contain contingent collateral or termination features that may be triggered upon a ratings
downgrade, and the associated collateral the Firm has posted in the normal course of business, at December 31,
2024 and 2023.
OTC and OTC-cleared derivative payables containing downgrade triggers
(in millions)
December 31, 2024
December 31, 2023
Aggregate fair value of net derivative payables
$
15,371
$
14,655
Collateral posted

15,204

14,673
The following table shows the impact of a single-notch and two-notch downgrade of the long-term issuer ratings of
JPMorgan Chase & Co. and its subsidiaries, predominantly JPMorgan Chase Bank, N.A., at December 31, 2024 and
2023, related to OTC and OTC-cleared derivative contracts with contingent collateral or termination features that
may be triggered upon a ratings downgrade. Derivatives contracts generally require additional collateral to be
posted or terminations to be triggered when the predefined rating threshold is breached. A downgrade by a single
rating agency that does not result in a rating lower than a preexisting corresponding rating provided by another
major rating agency will generally not result in additional collateral (except in certain instances in which additional
initial margin may be required upon a ratings downgrade), nor in termination payment requirements. The liquidity
impact in the table is calculated based upon a downgrade below the lowest current rating of the rating agencies
referred to in the derivative contract.
Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives
December 31, 2024
December 31, 2023
(in millions)
Single-notch
downgrade
Two-notch
downgrade
Single-notch
downgrade
Two-notch
downgrade
Amount of additional collateral to be posted upon downgrade
(a)
$
119 $
1,205
$
75 $
1,153
Amount required to settle contracts with termination triggers upon
downgrade
(b)

78
458

93
592
(a) Includes the additional collateral to be posted for initial margin.
(b) Amounts represent fair values of derivative payables, and do not reflect collateral posted.
Derivatives executed in contemplation of a sale of the underlying financial asset
In certain instances the Firm enters into transactions in which it transfers financial assets but maintains the
economic exposure to the transferred assets by entering into a derivative with the same counterparty in
contemplation of the initial transfer. The Firm generally accounts for such transfers as collateralized financing
transactions as described in Note 11, but in limited circumstances they may qualify to be accounted for as a sale and
a derivative under U.S. GAAP. The amount of such transfers accounted for as a sale where the associated derivative
was outstanding was not material at December 31, 2024 and 2023.
JPMorgan Chase & Co./2024 Form 10-K
217

Impact of derivatives on the Consolidated statements of income
The following tables provide information related to gains and losses recorded on derivatives based on their hedge
accounting designation or purpose.
Fair value hedge gains and losses
The following tables present derivative instruments, by contract type, used in fair value hedge accounting
relationships, as well as pre-tax gains/(losses) recorded on such derivatives and the related hedged items for the
years ended December 31, 2024, 2023 and 2022, respectively. The Firm includes gains/(losses) on the hedging
derivative in the same line item in the Consolidated statements of income as the related hedged item.
Gains/(losses) recorded in income
Income statement impact of
excluded components(e)
OCI impact
Year ended December 31, 2024
(in millions)
Derivatives
Hedged
items
Income
statement
impact
Amortization
approach
Changes in fair
value
Derivatives -
Gains/(losses)
recorded in OCI(f)
Contract type
Interest rate(a)(b)
$
711 $
(65) $
646
$
— $
699
$
—
Foreign exchange(c)

(177)
402
225

(532)
225

(115)
Commodity(d)

293
(160)
133

—
122

—
Total
$
827 $
177 $
1,004
$
(532) $
1,046
$
(115)
Gains/(losses) recorded in income
Income statement impact of
excluded components
(e)
OCI impact
Year ended December 31, 2023
(in millions)
Derivatives
Hedged items
Income
statement
impact
Amortization
approach
Changes in fair
value
Derivatives -
Gains/(losses)
recorded in OCI
(f)
Contract type
Interest rate
(a)(b)
$
1,554 $
(1,248) $
306
$
— $
157
$
—
Foreign exchange
(c)

722
(483)
239

(601)
239

(134)
Commodity
(d)

1,227
(706)
521

—
525

—
Total
$
3,503 $
(2,437) $
1,066
$
(601) $
921
$
(134)
Gains/(losses) recorded in income
Income statement impact of
excluded components
(e)
OCI impact
Year ended December 31, 2022
(in millions)
Derivatives
Hedged items
Income
statement
impact
Amortization
approach
Changes in fair
value
Derivatives -
Gains/(losses)
recorded in OCI
(f)
Contract type
Interest rate
(a)(b)
$
(14,352) $
14,047 $
(305) $
— $
(262) $
—
Foreign exchange
(c)

(1,317)
1,423
106

(528)
106

130
Commodity
(d)

106
(70)
36

—
48

—
Total
$
(15,563) $
15,400 $
(163) $
(528) $
(108) $
130
(a) Primarily consists of hedges of the benchmark (e.g., Secured Overnight Financing Rate (“SOFR”)) interest rate risk of fixed-rate long-term
debt and AFS securities. Gains and losses were recorded in net interest income.
(b) Includes the amortization of income/expense associated with the inception hedge accounting adjustment applied to the hedged item.
Excludes the accrual of interest on interest rate swaps and the related hedged items.
(c) Primarily consists of hedges of the foreign currency risk of long-term debt and AFS securities for changes in spot foreign currency rates.
Gains and losses related to the derivatives and the hedged items due to changes in foreign currency rates and the income statement impact
of excluded components were recorded primarily in principal transactions revenue and net interest income.
(d) Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or net realizable value
(net realizable value approximates fair value). Gains and losses were recorded in principal transactions revenue.
(e) The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such
as forward points on foreign exchange forward contracts, time values and cross-currency basis spreads. Excluded components may impact
earnings either through amortization of the initial amount over the life of the derivative or through fair value changes recognized in the
current period.
(f) Represents the change in value of amounts excluded from the assessment of effectiveness under the amortization approach, predominantly
cross-currency basis spreads. The amount excluded at inception of the hedge is recognized in earnings over the life of the derivative.
Notes to consolidated financial statements
218
JPMorgan Chase & Co./2024 Form 10-K

As of December 31, 2024 and 2023, the following amounts were recorded on the Consolidated balance sheets
related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the income
statement in future periods as an adjustment to yield.
Carrying amount
of the hedged
items(a)(b)
Cumulative amount of fair value hedging adjustments
included in the carrying amount of hedged items: (d)
December 31, 2024
(in millions)
Active hedging
relationships
Discontinued hedging
relationships(e)
Total
Assets
Investment securities - AFS
$
203,141
(c) $
(1,675) $
(1,959) $
(3,634)
Liabilities
Long-term debt
$
211,288
$
(3,711) $
(9,332) $
(13,043)
Beneficial interests issued by consolidated VIEs
$
5,312
$
(30) $
(5) $
(35)
Carrying amount
of the hedged
items(a)(b)
Cumulative amount of fair value hedging adjustments
included in the carrying amount of hedged items: (d)
December 31, 2023
(in millions)
Active hedging
relationships
Discontinued hedging
relationships(e)
Total
Assets
Investment securities - AFS
$
151,752
(c) $
549 $
(2,010) $
(1,461)
Liabilities
Long-term debt
$
195,455
$
(2,042) $
(9,727) $
(11,769)
Beneficial interests issued by consolidated VIEs
$
—
$
— $
— $
—
(a) Excludes physical commodities with a carrying value of $6.2 billion and $5.6 billion at December 31, 2024 and 2023, respectively, to which the
Firm applies fair value hedge accounting. As a result of the application of hedge accounting, these inventories are carried at fair value, thus
recognizing unrealized gains and losses in current periods. Since the Firm exits these positions at fair value, there is no incremental impact to
net income in future periods.
(b) Excludes hedged items where only foreign currency risk is the designated hedged risk, as basis adjustments related to foreign currency
hedges will not reverse through the income statement in future periods. At December 31, 2024 and 2023, the carrying amount excluded for
AFS securities was $28.7 billion and $19.3 billion, respectively. At December 31, 2024 and 2023, the carrying amount excluded for long-term
debt was $518 million and zero, respectively.
(c) Carrying amount represents the amortized cost, net of allowance if applicable. At December 31, 2024 and December 31, 2023, the amortized
cost of the portfolio layer method closed portfolios was $72.8 billion and $83.9 billion, of which $41.2 billion and $68.0 billion was designated
as hedged, respectively. The amount designated as hedged is the sum of the notional amounts of all outstanding layers in each portfolio,
which includes both spot starting and forward starting layers. At December 31, 2024 and December 31, 2023, the cumulative amount of basis
adjustments was $(1.7) billion and $(165) million, which is comprised of $(1.2) billion and $73 million for active hedging relationships, and
$(566) million and $(238) million for discontinued hedging relationships, respectively. Refer to Note 10 for additional information.
(d) Positive (negative) amounts related to assets represent cumulative fair value hedge basis adjustments that will reduce (increase) net interest
income in future periods. Positive (negative) amounts related to liabilities represent cumulative fair value hedge basis adjustments that will
increase (reduce) net interest income in future periods.
(e) Represents basis adjustments existing on the balance sheet date associated with hedged items that have been de-designated from
qualifying fair value hedging relationships.
JPMorgan Chase & Co./2024 Form 10-K
219

Cash flow hedge gains and losses
The following tables present derivative instruments, by contract type, used in cash flow hedge accounting
relationships, and the pre-tax gains/(losses) recorded on such derivatives, for the years ended December 31, 2024,
2023 and 2022, respectively. The Firm includes the gains/(losses) on the hedging derivative in the same line item in
the Consolidated statements of income as the change in cash flows on the related hedged item.
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Year ended December 31, 2024
(in millions)
Amounts reclassified
from AOCI to income
Amounts recorded
in OCI
Total change
in OCI for period
Contract type
Interest rate(a)
$
(2,668)
$
(3,603)
$
(935)
Foreign exchange(b)

(139)

(228)
Total
$
(2,579)
$
(3,742)
$
(1,163)
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Year ended December 31, 2023
(in millions)
Amounts reclassified
from AOCI to income
Amounts recorded
in OCI
Total change
in OCI for period
Contract type
Interest rate(a)
$
(1,839)
$
274
$
2,113
Foreign exchange(b)

209

145
Total
$
(1,775)
$
483
$
2,258
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Year ended December 31, 2022
(in millions)
Amounts reclassified
from AOCI to income
Amounts recorded
in OCI
Total change
in OCI for period
Contract type
Interest rate
(a)
$
(153)
$
(7,131)
$
(6,978)
Foreign exchange
(b)

(267)

(342)

(75)
Total
$
(420)
$
(7,473)
$
(7,053)
(a) Primarily consists of hedges of SOFR-indexed floating-rate assets. Gains and losses were recorded in net interest income.
(b) Primarily consists of hedges of the foreign currency risk of non-U.S. dollar-denominated revenue and expense. The income statement
classification of gains and losses follows the hedged item – primarily noninterest revenue and compensation expense.
The Firm did not experience any forecasted transactions that failed to occur for the years ended 2024, 2023 and
2022.
Over the next 12 months, the Firm expects that approximately $(1.6) billion (after-tax) of net losses recorded in AOCI
at December 31, 2024, related to cash flow hedges will be recognized in income. For cash flow hedges that have
been terminated, the maximum length of time over which the derivative results recorded in AOCI will be recognized
in earnings is approximately seven years, corresponding to the timing of the originally hedged forecasted cash
flows. For open cash flow hedges, the maximum length of time over which forecasted transactions are hedged is
approximately seven years. The Firm’s longer-dated forecasted transactions relate to core lending and borrowing
activities.
Notes to consolidated financial statements
220
JPMorgan Chase & Co./2024 Form 10-K

Net investment hedge gains and losses
The following table presents hedging instruments, by contract type, that were used in net investment hedge
accounting relationships, and the pre-tax gains/(losses) recorded on such instruments for the years ended
December 31, 2024, 2023 and 2022.
2024
2023
2022
Year ended December 31,
(in millions)
Amounts
recorded in
income(a)(b)
Amounts
recorded in
OCI
Amounts
recorded in
income(a)(b)
Amounts
recorded in
OCI
Amounts
recorded in
income(a)(b)
Amounts
recorded in
OCI
Foreign exchange derivatives
$467
$4,411
$384
$(1,732)
$(123)
$3,591
(a) Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points
on foreign exchange forward contracts. The Firm elects to record changes in fair value of these amounts directly in other income.
(b) Excludes amounts reclassified from AOCI to income on the sale or liquidation of hedged entities. During the year ended December 31, 2024,
the Firm reclassified a net pre-tax gain of $89 million to other income/expense. During the year ended December 31, 2023, the Firm
reclassified a net pre-tax loss of $(35) million to other revenue including the impact of the acquisition of CIFM. During the year ended
December 31, 2022, the Firm reclassified net pre-tax gains of $38 million to other income/expense related to the liquidation of certain legal
entities. Refer to Note 24 for further information.
Gains and losses on derivatives used for specified risk
management purposes
The following table presents pre-tax gains/(losses)
recorded on a limited number of derivatives, not
designated in hedge accounting relationships, that are
used to manage risks associated with certain specified
assets and liabilities, including certain risks arising
from mortgage commitments, warehouse loans, MSRs,
wholesale lending exposures, and foreign currency
denominated assets and liabilities.
Derivatives gains/(losses)
recorded in income
Year ended December 31,
(in millions)
2024
2023
2022
Contract type
Interest rate
(a)
$
(425) $
(135) $
(827)
Credit
(b)

(604)
(441)
51
Foreign exchange
(c)

(10)
(2)
(48)
Total
$ (1,039) $
(578) $
(824)
(a) Primarily represents interest rate derivatives used to hedge the
interest rate risk inherent in mortgage commitments, warehouse
loans and MSRs, as well as written commitments to originate
warehouse loans. Gains and losses were recorded
predominantly in mortgage fees and related income.
(b) Relates to credit derivatives used to mitigate credit risk
associated with lending exposures in the Firm’s wholesale
businesses. These derivatives do not include credit derivatives
used to mitigate counterparty credit risk arising from derivative
receivables, which is included in gains and losses on derivatives
related to market-making activities and other derivatives. Gains
and losses were recorded in principal transactions revenue.
(c) Primarily relates to derivatives used to mitigate foreign
exchange risk of specified foreign currency-denominated assets
and liabilities. Gains and losses were recorded in principal
transactions revenue.
Gains and losses on derivatives related to market-
making activities and other derivatives
The Firm makes markets in derivatives in order to
meet the needs of customers and uses derivatives to
manage certain risks associated with net open risk
positions from its market-making activities, including
the counterparty credit risk arising from derivative
receivables. All derivatives not included in the hedge
accounting or specified risk management categories
above are included in this category. Gains and losses
on these derivatives are primarily recorded in principal
transactions revenue. Refer to Note 6 for information
on principal transactions revenue.
JPMorgan Chase & Co./2024 Form 10-K
221

Credit derivatives
Credit derivatives are financial instruments whose
value is derived from the credit risk associated with
the debt of a third-party issuer (the reference entity)
and which allow one party (the protection purchaser)
to transfer that risk to another party (the protection
seller). Credit derivatives expose the protection
purchaser to the creditworthiness of the protection
seller, as the protection seller is required to make
payments under the contract when the reference
entity experiences a credit event, such as a
bankruptcy, a failure to pay its obligation or a
restructuring. The seller of credit protection receives a
premium for providing protection but has the risk that
the underlying instrument referenced in the contract
will be subject to a credit event.
The Firm is both a purchaser and seller of protection in
the credit derivatives market and uses these
derivatives for two primary purposes. First, in its
capacity as a market-maker, the Firm actively
manages a portfolio of credit derivatives by
purchasing and selling credit protection,
predominantly on corporate debt obligations, to meet
the needs of customers. Second, as an end-user, the
Firm uses credit derivatives to manage credit risk
associated with lending exposures (loans and
unfunded commitments) in its wholesale and
consumer businesses and derivatives counterparty
exposures in its wholesale businesses, and to manage
the credit risk arising from certain financial
instruments in the Firm’s market-making businesses.
Following is a summary of various types of credit
derivatives.
Credit default swaps
Credit derivatives may reference the credit of either a
single reference entity (“single-name”), broad-based
index or portfolio. The Firm purchases and sells
protection on both single- name and index-reference
obligations. Single-name CDS and index CDS
contracts are either OTC or OTC-cleared derivative
contracts. Single-name CDS are used to manage the
default risk of a single reference entity, while index
CDS contracts are used to manage the credit risk
associated with the broader credit markets or credit
market segments. Like the S&P 500 and other market
indices, a CDS index consists of a portfolio of CDS
across many reference entities. New series of CDS
indices are periodically established with a new
underlying portfolio of reference entities to reflect
changes in the credit markets. If one of the reference
entities in the index experiences a credit event, then
the reference entity that defaulted is removed from the
index. CDS can also be referenced against specific
portfolios of reference names or against customized
exposure levels: for example, to provide protection
against the first $1 million of realized credit losses in a
$10 million portfolio of exposure. Such structures are
commonly known as tranche CDS.
For both single-name CDS contracts and index CDS
contracts, upon the occurrence of a credit event, under
the terms of a CDS contract neither party to the CDS
contract has recourse to the reference entity. The
protection purchaser has recourse to the protection
seller for the difference between the face value of the
CDS contract and the fair value of the reference
obligation at settlement of the credit derivative
contract, also known as the recovery value. The
protection purchaser does not need to hold the debt
instrument of the underlying reference entity in order
to receive amounts due under the CDS contract when
a credit event occurs.
Credit-related notes
A credit-related note is a funded derivative with a
credit risk component where the issuer of the credit-
related note purchases from the note investor credit
protection on a reference entity or an index. Under the
contract, the investor pays the issuer the par value of
the note at the inception of the transaction, and in
return, the issuer makes periodic payments to the
investor, based on the credit risk of the referenced
entity. The issuer also repays the investor the par value
of the note at maturity unless the reference entity (or
one of the entities that makes up a reference index)
experiences a specified credit event. If a credit event
occurs, the issuer is not obligated to repay the par
value of the note, but rather, the issuer pays the
investor the difference between the par value of the
note and the fair value of the defaulted reference
obligation at the time of settlement. Neither party to
the credit-related note has recourse to the defaulting
reference entity.
The following tables present a summary of the notional
amounts of credit derivatives and credit-related notes
the Firm sold and purchased as of December 31, 2024
and 2023. Upon a credit event, the Firm as a seller of
protection would typically pay out a percentage of the
full notional amount of net protection sold, as the
amount actually required to be paid on the contracts
takes into account the recovery value of the reference
obligation at the time of settlement. The Firm manages
the credit risk on contracts to sell protection by
purchasing protection with identical or similar
underlying reference entities. Other purchased
protection referenced in the following tables includes
credit derivatives bought on related, but not identical,
reference positions (including indices, portfolio
coverage and other reference points) as well as
protection purchased by CIB through credit-related
notes. Other purchased protection also includes credit
protection against certain loans in the retained lending
portfolio through the issuance of credit derivatives and
credit-related notes.
Notes to consolidated financial statements
222
JPMorgan Chase & Co./2024 Form 10-K

The Firm does not use notional amounts of credit derivatives as the primary measure of risk management for such
derivatives, because the notional amount does not take into account the probability of the occurrence of a credit
event, the recovery value of the reference obligation, or related cash instruments and economic hedges, each of
which reduces, in the Firm’s view, the risks associated with such derivatives.
Total credit derivatives and credit-related notes
Maximum payout/Notional amount
December 31, 2024
(in millions)
Protection sold
Protection purchased
with identical
underlyings(c)
Net protection
(sold)/
purchased(d)
Other protection
purchased(e)
Credit derivatives
Credit default swaps
$
(450,184)
$
474,554
$
24,370
$
6,858
Other credit derivatives(a)

(110,913)

137,927

27,014

10,169
Total credit derivatives

(561,097)

612,481

51,384

17,027
Credit-related notes(b)

—

10,471
Total
$
(561,097)
$
612,481
$
51,384
$
27,498
Maximum payout/Notional amount
December 31, 2023
(in millions)
Protection sold
Protection purchased
with identical
underlyings
(c)
Net protection
(sold)/
purchased
(d)
Other protection
purchased
(e)
Credit derivatives
Credit default swaps
$
(450,172)
$
473,823
$
23,651
$
7,517
Other credit derivatives
(a)

(38,846)

45,416

6,570

29,206
Total credit derivatives

(489,018)

519,239

30,221

36,723
Credit-related notes
(b)

—

9,788
Total
$
(489,018)
$
519,239
$
30,221
$
46,511
(a) Other credit derivatives predominantly consist of credit swap options and total return swaps.
(b) Predominantly represents Other protection purchased by CIB.
(c) Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference
instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may
be greater or lower than the notional amount of protection sold.
(d) Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the
seller of protection pays to the buyer of protection in determining settlement value.
(e) Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any
protection on the identical reference instrument. Also includes credit protection against certain loans and lending-related commitments in
the retained lending portfolio through the issuance of credit derivatives and credit-related notes.
JPMorgan Chase & Co./2024 Form 10-K
223

The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit
derivatives as of December 31, 2024 and 2023, where JPMorganChase is the seller of protection. The maturity
profile is based on the remaining contractual maturity of the credit derivative contracts. The ratings profile is based
on the rating of the reference entity on which the credit derivative contract is based. The ratings and maturity profile
of credit derivatives where JPMorganChase is the purchaser of protection are comparable to the profile reflected
below.
Protection sold – credit derivatives ratings
(a)/maturity profile
December 31, 2024
(in millions)
<1 year
1–5 years
>5 years
Total notional
amount
Fair value of
receivables(b)
Fair value of
payables(b)
Net fair
value
Risk rating of reference entity
Investment-grade
$ (135,950) $ (277,052) $
(33,379) $
(446,381) $
4,593
$
(904) $
3,689
Noninvestment-grade

(42,149)
(70,525)
(2,042)
(114,716)
1,889

(1,738)
151
Total
$ (178,099) $ (347,577) $
(35,421) $
(561,097) $
6,482
$
(2,642) $
3,840
December 31, 2023
(in millions)
<1 year
1–5 years
>5 years
Total notional
amount
Fair value of
receivables(b)
Fair value of
payables(b)
Net fair
value
Risk rating of reference entity
Investment-grade
$
(89,981) $ (263,834) $
(29,470) $
(383,285) $
3,659
$
(1,144) $
2,515
Noninvestment-grade

(31,419)
(69,515)
(4,799)
(105,733)
2,466

(1,583)
883
Total
$
(121,400) $ (333,349) $
(34,269) $
(489,018) $
6,125
$
(2,727) $
3,398
(a) The ratings scale is primarily based on external credit ratings defined by S&P and Moody’s.
(b) Amounts are shown on a gross basis, before the benefit of legally enforceable master netting agreements including cash collateral netting.
Notes to consolidated financial statements
224
JPMorgan Chase & Co./2024 Form 10-K

Note 6 – Noninterest revenue and noninterest expense
Noninterest revenue
The Firm records noninterest revenue from certain
contracts with customers in investment banking fees,
deposit-related fees, asset management fees,
commissions and other fees, and components of card
income. The related contracts are often terminable on
demand and the Firm has no remaining obligation to
deliver future services. For arrangements with a fixed
term, the Firm may commit to deliver services in the
future. Revenue associated with these remaining
performance obligations typically depends on the
occurrence of future events or underlying asset values,
and is not recognized until the outcome of those
events or values are known.
Investment banking fees
This revenue category includes debt and equity
underwriting and advisory fees. As an underwriter, the
Firm helps clients raise capital via public offering and
private placement of various types of debt and equity
instruments. Underwriting fees are primarily based on
the issuance price and quantity of the underlying
instruments, and are recognized as revenue typically
upon execution of the client’s transaction. The Firm
also manages and syndicates loan arrangements.
Credit arrangement and syndication fees, included
within debt underwriting fees, are recorded as revenue
after satisfying certain retention, timing and yield
criteria.
The Firm also provides advisory services by assisting
its clients with mergers and acquisitions, divestitures,
restructuring and other complex transactions.
Advisory fees are recognized as revenue typically
upon execution of the client’s transaction.
The following table presents the components of
investment banking fees.
Year ended December 31,
(in millions)
2024
2023
2022
Underwriting
Equity
$ 1,687
$
1,149
$
975
Debt

3,945

2,610

2,732
Total underwriting

5,632

3,759

3,707
Advisory

3,278

2,760

2,979
Total investment banking fees
$ 8,910
$
6,519
$ 6,686
Investment banking fees are earned primarily by CIB.
Principal transactions
Principal transactions revenue is driven by many
factors, including:
• the bid-offer spread, which is the difference between
the price at which a market participant is willing and
able to sell an instrument to the Firm and the price at
which another market participant is willing and able
to buy it from the Firm, and vice versa; and
• realized and unrealized gains and losses on financial
instruments and commodities transactions,
including those accounted for under the fair value
option, primarily used in client-driven market-
making activities.
– Realized gains and losses result from the sale of
instruments, closing out or termination of
transactions, or interim cash payments.
– Unrealized gains and losses result from changes in
valuation.
In connection with its client-driven market-making
activities, the Firm transacts in debt and equity
instruments, derivatives and commodities, including
physical commodities inventories and financial
instruments that reference commodities.
Principal transactions revenue also includes realized
and unrealized gains and losses related to:
• derivatives designated in qualifying hedge
accounting relationships, primarily fair value hedges
of commodity and foreign exchange risk;
• derivatives used for specific risk management
purposes, primarily to mitigate credit, foreign
exchange and interest rate risks.
Refer to Note 5 for further information on the income
statement classification of gains and losses from
derivatives activities.
In the financial commodity markets, the Firm transacts
in OTC derivatives (e.g., swaps, forwards, options) and
ETD that reference a wide range of underlying
commodities. In the physical commodity markets, the
Firm primarily purchases and sells precious and base
metals, natural gas, and may hold other commodities
inventories under financing and other arrangements
with clients.
The following table presents all realized and unrealized
gains and losses recorded in principal transactions
revenue. This table excludes interest income and
interest expense on trading assets and liabilities,
which are an integral part of the overall performance of
the Firm’s client-driven market-making activities in
CIB and fund deployment activities in Treasury and
CIO. Refer to Note 7 for further information on interest
income and interest expense.
Trading revenue is presented primarily by instrument
type. The Firm’s client-driven market-making
businesses generally utilize a variety of instrument
JPMorgan Chase & Co./2024 Form 10-K
225

types in connection with their market-making and
related risk-management activities; accordingly, the
trading revenue presented in the table below is not
representative of the total revenue of any individual
LOB.
Year ended December 31,
(in millions)
2024
2023
2022
Trading revenue by
instrument type
Interest rate(a)
$ 3,631
$
5,607 $ 3,010
Credit(b)

1,545

1,434
1,412
(c)
Foreign exchange

4,874

5,082
5,119
Equity
13,476

10,229
8,068
Commodity

1,194

2,202
2,348
Total trading revenue
24,720

24,554 19,957
Private equity gains/(losses)

(94)
(45)
Principal transactions
$ 24,787
$ 24,460 $ 19,912
(a) Includes the impact of changes in funding valuation adjustments
on derivatives.
(b) Includes the impact of changes in credit valuation adjustments
on derivatives, net of the associated hedging activities.
(c) Includes net markdowns on held-for-sale positions, primarily
unfunded commitments, in the bridge financing portfolio.
Principal transactions revenue is earned primarily by
CIB.
Lending- and deposit-related fees
Lending-related fees include fees earned from loan
commitments, standby letters of credit, financial
guarantees, and other loan-servicing activities.
Deposit-related fees include fees earned from
performing cash management activities, and providing
overdraft and other deposit account services. Deposit-
related fees also include the impact of credits earned
by clients that reduce such fees. Lending- and deposit-
related fees are recognized over the period in which
the related service is provided. Refer to Note 28 for
further information on lending-related commitments.
The following table presents the components of
lending- and deposit-related fees.
Year ended December 31,
(in millions)
2024
2023
2022
Lending-related fees
$ 2,192
(a) $ 2,365
(a) $ 1,468
Deposit-related fees
5,414
5,048
5,630
Total lending- and deposit-
related fees
$ 7,606
$ 7,413
$ 7,098
(a) Includes the amortization of the fair value discount on certain
acquired lending-related commitments associated with First
Republic, predominantly in AWM and CIB. The discount is
deferred in other liabilities and recognized on a straight-line
basis over the commitment period and was largely recognized in
2023 as the commitments were generally short term. Refer to
Note 34 for additional information.
Lending- and deposit-related fees are earned by CCB,
CIB and AWM.
Asset management fees
Investment management fees include fees associated
with assets the Firm manages on behalf of its clients,
including investors in Firm-sponsored funds and
owners of separately managed investment accounts.
Management fees are typically based on the value of
assets under management and are collected and
recognized at the end of each period over which the
management services are provided and the value of
the managed assets is known. The Firm also receives
performance-based management fees, which are
earned based on exceeding certain benchmarks or
other performance targets and are accrued and
recognized when the probability of reversal is remote,
typically at the end of the related billing period.
All other asset management fees include commissions
earned on the sales or distribution of mutual funds to
clients. These fees are recorded as revenue at the time
the service is rendered or, in the case of certain
distribution fees, based on the underlying fund’s asset
value or investor redemption activity.
The following table presents the components of asset
management fees.
Year ended December 31,
(in millions)
2024
2023
2022
Asset management fees
Investment management fees
$ 17,425
$ 14,908
$ 13,765
All other asset management
fees

376

312

331
Total asset management fees
$ 17,801
$ 15,220
$ 14,096
Asset management fees earned primarily by AWM and
CCB.
Commissions and other fees
This revenue category includes commissions and fees
from brokerage and custody services, and other
products.
Brokerage commissions represents commissions
earned when the Firm acts as a broker, by facilitating
its clients’ purchases and sales of securities and other
financial instruments. Brokerage commissions are
collected and recognized as revenue upon occurrence
of the client transaction. The Firm reports certain costs
paid to third-party clearing houses and exchanges net
against commission revenue.
Administration fees predominantly include fees for
custody, funds services, securities lending and
securities clearance. These fees are recorded as
revenue over the period in which the related service is
provided.
Notes to consolidated financial statements
226
JPMorgan Chase & Co./2024 Form 10-K

The following table presents the components of
commissions and other fees.
Year ended December 31,
(in millions)
2024
2023
2022
Commissions and other fees
Brokerage commissions and
fees
$
3,119
$ 2,820
$
2,831
Administration fees

2,526

2,310

2,348
All other commissions and
fees(a)

1,885

1,706

1,402
Total commissions and other
fees
$ 7,530
$ 6,836
$
6,581
(a) Includes annuity sales commissions, depositary receipt-related
service fees and travel-related sales commissions, as well as
other service fees, which are recognized as revenue when the
services are rendered.
Commissions and other fees are earned primarily by
CIB, CCB and AWM.
Mortgage fees and related income
This revenue category reflects CCB’s Home Lending
production and net mortgage servicing revenue.
Production revenue includes fees and income
recognized as earned on mortgage loans originated
with the intent to sell, and the impact of risk
management activities associated with the mortgage
pipeline and warehouse loans. Production revenue
also includes gains and losses on sales and lower of
cost or fair value adjustments on mortgage loans held-
for-sale (excluding certain repurchased loans insured
by U.S. government agencies), and changes in the fair
value of financial instruments measured under the fair
value option. Net mortgage servicing revenue includes
operating revenue earned from servicing third-party
mortgage loans, which is recognized over the period in
which the service is provided; changes in the fair value
of MSRs; the impact of risk management activities
associated with MSRs; and gains and losses on
securitization of excess mortgage servicing. Net
mortgage servicing revenue also includes gains and
losses on sales and lower of cost or fair value
adjustments of certain repurchased loans insured by
U.S. government agencies.
Refer to Note 15 for further information on risk
management activities and MSRs.
Net interest income from mortgage loans is recorded
in interest income.
Card income
This revenue category includes interchange and other
income from credit and debit card transactions; and
fees earned from processing card transactions for
merchants, both of which are recognized when
purchases are made by a cardholder and presented
net of certain transaction-related costs. Card income
also includes account origination costs and annual
fees, which are deferred and recognized on a straight-
line basis over a 12-month period.
Certain credit card products offer the cardholder the
ability to earn points based on account activity, which
the cardholder can choose to redeem for cash and
non-cash rewards. The cost to the Firm related to
these proprietary rewards programs varies based on
multiple factors including the terms and conditions of
the rewards programs, cardholder activity, cardholder
reward redemption rates and cardholder reward
selections. The Firm maintains a liability for its
obligations under its rewards programs and reports
the current-period cost as a reduction of card income.
Credit card revenue sharing agreements
The Firm has contractual agreements with numerous
co-brand partners that grant the Firm exclusive rights
to issue co-branded credit card products and market
them to the customers of such partners. These
partners endorse the co-brand credit card programs
and provide their customer or member lists to the
Firm. The partners may also conduct marketing
activities and provide rewards redeemable under their
own loyalty programs that the Firm will grant to co-
brand credit cardholders based on account activity.
The terms of these agreements generally range from
five to ten years.
The Firm typically makes payments to the co-brand
credit card partners based on the cost of partners’
marketing activities and loyalty program rewards
provided to credit cardholders, new account
originations and sales volumes. Payments to partners
based on marketing efforts undertaken by the
partners are expensed by the Firm as incurred and
reported as marketing expense. Payments for partner
loyalty program rewards are reported as a reduction of
card income when incurred. Payments to partners
based on new credit card account originations are
accounted for as direct loan origination costs and are
deferred and recognized as a reduction of card income
on a straight-line basis over a 12-month period.
Payments to partners based on sales volumes are
reported as a reduction of card income when the
related interchange income is earned.
The following table presents the components of card
income:
Year ended December 31,
(in millions)
2024
2023
2022
Interchange and merchant
processing income
$ 33,847
$
31,021
$ 28,085
Reward costs and partner
payments
(26,784)
(24,601)
(22,162)
All other
(a)

(1,566)
(1,636)
(1,503)
Total card income
$
5,497
$
4,784
$
4,420
(a) Predominantly represents the amortization of account
origination costs and annual fees, which are deferred and
recognized on a straight-line basis over a 12-month period.
Card income is earned primarily by CCB and CIB.
JPMorgan Chase & Co./2024 Form 10-K
227

Other income
This revenue category includes operating lease
income, as well as losses associated with the Firm’s
tax-oriented investments, predominantly alternative
energy equity-method investments in CIB. The losses
associated with these tax-oriented investments are
more than offset by lower income tax expense from
the associated tax credits.
The following table presents certain components of
other income:
Operating lease income
$ 2,795
$
2,843
$
3,654
Losses on tax-oriented
investments

(97)

(1,538)
(1,491)
Gain on Visa shares

7,990
(b)
—

914
(c)
Estimated bargain
purchase gain
associated with the First
Republic acquisition

103

2,775

—
Gain related to the
acquisition of CIFM
(a)

—

339

—
Year ended December 31,
(in millions)
2024
2023
2022
(a) Gain on the original minority interest in CIFM upon the Firm's
acquisition of the remaining 51% of the entity.
(b) Relates to the initial gain recognized on May 6, 2024 on the Visa
C shares. Refer to Note 2 for additional information.
(c) Relates to the sale of Visa B shares.
Refer to Note 18 for additional information on
operating leases.
Proportional Amortization Method: Effective January
1, 2024, as a result of adopting updates to the
Accounting for Investments in Tax Credit Structures
Using the Proportional Amortization Method guidance,
the amortization of certain of the Firm's alternative
energy tax-oriented investments that was previously
recognized in other income is now recognized in
income tax expense, which aligns with the associated
tax credits and other tax benefits. Refer to Notes 1, 14
and 25 for additional information.
Noninterest expense
Other expense
Other expense on the Firm’s Consolidated statements
of income included:
Year ended December 31,
(in millions)
2024
2023
2022
Legal expense
$ 740
$ 1,436
$ 266
FDIC-related expense
1,893
(c) 4,203
(c)
860
Operating losses
1,417
1,228

1,101
Contribution of Visa shares(a)
1,000

—

—
First Republic-related
expense(b)

777
1,060

—
(a) Represents the contribution of a portion of Visa C shares to the
JPMorgan Chase Foundation recorded in the second quarter of
2024. Refer to Note 2 for additional information.
(b) Reflects the expenses classified within other expense, including
$488 million and $360 million of integration and restructuring
costs associated with First Republic for the full years ended
December 31, 2024 and 2023, respectively. Additionally, the
second quarter of 2023 included payments to the FDIC for the
First Republic individuals who were not employees of the Firm
until July 2, 2023. Refer to Note 34 for additional information on
the First Republic acquisition.
(c) The first quarter of 2024 included an increase of $725 million to
the FDIC special assessment reflecting the FDIC's revised
estimate of Deposit Insurance Fund losses. The fourth quarter of
2023 included the $2.9 billion FDIC special assessment.
Refer to Note 32 for additional information on
noninterest revenue and expense by segment.
Notes to consolidated financial statements
228
JPMorgan Chase & Co./2024 Form 10-K

Note 7 – Interest income and interest expense
Interest income and interest expense are recorded in
the Consolidated statements of income and classified
based on the nature of the underlying asset or liability.
Interest income and interest expense includes the
current-period interest accruals for financial
instruments measured at fair value, except for
derivatives and certain financial instruments
containing embedded derivatives; for those
instruments, all changes in fair value including any
interest elements, are primarily reported in principal
transactions revenue. For financial instruments that
are not measured at fair value, the related interest is
included within interest income or interest expense, as
applicable. Interest income and interest expense also
includes the effect of derivatives that qualify for hedge
accounting where applicable.
Interest income on loans and securities include the
amortization and accretion of purchase premiums and
discounts, as well as net deferred fees and costs on
loans. These amounts are deferred in loans and
investment securities, respectively, and recognized on
a level-yield basis.
Refer to Notes 5, 10, 11, 12, and 20 for further
information on accounting for interest income and
interest expense related to hedge accounting,
investment securities, securities financing activities
(i.e., securities purchased or sold under resale or
repurchase agreements; securities borrowed; and
securities loaned), loans and long-term debt,
respectively.
The following table presents the components of
interest income and interest expense:
Year ended December 31,
(in millions)
2024
2023
2022
Interest income
Loans
$ 92,353
(d) $ 83,384
(d)
$ 52,736
Taxable securities
21,947

17,390

10,372
Non-taxable securities(a)

1,197

1,336

975
Total investment securities
23,144
(d)
18,726
(d)

11,347
Trading assets - debt
instruments
20,327
15,950

9,053
Federal funds sold and
securities purchased
under resale agreements
18,299

15,079

4,632
Securities borrowed

9,208

7,983

2,237
Deposits with banks
22,297

21,797

9,039
All other interest-earning
assets
(b)

8,305

7,669

3,763
Total interest income
$ 193,933
$ 170,588
$ 92,807
Interest expense
Interest bearing deposits
$ 49,559
$ 40,016
$ 10,082
Federal funds purchased
and securities loaned or
sold under repurchase
agreements

19,149

13,259

3,721
Short-term borrowings

2,101

1,894

747
Trading liabilities - debt and
all other interest-bearing
liabilities
(c)
10,238

9,396

3,246
Long-term debt
18,920
15,803

8,075
Beneficial interest issued by
consolidated VIEs

1,383

953

226
Total interest expense
$ 101,350
$ 81,321
$ 26,097
Net interest income
$ 92,583
$ 89,267
$ 66,710
Provision for credit losses
10,678

9,320

6,389
Net interest income after
provision for credit losses $ 81,905
$ 79,947
$ 60,321
(a) Represents securities that are tax-exempt for U.S. federal
income tax purposes.
(b) Includes interest earned on brokerage-related held-for-
investment customer receivables, which are classified in accrued
interest and accounts receivable, and all other interest-earning
assets, which are classified in other assets on the Consolidated
balance sheets.
(c) All other interest-bearing liabilities includes interest expense on
brokerage-related customer payables.
(d) Includes the accretion of the purchase discount on certain
acquired loans and investment securities associated with First
Republic. Refer to Note 34 for additional information.
JPMorgan Chase & Co./2024 Form 10-K
229

Note 8 – Pension and other postretirement
employee benefit plans
The Firm has various defined benefit pension plans and
OPEB plans that provide benefits to its employees in the
U.S. and certain non-U.S. locations. Substantially all the
defined benefit pension plans are closed to new
participants. The principal defined benefit pension plan
in the U.S., which covered substantially all U.S.
employees, was closed to new participants and frozen
for existing participants on January 1, 2020, (and
January 1, 2019 for new hires on or after December 2,
2017). Interest credits continue to accrue to
participants’ accounts based on their accumulated
balances.
The Firm maintains funded and unfunded
postretirement benefit plans that provide medical and
life insurance for certain eligible employees and retirees
as well as their dependents covered under these
programs. None of these plans have a material impact
on the Firm’s Consolidated Financial Statements.
The Firm also provides a qualified defined contribution
plan in the U.S. and maintains other similar
arrangements in certain non-U.S. locations. The most
significant of these plans is the JPMorgan Chase 401(k)
Savings Plan (“the 401(k) Savings Plan”), which covers
substantially all U.S. employees. Employees can
contribute to the 401(k) Savings Plan on a pretax and/or
Roth 401(k) after-tax basis. The Firm makes annual
matching and pay credit contributions to the 401(k)
Savings Plan on behalf of eligible participants.
The following table presents the pretax benefit obligations, plan assets, the net funded status, and the amounts
recorded in AOCI on the Consolidated balance sheets for the Firm’s significant defined benefit pension and OPEB
plans.
As of or for the year ended December 31,
(in millions)
2024
2023
Projected benefit obligations
$
(14,459)
$
(14,740)
Fair value of plan assets

22,201

22,013
Net funded status

7,742

7,273
Accumulated other comprehensive income/(loss)

(1,649)

(1,517)
The weighted-average discount rate used to value the benefit obligations as of December 31, 2024 and 2023, was
5.49% and 5.16%, respectively.
Gains and losses
Gains or losses resulting from changes in the benefit
obligation and the fair value of plan assets are recorded
in OCI. Amortization of net gains or losses are
recognized as part of the net periodic benefit cost over
subsequent periods, if, as of the beginning of the year,
the net gain or loss exceeds 10% of the greater of the
projected benefit obligation or the fair value of the plan
assets. Amortization is generally over the average
expected remaining lifetime of plan participants, given
the frozen status of most plans. For the year ended
December 31, 2024, the net loss was attributable to
lower than expected returns on plan assets, partially
offset by projected benefit obligation net gains
primarily related to changes in the discount rate. For the
year ended December 31, 2023, the net gain was
attributable to market-driven increases in the fair value
of plan assets, partially offset by changes in the
discount rate and interest crediting rate.
The following table presents the net periodic benefit costs reported in the Consolidated statements of income for the
Firm’s defined benefit pension, defined contribution and OPEB plans, and in other comprehensive income for the
defined benefit pension and OPEB plans.
Year ended December 31, (in millions)
2024
2023
2022
Total net periodic defined benefit plan cost/(credit)
(a)
$
(462) $
(393)
$
(192)
(b)
Total defined contribution plans

1,733
1,609

1,408
Total pension and OPEB cost included in noninterest expense
$
1,271 $
1,216
$
1,216
Total recognized in other comprehensive (income)/loss
$
131 $
(421)
$
1,459
(a) The service cost component of net periodic defined benefit cost is reported in compensation expense; all other components of net periodic
defined benefit costs are reported in other expense in the Consolidated statements of income.
(b) Includes pension settlement losses of $92 million for the year ended December 31, 2022.
Notes to consolidated financial statements
230
JPMorgan Chase & Co./2024 Form 10-K

The following table presents the weighted-average actuarial assumptions used to determine the net periodic
benefit costs for the defined benefit pension and OPEB plans.
Year ended December 31,
2024
2023
2022
Discount rate
5.16 %
5.14 %
2.54 %
Expected long-term rate of return on plan assets
6.15 %
5.74 %
3.68 %
Plan assumptions
The Firm’s expected long-term rate of return is a
blended weighted average, by asset allocation of the
projected long-term returns for the various asset
classes, taking into consideration local market
conditions and the specific allocation of plan assets.
Returns on asset classes are developed using a
forward-looking approach and are not strictly based
on historical returns, with consideration given to
current market conditions and the portfolio mix of
each plan.
The discount rates used in determining the benefit
obligations are generally provided by the Firm’s
actuaries, with the Firm’s principal defined benefit
pension plan using a rate that was selected by
reference to the yields on portfolios of bonds with
maturity dates and coupons that closely match the
plan’s projected annual cash flows.
Investment strategy and asset allocation
The assets of the Firm’s defined benefit pension plans
are held in various trusts and are invested in well-
diversified portfolios of equity and fixed income
securities, cash and cash equivalents, and alternative
investments. The Firm regularly reviews the asset
allocations and asset managers, as well as other
factors that could impact the portfolios, which are
rebalanced when deemed necessary. As of December
31, 2024, the approved asset allocation ranges by
asset class for the Firm’s principal defined benefit plan
are 41-100% debt securities, 0-40% equity securities,
0-1% real estate, and 0-8% alternatives.
Assets held by the Firm’s defined benefit pension and
OPEB plans do not include securities issued by
JPMorganChase or its affiliates, except through
indirect exposures through investments in exchange
traded funds, mutual funds and collective investment
funds managed by third-parties. The defined benefit
pension and OPEB plans hold investments that are
sponsored or managed by affiliates of JPMorganChase
in the amount of $1.8 billion as of both December 31,
2024 and 2023.
Fair value measurement of the plans’ assets and liabilities
Refer to Note 2 for information on fair value measurements, including descriptions of level 1, 2, and 3 of the fair value
hierarchy and the valuation methods employed by the Firm.
Defined benefit pension and OPEB plans assets and liabilities measured at fair value
2024
2023
December 31,
(in millions)
Level 1
(a)
Level 2
(b)
Level 3
(c)
Total fair
value
Level 1
(a)
Level 2
(b)
Level 3
(c)
Total fair
value
Assets measured at fair value classified in
the fair value hierarchy
$
6,910 $
9,693 $ 3,956 $
20,559 $
6,521 $ 10,713 $
3,124 $
20,358
Assets measured at fair value using NAV
as a practical expedient

2,101

2,097
Net defined benefit pension plan payables

(459)

(442)
Total fair value of plan assets
$
22,201
$
22,013
(a) Consists predominantly of equity securities, U.S. federal, state, and local and non-U.S. government debt securities, and cash equivalents.
(b) Consists of corporate debt securities, fund investments, mortgage-backed securities, and U.S. federal, state, and local and non-U.S.
government debt securities.
(c) Consists predominantly of corporate-owned life insurance policies.
JPMorgan Chase & Co./2024 Form 10-K
231

Changes in level 3 fair value measurements using
significant unobservable inputs
Investments classified in level 3 of the fair value
hierarchy increased in 2024 to $4.0 billion, due to
$536 million of transfers in and $415 million in
unrealized gains, partially offset by $123 million in
settlements. The net increase in 2023 was due to
$400 million in unrealized gains and $173 million of
transfers in, partially offset by $59 million in
settlements.
Estimated future benefit payments
The following table presents benefit payments
expected to be paid for the defined benefit pension
and OPEB plans for the years indicated.
Year ended December 31,
(in millions)
2025
$
1,186
2026

1,155
2027

1,134
2028

1,095
2029

1,093
Years 2030–2034

5,229

Notes to consolidated financial statements
232
JPMorgan Chase & Co./2024 Form 10-K

Note 9 – Employee share-based incentives
Employee share-based awards
In 2024, 2023 and 2022, JPMorganChase granted
long-term share-based awards to certain employees
under its LTIP, as amended and restated effective May
18, 2021, and subsequently amended effective May 21,
2024. Under the terms of the LTIP, as of December 31,
2024, 81 million shares of common stock were
available for issuance through May 2028. The LTIP is
the only active plan under which the Firm is currently
granting share-based incentive awards. In the
following discussion, the LTIP constitutes the Firm’s
share-based incentive plans.
RSUs are awarded at no cost to the recipient upon
their grant. Generally, RSUs are granted annually and
vest at a rate of 50% after two years and 50% after
three years and are converted into shares of common
stock as of the vesting date. In addition, RSUs typically
include full-career eligibility provisions, which allow
employees to continue to vest upon voluntary
termination based on age and/or service-related
requirements, subject to post-employment and other
restrictions. All RSU awards are subject to forfeiture
until vested and contain clawback provisions that may
result in cancellation under certain specified
circumstances. Predominantly all RSUs entitle the
recipient to receive cash payments equivalent to any
dividends paid on the underlying common stock
during the period the RSUs are outstanding.
Performance share units (“PSUs”) are granted
annually, and approved by the Firm’s Board of
Directors, to members of the Firm’s Operating
Committee under the variable compensation program.
PSUs are subject to the Firm’s achievement of
specified performance criteria over a three-year
period. The number of awards that vest can range from
zero to 150% of the grant amount. In addition,
dividends that accrue during the vesting period are
reinvested in dividend equivalent share units. PSUs
and the related dividend equivalent share units are
converted into shares of common stock after vesting.
Once the PSUs and dividend equivalent share units
have vested, the shares of common stock that are
delivered, after applicable tax withholding, must be
retained for an additional holding period, for a total
combined vesting and holding period of approximately
five to eight years from the grant date depending on
regulations in certain countries.
Under the LTI Plans, stock appreciation rights (“SARs”)
were granted with an exercise price equal to the fair
value of JPMorganChase’s common stock on the grant
date. SARs expire ten years after the grant date. There
were no grants of SARs in 2024, 2023 or 2022.
The Firm separately recognizes compensation
expense for each tranche of each award, net of
estimated forfeitures, as if it were a separate award
with its own vesting date. Generally, for each tranche
granted, compensation expense is recognized on a
straight-line basis from the grant date until the vesting
date of the respective tranche, provided that the
employees will not become full-career eligible during
the vesting period. For awards with full-career
eligibility provisions and awards granted with no future
substantive service requirement, the Firm accrues the
estimated value of awards expected to be awarded to
employees as of the grant date without giving
consideration to the impact of post-employment
restrictions. For each tranche granted to employees
who will become full-career eligible during the vesting
period, compensation expense is recognized on a
straight-line basis from the grant date until the earlier
of the employee’s full-career eligibility date or the
vesting date of the respective tranche.
The Firm’s policy for issuing shares upon settlement of
employee share-based incentive awards is to issue
either new shares of common stock or treasury shares.
During 2024, 2023 and 2022, the Firm settled all of its
employee share-based awards by issuing treasury
shares.
Refer to Note 23 for further information on the
classification of share-based awards for purposes of
calculating earnings per share.
JPMorgan Chase & Co./2024 Form 10-K
233

RSUs, PSUs and SARs activity
Generally, compensation expense for RSUs and PSUs is measured based on the number of units granted multiplied
by the stock price at the grant date, and for SARs, is measured at the grant date using the Black-Scholes valuation
model. Compensation expense for these awards is recognized in net income as described previously. The following
table summarizes JPMorganChase’s RSUs, PSUs and SARs activity for 2024.
RSUs/PSUs
SARs
Year ended December 31, 2024
Number
of
units
Weighted-
average grant
date fair value
Number of
awards
Weighted-
average
exercise price
Weighted-average
remaining
contractual life
(in years)
Aggregate
intrinsic
value
(in thousands, except weighted-average
data, and where otherwise stated)
Outstanding, January 1

52,243 $
141.31

2,250
$
152.19
Granted

20,020
166.74

—

—
Exercised or vested
(19,542)
143.02

—

—
Forfeited

(2,112)
147.41

—

—
Canceled
NA
NA

—

—
Outstanding, December 31

50,609 $
150.41

2,250
$
152.19
6.7 $
198,113
Exercisable, December 31
NA
NA

—

—
—
The total fair value of RSUs and PSUs that vested during the years ended December 31, 2024, 2023 and 2022, was
$3.5 billion, $2.5 billion and $3.2 billion, respectively. There were no SARs exercised in 2024. The total intrinsic value
of SARs exercised during the years ended December 31, 2023 and 2022, was $24 million and $75 million,
respectively.
Compensation expense
The Firm recognized the following noncash
compensation expense related to its various employee
share-based incentive plans in its Consolidated
statements of income.
Year ended December 31, (in
millions)
2024
2023
2022
Cost of prior grants of RSUs, PSUs
and SARs that are amortized over
their applicable vesting periods
$ 1,622
$ 1,510
$ 1,253
Accrual of estimated costs of share-
based awards to be granted in
future periods, predominantly
those to full-career eligible
employees
1,882
1,607

1,541
Total noncash compensation
expense related to employee
share-based incentive plans
$ 3,504
$ 3,117
$ 2,794
At December 31, 2024, approximately $963 million
(pretax) of compensation expense related to unvested
awards had not yet been charged to net income. That
cost is expected to be amortized into compensation
expense over a weighted-average period of 1.6 years.
The Firm does not capitalize any compensation
expense related to share-based compensation awards
to employees.
Tax benefits
Income tax benefits (including tax benefits from
dividends or dividend equivalents) related to share-
based incentive arrangements recognized in the
Firm’s Consolidated statements of income for the
years ended December 31, 2024, 2023 and 2022, were
$1.0 billion, $836 million and $901 million, respectively.
Notes to consolidated financial statements
234
JPMorgan Chase & Co./2024 Form 10-K

Note 10 – Investment securities
Investment securities consist of debt securities that are
classified as AFS or HTM. Debt securities classified as
trading assets are discussed in Note 2. Predominantly
all of the Firm’s AFS and HTM securities are held by
Treasury and CIO in connection with its asset-liability
management activities.
AFS securities are carried at fair value on the
Consolidated balance sheets. Unrealized gains and
losses, after any applicable hedge accounting
adjustments or allowance for credit losses, are
reported in AOCI. The specific identification method is
used to determine realized gains and losses on AFS
securities, which are included in investment securities
gains/(losses) on the Consolidated statements of
income. HTM securities, which the Firm has the intent
and ability to hold until maturity, are carried at
amortized cost, net of allowance for credit losses, on
the Consolidated balance sheets.
For both AFS and HTM securities, purchase discounts
or premiums are generally amortized into interest
income on a level-yield basis over the contractual life of
the security. However, premiums on certain callable
debt securities are amortized to the earliest call date.
JPMorgan Chase & Co./2024 Form 10-K
235

The amortized costs and estimated fair values of the investment securities portfolio were as follows for the dates
indicated.
2024
2023
December 31, (in millions)
Amortized
cost(d)(e)
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
Amortized
cost(d)(e)
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
Available-for-sale securities
Mortgage-backed securities:
U.S. GSEs and government agencies
$
95,671 $
251 $
4,029 $
91,893
$
88,377 $
870 $
4,077 $
85,170
Residential:
U.S.

4,242
16
50
4,208

2,086
10
68
2,028
Non-U.S.

600
3
—
603

1,608
4
1
1,611
Commercial

4,115
20
70
4,065

2,930
12
139
2,803
Total mortgage-backed securities

104,628
290
4,149
100,769

95,001
896
4,285
91,612
U.S. Treasury and government agencies

235,495
545
1,261 234,779

58,051
276
522
57,805
Obligations of U.S. states and
municipalities

18,337
110
534
17,913

21,243
390
266
21,367
Non-U.S. government debt securities

36,655
94
504
36,245

21,387
254
359
21,282
Corporate debt securities

71
—
1
70

128
—
28
100
Asset-backed securities:
Collateralized loan obligations

14,887
59
3
14,943

6,769
11
28
6,752
Other

2,125
17
9
2,133

2,804
8
26
2,786
Unallocated portfolio layer fair value
basis adjustments
(a)

(1,153)
—
(1,153)
NA

73
(73)
—
NA
Total available-for-sale securities

411,045
1,115
5,308 406,852

205,456
1,762
5,514
201,704
Held-to-maturity securities
(b)
Mortgage-backed securities:
U.S. GSEs and government agencies

97,177
6
13,531
83,652

105,614
39
11,643
94,010
U.S. Residential

8,605
4
904
7,705

9,709
4
970
8,743
Commercial

8,817
24
389
8,452

10,534
13
581
9,966
Total mortgage-backed securities

114,599
34
14,824
99,809

125,857
56
13,194
112,719
U.S. Treasury and government agencies

108,632
—
11,212
97,420

173,666
—
13,074
160,592
Obligations of U.S. states and
municipalities

9,310
32
631
8,711

9,945
74
591
9,428
Asset-backed securities:
Collateralized loan obligations

40,573
84
14
40,643

58,565
47
352
58,260
Other

1,354
2
39
1,317

1,815
1
61
1,755
Total held-to-maturity securities
(c)

274,468
152
26,720 247,900

369,848
178
27,272
342,754
Total investment securities, net of
allowance for credit losses
$ 685,513 $
1,267 $ 32,028 $ 654,752
$ 575,304 $
1,940 $
32,786 $ 544,458
(a) Represents the amount of portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Under U.S. GAAP
portfolio layer method basis adjustments are not allocated to individual securities, however the amounts impact the unrealized gains or
losses in the table for the types of securities being hedged. Refer to Note 1 and Note 5 for additional information.
(b) The Firm purchased $4.7 billion, $4.1 billion and $33.7 billion of HTM securities for the years ended December 31, 2024, 2023 and 2022,
respectively.
(c) Effective January 1, 2023, the Firm adopted the portfolio layer method hedge accounting guidance which permitted a transfer of HTM
securities to AFS upon adoption. The Firm transferred obligations of U.S. states and municipalities with a carrying value of $7.1 billion
resulting in the recognition of $38 million net pre-tax unrealized losses in AOCI. This transfer was a non-cash transaction. Refer to Note 24 for
additional information.
(d) The amortized cost of investment securities is reported net of allowance for credit losses of $152 million, $128 million and $96 million at
December 31, 2024, 2023 and 2022, respectively.
(e) Excludes $3.7 billion and $2.8 billion of accrued interest receivable at December 31, 2024 and 2023, respectively, included in accrued interest
and accounts receivable on the Consolidated balance sheets. The Firm generally does not recognize an allowance for credit losses on
accrued interest receivable, consistent with its policy to write them off no later than 90 days past due by reversing interest income. The Firm
did not reverse through interest income any accrued interest receivable for the years ended December 31, 2024 and 2023.
Notes to consolidated financial statements
236
JPMorgan Chase & Co./2024 Form 10-K

At December 31, 2024, the investment securities
portfolio consisted of debt securities with an average
credit rating of AA+ (based upon external ratings
where available, and where not available, based
primarily upon internal risk ratings). Risk ratings are
used to identify the credit quality of securities and
differentiate risk within the portfolio. The Firm’s
internal risk ratings generally align with the qualitative
characteristics (e.g., borrower capacity to meet
financial commitments and vulnerability to changes in
the economic environment) defined by S&P and
Moody’s, however the quantitative characteristics
(e.g., probability of default (“PD”) and loss given default
(“LGD”)) may differ as they reflect internal historical
experiences and assumptions. Risk ratings are
assigned at acquisition, reviewed on a regular and
ongoing basis by Credit Risk Management and
adjusted as necessary over the life of the investment
for updated information affecting the issuer’s ability to
fulfill its obligations.
AFS securities impairment
The following tables present the fair value and gross unrealized losses by aging category for AFS securities at
December 31, 2024 and 2023. The tables exclude U.S. Treasury and government agency securities and U.S. GSE
and government agency MBS with unrealized losses of $5.3 billion and $4.6 billion, at December 31, 2024 and 2023,
respectively; changes in the value of these securities are generally driven by changes in interest rates rather than
changes in their credit profile given the explicit or implicit guarantees provided by the U.S. government.
Available-for-sale securities with gross unrealized losses
Less than 12 months
12 months or more
Year ended December 31, 2024
(in millions)
Fair value
Gross
unrealized
losses
Fair value
Gross
unrealized
losses
Total fair
value
Total gross
unrealized
losses
Available-for-sale securities
Mortgage-backed securities:
Residential:
U.S.
$
1,505
$
6
$
925 $
44 $
2,430 $
50
Non-U.S.

—

30
—
30
—
Commercial

763

1,184
62
1,947
70
Total mortgage-backed securities

2,268

2,139
106
4,407
120
Obligations of U.S. states and
municipalities

10,037

233

2,412
301
12,449
534
Non-U.S. government debt securities

14,234

234

4,184
270
18,418
504
Corporate debt securities

—

30
1
39
1
Asset-backed securities:
Collateralized loan obligations

—

375
3
377
3
Other

214

200
8
414
9
Total available-for-sale securities with
gross unrealized losses
$
26,764
$
482
$
9,340 $
689 $
36,104 $
1,171
Available-for-sale securities with gross unrealized losses
Less than 12 months
12 months or more
Year ended December 31, 2023
(in millions)
Fair value
Gross
unrealized losses
Fair value
Gross
unrealized losses
Total fair
value
Total gross
unrealized losses
Available-for-sale securities
Mortgage-backed securities:
Residential:
U.S.
$
81 $
—
$
1,160 $
68 $
1,241 $
68
Non-U.S.

—
—

722
1
722
1
Commercial

228
3

1,775
136
2,003
139
Total mortgage-backed securities

309
3

3,657
205
3,966
208
Obligations of U.S. states and
municipalities

2,134
20

2,278
246
4,412
266
Non-U.S. government debt securities

7,145
23

4,987
336
12,132
359
Corporate debt securities

9
—

79
28
88
28
Asset-backed securities:
Collateralized loan obligations

932
2

3,744
26
4,676
28
Other

208
1

1,288
25
1,496
26
Total available-for-sale securities with
gross unrealized losses
$
10,737 $
49
$
16,033 $
866 $
26,770 $
915
JPMorgan Chase & Co./2024 Form 10-K
237

AFS securities are considered impaired if the fair value
is less than the amortized cost.
The Firm recognizes impairment losses in earnings if
the Firm has the intent to sell the debt security, or if it
is more likely than not that the Firm will be required to
sell the debt security before recovery of its amortized
cost. In these circumstances the impairment loss is
recognized in investment securities gains/(losses) in
the Consolidated Statements of Income and is equal to
the full difference between the amortized cost (net of
allowance if applicable) and the fair value of the
security.
For impaired debt securities that the Firm has the
intent and ability to hold, the securities are evaluated
to determine if a credit loss exists. If it is determined
that a credit loss exists, that loss is recognized as an
allowance for credit losses through the provision for
credit losses in the Consolidated Statements of
Income, limited by the amount of impairment. Any
impairment on debt securities that the Firm has the
intent and ability to hold not due to credit losses is
recorded in OCI.
Factors considered in evaluating credit losses include
adverse conditions specifically related to the industry,
geographic area or financial condition of the issuer or
underlying collateral of a security; and payment
structure of the security.
When assessing securities issued in a securitization
for credit losses, the Firm estimates cash flows
considering relevant market and economic data,
underlying loan-level data, and structural features of
the securitization, such as subordination, excess
spread, overcollateralization or other forms of credit
enhancement, and compares the losses projected for
the underlying collateral (“pool losses”) against the
level of credit enhancement in the securitization
structure to determine whether these features are
sufficient to absorb the pool losses, or whether a credit
loss exists.
For beneficial interests in securitizations that are rated
below “AA” at their acquisition, or that can be
contractually prepaid or otherwise settled in such a
way that the Firm would not recover substantially all of
its recorded investment, the Firm evaluates
impairment for credit losses when there is an adverse
change in expected cash flows.
HTM securities – credit risk
Allowance for credit losses
The allowance for credit losses on HTM securities
represents expected credit losses over the remaining
expected life of the securities.
The allowance for credit losses on HTM obligations of
U.S. states and municipalities and commercial
mortgage-backed securities is calculated by applying
statistical credit loss factors (estimated PD and LGD)
to the amortized cost. The credit loss factors are
derived using a weighted average of five internally
developed eight-quarter macroeconomic scenarios,
followed by a single year straight-line interpolation to
revert to long run historical information for periods
beyond the forecast period. Refer to Note 13 for further
information on the eight-quarter macroeconomic
forecast.
The allowance for credit losses on HTM collateralized
loan obligations and U.S. residential mortgage-backed
securities is calculated as the difference between the
amortized cost and the present value of the cash flows
expected to be collected, discounted at the security’s
effective interest rate. These cash flow estimates are
developed based on expectations of underlying
collateral performance derived using the eight-quarter
macroeconomic forecast and the single year straight-
line interpolation, as well as considering the structural
features of the security.
The application of different inputs and assumptions
into the calculation of the allowance for credit losses is
subject to significant management judgment, and
emphasizing one input or assumption over another, or
considering other inputs or assumptions, could affect
the estimate of the allowance for credit losses on HTM
securities.
Credit quality indicator
The primary credit quality indicator for HTM securities
is the risk rating assigned to each security. At both
December 31, 2024 and 2023, all HTM securities were
rated investment grade and were current and
accruing, with approximately 99% rated at least AA+
(based upon external ratings where available, and
where not available, based primarily upon internal risk
ratings).
Allowance for credit losses on investment securities
The allowance for credit losses on investment
securities was $152 million, $128 million and
$96 million as of December 31, 2024, 2023 and 2022,
respectively, which included a cumulative-effect
adjustment to retained earnings related to the transfer
of HTM securities to AFS for the year ended
December 31, 2023.
Selected impacts of investment securities on the
Consolidated statements of income
Year ended December 31, (in millions)
2024
2023
2022
Realized gains
$ 593
$
622
$
198
Realized losses
(1,614) (3,802) (2,578)
Investment securities losses
$ (1,021) $ (3,180) $ (2,380)
Provision for credit losses
$
24
$
38
$
54
Notes to consolidated financial statements
238
JPMorgan Chase & Co./2024 Form 10-K

Contractual maturities and yields
The following table presents the amortized cost and estimated fair value at December 31, 2024, of JPMorganChase’s
investment securities portfolio by contractual maturity.
By remaining maturity
December 31, 2024 (in millions)
Due in one
year or less
Due after one year
through five years
Due after five years
through 10 years
Due after
10 years
(c)
Total
Available-for-sale securities
Mortgage-backed securities
Amortized cost
$
132
$
9,410
$
4,059
$
91,027
$
104,628
Fair value

130

9,345

4,041

87,253

100,769
Average yield
(a)
3.32 %
4.58 %
5.25 %
4.75 %
4.75 %
U.S. Treasury and government agencies
Amortized cost
$
20,685
$
169,162
$
38,667
$
6,981
$
235,495
Fair value

20,730

169,145

38,619

6,285

234,779
Average yield
(a)
4.50 %
4.57 %
4.96 %
5.53 %
4.65 %
Obligations of U.S. states and municipalities
Amortized cost
$
4
$
16
$
92
$
18,225
$
18,337
Fair value

17,803

17,913
Average yield
(a)
1.59 %
3.95 %
4.46 %
5.32 %
5.32 %
Non-U.S. government debt securities
Amortized cost
$
13,331
$
11,769
$
7,609
$
3,946
$
36,655
Fair value

13,327

11,701

7,403

3,814

36,245
Average yield
(a)
4.24 %
4.32 %
2.82 %
4.15 %
3.96 %
Corporate debt securities
Amortized cost
$
106
$
9
$
5
$
—
$
120
Fair value

—

70
Average yield(a)
14.09 %
4.06 %
4.19 %
— %
12.92 %
Asset-backed securities
Amortized cost
$
—
$
368
$
1,609
$
15,035
$
17,012
Fair value

—

370

1,619

15,087

17,076
Average yield(a)
— %
6.14 %
6.04 %
5.96 %
5.97 %
Total available-for-sale securities
Amortized cost(b)
$
34,258
$
190,734
$
52,041
$
135,214
$
412,247
Fair value

34,248

190,586

51,776

130,242

406,852
Average yield(a)
4.42 %
4.56 %
4.70 %
4.98 %
4.70 %
Held-to-maturity securities
Mortgage-backed securities
Amortized cost
$
104
$
7,994
$
6,077
$
100,495
$
114,670
Fair value

101

7,453

5,352

86,903

99,809
Average yield(a)
0.97 %
2.63 %
2.67 %
2.95 %
2.92 %
U.S. Treasury and government agencies
Amortized cost
$
20,083
$
40,497
$
48,052
$
—
$
108,632
Fair value

19,500

37,715

40,205

—

97,420
Average yield(a)
0.43 %
1.23 %
1.25 %
— %
1.09 %
Obligations of U.S. states and municipalities
Amortized cost
$
—
$
9
$
307
$
9,026
$
9,342
Fair value

—

276

8,426

8,711
Average yield(a)
— %
4.76 %
3.25 %
3.97 %
3.95 %
Asset-backed securities
Amortized cost
$
—
$
134
$
22,433
$
19,360
$
41,927
Fair value

—

134

22,466

19,360

41,960
Average yield(a)
— %
5.94 %
5.57 %
5.73 %
5.65 %
Total held-to-maturity securities
Amortized cost(b)
$
20,187
$
48,634
$
76,869
$
128,881
$
274,571
Fair value

19,601

45,311

68,299

114,689

247,900
Average yield(a)
0.43 %
1.47 %
2.63 %
3.44 %
2.64 %
(a) Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of
each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of
related hedging derivatives, including closed portfolio hedges. Taxable-equivalent amounts are used where applicable. The effective yield
excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected
maturities as certain securities may be prepaid. However, for certain callable debt securities, the average yield is calculated to the earliest call
date.
(b) For purposes of this table, the amortized cost of available-for-sale securities excludes the allowance for credit losses of $49 million and the
portfolio layer fair value hedge basis adjustments of $(1.2) billion at December 31, 2024. The amortized cost of held-to-maturity securities also
excludes the allowance for credit losses of $103 million at December 31, 2024.
(c) Substantially all of the Firm’s U.S. residential MBS and collateralized mortgage obligations are due in 10 years or more, based on contractual
maturity. The estimated weighted-average life, which reflects anticipated future prepayments, is approximately eight years for agency residential
MBS, six years for agency residential collateralized mortgage obligations, and five years for nonagency residential collateralized mortgage
obligations.
JPMorgan Chase & Co./2024 Form 10-K
239

Note 11 – Securities financing activities
JPMorganChase enters into resale, repurchase,
securities borrowed and securities loaned agreements
(collectively, “securities financing agreements”)
primarily to finance the Firm’s inventory positions,
acquire securities to cover short sales, accommodate
customers’ financing needs, settle other securities
obligations and to deploy the Firm’s excess cash.
Securities financing agreements are treated as
collateralized financings on the Firm’s Consolidated
balance sheets. Where appropriate under applicable
accounting guidance, securities financing agreements
with the same counterparty are reported on a net
basis. Refer to Note 1 for further discussion of the
offsetting of assets and liabilities. Fees received and
paid in connection with securities financing
agreements are recorded over the life of the
agreement in interest income and interest expense on
the Consolidated statements of income.
The Firm has elected the fair value option for certain
securities financing agreements. Refer to Note 3 for
further information regarding the fair value option. The
securities financing agreements for which the fair
value option has been elected are reported within
securities purchased under resale agreements,
securities loaned or sold under repurchase
agreements, and securities borrowed on the
Consolidated balance sheets. Generally, for
agreements carried at fair value, current-period
interest accruals are recorded within interest income
and interest expense, with changes in fair value
reported in principal transactions revenue. However,
for financial instruments containing embedded
derivatives that would be separately accounted for in
accordance with accounting guidance for hybrid
instruments, all changes in fair value, including any
interest elements, are reported in principal
transactions revenue.
Securities financing agreements not elected under the
fair value option are measured at amortized cost. As a
result of the Firm’s credit risk mitigation practices
described below, the Firm did not hold any allowance
for credit losses with respect to resale and securities
borrowed arrangements as of December 31, 2024 and
2023.
Credit risk mitigation practices
Securities financing agreements expose the Firm
primarily to credit and liquidity risk. To manage these
risks, the Firm monitors the value of the underlying
securities (predominantly high-quality securities
collateral, including government-issued debt and U.S.
GSEs and government agencies MBS) that it has
received from or provided to its counterparties
compared to the value of cash proceeds and
exchanged collateral, and either requests additional
collateral or returns securities or collateral when
appropriate. Margin levels are initially established
based upon the counterparty, the type of underlying
securities, and the permissible collateral, and are
monitored on an ongoing basis.
In resale and securities borrowed agreements, the
Firm is exposed to credit risk to the extent that the
value of the securities received is less than initial cash
principal advanced and any collateral amounts
exchanged. In repurchase and securities loaned
agreements, credit risk exposure arises to the extent
that the value of underlying securities advanced
exceeds the value of the initial cash principal received,
and any collateral amounts exchanged.
Additionally, the Firm typically enters into master
netting agreements and other similar arrangements
with its counterparties, which provide for the right to
liquidate the underlying securities and any collateral
amounts exchanged in the event of a counterparty
default. It is also the Firm’s policy to take possession,
where possible, of the securities underlying resale and
securities borrowed agreements. Refer to Note 29 for
further information regarding assets pledged and
collateral received in securities financing agreements.
Notes to consolidated financial statements
240
JPMorgan Chase & Co./2024 Form 10-K

The table below summarizes the gross and net
amounts of the Firm’s securities financing agreements,
as of December 31, 2024 and 2023. When the Firm has
obtained an appropriate legal opinion with respect to a
master netting agreement with a counterparty and
where other relevant netting criteria under U.S. GAAP
are met, the Firm nets, on the Consolidated balance
sheets, the balances outstanding under its securities
financing agreements with the same counterparty. In
addition, the Firm exchanges securities and/or cash
collateral with its counterparty to reduce the economic
exposure with the counterparty, but such collateral is
not eligible for net Consolidated balance sheet
presentation. Where the Firm has obtained an
appropriate legal opinion with respect to the
counterparty master netting agreement, such
collateral, along with securities financing balances that
do not meet all these relevant netting criteria under
U.S. GAAP, is presented in the table below as
“Amounts not nettable on the Consolidated balance
sheets,” and reduces the “Net amounts” presented.
Where a legal opinion has not been either sought or
obtained, the securities financing balances are
presented gross in the “Net amounts” below. In
transactions where the Firm is acting as the lender in a
securities-for-securities lending agreement and
receives securities that can be pledged or sold as
collateral, the Firm recognizes the securities received
at fair value within other assets and the obligation to
return those securities within accounts payable and
other liabilities on the Consolidated balance sheets.
December 31, 2024
(in millions)
Gross amounts
Amounts
netted on the
Consolidated
balance sheets
Amounts
presented on the
Consolidated
balance sheets
Amounts not
nettable on the
Consolidated
balance sheets
(b)
Net
amounts
(c)
Assets
Securities purchased under resale agreements
$
607,154
$
(312,183) $
294,971
$
(282,220) $
12,751
Securities borrowed

267,917

(48,371)
219,546

(170,702)
48,844
Liabilities
Securities sold under repurchase agreements
$
603,683
$
(312,183) $
291,500
$
(249,763) $
41,737
Securities loaned and other
(a)

58,989

(48,371)
10,618

(10,557)
61
December 31, 2023
(in millions)
Gross amounts
Amounts
netted on the
Consolidated
balance sheets
Amounts
presented on the
Consolidated
balance sheets
Amounts not
nettable on the
Consolidated
balance sheets
(b)
Net
amounts
(c)
Assets
Securities purchased under resale agreements
$
523,308
$
(247,181) $
276,127
$
(267,582) $
8,545
Securities borrowed

244,046

(43,610)
200,436

(144,543)
55,893
Liabilities
Securities sold under repurchase agreements
$
459,985
$
(247,181) $
212,804
$
(182,011) $
30,793
Securities loaned and other
(a)

52,142

(43,610)
8,532

(8,501)
31
(a) Includes securities-for-securities lending agreements of $5.9 billion and $5.6 billion at December 31, 2024 and 2023, respectively, accounted
for at fair value, where the Firm is acting as lender.
(b) In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the
amounts reported in this column are limited to the related net asset or liability with that counterparty.
(c) Includes securities financing agreements that provide collateral rights, but where an appropriate legal opinion with respect to the master
netting agreement has not been either sought or obtained. At December 31, 2024 and 2023, included $8.7 billion and $7.1 billion, respectively,
of securities purchased under resale agreements; $42.9 billion and $50.7 billion, respectively, of securities borrowed; $40.9 billion and $30.0
billion, respectively, of securities sold under repurchase agreements; and securities loaned and other which were not material.
JPMorgan Chase & Co./2024 Form 10-K
241

The tables below present as of December 31, 2024 and 2023 the types of financial assets pledged in securities
financing agreements and the remaining contractual maturity of the securities financing agreements.
Gross liability balance
2024
2023
December 31, (in millions)
Securities sold
under repurchase
agreements
Securities loaned
and other
Securities sold
under repurchase
agreements
Securities loaned
and other
Mortgage-backed securities:
U.S. GSEs and government agencies
$
82,645
$
—
$
71,064
$
—
Residential - nonagency

2,610

—

2,292

—
Commercial - nonagency

2,344

—

2,669

—
U.S. Treasury, GSEs and government agencies

300,022

759

216,467

1,034
Obligations of U.S. states and municipalities

1,872

—

2,323

—
Non-U.S. government debt

117,614

1,852

97,400

1,455
Corporate debt securities

44,495

4,033

39,247

2,025
Asset-backed securities

4,619

—

2,703

—
Equity securities

47,462

52,345

25,820

47,628
Total
$
603,683
$
58,989
$
459,985
$
52,142
Remaining contractual maturity of the agreements
December 31, 2024
(in millions)
Overnight and
continuous
Up to 30 days
30 – 90 days
Greater than
90 days
Total
Total securities sold under repurchase agreements
$
308,392
$
171,346
$
19,932
$
104,013
$
603,683
Total securities loaned and other

54,066

1,463

3,459

58,989
Remaining contractual maturity of the agreements
December 31, 2023
(in millions)
Overnight and
continuous
Up to 30 days
30 – 90 days
Greater than
90 days
Total
Total securities sold under repurchase agreements
$
259,048
$
102,941
$
20,960
$
77,036
$
459,985
Total securities loaned and other

49,610

1,544

—

988

52,142
Transfers not qualifying for sale accounting
At December 31, 2024 and 2023, the Firm held $805 million and $505 million, respectively, of financial assets for
which the rights have been transferred to third parties; however, the transfers did not qualify as a sale in accordance
with U.S. GAAP. These transfers have been recognized as collateralized financing transactions. The transferred
assets are recorded in trading assets and loans, and the corresponding liabilities are recorded primarily in short-
term borrowings and long-term debt on the Consolidated balance sheets.
Notes to consolidated financial statements
242
JPMorgan Chase & Co./2024 Form 10-K

Note 12 – Loans
Loan accounting framework
The accounting for a loan depends on management’s
strategy for the loan. The Firm accounts for loans
based on the following categories:
• Originated or purchased loans held-for-investment
(i.e., “retained”)
• Loans held-for-sale
• Loans at fair value
The following provides a detailed accounting
discussion of the Firm’s loans by category:
Loans held-for-investment
Originated or purchased loans held-for-investment,
including PCD, are recorded at amortized cost,
reflecting the principal amount outstanding, net of the
following: unamortized deferred loan fees, costs,
premiums or discounts; charge-offs; collection of cash;
and foreign exchange. Credit card loans also include
billed finance charges and fees.
Interest income
Interest income on performing loans held-for-
investment is accrued and recognized as interest
income at the contractual rate of interest. Purchase
price discounts or premiums, as well as net deferred
loan fees or costs, are recognized in interest income
over the contractual life of the loan as an adjustment of
yield.
The Firm classifies accrued interest on loans, including
accrued but unbilled interest on credit card loans, in
accrued interest and accounts receivables on the
Consolidated balance sheets. For credit card loans,
accrued interest once billed is then recognized in the
loan balances, with the related allowance recorded in
the allowance for credit losses. Changes in the
allowance for credit losses on accrued interest on
credit card loans are recognized in the provision for
credit losses and charge-offs are recognized by
reversing interest income. For other loans, the Firm
generally does not recognize an allowance for credit
losses on accrued interest receivables, consistent with
its policy to write them off no later than 90 days past
due by reversing interest income.
Nonaccrual loans
Nonaccrual loans are those on which the accrual of
interest has been suspended. Loans (other than credit
card loans and certain consumer loans insured by U.S.
government agencies) are placed on nonaccrual
status and considered nonperforming when full
payment of principal and interest is not expected,
regardless of delinquency status, or when principal
and interest has been in default for a period of 90 days
or more, unless the loan is both well-secured and in the
process of collection. A loan is determined to be past
due when the minimum payment is not received from
the borrower by the contractually specified due date or
for certain loans (e.g., residential real estate loans),
when a monthly payment is due and unpaid for 30
days or more. Finally, collateral-dependent loans are
typically maintained on nonaccrual status.
On the date a loan is placed on nonaccrual status, all
interest accrued but not collected is reversed against
interest income. In addition, the amortization of
deferred amounts is suspended. Interest income on
nonaccrual loans may be recognized as cash interest
payments are received (i.e., on a cash basis) if the
recorded loan balance is deemed fully collectible;
however, if there is doubt regarding the ultimate
collectibility of the recorded loan balance, all interest
cash receipts are applied to reduce the carrying value
of the loan (the cost recovery method). For consumer
loans, application of this policy typically results in the
Firm recognizing interest income on nonaccrual
consumer loans on a cash basis.
A loan may be returned to accrual status when
repayment is reasonably assured and there has been
demonstrated performance under the terms of the
loan or, if applicable, the terms of the restructured
loan.
As permitted by regulatory guidance, credit card loans
are generally exempt from being placed on nonaccrual
status; accordingly, interest and fees related to credit
card loans continue to accrue until the loan is charged
off or paid in full.
Allowance for loan losses
The allowance for loan losses represents the
estimated expected credit losses in the held-for-
investment loan portfolio at the balance sheet date
and is recognized on the balance sheet as a contra
asset, which brings the amortized cost to the net
carrying value. Changes in the allowance for loan
losses resulting from lending-related activity,
macroeconomic variables, changes in credit and other
inputs are recorded in the provision for credit losses
on the Firm’s Consolidated statements of income.
Refer to Note 13 for further information on the Firm’s
accounting policies for the allowance for loan losses.
Charge-offs
Consumer loans are generally charged off or charged
down to the lower of the amortized cost or the net
realizable value of the underlying collateral (i.e., fair
value less estimated costs to sell), with an offset to the
allowance for loan losses, upon reaching specified
stages of delinquency in accordance with standards
established by the FFIEC. Residential real estate loans,
unmodified credit card loans and scored business
banking loans are generally charged off no later than
180 days past due. Scored auto and closed-end
consumer loans, including modified credit card
JPMorgan Chase & Co./2024 Form 10-K
243

accounts placed on a fixed payment plan, are charged
off no later than 120 days past due.
Certain consumer loans are charged off or charged
down to their net realizable value earlier than the
FFIEC charge-off standards in the following
circumstances:
• Loans modified to borrowers experiencing financial
difficulty that are determined to be collateral-
dependent.
• Loans to borrowers who have experienced an event
that suggests a loss is either known or highly certain
are subject to accelerated charge-off standards
(e.g., residential real estate and auto loans are
charged off or charged down within 60 days of
receiving notification of a bankruptcy filing).
• Auto loans upon repossession of the automobile.
Other than in certain limited circumstances, the Firm
typically does not recognize charge-offs on the
government-guaranteed portion of loans.
Wholesale loans are charged off when it is highly
certain that a loss has been realized. The
determination of whether to recognize a charge-off
includes many factors, including the prioritization of
the Firm’s claim in bankruptcy, expectations of the
workout/restructuring of the loan and valuation of the
borrower’s equity or the loan collateral.
When a loan is charged down to the lower of its
amortized cost or the estimated net realizable value of
the underlying collateral, the determination of the fair
value of the collateral depends on the type of collateral
(e.g., securities, real estate). In cases where the
collateral is in the form of liquid securities, the fair
value is based on quoted market prices or broker
quotes. For illiquid securities or other financial assets,
the fair value of the collateral is generally estimated
using a discounted cash flow model.
For residential real estate loans, collateral values are
based upon external valuation sources. When it
becomes likely that a borrower is either unable or
unwilling to pay, the Firm utilizes a broker’s price
opinion, appraisal and/or an automated valuation
model of the home based on an exterior-only valuation
(“exterior opinions”), which is then updated at least
every 12 months, or more frequently depending on
various market factors. As soon as practicable after
the Firm receives the property in satisfaction of a debt
(e.g., by taking legal title or physical possession), the
Firm generally obtains an appraisal based on an
inspection that includes the interior of the home
(“interior appraisals”). Exterior opinions and interior
appraisals are discounted based upon the Firm’s
experience with actual liquidation values as compared
with the estimated values provided by exterior
opinions and interior appraisals, considering state-
specific factors.
For commercial real estate loans, collateral values are
generally based on appraisals from internal and
external valuation sources. Collateral values are
typically updated every six to twelve months, either by
obtaining a new appraisal or by performing an internal
analysis, in accordance with the Firm’s policies. The
Firm also considers both borrower- and market-
specific factors, which may result in obtaining
appraisal updates or broker price opinions at more
frequent intervals.
Loans held-for-sale
Loans held-for-sale are measured at the lower of cost
or fair value, with valuation changes recorded in
noninterest revenue. For consumer loans, the
valuation is performed on a portfolio basis. For
wholesale loans, the valuation is performed on an
individual loan basis.
Interest income on loans held-for-sale is accrued and
recognized based on the contractual rate of interest.
Loan origination fees or costs and purchase price
discounts or premiums are deferred in a contra loan
account until the related loan is sold. The deferred fees
or costs and discounts or premiums are an adjustment
to the basis of the loan and therefore are included in
the periodic determination of the lower of cost or fair
value adjustments and/or the gain or loss recognized
at the time of sale.
Because these loans are recognized at the lower of
cost or fair value, the Firm’s allowance for loan losses
and charge-off policies do not apply to these loans.
However, loans held-for-sale are subject to the Firm’s
nonaccrual policies.
Loans at fair value
Loans for which the fair value option has been elected
are measured at fair value, with changes in fair value
recorded in noninterest revenue.
Interest income on these loans is accrued and
recognized based on the contractual rate of interest.
Changes in fair value are recognized in noninterest
revenue. Loan origination fees are recognized upfront
in noninterest revenue. Loan origination costs are
recognized in the associated expense category as
incurred.
Because these loans are recognized at fair value, the
Firm’s allowance for loan losses and charge-off
policies do not apply to these loans. However, loans at
fair value are subject to the Firm’s nonaccrual policies.
Refer to Note 3 for further information on the Firm’s
elections of fair value accounting under the fair value
option. Refer to Note 2 and Note 3 for further
information on loans carried at fair value and classified
as trading assets.
Notes to consolidated financial statements
244
JPMorgan Chase & Co./2024 Form 10-K

Loan classification changes
Loans in the held-for-investment portfolio that
management decides to sell are transferred to the
held-for-sale portfolio at the lower of cost or fair value
on the date of transfer. Credit-related losses are
charged against the allowance for loan losses; non-
credit related losses such as those due to changes in
interest rates or foreign currency exchange rates are
recognized in noninterest revenue.
In the event that management decides to retain a loan
in the held-for-sale portfolio, the loan is transferred to
the held-for-investment portfolio at amortized cost on
the date of transfer. These loans are subsequently
assessed for impairment based on the Firm’s
allowance methodology. Refer to Note 13 for a further
discussion of the methodologies used in establishing
the Firm’s allowance for loan losses.
Loan modifications
The Firm seeks to modify certain loans in conjunction
with its loss mitigation activities. Through the
modification, JPMorganChase grants one or more
concessions to a borrower who is experiencing
financial difficulty in order to minimize the Firm’s
economic loss and avoid foreclosure or repossession
of the collateral, and to ultimately maximize payments
received by the Firm from the borrower. The
concessions granted vary by program and by
borrower-specific characteristics, and may include
interest rate reductions, term extensions, other-than-
insignificant payment delays or principal forgiveness.
Loans, except for credit card loans, reported as FDMs
are generally placed on nonaccrual status, although in
many cases such loans were already on nonaccrual
status prior to modification. These loans may be
returned to performing status (the accrual of interest is
resumed) if the following criteria are met: (i) the
borrower has performed under the modified terms for
a minimum of six months and/or six payments, and (ii)
the Firm has an expectation that repayment of the
modified loan is reasonably assured based on, for
example, the borrower’s debt capacity and level of
future earnings, collateral values, LTV ratios, and other
current market considerations. In certain limited and
well-defined circumstances in which the loan is current
at the modification date, such loans are not placed on
nonaccrual status at the time of modification.
The allowance for credit losses associated with FDMs
is measured using the Firm’s established allowance
methodology, which considers the expected default
rates for the modified loans. Refer to Note 13 for
further discussion.
Foreclosed property
The Firm acquires property from borrowers through
loan restructurings, workouts, and foreclosures.
Property acquired may include real property (e.g.,
residential real estate, land, and buildings) and other
commercial and personal property (e.g., automobiles,
aircraft, railcars, and ships).
The Firm recognizes foreclosed property upon
receiving assets in satisfaction of a loan (e.g., by taking
legal title or physical possession). For loans
collateralized by real property, the Firm generally
recognizes the asset received at foreclosure sale or
upon the execution of a deed in lieu of foreclosure
transaction with the borrower. Foreclosed assets are
reported in other assets on the Consolidated balance
sheets and initially recognized at fair value less
estimated costs to sell. Each quarter the fair value of
the acquired property is reviewed and adjusted, if
necessary, to the lower of cost or fair value.
Subsequent adjustments to fair value are charged/
credited to noninterest revenue. Operating expense,
such as real estate taxes and maintenance, are
charged to other expense.
JPMorgan Chase & Co./2024 Form 10-K
245

Loan portfolio
The Firm’s loan portfolio is divided into three portfolio segments, which are the same segments used by the Firm to
determine the allowance for loan losses: Consumer, excluding credit card; Credit card; and Wholesale. Within each
portfolio segment the Firm monitors and assesses the credit risk in the following classes of loans, based on the risk
characteristics of each loan class.
Consumer, excluding
credit card
Credit card
Wholesale
(c)(d)
• Residential real estate(a)
• Auto and other(b)
• Credit card loans
• Secured by real estate
• Commercial and industrial
• Other(e)
(a) Includes scored mortgage and home equity loans held in CCB and AWM, and scored mortgage loans held in CIB.
(b) Includes scored auto, business banking and consumer unsecured loans as well as overdrafts, primarily in CCB.
(c) Includes loans held in CIB, AWM, Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when
determining the allowance for loan losses.
(d) The wholesale portfolio segment's classes align with loan classifications as defined by the bank regulatory agencies, based on the loan's
collateral, purpose, and type of borrower.
(e) Includes loans to financial institutions, SPEs, personal investment companies and trusts, individuals and individual entities (predominantly
Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB), states and political subdivisions, as well as loans to
nonprofits. Refer to Note 14 for more information on SPEs.
The following tables summarize the Firm’s loan balances by portfolio segment.
December 31, 2024
Consumer, excluding
credit card
Credit card
Wholesale
Total
(a)(b)
(in millions)
Retained
$
376,334
$
232,860
$ 690,396
$ 1,299,590
Held-for-sale

945

—

6,103

7,048
At fair value

15,531

—

25,819

41,350
Total
$
392,810
$
232,860
$ 722,318
$ 1,347,988
December 31, 2023
Consumer, excluding
credit card
Credit card
Wholesale
Total
(a)(b)
(in millions)
Retained
$
397,275
$
211,123
$ 672,472
$ 1,280,870
Held-for-sale

487

—

3,498

3,985
At fair value

12,331

—

26,520

38,851
Total
$
410,093
$
211,123
$ 702,490
$ 1,323,706
(a) Excludes $6.6 billion and $6.8 billion of accrued interest receivable at December 31, 2024 and 2023, respectively. The Firm wrote off accrued
interest receivable of $84 million and $49 million for the years ended December 31, 2024 and 2023, respectively.
(b) Loans (other than those for which the fair value option has been elected) are presented net of unamortized discounts and premiums and net
deferred loan fees or costs. These amounts were not material as of December 31, 2024 and 2023. For the discount associated with First
Republic loans, refer to Note 34 on pages 319–321.
The following tables provide information about the carrying value of retained loans purchased, sold and reclassified
to held-for-sale during the periods indicated. Loans that were reclassified to held-for-sale and sold in a subsequent
period are excluded from the sales line of these tables.
2024
Year ended December 31,
(in millions)
Consumer, excluding
credit card
Credit card
Wholesale
Total
Purchases
$
647
(b)(c)
$
—
$
1,432
$
2,079
Sales

10,440

—

45,147

55,587
Retained loans reclassified to held-for-sale
(a)

1,656

—

749

2,405
2023
Year ended December 31,
(in millions)
Consumer, excluding
credit card
Credit card
Wholesale
Total
Purchases
$
92,205
(b)(c)(d)
$
—
$
60,300
(d)
$
152,505
Sales

2,202

—

43,949

46,151
Retained loans reclassified to held-for-sale(a)

274

—

1,486

1,760
Notes to consolidated financial statements
246
JPMorgan Chase & Co./2024 Form 10-K

2022
Year ended December 31,
(in millions)
Consumer, excluding
credit card
Credit card
Wholesale
Total
Purchases
$
1,625
(b)(c)
$
—
$
1,088
$
2,713
Sales

2,884

—

41,934

44,818
Retained loans reclassified to held-for-sale(a)

229

—

1,055

1,284
(a) Reclassifications of loans to held-for-sale are non-cash transactions.
(b) Includes purchases of residential real estate loans, including the Firm’s voluntary repurchases of certain delinquent loans from loan pools as
permitted by Government National Mortgage Association (“Ginnie Mae”) guidelines for the years ended December 31, 2024, 2023 and 2022.
The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in
accordance with applicable requirements of Ginnie Mae, FHA, RHS, and/or VA.
(c) Excludes purchases of retained loans of $902 million, $5.1 billion and $12.4 billion for the years ended December 31, 2024, 2023 and 2022,
respectively, which are predominantly sourced through the correspondent origination channel and underwritten in accordance with the
Firm’s standards.
(d) Includes loans acquired in the First Republic acquisition consisting of $91.9 billion in Consumer, excluding credit card and $59.2 billion in
Wholesale. Refer to Note 34 for additional information.
Gains and losses on sales of loans
Net gains/(losses) on sales of loans and lending-related commitments (including adjustments to record loans and
lending-related commitments held-for-sale at the lower of cost or fair value) recognized in noninterest revenue were
$154 million for the year ended December 31, 2024, of which $113 million were related to loans. Net gains/(losses) on
sales of loans and lending-related commitments were $56 million for the year ended December 31, 2023, of which
$62 million were related to loans. Net gains/(losses) on sales of loans and lending-related commitments were $(186)
million for the year ended December 31, 2022, of which $(48) million were related to loans. In addition, the sale of
loans may also result in write downs, recoveries or changes in the allowance recognized in the provision for credit
losses.
JPMorgan Chase & Co./2024 Form 10-K
247

Consumer, excluding credit card loan portfolio
Consumer loans, excluding credit card loans, consist
primarily of scored residential mortgages, home equity
loans and lines of credit, auto and business banking
loans, with a focus on serving the prime consumer
credit market. These loans include home equity loans
secured by junior liens, prime mortgage loans with an
interest-only payment period, and certain payment-
option loans that may result in negative amortization.
The following table provides information about
retained consumer loans, excluding credit card, by
class.
December 31,
(in millions)
2024
2023
Residential real estate
$
309,513 $
326,409
Auto and other

66,821
70,866
Total retained loans
$
376,334 $
397,275
Delinquency rates are the primary credit quality
indicator for consumer loans. Loans that are more than
30 days past due provide an early warning of
borrowers who may be experiencing financial
difficulties and/or who may be unable or unwilling to
repay the loan. As the loan continues to age, it
becomes more clear whether the borrower is likely to
be unable or unwilling to pay. In the case of residential
real estate loans, late-stage delinquencies (greater
than 150 days past due) are a strong indicator of loans
that will ultimately result in a foreclosure or similar
liquidation transaction. In addition to delinquency
rates, other credit quality indicators for consumer
loans vary based on the class of loan, as follows:
• For residential real estate loans, the current
estimated LTV ratio, or the combined LTV ratio in
the case of junior lien loans, is an indicator of the
potential loss severity in the event of default.
Additionally, LTV or combined LTV ratios can
provide insight into a borrower’s continued
willingness to pay, as the delinquency rate of high-
LTV loans tends to be greater than that for loans
where the borrower has equity in the collateral. The
geographic distribution of the loan collateral also
provides insight as to the credit quality of the
portfolio, as factors such as the regional economy,
home price changes and specific events such as
natural disasters, will affect credit quality. The
borrower’s current or “refreshed” FICO score is a
secondary credit quality indicator for certain loans,
as FICO scores are an indication of the borrower’s
credit payment history. Thus, a loan to a borrower
with a low FICO score (less than 660) is considered
to be of higher risk than a loan to a borrower with a
higher FICO score. Further, a loan to a borrower with
a high LTV ratio and a low FICO score is at greater
risk of default than a loan to a borrower that has both
a high LTV ratio and a high FICO score.
• For scored auto and business banking loans,
geographic distribution is an indicator of the credit
performance of the portfolio. Similar to residential
real estate loans, geographic distribution provides
insights into the portfolio performance based on
regional economic activity and events.
Notes to consolidated financial statements
248
JPMorgan Chase & Co./2024 Form 10-K

Residential real estate
Delinquency is the primary credit quality indicator for retained residential real estate loans. The following tables
provide information on delinquency and gross charge-offs.
(in millions, except
ratios)
December 31, 2024
Term loans by origination year(c)
Revolving loans
Total
2024
2023
2022
2021
2020
Prior to
2020
Within the
revolving
period
Converted
to term
loans
Loan delinquency(a)
Current
$ 12,301
$ 17,280
$ 61,337
$ 79,760
$ 52,289
$ 70,270
$ 6,974
$ 7,088
$ 307,299
30–149 days past due

139

110

747

204

1,379
150 or more days past
due

—

501

127

835
Total retained loans
$ 12,314
$ 17,345
$ 61,547
$ 79,938
$ 52,397
$ 71,518
$ 7,035
$
7,419
$ 309,513
% of 30+ days past due
to total retained
loans(b)
0.11 %
0.37 %
0.34 %
0.22 %
0.21 %
1.72 %
0.87 %
4.46 %
0.71 %
Gross charge-offs
$
—
$
—
$
1
$
1
$
—
$
176
$
21
$
7
$
206
(in millions, except
ratios)
December 31, 2023
Term loans by origination year
(c)
Revolving loans
Total
2023
2022
2021
2020
2019
Prior to
2019
Within the
revolving
period
Converted
to term
loans
Loan delinquency
(a)
Current
$ 23,216
$ 64,366
$ 84,496
$ 55,546
$ 21,530
$ 59,563
$
7,479
$
8,151
$ 324,347
30–149 days past due

801

223

1,380
150 or more days past
due

456

164

682
Total retained loans
$ 23,250
$ 64,450
$ 84,602
$ 55,624
$ 21,592
$ 60,820
$
7,533
$
8,538
$ 326,409
% of 30+ days past due
to total retained
loans
(b)
0.15 %
0.13 %
0.13 %
0.14 %
0.29 %
2.04 %
0.72 %
4.53 %
0.63 %
Gross charge-offs
$
—
$
—
$
—
$
—
$
4
$
167
$
26
$
7
$
204
(a) Individual delinquency classifications include mortgage loans insured by U.S. government agencies which were not material at December 31,
2024 and 2023.
(b) Excludes mortgage loans that are 30 or more days past due insured by U.S. government agencies which were not material at December 31,
2024 and 2023. These amounts have been excluded based upon the government guarantee.
(c) Purchased loans are included in the year in which they were originated.
Approximately 38% of the total revolving loans are senior lien loans; the remaining balance are junior lien loans. The
lien position the Firm holds is considered in the Firm’s allowance for credit losses. Revolving loans that have been
converted to term loans have higher delinquency rates than those that are still within the revolving period. That is
primarily because the fully-amortizing payment that is generally required for those products is higher than the
minimum payment options available for revolving loans within the revolving period.
JPMorgan Chase & Co./2024 Form 10-K
249

Nonaccrual loans and other credit quality indicators
The following table provides information on nonaccrual and other credit quality indicators for retained residential real
estate loans.
(in millions, except weighted-average data)
December 31, 2024
December 31, 2023
Nonaccrual loans(a)(b)(c)(d)
$
2,984
$
3,466
Current estimated LTV ratios(e)(f)(g)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660
$
72
$
72
Less than 660

—
101% to 125% and refreshed FICO scores:
Equal to or greater than 660

161

223
Less than 660

4
80% to 100% and refreshed FICO scores:
Equal to or greater than 660

4,962

6,491
Less than 660

102
Less than 80% and refreshed FICO scores:
Equal to or greater than 660

294,797

309,251
Less than 660

8,534

9,277
No FICO/LTV available
(h)

906

989
Total retained loans
$
309,513
$
326,409
Weighted-average LTV ratio
(e)(i)
47 %
49 %
Weighted-average FICO
(f)(i)

774

770
Geographic region
(h)(j)
California
$
120,944
$
127,072
New York

46,854

48,815
Florida

21,820

22,778
Texas

14,531

15,506
Massachusetts

13,511

14,213
Colorado

10,465

10,800
Illinois

9,835

10,856
Washington

9,372

9,923
New Jersey

7,554

8,050
Connecticut

6,854

7,163
All other

47,773

51,233
Total retained loans
$
309,513
$
326,409
(a) Includes collateral-dependent residential real estate loans that are charged down to the fair value of the underlying collateral less costs to sell. The
Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not
reaffirmed by the borrower (“Chapter 7 loans”) as collateral-dependent nonaccrual loans, regardless of their delinquency status. At December 31, 2024,
approximately 8% of Chapter 7 residential real estate loans were 30 days or more past due.
(b) Mortgage loans insured by U.S. government agencies excluded from nonaccrual loans were not material at December 31, 2024 and 2023.
(c) Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered
collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value
of the underlying collateral improves subsequent to charge down, the related allowance may be negative.
(d) Interest income on nonaccrual loans recognized on a cash basis was $160 million and $180 million for the years ended December 31, 2024 and 2023,
respectively.
(e) Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at
a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to
the extent available and forecasted data where actual data is not available. Current estimated combined LTV for junior lien home equity loans
considers all available lien positions, as well as unused lines, related to the property.
(f)
Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
(g) Includes residential real estate loans, primarily held in LLCs in AWM that did not have a refreshed FICO score. These loans have been included in a FICO
band based on management’s estimation of the borrower’s credit quality.
(h) Included U.S. government-guaranteed loans as of December 31, 2024 and 2023.
(i)
Excludes loans with no FICO and/or LTV data available.
(j)
The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2024.
Notes to consolidated financial statements
250
JPMorgan Chase & Co./2024 Form 10-K

Loan modifications
The Firm grants certain modifications of residential
real estate loans to borrowers experiencing financial
difficulty. The Firm's proprietary modification
programs as well as government programs, including
U.S. GSE programs, that generally provide various
modifications to borrowers experiencing financial
difficulty including, but not limited to, interest rate
reductions, term extensions, other-than-insignificant
payment deferral and principal forgiveness that would
otherwise have been required under the terms of the
original agreement, are considered FDMs.
In addition, the Firm offers trial modifications of
residential real estate loans, which generally include a
three-month trial payment period during which the
borrower makes monthly payments under the
proposed modified loan terms. Loans in a trial
payment period continue to age and accrue interest in
accordance with the original contractual terms. At the
completion of a trial period, the loan modification is
considered permanent.
Financial effects of FDMs
For the year ended December 31, 2024, retained
residential real estate FDMs were $206 million. The
financial effects of the FDMs, which were
predominantly in the form of term extensions and
interest rate reductions, included extending the
weighted-average life of the loans by 15 years, and
reducing the weighted-average contractual interest
rate from 7.53% to 5.44% for the year ended
December 31, 2024.
For the year ended December 31, 2023, retained
residential real estate FDMs were $136 million. The
financial effects of the FDMs, which were
predominantly in the form of term extensions and
interest rate reductions, included extending the
weighted-average life of the loans by 20 years, and
reducing the weighted-average contractual interest
rate from 7.21% to 4.44% for the year ended
December 31, 2023.
As of December 31, 2024 and 2023, there were no
additional commitments to lend to borrowers
experiencing financial difficulty whose loans have been
modified as FDMs.
For the years ended December 31, 2024 and 2023,
loans subject to a trial modification, where the terms of
the loans have not been permanently modified, and
Chapter 7 loans were not material.
Payment status of FDMs
The following table provides information on the
payment status of retained residential real estate
FDMs during the years ended December 31, 2024 and
2023.
Year ended December 31,
(in millions)
Amortized cost basis
2024
2023
Current
$
139 $
107
30-149 days past due

47
13
150 or more days past due

20
16
Total
$
206 $
136
Defaults of FDMs
Retained residential real estate FDMs that defaulted
during the year ended December 31, 2024 and that
were reported as FDMs in the twelve months prior to
the default were $93 million. Retained residential real
estate FDMs that defaulted during the year ended
December 31, 2023 and that were reported as FDMs
on or after January 1, 2023, the date that the Firm
adopted the changes to the TDR accounting guidance
were not material. Refer to Note 1 for further
information.
JPMorgan Chase & Co./2024 Form 10-K
251

Nature and extent of TDRs
For periods ending prior to January 1, 2023,
modifications of residential real estate loans where the
Firm granted concessions to borrowers who were
experiencing financial difficulty were generally
accounted for and reported as TDRs. Loans with short-
term or other insignificant modifications that were not
considered concessions were not TDRs. For the year
ended December 31, 2022, new TDRs were $362
million, and there were no additional commitments to
lend to borrowers whose residential real estate loans
were modified in TDRs.
The Firm’s proprietary modification programs as well
as government programs, including U.S. GSE
programs, generally provide various concessions to
financially troubled borrowers including, but not
limited to, interest rate reductions, term or payment
extensions and delays of principal and/or interest
payments that would otherwise have been required
under the terms of the original agreement.
The following table provides information about how
residential real estate loans were modified in TDRs
during the period presented. This table excludes loans
with short-term or other insignificant modifications
that are not considered concessions.
Year ended December 31,
2022
Number of loans approved for a trial modification

3,902
Number of loans permanently modified

4,182
Concession granted:
(a)
Interest rate reduction
54 %
Term or payment extension
67
Principal and/or interest deferred
10
Principal forgiveness
1
Other
(b)
37
(a) Represents concessions granted in permanent modifications as
a percentage of the number of loans permanently modified. The
sum of the percentages exceeds 100% because predominantly
all of the modifications include more than one type of
concession. Concessions offered on trial modifications are
generally consistent with those granted on permanent
modifications.
(b) Includes variable interest rate to fixed interest rate modifications
and payment delays that meet the definition of a TDR.
Financial effects of TDRs and defaults
The following table provides information about the
financial effects of the various concessions granted in
modifications of residential real estate loans and about
defaults of certain loans modified in TDRs for the
period presented. The following table presents only
the financial effects of permanent modifications and
does not include temporary concessions offered
through trial modifications. This table also excludes
loans with short-term or other insignificant
modifications that were not considered concessions.
Year ended December 31,
(in millions, except weighted - average data)
2022
Weighted-average interest rate of loans with
interest rate reductions – before TDR
4.75 %
Weighted-average interest rate of loans with
interest rate reductions – after TDR
3.35
Weighted-average remaining contractual term (in
years) of loans with term or payment extensions –
before TDR
22
Weighted-average remaining contractual term (in
years) of loans with term or payment extensions –
after TDR
38
Charge-offs recognized upon permanent
modification
$
1
Principal deferred

16
Principal forgiven

2
Balance of loans that defaulted within one year of
permanent modification
(a)
$
147
(a) Represents loans permanently modified in TDRs that
experienced a payment default in the periods presented, and for
which the payment default occurred within one year of the
modification. The dollar amounts presented represent the
balance of such loans at the end of the reporting period in which
such loans defaulted.
Active and suspended foreclosure
At December 31, 2024 and 2023, the Firm had retained
residential real estate loans, excluding those insured
by U.S. government agencies, with a carrying value of
$576 million and $566 million, respectively, that were
not included in REO, but were in the process of active
or suspended foreclosure.
Notes to consolidated financial statements
252
JPMorgan Chase & Co./2024 Form 10-K

Auto and other
Delinquency is the primary credit quality indicator for retained auto and other loans. The following tables provide
information on delinquency and gross charge-offs.
December 31, 2024
(in millions, except ratios)
Term loans by origination year
Revolving loans
2024
2023
2022
2021
2020
Prior to
2020
Within
the
revolving
period
Converted
to term
loans
Total
Loan delinquency
Current
$ 26,165
$ 15,953
$
9,201 $ 7,014
$ 2,895
$
624
$ 3,714
$
148
$ 65,714
30–119 days past due

190

283

259
179

1,061
120 or more days past due

—
5

—

46
Total retained loans
$ 26,356
$ 16,237
$
9,460 $ 7,198
$ 2,954
$
647
$ 3,757
$
212
$ 66,821
% of 30+ days past due to total
retained loans
0.72 %
1.75 %
2.74
2.50 %
1.76 %
3.55 %
1.14 %
30.19 %
1.64 %
Gross charge-offs
$
269
$
348
$
224 $
126
$
37
$
82
$
1
$
6
$ 1,093
December 31, 2023
(in millions, except ratios)
Term loans by origination year
Revolving loans
2023
2022
2021
2020
2019
Prior to
2019
Within
the
revolving
period
Converted
to term
loans
Total
Loan delinquency
Current
$ 30,328
$ 14,797
$ 12,825
$ 6,538
$ 1,777
$
511
$ 2,984
$
102
$ 69,862
30–119 days past due

276

279

231

967
120 or more days past due

—

37
Total retained loans
$ 30,605
$ 15,077
$ 13,063
$ 6,624
$ 1,820
$
528
$ 3,006
$
143
$ 70,866
% of 30+ days past due to total
retained loans
0.91 %
1.86 %
1.75 %
1.15 %
2.36 %
3.22 %
0.73 %
28.67 %
1.39 %
Gross charge-offs
$
333
$
297
$
161
$
53
$
35
$
64
$
—
$
4
$
947
JPMorgan Chase & Co./2024 Form 10-K
253

Nonaccrual loans and other credit quality indicators
The following table provides information on
nonaccrual and geographic region as a credit quality
indicator for retained auto and other consumer loans.
(in millions)
Total Auto and other
December
31, 2024
December
31, 2023
Nonaccrual loans(a)(b)
$
249 $
177
Geographic region(c)
California
$
10,321 $
10,959
Texas

7,772
8,502
Florida

5,428
5,684
New York

4,905
4,938
Illinois

2,890
3,147
New Jersey

2,468
2,609
Pennsylvania

2,012
1,900
Georgia

1,716
1,912
Arizona

1,643
1,779
North Carolina

1,597
1,714
All other

26,069
27,722
Total retained loans
$
66,821 $
70,866
(a) Generally, all consumer nonaccrual loans have an allowance. In
accordance with regulatory guidance, certain nonaccrual loans
that are considered collateral-dependent have been charged
down to the lower of amortized cost or the fair value of their
underlying collateral less costs to sell. If the value of the
underlying collateral improves subsequent to charge down, the
related allowance may be negative.
(b) Interest income on nonaccrual loans recognized on a cash basis
was not material for the years ended December 31, 2024 and
2023.
(c) The geographic regions presented in this table are ordered
based on the magnitude of the corresponding loan balances at
December 31, 2024.
Loan modifications
The Firm grants certain modifications of auto and
other loans to borrowers experiencing financial
difficulty.
For the years ended December 31, 2024 and 2023,
retained auto and other FDMs were not material.
As of December 31, 2024 and 2023, there were no
additional commitments to lend to borrowers
modified as FDMs.
For periods ending prior to January 1, 2023,
modifications of auto and other loans where the Firm
granted concessions to borrowers who were
experiencing financial difficulty were generally
accounted for and reported as TDRs. Loans with short-
term or other insignificant modifications that were not
considered concessions were not TDRs. For the year
ended December 31, 2022, auto and other TDRs were
not material.
Notes to consolidated financial statements
254
JPMorgan Chase & Co./2024 Form 10-K

Credit card loan portfolio
The credit card portfolio segment includes credit card
loans originated and purchased by the Firm.
Delinquency rates are the primary credit quality
indicator for credit card loans as they provide an early
warning that borrowers may be experiencing
difficulties (30 days past due); information on those
borrowers that have been delinquent for a longer
period of time (90 days past due) is also considered. In
addition to delinquency rates, the geographic
distribution of the loans provides insight as to the
credit quality of the portfolio based on the regional
economy.
While the borrower’s credit score is another general
indicator of credit quality, the Firm does not view
credit scores as a primary indicator of credit quality
because the borrower’s credit score tends to be a
lagging indicator. The distribution of such scores
provides a general indicator of credit quality trends
within the portfolio; however, the score does not
capture all factors that would be predictive of future
credit performance. Refreshed FICO score
information, which is obtained at least quarterly, for a
statistically significant random sample of the credit
card portfolio is indicated in other credit quality
indicators. FICO is considered to be the industry
benchmark for credit scores.
The Firm generally originates new credit card
accounts to prime consumer borrowers. However,
certain cardholders’ FICO scores may decrease over
time, depending on the performance of the cardholder
and changes in the credit score calculation.
The following tables provide information on delinquency and gross charge-offs.
(in millions, except ratios)
December 31, 2024
Within the revolving period
Converted to term loans
Total
Loan delinquency
Current and less than 30 days past due
and still accruing
$
226,532
$
1,284
$
227,816
30–89 days past due and still accruing

2,291

109

2,400
90 or more days past due and still accruing

2,591

2,644
Total retained loans
$
231,414
$
1,446
$
232,860
Loan delinquency ratios
% of 30+ days past due to total retained loans
2.11 %
11.20 %
2.17 %
% of 90+ days past due to total retained loans
1.12
3.67
1.14
Gross charge-offs
$
7,951
$
247
$
8,198
(in millions, except ratios)
December 31, 2023
Within the revolving period
Converted to term loans
Total
Loan delinquency
Current and less than 30 days past due
and still accruing
$
205,731
$
882
$
206,613
30–89 days past due and still accruing

2,217

2,301
90 or more days past due and still accruing

2,169

2,209
Total retained loans
$
210,117
$
1,006
$
211,123
Loan delinquency ratios
% of 30+ days past due to total retained loans
2.09 %
12.33 %
2.14 %
% of 90+ days past due to total retained loans
1.03
3.98
1.05
Gross charge-offs
$
5,325
$
166
$
5,491
JPMorgan Chase & Co./2024 Form 10-K
255

Other credit quality indicators
The following table provides information on other credit quality indicators for retained credit card loans.
(in millions, except ratios)
December 31, 2024
December 31, 2023
Geographic region(a)
California
$
36,385
$
32,652
Texas

24,423

22,086
New York

18,525

16,915
Florida

17,236

15,103
Illinois

12,442

11,364
New Jersey

9,644

8,688
Ohio

6,976

6,424
Colorado

6,962

6,307
Pennsylvania

6,558

6,088
Arizona

5,796

5,209
All other

87,913

80,287
Total retained loans
$
232,860
$
211,123
Percentage of portfolio based on carrying value with estimated refreshed FICO scores
Equal to or greater than 660
85.5 %
85.8 %
Less than 660
14.3
14.0
No FICO available
0.2
0.2
(a) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31,
2024.
Loan modifications
The Firm grants certain modifications of credit card loans to borrowers experiencing financial difficulty. These
modifications may involve placing the customer’s credit card account on a fixed payment plan, generally for 60
months, which typically includes reducing the interest rate on the credit card account. If the borrower does not
make the contractual payments when due under the modified payment terms, the credit card loan continues to age
and will be charged-off in accordance with the Firm's standard charge-off policy. In most cases, the Firm does not
reinstate the borrower's line of credit.
Financial effects of FDMs
The following table provides information on retained credit card FDMs.
Year ended December 31,
(in millions)
Loan modifications
2024
2023
Term extension and interest rate reduction(a)(b)
Amortized cost basis
$
926
$
648
% of total modifications to total retained credit card loans
0.40 %
0.31 %
Financial effect of loan modifications
Term extension with a reduction in the
weighted average contractual
interest rate from 23.64% to 3.20%
Term extension with a reduction in the
weighted average contractual interest
rate from 23.19% to 3.64%
(a) Term extension includes credit card loans whose terms have been modified under long-term programs by placing the customer’s credit card
account on a fixed payment plan.
(b) The interest rates represent weighted average at the time of modification.
Notes to consolidated financial statements
256
JPMorgan Chase & Co./2024 Form 10-K

Payment status of FDMs
The following table provides information on the
payment status of retained credit card FDMs during
the years ended December 31, 2024 and 2023.
Amortized cost basis
Year ended December 31,
(in millions)
2024
2023
Current and less than 30 days past
due and still accruing
$
811 $
558
30-89 days past due and still
accruing

74
59
90 or more days past due and still
accruing

41
31
Total
$
926 $
648
Defaults of FDMs
Retained credit card FDMs that defaulted during the
year ended December 31, 2024 and that were reported
as FDMs in the twelve months prior to the default were
not material. Retained credit card FDMs that defaulted
during the year ended December 31, 2023 and that
were reported as FDMs on or after January 1, 2023, the
date that the Firm adopted the changes to the TDR
accounting guidance were not material. Refer to Note 1
for further information.
For credit card loans modified as FDMs, payment
default is deemed to have occurred when the borrower
misses two consecutive contractual payments.
Defaulted modified credit card loans remain in the
modification program and continue to be charged off
in accordance with the Firm’s standard charge-off
policy.
Financial effects of TDRs and defaults
For periods ending prior to January 1, 2023,
modifications of credit card loans where the Firm
granted concessions to borrowers who were
experiencing financial difficulty were generally
accounted for and reported as TDRs. The Firm granted
concessions for most of the credit card loans under
long-term programs. These concessions involved
placing the customer’s credit card account on a fixed
payment plan, generally for 60 months, and typically
included reducing the interest rate on the credit card
account. Substantially all modifications under the
Firm’s long-term programs were considered to be
TDRs. Loans with short-term or other insignificant
modifications that were not considered concessions
were not reported as TDRs.
The following table provides information about the
financial effects of the concessions granted on credit
card loans modified in TDRs and defaults for the
periods presented. For the period disclosed, new
enrollments were less than 1% of total retained credit
card loans.
Year ended December 31,
(in millions, except weighted-average data)
2022
Balance of new TDRs
(a)
$
418
Weighted-average interest rate of loans – before
TDR
19.86 %
Weighted-average interest rate of loans – after
TDR
4.13
Balance of loans that defaulted within one year of
modification
(b)
$
34
(a) Represents the outstanding balance prior to modification.
(b) Represents loans modified in TDRs that experienced a payment
default in the periods presented, and for which the payment
default occurred within one year of the modification. The
amounts presented represent the balance of such loans as of the
end of the quarter in which they defaulted.
For credit card loans modified in TDRs, payment
default was deemed to have occurred when the
borrower missed two consecutive contractual
payments. Defaulted modified credit card loans
remained in the modification program and continued
to be charged of in accordance with the Firm’s
standard charge-off policy.
JPMorgan Chase & Co./2024 Form 10-K
257

Wholesale loan portfolio
Wholesale loans include loans made to a variety of
clients, ranging from large corporate and institutional
clients to small businesses and high-net-worth
individuals.
The primary credit quality indicator for wholesale loans
is the internal risk rating assigned to each loan. Risk
ratings are used to identify the credit quality of loans
and differentiate risk within the portfolio. Risk ratings
on loans consider the PD and the LGD. The PD is the
likelihood that a loan will default. The LGD is the
estimated loss on the loan that would be realized upon
the default of the borrower and takes into
consideration collateral and structural support for
each credit facility.
Management considers several factors to determine
an appropriate internal risk rating, including the
obligor’s debt capacity and financial flexibility, the
level of the obligor’s earnings, the amount and sources
for repayment, the level and nature of contingencies,
management strength, and the industry and
geography in which the obligor operates. The Firm’s
internal risk ratings generally align with the qualitative
characteristics (e.g., borrower capacity to meet
financial commitments and vulnerability to changes in
the economic environment) defined by S&P and
Moody’s, however the quantitative characteristics
(e.g., PD and LGD) may differ as they reflect internal
historical experiences and assumptions. The Firm
generally considers internal ratings with qualitative
characteristics equivalent to BBB-/Baa3 or higher as
investment grade, and these ratings have a lower PD
and/or lower LGD than non-investment grade ratings.
Noninvestment-grade ratings are further classified as
noncriticized and criticized, and the criticized portion
is further subdivided into performing and nonaccrual
loans, representing management’s assessment of the
collectibility of principal and interest. Criticized loans
have a higher PD than noncriticized loans. The Firm’s
definition of criticized aligns with the U.S. banking
regulatory definition of criticized exposures, which
consist of special mention, substandard and doubtful
categories. Refer to Note 1 for additional information.
Risk ratings are reviewed on a regular and ongoing
basis by Credit Risk Management and are adjusted as
necessary for updated information affecting the
obligor’s ability to fulfill its obligations.
As noted above, the risk rating of a loan considers the
industry in which the obligor conducts its operations.
As part of the overall credit risk management
framework, the Firm focuses on the management and
diversification of its industry and client exposures, with
particular attention paid to industries with an actual or
potential credit concern. Refer to Note 4 for further
detail on industry concentrations.
Notes to consolidated financial statements
258
JPMorgan Chase & Co./2024 Form 10-K

Internal risk rating is the primary credit quality indicator for retained wholesale loans. The following tables provide
information on internal risk rating and gross charge-offs for the year ended December 31, 2024.
December 31,
(in millions, except ratios)
Secured by real estate
Commercial and industrial
Other(a)
Total retained loans
2024
2023
2024
2023
2024
2023
2024
2023
Loans by risk ratings
Investment-grade
$ 114,280
$ 120,405
$ 70,862
$ 72,624
$ 286,528
$ 265,809
$ 471,670
$ 458,838
Noninvestment-grade:
Noncriticized

37,422

34,241

83,191

80,637

72,743

75,178
193,356
190,056
Criticized performing

9,291

7,291

10,977

12,684

1,160

1,257

21,428

21,232
Criticized nonaccrual

1,439

401

1,760

1,221

743

724

3,942

2,346
Total noninvestment-grade

48,152

41,933

95,928

94,542

74,646

77,159
218,726

213,634
Total retained loans
$ 162,432
$ 162,338
$ 166,790
$ 167,166
$ 361,174
$ 342,968
$ 690,396
$ 672,472
% of investment-grade to total
retained loans
70.36 %
74.17 %
42.49 %
43.44 %
79.33 %
77.50 %
68.32 %
68.23 %
% of total criticized to total
retained loans
6.61
4.74
7.64
8.32
0.53
0.58
3.67
3.51
% of criticized nonaccrual to
total retained loans
0.89
0.25
1.06
0.73
0.21
0.21
0.57
0.35
(a) Includes loans to financial institutions, SPEs, personal investment companies and trusts, individuals and individual entities (predominantly
Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB), states and political subdivisions, as well as loans to
nonprofits. As of December 31, 2024, predominantly consisted of $114.8 billion to individuals and individual entities, $94.0 billion to financial
institutions, and $92.5 billion to SPEs. Refer to Note 14 for more information on SPEs.
Secured by real estate
(in millions)
December 31, 2024
Term loans by origination year
Revolving loans
2024
2023
2022
2021
2020
Prior to
2020
Within the
revolving period
Converted to
term loans
Total
Loans by risk ratings
Investment-grade
$ 10,002 $
9,834 $ 25,284 $ 22,796 $ 15,548 $ 29,488
$
1,328 $
— $
114,280
Noninvestment-grade
4,238
5,366
14,717
8,567
3,462
10,392

1,317
93
48,152
Total retained loans
$ 14,240 $ 15,200 $ 40,001 $
31,363 $
19,010 $ 39,880
$
2,645 $
93 $ 162,432
Gross charge-offs
$
72 $
18 $
43 $
2 $
109 $
80
$
— $
— $
324
Secured by real estate
(in millions)
December 31, 2023
Term loans by origination year
Revolving loans
2023
2022
2021
2020
2019
Prior to
2019
Within the
revolving period
Converted to
term loans
Total
Loans by risk ratings
Investment-grade
$
10,687 $
28,874 $
25,784 $
16,820 $
15,677 $
21,108
$
1,455 $
— $ 120,405
Noninvestment-grade
4,477
12,579
7,839
3,840
3,987
7,918

1,291
2
41,933
Total retained loans
$
15,164 $
41,453 $
33,623 $
20,660 $
19,664 $
29,026
$
2,746 $
2 $ 162,338
Gross charge-offs
$
20 $
48 $
22 $
— $
23 $
78
$
— $
1 $
192
JPMorgan Chase & Co./2024 Form 10-K
259

Commercial and industrial
(in millions)
December 31, 2024
Term loans by origination year
Revolving loans
2024
2023
2022
2021
2020
Prior to
2020
Within the
revolving period
Converted to
term loans
Total
Loans by risk ratings
Investment-grade
$
11,564 $
6,285 $
6,588 $
3,119 $
1,067 $
1,139
$
41,099 $
1 $ 70,862
Noninvestment-grade

21,251
11,350
10,942
5,322
783
975

45,181
124
95,928
Total retained loans
$ 32,815 $ 17,635 $ 17,530 $
8,441 $
1,850 $
2,114
$
86,280 $
125 $ 166,790
Gross charge-offs
$
25 $
22 $
128 $
24 $
1 $
50
$
270 $
5 $
525
Commercial and industrial
(in millions)
December 31, 2023
Term loans by origination year
Revolving loans
2023
2022
2021
2020
2019
Prior to
2019
Within the
revolving period
Converted to
term loans
Total
Loans by risk ratings
Investment-grade
$
14,875 $
10,642 $
4,276 $
2,291 $
1,030 $
1,115
$
38,394 $
1 $
72,624
Noninvestment-grade

18,890
16,444
9,299
1,989
1,144
1,006

45,696
74
94,542
Total retained loans
$ 33,765 $ 27,086 $
13,575 $
4,280 $
2,174 $
2,121
$
84,090 $
75 $ 167,166
Gross charge-offs
$
25 $
8 $
110 $
55 $
2 $
12
$
259 $
8 $
479
Other
(a)
(in millions)
December 31, 2024
Term loans by origination year
Revolving loans
2024
2023
2022
2021
2020
Prior to
2020
Within the
revolving period
Converted to
term loans
Total
Loans by risk ratings
Investment-grade
$ 30,484 $ 17,039 $ 13,272 $
6,288 $
8,632 $
7,382
$
201,949 $
1,482 $ 286,528
Noninvestment-grade

11,784
7,248
5,918
3,296
1,366
1,886

42,954
194
74,646
Total retained loans
$ 42,268 $ 24,287 $
19,190 $
9,584 $
9,998 $
9,268
$
244,903 $
1,676 $ 361,174
Gross charge-offs
$
— $
38 $
3 $
36 $
40 $
50
$
6 $
— $
173
Other
(a)
(in millions)
December 31, 2023
Term loans by origination year
Revolving loans
2023
2022
2021
2020
2019
Prior to
2019
Within the
revolving period
Converted to
term loans
Total
Loans by risk ratings
Investment-grade
$ 38,338 $
18,034 $
10,033 $
10,099 $
3,721 $
6,662
$
176,728 $
2,194 $ 265,809
Noninvestment-grade

14,054
8,092
6,169
2,172
811
2,001

43,801
59
77,159
Total retained loans
$ 52,392 $
26,126 $
16,202 $
12,271 $
4,532 $
8,663
$
220,529 $
2,253 $ 342,968
Gross charge-offs
$
5 $
298 $
8 $
8 $
— $
8
$
13 $
— $
340
(a) Includes loans to financial institutions, SPEs, personal investment companies and trusts, individuals and individual entities (predominantly
Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB), states and political subdivisions, as well as loans to
nonprofits. Refer to Note 14 for more information on SPEs.
Notes to consolidated financial statements
260
JPMorgan Chase & Co./2024 Form 10-K

The following table presents additional information on retained loans secured by real estate, which consists of
loans secured wholly or substantially by a lien or liens on real property at origination. Multifamily lending includes
financing for acquisition, leasing and construction of apartment buildings. Other commercial lending largely
includes financing for acquisition, leasing and construction, largely for office, retail and industrial real estate.
Included in secured by real estate loans were $12.2 billion and $10.2 billion as of December 31, 2024 and 2023,
respectively, of construction and development loans made to finance land development and on-site construction
of commercial, industrial, residential, or farm buildings.
December 31,
(in millions, except ratios)
Multifamily
Other Commercial
Total retained loans
secured by real estate
2024
2023
2024
2023
2024
2023
Retained loans secured by real estate
$ 101,114
$ 100,725
$ 61,318
$ 61,613
$ 162,432
$ 162,338
Criticized

4,700

3,596

6,030

4,096
10,730

7,692
% of criticized to total retained loans secured by real estate
4.65 %
3.57 %
9.83 %
6.65 %
6.61 %
4.74 %
Criticized nonaccrual
$
337
$
76
$
1,102
$
325
$ 1,439
$
401
% of criticized nonaccrual loans to total retained loans secured
by real estate
0.33 %
0.08 %
1.80 %
0.53 %
0.89 %
0.25 %
Geographic distribution and delinquency
The following table provides information on the geographic distribution and delinquency for retained wholesale
loans.
December 31,
(in millions)
Secured by real
estate
Commercial and
industrial
Other
Total retained loans
2024
2023
2024
2023
2024
2023
2024
2023
Loans by geographic distribution
(a)
Total U.S.
$ 159,209 $ 159,499
$ 127,626 $ 127,638
$ 278,077 $ 262,499
$ 564,912 $ 549,636
Total non-U.S.

3,223
2,839

39,164
39,528

83,097
80,469
125,484
122,836
Total retained loans
$ 162,432 $ 162,338
$ 166,790 $ 167,166
$ 361,174 $ 342,968
$ 690,396 $ 672,472
Loan delinquency
Current and less than 30 days past due and
still accruing
$ 159,949 $ 161,314
$ 164,104 $ 164,899
$ 359,191 $ 341,128
$ 683,244 $ 667,341
30–89 days past due and still accruing

918
473

868
884

1,152
1,090

2,938
2,447
90 or more days past due and still accruing
(b)

126
150

58
162

88
26

272
338
Criticized nonaccrual

1,439
401

1,760
1,221

743
724

3,942
2,346
Total retained loans
$ 162,432 $ 162,338
$ 166,790 $ 167,166
$ 361,174 $ 342,968
$ 690,396 $ 672,472
(a) The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.
(b) Represents loans that are considered well-collateralized and therefore still accruing interest.
Nonaccrual loans
The following table provides information on retained wholesale nonaccrual loans.
December 31,
(in millions)
Secured by real estate
Commercial and industrial
Other
Total retained loans
2024
2023
2024
2023
2024
2023
2024
2023
Nonaccrual loans
With an allowance
$
366 $
129
$
1,362 $
776
$
555 $
492
$
2,283 $
1,397
Without an allowance(a)

1,073
272

398
445

188
232

1,659
949
Total nonaccrual loans(b)
$
1,439 $
401
$
1,760 $
1,221
$
743 $
724
$
3,942 $
2,346
(a) When the discounted cash flows or collateral value equals or exceeds the amortized cost of the loan, the loan does not require an allowance.
This typically occurs when the loans have been partially charged off and/or there have been interest payments received and applied to the
loan balance.
(b) Interest income on nonaccrual loans recognized on a cash basis was $51 million and $19 million for the years ended December 31, 2024 and
2023, respectively.
JPMorgan Chase & Co./2024 Form 10-K
261

Loan modifications
The Firm grants certain modifications of wholesale loans to borrowers experiencing financial difficulty.
Financial effects of FDMs
The following tables provide information on retained wholesale loan modifications considered FDMs.
(in millions, except ratios)
Secured by real estate
Year ended December 31, 2024
Amortized
cost basis
% of loan modifications to
total retained Secured by
real estate loans
Financial effect of loan modifications
Single modifications
Term extension
$
271
0.17 % Extended loans by a weighted-average of 21 months
Other-than-insignificant payment deferral

37
0.02
Provided payment deferrals with delayed amounts re-
amortized over the remaining tenor
Multiple modifications
Other-than-insignificant payment deferral
and interest rate reduction

46
0.03
Provided payment deferrals with delayed amounts
recaptured at maturity and reduced weighted-
average contractual interest by 162 bps
Total
$
354
Secured by real estate
Year ended December 31, 2023
(in millions, except ratios)
Amortized
cost basis
% of loan modifications to
total retained Secured by
real estate loans
Financial effect of loan modifications
Single modifications
Term extension
$
149
0.09 % Extended loans by a weighted-average of 14 months
Other-than-insignificant payment deferral

3
—
Provided payment deferrals with delayed amounts
primarily re-amortized over the remaining life of the
loan
Multiple modifications
Other-than-insignificant payment deferral
and interest rate reduction

5
—
Provided payment deferrals with delayed amounts
primarily recaptured at maturity and reduced
weighted-average contractual interest by 184 bps
Other
(a)

3
—
NM
Total
$
160
(a) Includes a loan with multiple modifications.
Notes to consolidated financial statements
262
JPMorgan Chase & Co./2024 Form 10-K

(in millions, except ratios)
Commercial and industrial
Year ended December 31, 2024
Amortized
cost basis
% of loan modifications to
total retained Commercial
and industrial loans
Financial effect of loan modifications
Single modifications
Term extension
$
1,180
0.71 % Extended loans by a weighted-average of 20 months
Other-than-insignificant payment deferral

464
0.28
Provided payment deferrals with delayed amounts
primarily re-amortized over the remaining tenor
Multiple modifications
Other-than-insignificant payment deferral
and term extension

175
0.10
Provided payment deferrals with delayed amounts
recaptured at maturity and extended loans by a
weighted-average of 18 months
Interest rate reduction and term extension

51
0.03
Reduced weighted-average contractual interest by
434 bps and extended loans by a weighted-average of
36 months
Other(a)

30
0.02
NM
Total
$
1,900
(a) Includes loans with single and multiple modifications.
Commercial and industrial
Year ended December 31, 2023
(in millions, except ratios)
Amortized
cost basis
% of loan modifications to
total retained Commercial
and industrial loans
Financial effect of loan modifications
Single modifications
Term extension
$
916
0.55 % Extended loans by a weighted-average of 17 months
Other-than-insignificant payment deferral
402
0.24
Provided payment deferrals with delayed amounts
primarily recaptured at the end of the deferral period
Multiple modifications
Other-than-insignificant payment deferral
and term extension
35
0.02
Provided payment deferrals with delayed amounts
primarily re-amortized over the remaining life of the
loan and extended loans by a weighted-average of 7
months
Interest rate reduction and term extension
1
—
Reduced weighted average contractual interest rate
over the life of the loan as a result of converting from
variable to fixed rate and extended loans by a
weighted-average of 16 months
Other
(a)

9
—
NM
Total
$
1,363
(a) Include loans with multiple modifications.
JPMorgan Chase & Co./2024 Form 10-K
263

(in millions, except ratios)
Other
Year ended December 31, 2024
Amortized
cost basis
% of loan modifications to
total retained Other loans
Financial effect of loan modification
Single modifications
Term extension
$
268
0.07 % Extended loans by a weighted-average of 28 months
Multiple modifications
Other-than-insignificant payment deferral
and term extension

2
—
Provided payment deferrals with delayed amounts
recaptured at maturity and extended loans by a
weighted-average of 6 months
Other(a)

5
—
NM
Total
$
275
(a) Includes loans with a single modification.
Other
Year ended December 31, 2023
(in millions, except ratios)
Amortized
cost basis
% of loan modifications to
total retained Other loans
Financial effect of loan modifications
Single modifications
Term extension
$
355
0.10 % Extended loans by a weighted-average of 23 months
Multiple modifications
Other-than-insignificant payment deferral
and term extension
245
0.07
Provided payment deferrals with delayed amounts
primarily recaptured at the end of the deferral period
and extended loans by a weighted-average of 137
months
Other
(a)
$
9
—
NM
Total
$
609
(a) Includes a loan with a single modification.
Notes to consolidated financial statements
264
JPMorgan Chase & Co./2024 Form 10-K

Payment status of FDMs
The following table provides information on the payment status of retained wholesale FDMs during the year ended
December 31, 2024 and 2023.
Amortized cost basis
Secured by
real estate
Commercial
and industrial
Other
Secured by
real estate
Commercial
and industrial
Other
(in millions)
Year ended December 31, 2024
Year ended December 31, 2023
Current and less than 30 days past due and still accruing
$
264 $
1,215 $
240
$
118 $
947 $
400
30-89 days past due and still accruing

3
13
9

2
42
—
Criticized nonaccrual

87
672
26

40
374
209
Total
$
354 $
1,900 $
275
$
160 $
1,363 $
609
Defaults of FDMs
The following table provides information on retained wholesale FDMs that defaulted during the year ended
December 31, 2024 that were reported as FDMs in the twelve months prior to the default, and FDMs that defaulted
during the year ended December 31, 2023 that were reported as FDMs on or after January 1, 2023, the date that the
Firm adopted the changes to the TDR accounting guidance.
Amortized cost basis
Secured by
real estate
Commercial
and industrial
Other
Secured by
real estate
Commercial
and industrial
Other
(in millions)
Year ended December 31, 2024
Year ended December 31, 2023
Term extension
$
3 $
92 $
22
$
1 $
49 $
31
Other-than-insignificant payment deferral

—
118
—

2
—
—
Interest rate reduction and term extension

—
—
—

3
1
—
Total
(a)
$
3 $
210 $
22
$
6 $
50 $
31
(a) Represents FDMs that were 30 days or more past due.
As of December 31, 2024 and 2023, additional unfunded commitments on modified loans to borrowers experiencing
financial difficulty were $1.8 billion at each period in Commercial and industrial, and $69 million and $4 million,
respectively, in Other loan class. Additional commitments on modified loans to borrowers experiencing financial
difficulty whose loans have been modified as FDMs in Secured by real estate were not material at each period.
Nature and extent of TDRs
Prior to January 1, 2023, certain loan modifications were considered TDRs. These loan modifications provided
various concessions to borrower who were experiencing financial difficulty. Loans with short-term or other
insignificant modifications that were not considered concessions were not TDRs nor were loans for which the Firm
elected to suspend TDR accounting guidance under the option provided by the CARES Act.
For the year ended December 31, 2022, new TDRs were $801 million. New TDRs for the year ended December 31,
2022 reflected extended maturity dates and covenant waivers primarily in the Commercial and Industrial loan class.
For the year ended December 31, 2022, the impact of these modifications resulting in new TDRs was not material to
the Firm.
As a result of the elimination of the requirement to assess whether a modification is reasonably expected or involves
a concession, the population of loans considered FDMs is greater than the population previously considered TDRs.
JPMorgan Chase & Co./2024 Form 10-K
265

Note 13 – Allowance for credit losses
The Firm’s allowance for credit losses represents
management's estimate of expected credit losses over
the remaining expected life of the Firm's financial
assets measured at amortized cost and certain off-
balance sheet lending-related commitments. The
allowance for credit losses generally comprises:
• the allowance for loan losses, which covers the Firm’s
retained loan portfolios (scored and risk-rated),
• the allowance for lending-related commitments,
which is presented on the Consolidated balance
sheets in accounts payable and other liabilities, and
• the allowance for credit losses on investment
securities, which is reflected in investment securities
on the Consolidated balance sheets.
The income statement effect of all changes in the
allowance for credit losses is recognized in the
provision for credit losses.
Determining the appropriateness of the allowance for
credit losses is complex and requires significant
judgment by management about the effect of matters
that are inherently uncertain. At least quarterly, the
allowance for credit losses is reviewed by the CRO, the
CFO and the Controller of the Firm. Subsequent
evaluations of credit exposures, considering the
macroeconomic conditions, forecasts and other factors
then prevailing, may result in significant changes in the
allowance for credit losses in future periods.
The Firm’s policies used to determine its allowance for
loan losses and its allowance for lending-related
commitments are described in the following
paragraphs. Refer to Note 10 for a description of the
policies used to determine the allowance for credit
losses on investment securities.
Methodology for allowances for loan losses and
lending-related commitments
The allowance for loan losses and allowance for
lending-related commitments represents expected
credit losses over the remaining expected life of
retained loans and lending-related commitments that
are not unconditionally cancellable. The Firm does not
record an allowance for future draws on unconditionally
cancellable lending-related commitments (e.g., credit
cards). Expected losses related to accrued interest on
credit card loans are considered in the Firm’s allowance
for loan losses. However, the Firm does not record an
allowance on other accrued interest receivables, due to
its policy to write these receivables off no later than 90
days past due by reversing interest income.
The expected life of each instrument is determined by
considering its contractual term, expected
prepayments, cancellation features, and certain
extension and call options. The expected life of funded
credit card loans is generally estimated by considering
expected future payments on the credit card account,
and determining how much of those amounts should be
allocated to repayments of the funded loan balance (as
of the balance sheet date) versus other account activity.
This allocation is made using an approach that
incorporates the payment application requirements of
the Credit Card Accountability Responsibility and
Disclosure Act of 2009, generally paying down the
highest interest rate balances first.
The estimate of expected credit losses includes
expected recoveries of amounts previously charged off
or expected to be charged off, even if such recoveries
result in a negative allowance.
Collective and Individual Assessments
When calculating the allowance for loan losses and the
allowance for lending-related commitments, the Firm
assesses whether exposures share similar risk
characteristics. If similar risk characteristics exist, the
Firm estimates expected credit losses collectively,
considering the risk associated with a particular pool
and the probability that the exposures within the pool
will deteriorate or default. The assessment of risk
characteristics is subject to significant management
judgment. Emphasizing one characteristic over another
or considering additional characteristics could affect
the allowance.
• Relevant risk characteristics for the consumer
portfolio include product type, delinquency status,
current FICO scores, geographic distribution, and, for
collateralized loans, current LTV ratios.
• Relevant risk characteristics for the wholesale
portfolio include risk rating, delinquency status,
tenor, level and type of collateral, LOB, geography,
industry, credit enhancement, product type, facility
purpose, and payment terms.
The majority of the Firm’s credit exposures share risk
characteristics with other similar exposures, and as a
result are collectively assessed for impairment
(“portfolio-based component”). The portfolio-based
component covers consumer loans, performing risk-
rated loans and certain lending-related commitments.
If an exposure does not share risk characteristics with
other exposures, the Firm generally estimates expected
credit losses on an individual basis, considering
expected repayment and conditions impacting that
individual exposure (“asset-specific component”). The
asset-specific component covers collateral-dependent
loans and risk-rated loans that have been placed on
nonaccrual status.
Portfolio-based component
The portfolio-based component begins with a
quantitative calculation that considers the likelihood of
the borrower changing delinquency status or moving
from one risk rating to another. The quantitative
calculation covers expected credit losses over an
instrument’s expected life and is estimated by applying
credit loss factors to the Firm’s estimated exposure at
default. The credit loss factors incorporate the
Notes to consolidated financial statements
266
JPMorgan Chase & Co./2024 Form 10-K

probability of borrower default as well as loss severity in
the event of default. They are derived using a weighted
average of five internally developed macroeconomic
scenarios over an eight-quarter forecast period,
followed by a single year straight-line interpolation to
revert to long run historical information for periods
beyond the eight-quarter forecast period. The five
macroeconomic scenarios consist of a central, relative
adverse, extreme adverse, relative upside and extreme
upside scenario, and are updated by the Firm’s central
forecasting team. The scenarios take into consideration
the Firm’s macroeconomic outlook, internal
perspectives from subject matter experts across the
Firm, and market consensus and involve a governed
process that incorporates feedback from senior
management across LOBs, Corporate Finance and Risk
Management.
The quantitative calculation is adjusted to take into
consideration model imprecision, emerging risk
assessments, trends and other subjective factors that
are not yet reflected in the calculation. These
adjustments are accomplished in part by analyzing the
historical loss experience, including during stressed
periods, for each major product or model. Management
applies judgment in making this adjustment, including
taking into account uncertainties associated with the
economic and political conditions, quality of
underwriting standards, borrower behavior, credit
concentrations or deterioration within an industry,
product or portfolio, as well as other relevant internal
and external factors affecting the credit quality of the
portfolio. In certain instances, the interrelationships
between these factors create further uncertainties.
The application of different inputs into the quantitative
calculation, and the assumptions used by management
to adjust the quantitative calculation, are subject to
significant management judgment, and emphasizing
one input or assumption over another, or considering
other inputs or assumptions, could affect the estimate
of the allowance for loan losses and the allowance for
lending-related commitments.
Asset-specific component
To determine the asset-specific component of the
allowance, collateral-dependent loans (including those
loans for which foreclosure is probable) and nonaccrual
risk-rated loans in the wholesale portfolio segment are
generally evaluated individually.
For collateral-dependent loans, the fair value of
collateral less estimated costs to sell, as applicable, is
used to determine the charge-off amount for declines in
value (to reduce the amortized cost of the loan to the
fair value of collateral) or the amount of negative
allowance that should be recognized (for recoveries of
prior charge-offs associated with improvements in the
fair value of the collateral).
For non-collateral dependent loans, the Firm generally
measures the asset-specific allowance as the
difference between the amortized cost of the loan and
the present value of the cash flows expected to be
collected, discounted at the loan’s effective interest
rate. Subsequent changes in impairment are generally
recognized as an adjustment to the allowance for loan
losses. The asset-specific component of the allowance
for non-collateral dependent loans incorporates the
effect of the modification on the loan’s expected cash
flows including changes in interest rates, principal
forgiveness, and other concessions, as well as
management’s expectation of the borrower’s ability to
repay under the modified terms.
Estimating the timing and amounts of future cash flows
is highly judgmental as these cash flow projections rely
upon estimates such as loss severities, asset
valuations, the amounts and timing of interest or
principal payments (including any expected
prepayments) or other factors that are reflective of
current and expected market conditions. These
estimates are, in turn, dependent on factors such as the
duration of current overall economic conditions,
industry, portfolio, or borrower-specific factors, the
expected outcome of insolvency proceedings as well
as, in certain circumstances, other economic factors. All
of these estimates and assumptions require significant
management judgment and certain assumptions are
highly subjective.
Other financial assets
In addition to loans and investment securities, the Firm
holds other financial assets that are measured at
amortized cost on the Consolidated balance sheets,
including credit exposures arising from lending
activities subject to collateral maintenance
requirements. Management estimates the allowance
for other financial assets using various techniques
considering historical losses and current economic
conditions.
Credit risk arising from lending activities subject to
collateral maintenance requirements is generally
mitigated by factors such as the short-term nature of
the activity, the fair value of collateral held and the
Firm’s right to call for, and the borrower’s obligation to
provide additional margin when the fair value of the
collateral declines. Because of these mitigating factors,
these exposures generally do not require an allowance
for credit losses. However, management may also
consider other factors such as the borrower’s ongoing
ability to provide collateral to satisfy margin
requirements, or whether collateral is significantly
concentrated in an individual issuer or in securities with
similar risk characteristics. If in management’s
judgment, an allowance for credit losses for these
exposures is required, the Firm estimates expected
credit losses based on the value of the collateral and
probability of borrower default.
JPMorgan Chase & Co./2024 Form 10-K
267

Allowance for credit losses and related information
The table below summarizes information about the allowances for credit losses and includes a breakdown of loans
and lending-related commitments by impairment methodology. Refer to Note 10 for further information on the
allowance for credit losses on investment securities.
(Table continued on next page)
2024
Year ended December 31,
(in millions)
Consumer,
excluding
credit card
Credit card
Wholesale
Total
Allowance for loan losses
Beginning balance at January 1,
$
1,856
$
12,450
$
8,114
$
22,420
Cumulative effect of a change in accounting principle(a)
NA
NA
NA
NA
Gross charge-offs

1,299

8,198

1,022

10,519
Gross recoveries collected

(625)

(1,056)

(200)

(1,881)
Net charge-offs

674

7,142

822

8,638
Provision for loan losses

624

9,292

578

10,494
Other

—

69
Ending balance at December 31,
$
1,807
$
14,600
$
7,938
$
24,345
Allowance for lending-related commitments
Beginning balance at January 1,
$
75
$
—
$
1,899
$
1,974
Provision for lending-related commitments

—

121

128
Other

—

(1)

(1)
Ending balance at December 31,
$
82
$
—
$
2,019
$
2,101
Total allowance for investment securities
NA
NA
NA
$
152
Total allowance for credit losses
(b)
$
1,889
$
14,600
$
9,957
$
26,598
Allowance for loan losses by impairment methodology
Asset-specific
(c)
$
(728)
$
—
$
526
$
(202)
Portfolio-based

2,535

14,600

7,412

24,547
Total allowance for loan losses
$
1,807
$
14,600
$
7,938
$
24,345
Loans by impairment methodology
Asset-specific
(c)
$
2,805
$
—
$
3,912
$
6,717
Portfolio-based

373,529

232,860

686,484

1,292,873
Total retained loans
$
376,334
$
232,860
$ 690,396
$ 1,299,590
Collateral-dependent loans
Net charge-offs
$
1
$
—
$
324
$
325
Loans measured at fair value of collateral less cost to sell

2,696

—

1,834

4,530
Allowance for lending-related commitments by impairment methodology
Asset-specific
$
—
$
—
$
109
$
109
Portfolio-based

—

1,910

1,992
Total allowance for lending-related commitments
(d)
$
82
$
—
$
2,019
$
2,101
Lending-related commitments by impairment methodology
Asset-specific
$
—
$
—
$
737
$
737
Portfolio-based
(e)

25,608

510,254

535,881
Total lending-related commitments
$
25,608
$
19
$
510,991
$
536,618
(a) Represents the impact to the allowance for loan losses upon the adoption of the Financial Instruments - Credit Losses: Troubled Debt
Restructurings accounting guidance. Refer to Note 1 for further information.
(b) At December 31, 2024 and 2023 and 2022, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for
credit losses of $268 million, $243 million and $21 million, respectively, associated with certain accounts receivable in CIB.
(c) Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans.
(d) The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets.
(e) At December 31, 2024, 2023 and 2022, lending-related commitments excluded $19.2 billion, $17.2 billion and $13.1 billion, respectively, for the
consumer, excluding credit card portfolio segment; $1.0 trillion, $915.7 billion and $821.3 billion, respectively, for the credit card portfolio
segment; and $20.5 billion, $19.7 billion and $9.8 billion, respectively, for the wholesale portfolio segment, which were not subject to the
allowance for lending-related commitments.
Notes to consolidated financial statements
268
JPMorgan Chase & Co./2024 Form 10-K

(table continued from previous page)
2023
2022
Consumer,
excluding
credit card
Credit card
Wholesale
Total
Consumer,
excluding
credit card
Credit card
Wholesale
Total
$
2,040
$
11,200
$
6,486
$
19,726
$
1,765
$
10,250
$
4,371
$
16,386

(489)

(100)

(587)
NA
NA
NA
NA

1,151

5,491

1,011

7,653

812

3,192

322

4,326

(519)

(793)

(132)

(1,444)

(543)

(789)

(141)

(1,473)

632

4,698

879

6,209

269

2,403

181

2,853

936

6,048

2,484

9,468

543

3,353

2,293

6,189

—

4
$
1,856
$
12,450
$
8,114
$
22,420
$
2,040
$
11,200
$
6,486
$
19,726
$
76
$
—
$
2,306
$
2,382
$
113
$
—
$
2,148
$
2,261

(1)

—

(407)

(408)

(37)

—

157

120

—

1
$
75
$
—
$
1,899
$
1,974
$
76
$
—
$
2,306
$
2,382
NA
NA
NA
$
128
NA
NA
NA
$
96
$
1,931
$
12,450
$
10,013
$
24,522
$
2,116
$
11,200
$
8,792
$
22,204
$
(876)
$
—
$
392
$
(484)
$
(624)
$
223
$
467
$
66

2,732

12,450

7,722

22,904

2,664

10,977

6,019

19,660
$
1,856
$
12,450
$
8,114
$
22,420
$
2,040
$
11,200
$
6,486
$
19,726
$
3,287
$
—
$
2,338
$
5,625
$
11,978
$
796
$
2,189
$
14,963

393,988

211,123

670,134

1,275,245

288,775

184,379

601,481

1,074,635
$
397,275
$
211,123
$
672,472
$
1,280,870
$
300,753
$
185,175
$
603,670
$
1,089,598
$
6
$
—
$
180
$
186
$
(33)
$
—
$
16
$
(17)

3,216

—

1,012

4,228

3,585

—

464

4,049
$
—
$
—
$
89
$
89
$
—
$
—
$
90
$
90

—

1,810

1,885

—

2,216

2,292
$
75
$
—
$
1,899
$
1,974
$
76
$
—
$
2,306
$
2,382
$
—
$
—
$
464
$
464
$
—
$
—
$
455
$
455

28,248

—

516,577

544,825

20,423

—

461,688

482,111
$
28,248
$
—
$
517,041
$
545,289
$
20,423
$
—
$
462,143
$
482,566
JPMorgan Chase & Co./2024 Form 10-K
269

Discussion of changes in the allowance
The allowance for credit losses as of December 31,
2024 was $26.9 billion, reflecting a net addition of $2.1
billion from December 31, 2023.
The net addition to the allowance for credit losses
included:
• $2.1 billion in consumer, reflecting:
– a $2.2 billion net addition in Card Services,
predominantly driven by loan growth, reflecting
higher revolving balances, including the seasoning
of vintages originated in recent years,
partially offset by
– a $125 million net reduction in Home Lending in
the first quarter of 2024, and
• a net reduction of $30 million in wholesale,
reflecting:
– changes in certain macroeconomic variables, an
update to loss assumptions on certain loans in
Markets, and a reduction due to charge-offs
largely from collateral-dependent loans,
predominantly offset by
– net downgrade activity, primarily in Real Estate,
and the impact of incorporating the First Republic
portfolio into the Firm’s modeled credit loss
estimates in the second quarter of 2024.
The Firm’s qualitative adjustments continued to
include additional weight placed on the adverse
scenarios to reflect ongoing uncertainties and
downside risks related to the geopolitical and
macroeconomic environment.
The Firm's allowance for credit losses is estimated
using a weighted average of five internally developed
macroeconomic scenarios. The adverse scenarios
incorporate more punitive macroeconomic factors
than the central case assumptions provided in the
table below, resulting in:
• a weighted average U.S. unemployment rate peaking
at 5.5% in the fourth quarter of 2025, and
• a weighted average U.S. real GDP level that is 1.9%
lower than the central case at the end of the second
quarter of 2026.
The following table presents the Firm’s central case
assumptions for the periods presented:
Central case assumptions
at December 31, 2024
2Q25
4Q25
2Q26
U.S. unemployment rate(a)
4.5 %
4.3 %
4.3 %
YoY growth in U.S. real GDP(b)
2.0 %
1.9 %
1.8 %
Central case assumptions
at December 31, 2023
2Q24
4Q24
2Q25
U.S. unemployment rate(a)
4.1 %
4.4 %
4.1 %
YoY growth in U.S. real GDP(b)
1.8 %
0.7 %
1.0 %
(a) Reflects quarterly average of forecasted U.S. unemployment
rate.
(b) The year over year growth in U.S. real GDP in the forecast
horizon of the central scenario is calculated as the percentage
change in U.S. real GDP levels from the prior year.
Subsequent changes to this forecast and related
estimates will be reflected in the provision for credit
losses in future periods.
Refer to Note 12 for additional information on the
consumer and wholesale credit portfolios.
Refer to Critical Accounting Estimates Used by the
Firm on pages 161–164 for further information on the
allowance for credit losses and related management
judgments.
Notes to consolidated financial statements
270
JPMorgan Chase & Co./2024 Form 10-K

Note 14 – Variable interest entities
Refer to Note 1 on page 177 for a further description of the Firm’s accounting policies regarding consolidation of and
involvement with VIEs.
The following table summarizes the most significant types of Firm-sponsored VIEs by business segment. The Firm
considers a “Firm-sponsored” VIE to include any entity where: (1) JPMorganChase is the primary beneficiary of the
structure; (2) the VIE is used by JPMorganChase to securitize Firm assets; (3) the VIE issues financial instruments
with the JPMorganChase name; or (4) the entity is a JPMorganChase–administered asset-backed commercial paper
conduit.
Line of
Business
Transaction Type
Activity
2024 Form 10-K
page references
CCB
Credit card securitization trusts
Securitization of originated credit card
receivables
pages 271–272
Mortgage securitization trusts
Servicing and securitization of both originated
and purchased residential mortgages
pages 272–274
CIB
Mortgage and other securitization trusts
Securitization of both originated and purchased
residential and commercial mortgages, and
other consumer loans
pages 272–274
Multi-seller conduits
Assisting clients in accessing the financial
markets in a cost-efficient manner and
structuring transactions to meet investor needs
page 274
Municipal bond vehicles
Financing of municipal bond investments
pages 274–275
The Firm’s other business segments and Corporate are also involved with VIEs (both third-party and Firm-
sponsored), but to a lesser extent, as follows:
• Asset & Wealth Management: AWM sponsors and manages certain funds that are deemed VIEs. As asset
manager of the funds, AWM earns a fee based on assets managed; the fee varies with each fund’s investment
objective and is competitively priced. For fund entities that qualify as VIEs, AWM’s interests are, in certain cases,
considered to be significant variable interests that result in consolidation of the financial results of these entities.
• Corporate: Corporate is involved with entities that may meet the definition of VIEs; however these entities are
generally subject to specialized investment company accounting, which does not require the consolidation of
investments, including VIEs. In addition, Treasury and CIO invest in securities generally issued by third parties
which may meet the definition of VIEs (e.g., issuers of asset-backed securities). In general, the Firm does not have
the power to direct the significant activities of these entities and therefore does not consolidate these entities.
Refer to Note 10 for further information on the Firm’s investment securities portfolio.
In addition, CIB also invests in and provides financing, lending-related services and other services to VIEs
sponsored by third parties. Refer to page 276 of this Note for more information on the VIEs sponsored by third
parties.
Significant Firm-sponsored VIEs
Credit card securitizations
CCB’s Card Services business may securitize
originated credit card loans, primarily through the
Chase Issuance Trust (the “Trust”). The Firm’s
continuing involvement in credit card securitizations
includes servicing the receivables, retaining an
undivided seller’s interest in the receivables, retaining
certain senior and subordinated securities and
maintaining escrow accounts.
The Firm consolidates the assets and liabilities of its
sponsored credit card trusts as it is considered to be
the primary beneficiary of these securitization trusts
based on the Firm’s ability to direct the activities of
these VIEs through its servicing responsibilities and
other duties, including making decisions as to the
receivables that are transferred into those trusts and
as to any related modifications and workouts.
Additionally, the nature and extent of the Firm’s other
continuing involvement with the trusts, as indicated
above, obligates the Firm to absorb losses and gives
the Firm the right to receive certain benefits from
these VIEs that could potentially be significant.
The underlying securitized credit card receivables and
other assets of the securitization trusts are available
only for payment of the beneficial interests issued by
the securitization trusts; they are not available to pay
the Firm’s other obligations or the claims of the Firm’s
creditors.
The agreements with the credit card securitization
trusts require the Firm to maintain a minimum
undivided interest in the credit card trusts (generally
5%). As of December 31, 2024 and 2023, the Firm held
undivided interests in Firm-sponsored credit card
securitization trusts of $6.6 billion and $4.9 billion,
respectively. The Firm maintained an average
undivided interest in principal receivables owned by
JPMorgan Chase & Co./2024 Form 10-K
271

those trusts of approximately 45% and 65% for the
years ended December 31, 2024 and 2023,
respectively. The Firm did not retain any senior
securities and retained $1.5 billion of subordinated
securities in certain of its credit card securitization
trusts at both December 31, 2024 and 2023. The Firm’s
undivided interests in the credit card trusts and
securities retained are eliminated in consolidation.
Firm-sponsored mortgage and other securitization
trusts
The Firm securitizes (or has securitized) originated
and purchased residential mortgages, commercial
mortgages and other consumer loans primarily in its
CCB and CIB businesses. Depending on the particular
transaction, as well as the respective business
involved, the Firm may act as the servicer of the loans
and/or retain certain beneficial interests in the
securitization trusts.
The following tables present the total unpaid principal amount of assets held in Firm-sponsored private-label
securitization entities, including those in which the Firm has continuing involvement, and those that are
consolidated by the Firm. Continuing involvement includes servicing the loans, holding senior interests or
subordinated interests (including amounts required to be held pursuant to credit risk retention rules), recourse or
guarantee arrangements, and derivative contracts. In certain instances, the Firm’s only continuing involvement is
servicing the loans. The Firm’s maximum loss exposure from retained and purchased interests is the carrying value
of these interests. Refer to page 279 of this Note for information on the securitization-related loan delinquencies and
liquidation losses.
Principal amount outstanding
JPMorganChase interest in securitized assets in
nonconsolidated VIEs
(c)(d)(e)
December 31, 2024
(in millions)
Total assets
held by
securitization
VIEs
Assets
held in
consolidated
securitization
VIEs
Assets held in
nonconsolidated
securitization
VIEs with
continuing
involvement
Trading
assets
Investment
securities
Other
financial
assets
Total
interests
held by
JPMorgan
Chase
Securitization-related
(a)
Residential mortgage:
Prime/Alt-A and option ARMs
$
71,085 $
615 $
50,846
$
613 $
1,850 $
614 $
3,077
Subprime

8,824
—
1,847

44
19
—
63
Commercial and other
(b)

186,293
243
125,510

530
5,768
1,074
7,372
Total
$
266,202 $
858 $
178,203
$
1,187 $
7,637 $
1,688 $
10,512
Principal amount outstanding
JPMorganChase interest in securitized assets in
nonconsolidated VIEs
(c)(d)(e)
December 31, 2023
(in millions)
Total assets
held by
securitization
VIEs
Assets
held in
consolidated
securitization
VIEs
Assets held in
nonconsolidated
securitization
VIEs with
continuing
involvement
Trading
assets
Investment
securities
Other
financial
assets
Total
interests
held by
JPMorgan
Chase
Securitization-related
(a)
Residential mortgage:
Prime/Alt-A and option ARMs
$
58,570 $
675 $
39,319
$
595 $
1,981 $
60 $
2,636
Subprime

8,881
—
1,312

3
—
—
3
Commercial and other
(b)

168,042
—
120,262

831
5,638
1,354
7,823
Total
$
235,493 $
675 $
160,893
$
1,429 $
7,619 $
1,414 $
10,462
(a) Excludes U.S. GSEs and government agency securitizations and re-securitizations, which are not Firm-sponsored.
(b) Consists of securities backed by commercial real estate loans and non-mortgage-related consumer receivables.
(c) Excludes the following: retained servicing; securities retained from loan sales and securitization activity related to U.S. GSEs and government
agencies; interest rate and foreign exchange derivatives primarily used to manage interest rate and foreign exchange risks of securitization
entities; senior securities of $256 million and $52 million at December 31, 2024 and 2023, respectively, and subordinated securities which
were not material at December 31, 2024 and 2023, which the Firm purchased in connection with CIB’s secondary market-making activities.
(d) Includes interests held in re-securitization transactions.
(e) At both December 31, 2024 and 2023, 77% of the Firm’s retained securitization interests, which are predominantly carried at fair value and
include amounts required to be held pursuant to credit risk retention rules, were risk-rated “A” or better, on an S&P-equivalent basis. The
retained interests in prime residential mortgages consisted of $2.9 billion and $2.5 billion of investment-grade retained interests at
December 31, 2024 and 2023, respectively, and $216 million and $88 million of noninvestment-grade retained interests at December 31, 2024
and 2023, respectively. The retained interests in commercial and other securitization trusts consisted of $6.0 billion and $6.1 billion of
investment-grade retained interests, and $1.4 billion and $1.7 billion of noninvestment-grade retained interests at December 31, 2024 and
2023, respectively.
Notes to consolidated financial statements
272
JPMorgan Chase & Co./2024 Form 10-K

Residential mortgage
The Firm securitizes residential mortgage loans
originated by CCB, as well as residential mortgage
loans purchased from third parties by either CCB or
CIB. CCB generally retains servicing for all residential
mortgage loans it originated or purchased, and for
certain mortgage loans purchased by CIB. For
securitizations of loans serviced by CCB, the Firm has
the power to direct the significant activities of the VIE
because it is responsible for decisions related to loan
modifications and workouts. CCB may also retain an
interest upon securitization.
In addition, CIB engages in underwriting and trading
activities involving securities issued by Firm-
sponsored securitization trusts. As a result, CIB at
times retains senior and/or subordinated interests
(including residual interests and amounts required to
be held pursuant to credit risk retention rules) in
residential mortgage securitizations at the time of
securitization, and/or reacquires positions in the
secondary market in the normal course of business. In
certain instances, as a result of the positions retained
or reacquired by CIB or held by Treasury and CIO or
CCB, when considered together with the servicing
arrangements entered into by CCB, the Firm is
deemed to be the primary beneficiary of certain
securitization trusts.
The Firm does not consolidate residential mortgage
securitizations (Firm-sponsored or third-party-
sponsored) when it is not the servicer (and therefore
does not have the power to direct the most significant
activities of the trust) or does not hold a beneficial
interest in the trust that could potentially be significant
to the trust.
Commercial mortgages and other consumer
securitizations
CIB originates and securitizes commercial mortgage
loans, and engages in underwriting and trading
activities involving the securities issued by
securitization trusts. CIB may retain unsold senior and/
or subordinated interests (including amounts required
to be held pursuant to credit risk retention rules) in
commercial mortgage securitizations at the time of
securitization but, generally, the Firm does not service
commercial loan securitizations. Treasury and CIO
may choose to invest in these securitizations as well.
For commercial mortgage securitizations the power to
direct the significant activities of the VIE generally is
held by the servicer or investors in a specified class of
securities (“controlling class”). The Firm generally
does not retain an interest in the controlling class in its
sponsored commercial mortgage securitization
transactions.
Re-securitizations
The Firm engages in certain re-securitization
transactions in which debt securities are transferred to
a VIE in exchange for new beneficial interests. These
transfers occur in connection with both U.S. GSEs and
government agency sponsored VIEs, which are
backed by residential mortgages. The Firm’s
consolidation analysis is largely dependent on the
Firm’s role and interest in the re-securitization trusts.
The following table presents the principal amount of
securities transferred to re-securitization VIEs.
Year ended December 31,
(in millions)
2024
2023
2022
Transfers of securities to VIEs
U.S. GSEs and government
agencies
$ 44,456
$ 18,864
$ 16,128
Most re-securitizations with which the Firm is involved
are client-driven transactions in which a specific client
or group of clients is seeking a specific return or risk
profile. For these transactions, the Firm has concluded
that the decision-making power of the entity is shared
between the Firm and its clients, considering the joint
effort and decisions in establishing the re-
securitization trust and its assets, as well as the
significant economic interest the client holds in the re-
securitization trust; therefore the Firm does not
consolidate the re-securitization VIE.
The Firm did not transfer any private label securities to
re-securitization VIEs during 2024, 2023 and 2022,
and retained interests in any such Firm-sponsored
VIEs as of December 31, 2024 and 2023 were not
material.
Additionally, the Firm may invest in beneficial interests
of third-party-sponsored re-securitizations and
generally purchases these interests in the secondary
market. In these circumstances, the Firm does not
have the unilateral ability to direct the most significant
activities of the re-securitization trust, either because
it was not involved in the initial design of the trust, or
the Firm was involved with an independent third-party
sponsor and demonstrated shared power over the
creation of the trust; therefore, the Firm does not
consolidate the re-securitization VIE.
JPMorgan Chase & Co./2024 Form 10-K
273

The following table presents information on the Firm's
interests in nonconsolidated re-securitization VIEs.
December 31,
(in millions)
Nonconsolidated
re-securitization VIEs
2024
2023
U.S. GSEs and government agencies
Interest in VIEs
$
3,219
$
3,371
As of December 31, 2024 and 2023, the Firm did not
consolidate any U.S. GSE and government agency re-
securitization VIEs or any Firm-sponsored private-
label re-securitization VIEs.
Multi-seller conduits
Multi-seller conduit entities are separate bankruptcy
remote entities that provide secured financing,
collateralized by pools of receivables and other
financial assets, to customers of the Firm. The
conduits fund their financing facilities through the
issuance of highly rated commercial paper. The
primary source of repayment of the commercial paper
is the cash flows from the pools of assets. In most
instances, the assets are structured with deal-specific
credit enhancements provided to the conduits by the
customers (i.e., sellers) or other third parties. Deal-
specific credit enhancements are generally structured
to cover a multiple of historical losses expected on the
pool of assets, and are typically in the form of
overcollateralization provided by the seller. The deal-
specific credit enhancements mitigate the Firm’s
potential losses on its agreements with the conduits.
To ensure timely repayment of the commercial paper,
and to provide the conduits with funding to provide
financing to customers in the event that the conduits
do not obtain funding in the commercial paper market,
each asset pool financed by the conduits has a
minimum 100% deal-specific liquidity facility
associated with it provided by JPMorgan Chase Bank,
N.A. JPMorgan Chase Bank, N.A. also provides the
multi-seller conduit vehicles with uncommitted
program-wide liquidity facilities and program-wide
credit enhancement in the form of standby letters of
credit. The amount of program-wide credit
enhancement required is based upon commercial
paper issuance and approximates 10% of the
outstanding balance of commercial paper.
The Firm consolidates its Firm-administered multi-
seller conduits, as the Firm has both the power to
direct the significant activities of the conduits and a
potentially significant economic interest in the
conduits. As administrative agent and in its role in
structuring transactions, the Firm makes decisions
regarding asset types and credit quality, and manages
the commercial paper funding needs of the conduits.
The Firm’s interests that could potentially be
significant to the VIEs include the fees received as
administrative agent and liquidity and program-wide
credit enhancement provider, as well as the potential
exposure created by the liquidity and credit
enhancement facilities provided to the conduits.
In the normal course of business, JPMorganChase
makes markets in and invests in commercial paper
issued by the Firm-administered multi-seller conduits.
The Firm held $2.9 billion and $9.8 billion of the
commercial paper issued by the Firm-administered
multi-seller conduits at December 31, 2024 and 2023,
respectively, which have been eliminated in
consolidation. The Firm’s investments reflect the
Firm’s funding needs and capacity and were not driven
by market illiquidity. Other than the amounts required
to be held pursuant to credit risk retention rules, the
Firm is not obligated under any agreement to
purchase the commercial paper issued by the Firm-
administered multi-seller conduits.
Deal-specific liquidity facilities, program-wide liquidity
and credit enhancement provided by the Firm have
been eliminated in consolidation. The Firm or the Firm-
administered multi-seller conduits provide lending-
related commitments to certain clients of the Firm-
administered multi-seller conduits. The unfunded
commitments were $10.3 billion and $10.8 billion at
December 31, 2024 and 2023, respectively, and are
reported as off-balance sheet lending-related
commitments in other unfunded commitments to
extend credit. Refer to Note 28 for more information
on off-balance sheet lending-related commitments.
Municipal bond vehicles
Municipal bond vehicles or tender option bond (“TOB”)
trusts allow institutions to finance their municipal bond
investments at short-term rates. In a typical TOB
transaction, the trust purchases highly rated municipal
bond(s) of a single issuer and funds the purchase by
issuing two types of securities: (1) puttable floating-
rate certificates (“floaters”) and (2) inverse floating-
rate residual interests (“residuals”). The floaters are
typically purchased by money market funds or other
short-term investors and may be tendered, with
requisite notice, to the TOB trust. The residuals are
retained by the investor seeking to finance its
municipal bond investment. TOB transactions where
the residual is held by a third-party investor are
typically known as customer TOB trusts, and non-
customer TOB trusts are transactions where the
Residual is retained by the Firm. Customer TOB trusts
are sponsored by a third party. The Firm serves as
sponsor for all non-customer TOB transactions. The
Firm may provide various services to a TOB trust,
including remarketing agent, liquidity or tender option
provider, and/or sponsor.
J.P. Morgan Securities LLC may serve as a remarketing
agent on the floaters for TOB trusts. The remarketing
agent is responsible for establishing the periodic
variable rate on the floaters, conducting the initial
Notes to consolidated financial statements
274
JPMorgan Chase & Co./2024 Form 10-K

placement and remarketing tendered floaters. The
remarketing agent may, but is not obligated to, make
markets in floaters. Floaters held by the Firm were not
material during 2024 and 2023.
JPMorgan Chase Bank, N.A. or J.P. Morgan Securities
LLC often serves as the sole liquidity or tender option
provider for the TOB trusts. The liquidity provider’s
obligation to perform is conditional and is limited by
certain events (“Termination Events”), which include
bankruptcy or failure to pay by the municipal bond
issuer or credit enhancement provider, an event of
taxability on the municipal bonds or the immediate
downgrade of the municipal bond to below investment
grade. In addition, the liquidity provider’s exposure is
typically further limited by the high credit quality of the
underlying municipal bonds, the excess
collateralization in the vehicle, or, in certain
transactions, the reimbursement agreements with the
Residual holders.
Holders of the floaters may “put,” or tender, their
floaters to the TOB trust. If the remarketing agent
cannot successfully remarket the floaters to another
investor, the liquidity provider either provides a loan to
the TOB trust for the TOB trust’s purchase of the
floaters, or it directly purchases the tendered floaters.
TOB trusts are considered to be variable interest
entities. The Firm consolidates non-customer TOB
trusts because as the Residual holder, the Firm has the
right to make decisions that significantly impact the
economic performance of the municipal bond vehicle,
and it has the right to receive benefits and bear losses
that could potentially be significant to the municipal
bond vehicle.
Consolidated VIE assets and liabilities
The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of
December 31, 2024 and 2023.
Assets
Liabilities
December 31, 2024
(in millions)
Trading
assets
Loans
Other
(c)
Total
assets
(d)
Beneficial
interests in
VIE assets
(e)
Other
(f)
Total
liabilities
VIE program type
Firm-sponsored credit card trusts
$
— $
13,531
$
168 $
13,699
$
5,312 $
10 $
5,322
Firm-administered multi-seller conduits

1
20,383

133
20,517

18,228
26
18,254
Municipal bond vehicles

3,388
—

22
3,410

3,617
15
3,632
Mortgage securitization entities
(a)

—
630

8
638

115
48
163
Other

496
1,966
(b)

350
2,812

51
355
406
Total
$
3,885 $
36,510
$
681 $
41,076
$
27,323 $
454 $
27,777
Assets
Liabilities
December 31, 2023
(in millions)
Trading
assets
Loans
Other
(c)
Total
assets
(d)
Beneficial
interests in
VIE assets
(e)
Other
(f)
Total
liabilities
VIE program type
Firm-sponsored credit card trusts
$
— $
9,460
$
117 $
9,577
$
2,998 $
6 $
3,004
Firm-administered multi-seller conduits

1
27,372

194
27,567

17,781
30
17,811
Municipal bond vehicles

2,056
—

22
2,078

2,116
11
2,127
Mortgage securitization entities
(a)

—
693

8
701

125
57
182
Other

113
86

250
449

—
159
159
Total
$
2,170 $
37,611
$
591 $
40,372
$
23,020 $
263 $
23,283
(a) Includes residential mortgage securitizations.
(b) Primarily includes consumer loans in CIB.
(c) Includes assets classified as cash and other assets on the Consolidated balance sheets.
(d) The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The assets and
liabilities include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation.
(e) The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified on the Consolidated balance sheets as “Beneficial
interests issued by consolidated VIEs”. The holders of these beneficial interests generally do not have recourse to the general credit of
JPMorganChase. Included in beneficial interests in VIE assets are long-term beneficial interests of $5.5 billion and $3.1 billion at December 31,
2024 and 2023, respectively.
(f) Includes liabilities classified as accounts payable and other liabilities on the Consolidated balance sheets.
JPMorgan Chase & Co./2024 Form 10-K
275

VIEs sponsored by third parties
The Firm enters into transactions with VIEs structured
by other parties. These include, for example, acting as
a derivative counterparty, liquidity provider, investor,
underwriter, placement agent, remarketing agent,
trustee or custodian. These transactions are
conducted at arm’s-length, and individual credit
decisions are based on the analysis of the specific VIE,
taking into consideration the quality of the underlying
assets. Where the Firm does not have the power to
direct the activities of the VIE that most significantly
impact the VIE’s economic performance, or a variable
interest that could potentially be significant, the Firm
generally does not consolidate the VIE, but it records
and reports these positions on its Consolidated
balance sheets in the same manner it would record
and report positions in respect of any other third-party
transaction.
Tax credit vehicles
The Firm holds investments in unconsolidated tax
credit vehicles, which are limited partnerships and
similar entities that own and operate affordable
housing, alternative energy, and other projects. These
entities are primarily considered VIEs. A third party is
typically the general partner or managing member and
has control over the significant activities of the tax
credit vehicles, and accordingly the Firm does not
consolidate tax credit vehicles. The Firm generally
invests in these partnerships as a limited partner and
earns a return primarily through the receipt of tax
credits allocated to the projects. The maximum loss
exposure, represented by equity investments and
funding commitments, was $35.2 billion and $35.1
billion, of which $15.0 billion and $14.7 billion was
unfunded at December 31, 2024 and 2023,
respectively. The Firm assesses each project and to
reduce the risk of loss, may withhold varying amounts
of its capital investment until the project qualifies for
tax credits. Refer to Note 28 for more information on
off-balance sheet lending-related commitments.
Effective January 1, 2024, the Firm adopted updates to
the Accounting for Investments in Tax Credit
Structures Using the Proportional Amortization
Method guidance which expanded the types of tax-
oriented investments, beyond affordable housing tax
credit investments, that the Firm can elect on a
program by program basis, to be accounted for using
the proportional amortization method. Refer to Notes
1, 6 and 25 for further information.
The proportional amortization method requires the
cost of eligible investments, within an elected
program, be amortized in proportion to the tax
benefits received with the resulting amortization
reported directly in income tax expense, which aligns
with the associated tax credits and other tax benefits.
Investments must meet certain criteria to be eligible,
including that substantially all of the return is from
income tax credits and other income tax benefits.
In addition, under this method deferred taxes are
generally not recorded as the investment is now
amortized in proportion to the income tax credits and
other income tax benefits received. Delayed equity
contributions that are unconditional and legally
binding or conditional and probable of occurring are
recorded in other liabilities with a corresponding
increase in the carrying value of the investment. The
guidance also requires a reevaluation of eligible
investments when significant modifications or events
occur that result in a change in the nature of the
investment or a change in the Firm's relationship with
the underlying project. During the period, there were
no significant modifications or events that resulted in a
change in the nature of an eligible investment or a
change in the Firm's relationship with the underlying
project.
The following table provides information on tax-
oriented investments for which the Firm elected to
apply the proportional amortization method.
Year ended December 31,
(in millions)
Alternative energy and
affordable housing programs
(d)
2024
2023
2022
Programs for which the Firm
elected proportional
amortization:
Carrying value
(a)
$ 31,978 $ 14,644 $ 12,052
Tax credits and other tax
benefits
(b)

6,379
2,044
1,786
Investments that qualify to be
accounted for using
proportional amortization:
Amortization losses recognized
as a component of income tax
expense

(5,018)
(1,561)
(1,353)
Non-income-tax-related gains/
(losses) and other returns
received that are recognized
outside of income tax expense
(c)
142
(1)
(1)
(a) Recorded in Other assets on the Consolidated balance sheets.
Excludes programs to which the Firm does not apply the
proportional amortization method, such as historic tax credit and
new market tax credit programs.
(b) Reflected in Income tax expense on the Consolidated
statements of income and Operating activities on the
Consolidated statements of cash flows.
(c) Recorded in Other income on the Consolidated statements of
income and Operating activities on the Consolidated statements
of cash flows.
(d) As of December 31, 2023 and 2022 represents eligible affordable
housing investments.
Notes to consolidated financial statements
276
JPMorgan Chase & Co./2024 Form 10-K

Customer municipal bond vehicles (TOB trusts)
The Firm may provide various services to customer
TOB trusts, including remarketing agent, liquidity or
tender option provider. In certain customer TOB
transactions, the Firm, as liquidity provider, has
entered into a reimbursement agreement with the
Residual holder. In those transactions, upon the
termination of the vehicle, the Firm has recourse to the
third-party Residual holders for any shortfall. The Firm
does not have any intent to protect Residual holders
from potential losses on any of the underlying
municipal bonds. The Firm does not consolidate
customer TOB trusts, since the Firm does not have the
power to make decisions that significantly impact the
economic performance of the municipal bond vehicle.
The Firm’s maximum exposure as a liquidity provider
to customer TOB trusts at December 31, 2024 and
2023, was $5.8 billion and $5.1 billion, respectively.
The fair value of assets held by such VIEs at
December 31, 2024 and 2023 was $8.1 billion and $7.3
billion, respectively.
Loan securitizations
The Firm has securitized and sold a variety of loans,
including residential mortgages, credit card
receivables, commercial mortgages and other
consumer loans. The purposes of these securitization
transactions were to satisfy investor demand and to
generate liquidity for the Firm.
For loan securitizations in which the Firm is not
required to consolidate the trust, the Firm records the
transfer of the loan receivable to the trust as a sale
when all of the following accounting criteria for a sale
are met: (1) the transferred financial assets are legally
isolated from the Firm’s creditors; (2) the transferee or
beneficial interest holder can pledge or exchange the
transferred financial assets; and (3) the Firm does not
maintain effective control over the transferred financial
assets (e.g., the Firm cannot repurchase the
transferred assets before their maturity and it does not
have the ability to unilaterally cause the holder to
return the transferred assets).
For loan securitizations accounted for as a sale, the
Firm recognizes a gain or loss based on the difference
between the value of proceeds received (including
cash, beneficial interests, or servicing assets received)
and the carrying value of the assets sold. Gains and
losses on securitizations are reported in noninterest
revenue.
JPMorgan Chase & Co./2024 Form 10-K
277

Securitization activity
The following table provides information related to the Firm’s securitization activities for the years ended
December 31, 2024, 2023 and 2022, related to assets held in Firm-sponsored securitization entities that were not
consolidated by the Firm, and where sale accounting was achieved at the time of the securitization.
2024
2023
2022
Year ended December 31,
(in millions)
Residential
mortgage(d)
Commercial
and other(e)
Residential
mortgage(d)
Commercial
and other(e)
Residential
mortgage(d)
Commercial
and other(e)
Principal securitized
$
19,988 $
17,683
$
7,678 $
3,901
$
10,218 $
9,036
All cash flows during the period:(a)
Proceeds received from loan sales as financial
instruments(b)(c)
$
19,870 $
17,346
$
7,251 $
3,896
$
9,783 $
8,921
Servicing fees collected

35
35

24
5

62
2
Cash flows received on interests

405
1,303

325
425

489
285
(a) Excludes re-securitization transactions.
(b) Primarily includes Level 2 assets.
(c) The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.
(d) Represents prime mortgages. Excludes loan securitization activity related to U.S. GSEs and government agencies.
(e) Includes commercial mortgages and auto loans.
Key assumptions used to value retained interests
originated during the year are shown in the table
below.
Year ended December 31,
2024
2023
2022
Residential mortgage retained interest:
Weighted-average life (in years)
4.3
9.6
10.8
Weighted-average discount rate
7.1 %
4.8 %
4.0 %
Commercial and other retained interest:
Weighted-average life (in years)
4.5
3.0
5.9
Weighted-average discount rate
6.2 %
4.6 %
2.9 %
Loans and excess MSRs sold to U.S. government-
sponsored enterprises and loans in securitization
transactions pursuant to Ginnie Mae guidelines
In addition to the amounts reported in the
securitization activity tables above, the Firm, in the
normal course of business, sells originated and
purchased mortgage loans and certain originated
excess MSRs on a nonrecourse basis, predominantly
to U.S. GSEs. These loans and excess MSRs are sold
primarily for the purpose of securitization by the U.S.
GSEs, who provide certain guarantee provisions (e.g.,
credit enhancement of the loans). The Firm also sells
loans into securitization transactions pursuant to
Ginnie Mae guidelines; these loans are typically
insured or guaranteed by another U.S. government
agency. The Firm does not consolidate the
securitization vehicles underlying these transactions
as it is not the primary beneficiary. For a limited
number of loan sales, the Firm is obligated to share a
portion of the credit risk associated with the sold loans
with the purchaser. Refer to Note 28 for additional
information about the Firm’s loan sales- and
securitization-related indemnifications and Note 15 for
additional information about the impact of the Firm’s
sale of certain excess MSRs.
The following table summarizes the activities related
to loans sold to the U.S. GSEs, and loans in
securitization transactions pursuant to Ginnie Mae
guidelines.
Year ended December 31,
(in millions)
2024
2023
2022
Carrying value of loans sold
$
25,765 $
19,906 $
48,891
Proceeds received from loan
sales as cash
$
2,380 $
300 $
22
Proceeds from loan sales as
securities
(a)(b)

23,178
19,389
48,096
Total proceeds received
from loan sales
(c)
$
25,558 $
19,689 $
48,118
Gains/(losses) on loan
sales
(d)(e)
$
— $
— $
(25)
(a) Includes securities from U.S. GSEs and Ginnie Mae that are
generally sold shortly after receipt or retained as part of the
Firm’s investment securities portfolio.
(b) Included in level 2 assets.
(c) Excludes the value of MSRs retained upon the sale of loans.
(d) Gains/(losses) on loan sales include the value of MSRs.
(e) The carrying value of the loans accounted for at fair value
approximated the proceeds received upon loan sale.
Notes to consolidated financial statements
278
JPMorgan Chase & Co./2024 Form 10-K

Options to repurchase delinquent loans
In addition to the Firm’s obligation to repurchase
certain loans due to material breaches of
representations and warranties as discussed in Note
28, the Firm also has the option to repurchase
delinquent loans that it services for Ginnie Mae loan
pools, as well as for other U.S. government agencies
under certain arrangements. The Firm typically elects
to repurchase delinquent loans from Ginnie Mae loan
pools as it continues to service them and/or manage
the foreclosure process in accordance with the
applicable requirements, and such loans continue to
be insured or guaranteed. When the Firm’s repurchase
option becomes exercisable, such loans must be
reported on the Consolidated balance sheets as a loan
with a corresponding liability. Refer to Note 12 for
additional information.
The following table presents loans the Firm
repurchased or had an option to repurchase, real
estate owned, and foreclosed government-guaranteed
residential mortgage loans recognized on the Firm’s
Consolidated balance sheets as of December 31, 2024
and 2023. Substantially all of these loans and real
estate are insured or guaranteed by U.S. government
agencies.
December 31,
(in millions)
2024
2023
Loans repurchased or option to
repurchase(a)
$
577
$
597
Real estate owned

8
Foreclosed government-guaranteed
residential mortgage loans(b)

22
(a) Primarily all of these amounts relate to loans that have been
repurchased from Ginnie Mae loan pools.
(b) Relates to voluntary repurchases of loans, which are included in
accrued interest and accounts receivable.
Loan delinquencies and liquidation losses
The table below includes information about components of and delinquencies related to nonconsolidated
securitized financial assets held in Firm-sponsored private-label securitization entities, in which the Firm has
continuing involvement as of December 31, 2024 and 2023. For loans sold or securitized where servicing is the
Firm’s only form of continuing involvement, the Firm generally experiences a loss only if the Firm was required to
repurchase a delinquent loan or foreclosed asset due to a breach in representations and warranties associated with
its loan sale or servicing contracts.
As of or for the year ended December 31,
(in millions)
Securitized assets
90 days past due
Net liquidation losses /
(recoveries)
2024
2023
2024
2023
2024
2023
Securitized loans
Residential mortgage:
Prime/ Alt-A & option ARMs
$
50,846 $
39,319
$
501 $
440
$
10 $
14
Subprime

1,847
1,312

113
131

2
5
Commercial and other

125,510
120,262

1,715
2,874

77
60
Total loans securitized
$
178,203 $
160,893
$
2,329 $
3,445
$
89 $
79
JPMorgan Chase & Co./2024 Form 10-K
279

Note 15 – Goodwill, mortgage servicing rights, and other intangible assets
Goodwill
Goodwill is recorded upon completion of a business
combination as the difference between the purchase
price and the fair value of the net assets acquired, and
can be adjusted up to one year from the acquisition
date as additional information pertaining to facts and
circumstances that existed as of the acquisition date is
obtained about the fair value of assets acquired and
liabilities assumed. Subsequent to initial recognition,
goodwill is not amortized but is tested for impairment
during the fourth quarter of each fiscal year, or more
often if events or circumstances, such as adverse
changes in the business climate, indicate that there
may be an impairment.
The goodwill associated with each business
combination is allocated to the related reporting units,
which are generally determined based on how the
Firm’s businesses are managed and how they are
reviewed. The following table presents goodwill
attributed to the reportable business segments and
Corporate.
December 31, (in millions)
2024
2023
2022
Consumer & Community Banking
$ 32,116 $ 32,116 $ 32,121
Commercial & Investment Bank

11,236
11,251 10,993
Asset & Wealth Management

8,521
8,582
7,902
Corporate

692
685
646
Total goodwill
$ 52,565 $ 52,634 $ 51,662
The following table presents changes in the carrying
amount of goodwill.
(in millions)
2024
2023
2022
Balance at beginning of period
$ 52,634 $ 51,662 $ 50,315
Changes during the period from:
Business combinations
(a)

29
917
1,426
Other
(b)

(98)
55
(79)
Balance at December 31,
$ 52,565 $ 52,634 $ 51,662
(a) For 2024, includes estimated goodwill associated with the
acquisition of LayerOne Financial in CIB. For 2023,
predominantly represents estimated goodwill associated with
the acquisition of the remaining 51% interest in CIFM in AWM and
the acquisition of Aumni Inc., predominantly in CIB. For 2022,
represents estimated goodwill associated with the acquisitions
of Global Shares PLC in AWM, Frosch Travel Group, LLC and
Figg, Inc. in CCB, and Renovite Technologies, Inc. and
Volkswagen Payments S.A. in CIB.
(b) Primarily foreign currency adjustments.
Goodwill impairment testing
The Firm’s goodwill was not impaired at December 31,
2024, 2023 and 2022.
The goodwill impairment test is generally performed
by comparing the current fair value of each reporting
unit with its carrying value. If the fair value is in excess
of the carrying value, then the reporting unit’s goodwill
is considered not to be impaired. If the fair value is less
than the carrying value, then an impairment is
recognized for the amount by which the reporting
unit’s carrying value exceeds its fair value, up to the
amount of goodwill allocated to that reporting unit.
The Firm uses the reporting units’ allocated capital
plus goodwill and other intangible assets as a proxy for
the carrying values of equity for the reporting units in
the goodwill impairment testing. Reporting unit equity
is determined on a similar basis as the allocation of
capital to the LOBs which takes into consideration a
variety of factors including capital levels of similarly
rated peers and applicable regulatory capital
requirements. LOB’s allocated capital levels are
incorporated into the Firm’s annual budget process,
which is reviewed by the Firm’s Board of Directors and
Operating Committee.
The primary method the Firm uses to estimate the fair
value of its reporting units is the income approach.
This approach projects cash flows for the forecast
period and uses the perpetuity growth method to
calculate terminal values. These cash flows and
terminal values, which are based on the reporting
units’ annual budgets and forecasts are then
discounted using an appropriate discount rate. The
discount rate used for each reporting unit represents
an estimate of the cost of equity for that reporting unit
and is determined considering the Firm’s overall
estimated cost of equity (estimated using the Capital
Asset Pricing Model), as adjusted for the risk
characteristics specific to each reporting unit (for
example, for higher levels of risk or uncertainty
associated with the business or management’s
forecasts and assumptions). To assess the
reasonableness of the discount rates used for each
reporting unit, management compares the discount
rate to the estimated cost of equity for publicly traded
institutions with similar businesses and risk
characteristics. In addition, the weighted average cost
of equity (aggregating the various reporting units) is
compared with the Firm’s overall estimated cost of
equity for reasonableness. The valuations derived
from the discounted cash flow analysis are then
compared with market-based trading and transaction
multiples for relevant competitors. Trading and
transaction comparables are used as general
indicators to assess the overall reasonableness of the
estimated fair values, although precise conclusions
generally cannot be drawn due to the differences that
Notes to consolidated financial statements
280
JPMorgan Chase & Co./2024 Form 10-K

naturally exist between the Firm’s businesses and
competitor institutions.
The Firm also takes into consideration a comparison
between the aggregate fair values of the Firm’s
reporting units and JPMorganChase’s market
capitalization. In evaluating this comparison, the Firm
considers several factors, including (i) a control
premium that would exist in a market transaction, (ii)
factors related to the level of execution risk that would
exist at the Firmwide level that do not exist at the
reporting unit level and (iii) short-term market volatility
and other factors that do not directly affect the value of
individual reporting units.
Unanticipated declines in business performance,
increases in credit losses, increases in capital
requirements, as well as deterioration in economic or
market conditions, adverse regulatory or legislative
changes or increases in the estimated market cost of
equity, could cause the estimated fair values of the
Firm’s reporting units to decline in the future, which
could result in a material impairment loss to earnings
in a future period related to some portion of the
associated goodwill.
Mortgage servicing rights
MSRs represent the fair value of expected future cash
flows for performing servicing activities for others. The
fair value considers estimated future servicing fees
and ancillary revenue, offset by estimated costs to
service the loans, and generally declines over time as
net servicing cash flows are received, effectively
amortizing the MSR asset against contractual
servicing and ancillary fee income. MSRs are either
purchased from third parties or recognized upon sale
or securitization of mortgage loans if servicing is
retained.
As permitted by U.S. GAAP, the Firm has elected to
account for its MSRs at fair value. The Firm treats its
MSRs as a single class of servicing assets based on the
availability of market inputs used to measure the fair
value of its MSR asset and its treatment of MSRs as
one aggregate pool for risk management purposes.
The Firm estimates the fair value of MSRs using an
option-adjusted spread (“OAS”) model, which projects
MSR cash flows over multiple interest rate scenarios in
conjunction with the Firm’s prepayment model, and
then discounts these cash flows at risk-adjusted rates.
The model considers portfolio characteristics,
contractually specified servicing fees, prepayment
assumptions, delinquency rates, costs to service, late
charges and other ancillary revenue, and other
economic factors. The Firm compares fair value
estimates and assumptions to observable market data
where available, and also considers recent market
activity and actual portfolio experience.
JPMorgan Chase & Co./2024 Form 10-K
281

The fair value of MSRs is sensitive to changes in
interest rates, including their effect on prepayment
speeds. MSRs typically decrease in value when
interest rates decline because declining interest rates
tend to increase prepayments and therefore reduce
the expected life of the net servicing cash flows that
comprise the MSR asset. Conversely, securities (e.g.,
mortgage-backed securities), and certain derivatives
(e.g., those for which the Firm receives fixed-rate
interest payments) increase in value when interest
rates decline. JPMorganChase uses combinations of
derivatives and securities to manage the risk of
changes in the fair value of MSRs. The intent is to
offset any interest-rate related changes in the fair
value of MSRs with changes in the fair value of the
related risk management instruments.
The following table summarizes MSR activity for the years ended December 31, 2024, 2023 and 2022.
As of or for the year ended December 31, (in millions, except where otherwise noted)
2024
2023
2022
Fair value at beginning of period
$
8,522
$
7,973
$
5,494
MSR activity:
Originations of MSRs

325

253

798
Purchase of MSRs(a)

601

1,028

1,400
Disposition of MSRs(b)

(21)

(188)

(822)
Net additions/(dispositions)

905

1,093

1,376
Changes due to collection/realization of expected cash flows

(1,068)

(1,011)

(936)
Changes in valuation due to inputs and assumptions:
Changes due to market interest rates and other
(c)

670

424

2,022
Changes in valuation due to other inputs and assumptions:
Projected cash flows (e.g., cost to service)

102

(22)

14
Discount rates

—
Prepayment model changes and other
(d)

(24)

3
Total changes in valuation due to other inputs and assumptions

17
Total changes in valuation due to inputs and assumptions

762

467

2,039
Fair value at December 31,
$
9,121
$
8,522
$
7,973
Change in unrealized gains/(losses) included in income related to MSRs held at December 31,
$
762
$
467
$
2,039
Contractual service fees, late fees and other ancillary fees included in income

1,606

1,590

1,535
Third-party mortgage loans serviced at December 31, (in billions)

652

632

584
Servicer advances, net of an allowance for uncollectible amounts, at December 31
(e)

577

659

758
(a) Includes purchase price adjustments associated with MSRs purchased, primarily as a result of loans that prepaid within 90 days of
settlement, allowing the Firm to recover the purchase price.
(b) Includes excess MSRs transferred to agency-sponsored trusts in exchange for stripped mortgage-backed securities (“SMBS”). In each
transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired the remaining balance of those
SMBS as trading securities.
(c) Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between
actual and expected prepayments.
(d) Represents changes in prepayments other than those attributable to changes in market interest rates.
(e) Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest, taxes and insurance), which will generally be
reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk
associated with these servicer advances is minimal because reimbursement of the advances is typically senior to all cash payments to
investors. In addition, the Firm maintains the right to stop payment to investors if the collateral is insufficient to cover the advance. However,
certain of these servicer advances may not be recoverable if they were not made in accordance with applicable rules and agreements.
Notes to consolidated financial statements
282
JPMorgan Chase & Co./2024 Form 10-K

The following table presents the components of
mortgage fees and related income (including the
impact of MSR risk management activities) for the
years ended December 31, 2024, 2023 and 2022.
Year ended December 31,
(in millions)
2024
2023
2022
CCB mortgage fees and related
income
Production revenue
$
627
$
421
$
497
Net mortgage servicing
revenue:
Operating revenue:
Loan servicing revenue
1,659

1,634

1,582
Changes in MSR asset fair
value due to collection/
realization of expected cash
flows
(1,067)
(1,011)
(936)
Total operating revenue

592

623

646
Risk management:
Changes in MSR asset fair
value due to market interest
rates and other
(a)

670

424
2,022
Other changes in MSR asset
fair value due to other inputs
and assumptions in model
(b)

17
Change in derivative fair value
and other

(603)
(336) (1,946)
Total risk management

159

131

93
Total net mortgage servicing
revenue

751

754

739
Total CCB mortgage fees and
related income

1,378

1,175

1,236
All other

14
Mortgage fees and related income $ 1,401
$ 1,176
$ 1,250
(a) Represents both the impact of changes in estimated future
prepayments due to changes in market interest rates, and the
difference between actual and expected prepayments.
(b) Represents the aggregate impact of changes in model inputs
and assumptions such as projected cash flows (e.g., cost to
service), discount rates and changes in prepayments other than
those attributable to changes in market interest rates (e.g.,
changes in prepayments due to changes in home prices).
Changes in fair value based on variations in
assumptions generally cannot be easily extrapolated,
because the relationship of the change in the
assumptions to the change in fair value are often
highly interrelated and may not be linear. In the
following table, the effect that a change in a particular
assumption may have on the fair value is calculated
without changing any other assumption. In reality,
changes in one factor may result in changes in
another, which would either magnify or counteract the
impact of the initial change.
The table below outlines the key economic
assumptions used to determine the fair value of the
Firm’s MSRs at December 31, 2024 and 2023, and
outlines the sensitivities of those fair values to
immediate adverse changes in those assumptions, as
defined below.
December 31,
(in millions, except rates)
2024
2023
Weighted-average prepayment speed
assumption (constant prepayment rate)
6.19 %
6.29 %
Impact on fair value of 10% adverse
change
$ (209)
$ (206)
Impact on fair value of 20% adverse
change

(406)

(401)
Weighted-average option adjusted
spread
(a)
5.97 %
6.10 %
Impact on fair value of 100 basis points
adverse change
$ (391)
$ (369)
Impact on fair value of 200 basis points
adverse change

(751)

(709)
(a) Includes the impact of operational risk and regulatory capital.
JPMorgan Chase & Co./2024 Form 10-K
283

Other intangible assets
The Firm’s finite-lived and indefinite-lived other
intangible assets are initially recorded at their fair
value primarily upon completion of a business
combination. Subsequently, the Firm’s finite-lived
intangible assets, including core deposit intangibles,
customer relationship intangibles, and certain other
intangible assets, are amortized over their useful lives,
estimated based on the expected future economic
benefits to the Firm of the intangible asset. The Firm’s
intangible assets with indefinite lives, such as asset
management contracts, are not subject to
amortization and are assessed periodically for
impairment.
As of December 31, 2024 and 2023, the gross carrying
values of other intangible assets were $3.8 billion and
$4.2 billion, respectively, and the accumulated
amortization was $879 million and $994 million,
respectively.
As of December 31, 2024 and 2023, the net carrying
values consist of finite-lived intangible assets of $1.7
billion and $2.0 billion, respectively, as well as
indefinite-lived intangible assets, which are not subject
to amortization, of $1.2 billion at both periods.
As of December 31, 2024, other intangible assets
reflected core deposit and certain wealth management
customer relationship intangibles related to the First
Republic acquisition, and asset management
contracts related to the Firm’s acquisition of the
remaining 51% interest in CIFM. Refer to Note 34 for
additional information on the First Republic
acquisition.
For the years ended December 31, 2024 and 2023,
amortization expense was $339 million and $315
million, respectively.
The following table presents estimated future
amortization expense.
December 31,
(in millions)
Finite-lived
intangible assets
2025
$
288
2026

285
2027

284
2028

267
2029

261
Impairment testing
The Firm’s finite-lived and indefinite-lived other
intangible assets are assessed for impairment annually
or more often if events or changes in circumstances
indicate that the asset might be impaired. Once the
Firm determines that an impairment exists for an
intangible asset, the impairment is recognized in other
expense.
Notes to consolidated financial statements
284
JPMorgan Chase & Co./2024 Form 10-K

Note 16 – Premises and equipment
Premises and equipment includes land carried at cost,
as well as buildings, leasehold improvements, internal-
use software and furniture and equipment carried at
cost less accumulated depreciation and amortization.
The Firm’s operating lease right-of-use assets are also
included in Premises and equipment. Refer to Note 18
for a further discussion of the Firm’s right-of-use
assets.
The following table presents certain components of
Premises and equipment.
December 31, (in millions)
2024
2023
Land, buildings and leasehold
improvements
$ 16,874
$ 14,862
Right-of-use assets(a)

7,930

7,917
Other premises and equipment(b)

7,419

7,378
Total premises and equipment
$ 32,223
$
30,157
(a) Excluded $564 million and $514 million of right-of-use assets
that were recorded in Other assets at December 31, 2024 and
2023, respectively.
(b) Other premises and equipment is comprised of internal-use
software and furniture and equipment.
JPMorganChase computes depreciation using the
straight-line method over the estimated useful life for
buildings and furniture and equipment. The Firm
depreciates leasehold improvements over the lesser of
the remainder of the lease term or the estimated useful
life. The Firm also capitalizes certain costs associated
with the acquisition or development of internal-use
software. Once the software is ready for its intended
use, these costs are amortized on a straight-line basis
over the software’s expected useful life. The estimated
useful lives range from 10 to 50 years for buildings and
leasehold improvements, and 3 to 10 years for internal-
use software and furniture and equipment.
Impairment is assessed when events or changes in
circumstances indicate that the carrying value of an
asset may not be fully recoverable.
Note 17 – Deposits
As of December 31, 2024 and 2023, noninterest-
bearing and interest-bearing deposits were as follows:
December 31, (in millions)
2024
2023
U.S. offices
Noninterest-bearing (included
$28,904 and $75,393 at fair value)(a)
$ 592,500
$
643,748
Interest-bearing (included $1,101 and
$573 at fair value)(a)
1,345,914

1,303,100
Total deposits in U.S. offices
1,938,414

1,946,848
Non-U.S. offices
Noninterest-bearing (included
$2,255 and $1,737 at fair value)(a)

26,806

23,097
Interest-bearing (included $1,508
and $681 at fair value)(a)

440,812

430,743
Total deposits in non-U.S. offices

467,618

453,840
Total deposits
$ 2,406,032
$ 2,400,688
(a) Includes structured notes classified as deposits for which the fair
value option has been elected. Refer to Note 3 for further
discussion.
As of December 31, 2024 and 2023, time deposits in
denominations that met or exceeded the insured limit
were as follows:
December 31, (in millions)
2024
2023
U.S. offices
$ 149,239
$ 132,654
Non-U.S. offices
(a)

92,639

90,187
Total
$ 241,878
$ 222,841
(a) Represents all time deposits in non-U.S. offices as these
deposits typically exceed the insured limit.
As of December 31, 2024, the remaining maturities of
interest-bearing time deposits were as follows:
December 31,
(in millions)
U.S.
Non-U.S.
Total
2025
$ 222,676
$ 89,427
$ 312,103
2026

749

836
2027

482

484
2028

149

167
2029

314

721

1,035
After 5 years

162

129

291
Total
$ 224,532
$ 90,384
$ 314,916
JPMorgan Chase & Co./2024 Form 10-K
285

Note 18 - Leases
Firm as lessee
At December 31, 2024, JPMorganChase and its
subsidiaries were obligated under a number of
noncancellable leases, predominantly operating leases
for premises and equipment used primarily for
business purposes. These leases generally have terms
of 20 years or less, determined based on the
contractual maturity of the lease, and include periods
covered by options to extend or terminate the lease
when the Firm is reasonably certain that it will exercise
those options. All leases with lease terms greater than
twelve months are reported as a lease liability with a
corresponding right-of-use (“ROU”) asset. None of
these lease agreements impose restrictions on the
Firm’s ability to pay dividends, engage in debt or
equity financing transactions or enter into further lease
agreements. Certain of these leases contain escalation
clauses that will increase rental payments based on
maintenance, utility and tax increases, which are non-
lease components. The Firm elected not to separate
lease and non-lease components of a contract for its
real estate leases. As such, real estate lease payments
represent payments on both lease and non-lease
components.
Operating lease liabilities and ROU assets are
recognized at the lease commencement date based
on the present value of the future minimum lease
payments over the lease term. The future lease
payments are discounted at a rate that estimates the
Firm’s collateralized borrowing rate for financing
instruments of a similar term and are included in
accounts payable and other liabilities. The operating
lease ROU assets, predominantly included in premises
and equipment, also include any lease prepayments
made, plus initial direct costs incurred, less any lease
incentives received. Rental expense associated with
operating leases is recognized on a straight-line basis
over the lease term, and generally included in
occupancy expense in the Consolidated statements of
income.
The carrying values of the Firm’s operating leases
were as follows:
December 31,
(in millions, except where otherwise
noted)
2024
2023
Right-of-use assets
$
8,494
$
8,431
Lease liabilities

8,900

8,833
Weighted average remaining lease term
(in years)
8.3
8.4
Weighted average discount rate
4.24 %
4.01 %
Supplemental cash flow information
Cash paid for amounts included in the
measurement of lease liabilities -
operating cash flows
$
1,734
$
1,662
Supplemental non-cash information
Right-of-use assets obtained in exchange
for operating lease obligations
$
1,565
$
2,094
Year ended December 31,
(in millions)
2024
2023
Rental expense
Gross rental expense
$
2,231 $
2,079
Sublease rental income

(41)
(72)
Net rental expense
$
2,190 $
2,007
The following table presents future payments under
operating leases as of December 31, 2024.
Year ended December 31,
(in millions)
2025

1,709
2026

1,553
2027

1,412
2028

1,248
2029

1,048
After 2029

3,721
Total future minimum lease payments

10,691
Less: Imputed interest

(1,791)
Total
$
8,900
In addition to the table above, as of December 31,
2024, the Firm had additional future operating lease
commitments of $887 million that were signed but had
not yet commenced. These operating leases will
commence between 2025 and 2027 with lease terms
up to 21 years.
Notes to consolidated financial statements
286
JPMorgan Chase & Co./2024 Form 10-K

Firm as lessor
The Firm provides auto and equipment lease financing
to its customers through lease arrangements with
lease terms that may contain renewal, termination
and/or purchase options. The Firm’s lease financings
are predominantly auto operating leases. These assets
subject to operating leases are recognized in other
assets on the Firm’s Consolidated balance sheets and
are depreciated on a straight-line basis over the lease
term to reduce the asset to its estimated residual
value. Depreciation expense is included in technology,
communications and equipment expense in the
Consolidated statements of income. The Firm’s lease
income is generally recognized on a straight-line basis
over the lease term and is included in other income in
the Consolidated statements of income.
On a periodic basis, the Firm assesses leased assets
for impairment, and if the carrying amount of the
leased asset exceeds the undiscounted cash flows
from the lease payments and the estimated residual
value upon disposition of the leased asset, an
impairment is recognized.
The risk of loss on auto and equipment leased assets
relating to the residual value of the leased assets is
monitored through projections of the asset residual
values at lease origination and periodic review of
residual values, and is mitigated through
arrangements with certain manufacturers or lessees.
The following table presents the carrying value of
assets subject to leases reported on the Consolidated
balance sheets.
December 31,
(in millions)
2024
2023
Carrying value of assets subject to
operating leases, net of
accumulated depreciation
$
12,988 $
10,663
Accumulated depreciation

2,509
3,288
The following table presents the Firm’s operating lease
income and the related depreciation expense on the
Consolidated statements of income.
Year ended December 31,
(in millions)
2024
2023
2022
Operating lease income
$
2,795 $
2,843 $
3,654
Depreciation expense

1,685
1,778
2,475
The following table presents future receipts under
operating leases as of December 31, 2024.
Year ended December 31,
(in millions)
2025
$
2,381
2026

1,707
2027

704
2028

47
2029

5
After 2029

4
Total future minimum lease receipts
$
4,848
JPMorgan Chase & Co./2024 Form 10-K
287

Note 19 – Accounts payable and other
liabilities
Accounts payable and other liabilities consist of
brokerage payables, which include payables to
customers and payables related to security purchases
that did not settle, as well as other accrued expenses,
such as compensation accruals, credit card rewards
liability, merchant servicing payables, operating lease
liabilities, accrued interest payables, income tax
payables and litigation reserves.
The following table presents the components of
accounts payable and other liabilities.
December 31, (in millions)
2024
2023
Brokerage payables
$ 153,153
$ 161,960
Other payables and liabilities(a)

127,519

128,347
Total accounts payable and other
liabilities
$ 280,672
$ 290,307
(a) Includes credit card rewards liability of $14.4 billion and $13.2
billion at December 31, 2024 and 2023, respectively.
The credit card rewards liability represents the
estimated cost of rewards points earned and expected
to be redeemed by cardholders. The liability is accrued
as the cardholder earns the benefit and is reduced
when the cardholder redeems points. The redemption
rate and cost per point assumptions are key
assumptions to estimate the liability and the current
period impact is recognized in Card Income.
Refer to Notes 7, 18, 25 and 30 for additional
information on accrued interest, operating lease
liabilities, income taxes and litigation reserves,
respectively.
Notes to consolidated financial statements
288
JPMorgan Chase & Co./2024 Form 10-K

Note 20 – Long-term debt
JPMorganChase issues long-term debt denominated in various currencies, predominantly U.S. dollars, with both
fixed and variable interest rates. Included in senior and subordinated debt below are various equity-linked or other
indexed instruments, which the Firm has elected to measure at fair value. Changes in fair value are recorded in
principal transactions revenue in the Consolidated statements of income, except for unrealized gains/(losses) due
to DVA which are recorded in OCI. The following table is a summary of long-term debt carrying values (including
unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where
applicable) by remaining contractual maturity as of December 31, 2024.
By remaining maturity at
December 31,
(in millions, except rates)
2024
2023
Under 1 year
1-5 years
After 5 years
Total
Total
Parent company
Senior debt:
Fixed rate
$
7,112
$
90,132
$
117,667
$
214,911
$
200,984
Variable rate

255

6,838

1,562

8,655

8,105
Interest rates(f)
3.04 %
3.40 %
4.02 %
3.71 %
3.32 %
Subordinated debt:
Fixed rate
$
302
$
5,582
$
8,573
$
14,457
$
17,725
Variable rate

—

—
Interest rates(f)
7.75 %
4.72 %
4.69 %
4.76 %
4.62 %
Subtotal $
7,669
$ 102,552
$ 127,802
$ 238,023
$
226,814
Subsidiaries
Federal Home Loan Banks
advances:
Fixed rate
$
7,582
$
1,651
$
24
$
9,257
$
23,246
Variable rate

4,000

16,000

—

20,000

18,000
Interest rates
(f)
4.42 %
4.84 %
5.91 %
4.67 %
4.89 %
Purchase Money Note
(a):
Fixed rate
$
—
$
49,208
$
—
$
49,208
$
48,989
Interest rates
(f)
— %
3.40 %
— %
3.40 %
3.40 %
Senior debt:
Fixed rate
$
2,361
$
16,695
$
7,489
$
26,545
$
20,745
Variable rate

19,350

30,981

6,451

56,782

52,048
Interest rates
(f)
5.39 %
5.18 %
1.44 %
3.81 %
3.91 %
Subordinated debt:
Fixed rate
$
—
$
—
$
—
$
—
$
255
Variable rate

—

—
Interest rates
(f)
— %
— %
— %
— %
8.25 %
Subtotal $
33,293
$
114,535
$
13,964
$
161,792
$
163,283
Junior subordinated debt:
Fixed rate
$
—
$
—
$
488
$
488
$
518
Variable rate

—

421

694

1,115

1,210
Interest rates
(f)
— %
5.35 %
7.01 %
6.58 %
7.14 %
Subtotal $
—
$
421
$
1,182
$
1,603
$
1,728
Total long-term debt
(b)(c)(d)
$
40,962
$ 217,508
$ 142,948
$
401,418
(g)(h) $
391,825
Long-term beneficial
interests:
Fixed rate
$
999
$
4,313
$
—
$
5,312
$
2,998
Variable rate

—

139

166

125
Interest rates
(f)
3.97 %
4.82 %
2.92 %
4.62 %
4.69 %
Total long-term beneficial
interests
(e)
$
999
$
4,340
$
139
$
5,478
$
3,123
(a) Reflects the Purchase Money Note associated with First Republic. Refer to Note 34 for additional information.
(b) Included long-term debt of $80.9 billion and $93.0 billion secured by assets totaling $185.5 billion and $218.5 billion at December 31, 2024
and 2023, respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments.
(c) Included $100.8 billion and $87.9 billion of long-term debt accounted for at fair value at December 31, 2024 and 2023, respectively.
(d) Included $13.5 billion and $12.5 billion of outstanding zero-coupon notes at December 31, 2024 and 2023, respectively. The aggregate
principal amount of these notes at their respective maturities is $50.2 billion and $47.9 billion, respectively. The aggregate principal amount
reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm’s next call date, if
applicable.
(e) Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included amounts accounted for at fair
value which were not material as of December 31, 2024 and 2023. Excluded short-term commercial paper and other short-term beneficial
interests of $21.8 billion and $19.9 billion at December 31, 2024 and 2023, respectively.
(f) The interest rates shown are the weighted average of contractual rates in effect at December 31, 2024 and 2023, respectively, including non-
U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting
relationships, if applicable. The interest rates shown exclude structured notes accounted for at fair value.
(g) As of December 31, 2024, long-term debt in the aggregate of $297.1 billion was redeemable at the option of JPMorganChase, in whole or in
part, prior to maturity, based on the terms specified in the respective instruments.
(h) The aggregate carrying values of debt that matures in each of the five years subsequent to 2024 is $41.0 billion in 2025, $64.5 billion in 2026,
$32.7 billion in 2027, $93.4 billion in 2028 and $26.9 billion in 2029.
JPMorgan Chase & Co./2024 Form 10-K
289

The weighted-average contractual interest rates for
total long-term debt excluding structured notes
accounted for at fair value were 3.82% and 3.65% as of
December 31, 2024 and 2023, respectively. In order to
modify exposure to interest rate and currency
exchange rate movements, JPMorganChase utilizes
derivative instruments, primarily interest rate and
cross-currency interest rate swaps, in conjunction with
some of its debt issuances. The use of these
instruments modifies the Firm’s interest expense on
the associated debt. The modified weighted-average
interest rates for total long-term debt, including the
effects of related derivative instruments, were 5.15%
and 5.20% as of December 31, 2024 and 2023,
respectively.
JPMorgan Chase & Co. has guaranteed certain long-
term debt of its subsidiaries, including structured
notes. These guarantees rank pari passu with the
Firm’s other unsecured and unsubordinated
indebtedness. The amount of such guaranteed long-
term debt and structured notes was $41.2 billion and
$41.1 billion at December 31, 2024 and 2023,
respectively.
The Firm’s unsecured debt does not contain
requirements that would call for an acceleration of
payments, maturities or changes in the structure of the
existing debt, provide any limitations on future
borrowings or require additional collateral, based on
unfavorable changes in the Firm’s credit ratings,
financial ratios, earnings or stock price.
Notes to consolidated financial statements
290
JPMorgan Chase & Co./2024 Form 10-K

Note 21 – Preferred stock
At December 31, 2024 and 2023, JPMorganChase was authorized to issue 200 million shares of preferred stock, in one
or more series, with a par value of $1 per share. In the event of a liquidation or dissolution of the Firm, JPMorganChase’s
preferred stock then outstanding takes precedence over the Firm’s common stock with respect to the payment of
dividends and the distribution of assets.
The following is a summary of JPMorganChase’s non-cumulative preferred stock outstanding as of December 31, 2024
and 2023, and the quarterly dividend declarations for the years ended December 31, 2024, 2023 and 2022.
Shares
(a)
Carrying value
(in millions)
Issue date
Contractual
rate
in effect at
December 31,
2024
Earliest
redemption
date
(b)
Floating
annualized
rate
(c)
Dividend declared per share
(d)
December 31,
December 31,
Year ended December 31,
2024
2023
2024
2023
2024
2023
2022
Fixed-rate:
Series DD
169,625 169,625

1,696
1,696
9/21/2018
5.750
12/1/2023
NA

575.00

575.00
Series EE
185,000 185,000

1,850
1,850
1/24/2019
6.000
3/1/2024
NA
600.00

600.00

600.00
Series GG
90,000
90,000

900
900
11/7/2019
4.750
12/1/2024
NA
475.00

475.00

475.00
Series JJ
150,000 150,000

1,500
1,500
3/17/2021
4.550
6/1/2026
NA
455.00

455.00

455.00
Series LL
185,000 185,000

1,850
1,850
5/20/2021
4.625
6/1/2026
NA

462.52

462.52
Series MM 200,000 200,000

2,000
2,000
7/29/2021
4.200
9/1/2026
NA
420.00

420.00

420.00
Fixed-to-floating rate:
Series I

—
—
$
— $
— 4/23/2008
— % 4/30/2018
— % $
—
$
—
$ 375.03
Series Q

— 150,000

—
1,500
4/23/2013
—
5/1/2023
SOFR + 3.25

220.45

801.41
(g)
515.00
Series R

— 150,000

—
1,500
7/29/2013
—
8/1/2023
SOFR + 3.30

221.70

756.73
(h)
600.00
Series S

— 200,000

—
2,000
1/22/2014
—
2/1/2024
SOFR + 3.78

233.70
(e)
675.00

675.00
Series U

— 100,000

—
1,000
3/10/2014
—
4/30/2024
SOFR + 3.33

153.13

612.50

612.50
Series V

—
—

—
—
6/9/2014
—
7/1/2019

—

340.91
Series X

— 160,000

—
1,600
9/23/2014
—
10/1/2024
SOFR + 3.33

457.50

610.00

610.00
Series CC
125,750 125,750

1,258
1,258 10/20/2017
SOFR + 2.58
11/1/2022
SOFR + 2.58

812.73

804.08

526.27
(i)
Series FF

— 225,000

—
2,250
7/31/2019
—
8/1/2024
SOFR + 3.38
250.00

500.00

500.00
Series HH
300,000 300,000

3,000
3,000
1/23/2020
4.600
2/1/2025
SOFR + 3.125
460.00

460.00

460.00
Series II
150,000 150,000

1,500
1,500
2/24/2020
4.000
4/1/2025
SOFR + 2.745 400.00

400.00

400.00
Series KK
200,000 200,000

2,000
2,000
5/12/2021
3.650
6/1/2026
CMT + 2.85
365.00

365.00

365.00
Series NN
250,000
NA

2,496
NA
3/12/2024
6.875
6/1/2029
CMT + 2.737

494.63
(f)
NA
NA
Total
preferred
stock
2,005,375 2,740,375
$ 20,050 $ 27,404
(a) Represented by depositary shares.
(b) Each series of fixed-to-floating rate preferred stock converts to a floating rate at the earliest redemption date.
(c) Effective June 30, 2023, CME Term SOFR became the replacement reference rate for fixed-to-floating rate preferred stock issued by the Firm
that formerly referenced U.S. dollar LIBOR. References in the table to “SOFR” mean a floating annualized rate equal to three-month term SOFR
(plus a spread adjustment of 0.26% per annum) plus the spreads noted. References to “CMT” mean a floating annualized rate equal to the five-
year Constant Maturity Treasury (“CMT”) rate plus the spreads noted.
(d) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends are declared quarterly. Dividends are payable
quarterly on fixed-rate preferred stock. Dividends are payable semiannually on fixed-to-floating rate preferred stock while at a fixed rate, and
payable quarterly after converting to a floating rate.
(e) The dividend rate for Series S preferred stock became floating and payable quarterly starting on February 1, 2024; prior to which the dividend
rate was fixed at 6.75% or $337.50 per share payable semiannually. The dividend rate for each quarterly dividend period commencing on
February 1, 2024 was three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 3.78%.
(f) The initial dividend declared was prorated based on the number of days outstanding for the period. Dividends were declared quarterly
thereafter at the contractual rate.
(g) The dividend rate for Series Q preferred stock became floating and payable quarterly starting on May 1, 2023; prior to which the dividend rate
was fixed at 5.15% or $257.50 per share payable semiannually. The dividend rate for each quarterly dividend period commencing on August 1,
2023 was three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 3.25%.
(h) The dividend rate for Series R preferred stock became floating and payable quarterly starting on August 1, 2023; prior to which the dividend
rate was fixed at 6.00% or $300.00 per share payable semiannually. The dividend rate for each quarterly dividend period commencing on
August 1, 2023 was three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 3.30%.
(i)
The dividend rate for Series CC preferred stock became floating and payable quarterly starting on November 1, 2022; prior to which the
dividend rate was fixed at 4.625% or $231.25 per share payable semiannually. The dividend rate for each quarterly dividend period
commencing on August 1, 2023 was three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 2.58%.
JPMorgan Chase & Co./2024 Form 10-K
291

Each series of preferred stock has a liquidation value and redemption price per share of $10,000, plus accrued but
unpaid dividends. The aggregate liquidation value was $20.2 billion at December 31, 2024.
Issuances
On February 4, 2025, the Firm issued $3.0 billion of fixed-rate reset non-cumulative preferred stock, Series OO.
On March 12, 2024, the Firm issued $2.5 billion of fixed-rate reset non-cumulative preferred stock, Series NN.
Redemptions
On February 1, 2025, the Firm redeemed all $3.0 billion of its fixed-to-floating rate non-cumulative preferred stock,
Series HH.
On October 1, 2024, the Firm redeemed all $1.6 billion of its fixed-to-floating rate non-cumulative preferred stock,
Series X.
On August 1, 2024, the Firm redeemed all $2.3 billion of its fixed-to-floating rate non-cumulative preferred stock,
Series FF.
On May 1, 2024, the Firm redeemed all $5.0 billion of its fixed-to-floating rate non-cumulative preferred stock, Series
Q, Series R and Series S.
On April 30, 2024, the Firm redeemed all $1.0 billion of its fixed-to-floating rate non-cumulative preferred stock,
Series U.
Redemption rights
Each series of the Firm’s preferred stock may be redeemed on any dividend payment date on or after the earliest
redemption date for that series. All outstanding preferred stock series may also be redeemed following a “capital
treatment event,” as described in the terms of each series. Any redemption of the Firm’s preferred stock is subject
to non-objection from the Board of Governors of the Federal Reserve System (the “Federal Reserve”).
Notes to consolidated financial statements
292
JPMorgan Chase & Co./2024 Form 10-K

Note 22 – Common stock
At December 31, 2024 and 2023, JPMorganChase was
authorized to issue 9.0 billion shares of common stock
with a par value of $1 per share.
Common shares issued which were reissued from
treasury by the Firm during the years ended
December 31, 2024, 2023 and 2022 were as follows.
Year ended December 31,
(in millions)
2024
2023
2022
Total issued – balance at
January 1
4,104.9 4,104.9 4,104.9
Treasury – balance at January 1
(1,228.3)
(1,170.7) (1,160.8)
Repurchase

(91.7)
(69.5)
(23.1)
Reissuance:
Employee benefits and
compensation plans

11.9
10.9
12.0
Employee stock purchase
plans

0.8
1.0
1.2
Total reissuance

12.7
11.9
13.2
Total treasury – balance at
December 31
(1,307.3) (1,228.3)
(1,170.7)
Outstanding at December 31
2,797.6 2,876.6 2,934.2
On June 28, 2024, the Firm announced that its Board
of Directors had authorized a new $30 billion common
share repurchase program, effective July 1, 2024.
Through June 30, 2024, the Firm was authorized to
purchase up to $30 billion of common shares under its
previously-approved common share repurchase
program that was announced on April 13, 2022.
The following table sets forth the Firm’s repurchases of
common stock for the years ended December 31,
2024, 2023 and 2022.
Year ended December 31,
(in millions)
2024
2023
2022(b)
Total number of shares of
common stock repurchased

91.7
69.5
23.1
Aggregate purchase price of
common stock repurchases(a)
$ 18,841 $ 9,898 $
3,122
(a) Excludes excise tax and commissions. As part of the Inflation
Reduction Act of 2022, a 1% excise tax is imposed on net share
repurchases commencing January 1, 2023.
(b) In the second half of 2022, the Firm temporarily suspended
share repurchases, which it resumed in the first quarter of 2023
under its common share repurchase program.
The Board of Directors’ authorization to repurchase
common shares is utilized at management’s
discretion. The $30 billion common share repurchase
program approved by the Board of Directors does not
establish specific price targets or timetables.
Management determines the amount and timing of
common share repurchases based on various factors,
including market conditions; legal and regulatory
considerations affecting the amount and timing of
repurchase activity; the Firm’s capital position (taking
into account goodwill and intangibles); organic capital
generation; current and proposed future capital
requirements; and other investment opportunities. The
amount of common shares that the Firm repurchases
in any period may be substantially more or less than
the amounts estimated or actually repurchased in
prior periods, reflecting the dynamic nature of the
decision-making process. The Firm’s common share
repurchases may be suspended by management at
any time; and may be executed through open market
purchases or privately negotiated transactions, or
utilizing Rule 10b5-1 plans, which are written trading
plans that the Firm may enter into from time to time
under Rule 10b5-1 of the Securities Exchange Act of
1934 and which allow the Firm to repurchase its
common shares during periods when it may otherwise
not be repurchasing common shares — for example,
during internal trading blackout periods.
As of December 31, 2024, approximately 58.8 million
shares of common stock were reserved for issuance
under various employee incentive, compensation,
option and stock purchase plans, and directors’
compensation plans.
JPMorgan Chase & Co./2024 Form 10-K
293

Note 23 – Earnings per share
Basic earnings per share (“EPS”) is calculated using
the two-class method. Under the two-class method, all
earnings (distributed and undistributed) are allocated
to common stock and participating securities.
JPMorganChase grants RSUs under its share-based
compensation programs, predominantly all of which
entitle recipients to receive nonforfeitable dividends
during the vesting period on a basis equivalent to
dividends paid to holders of the Firm’s common stock.
These unvested RSUs meet the definition of
participating securities based on their respective
rights to receive nonforfeitable dividends, and they are
treated as a separate class of securities in computing
basic EPS. Participating securities are not included as
incremental shares in computing diluted EPS; refer to
Note 9 for additional information.
Diluted EPS incorporates the potential impact of
contingently issuable shares, including awards which
require future service as a condition of delivery of the
underlying common stock. Diluted EPS is calculated
under both the two-class and treasury stock methods,
and the more dilutive amount is reported. For each of
the periods presented in the table below, diluted EPS
calculated under the two-class method was more
dilutive.
The following table presents the calculation of net
income applicable to common stockholders and basic
and diluted EPS for the years ended December 31,
2024, 2023 and 2022.
Year ended December 31,
(in millions,
except per share amounts)
2024
2023
2022
Basic earnings per share
Net income
$ 58,471 $ 49,552 $ 37,676
Less: Preferred stock dividends

1,259
1,501
1,595
Net income applicable to
common equity

57,212
48,051
36,081
Less: Dividends and
undistributed earnings allocated
to participating securities

344
291
189
Net income applicable to
common stockholders
$ 56,868 $ 47,760 $ 35,892
Total weighted-average basic
shares outstanding
2,873.9 2,938.6 2,965.8
Net income per share
$
19.79 $
16.25 $
12.10
Diluted earnings per share
Net income applicable to
common stockholders
$ 56,868 $ 47,760 $ 35,892
Total weighted-average basic
shares outstanding
2,873.9 2,938.6 2,965.8
Add: Dilutive impact of unvested
PSUs, nondividend-earning
RSUs and SARs

5.1
4.5
4.2
Total weighted-average diluted
shares outstanding
2,879.0 2,943.1 2,970.0
Net income per share
$
19.75 $
16.23 $
12.09
Notes to consolidated financial statements
294
JPMorgan Chase & Co./2024 Form 10-K

Note 24 – 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).
Year ended December 31,
(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 December 31, 2021
$ 2,640
$
(934) $
(131)
$
(296)
$
(210)
$
(1,153)
$
(84)
Net change
(11,764)

(611)
98

(5,360)

(1,241)

1,621

(17,257)
Balance at December 31, 2022
$ (9,124) (a)
$
(1,545) $
(33)
$ (5,656)
$
(1,451)
$
468
$
(17,341)
Net change

5,381

329

(101)

1,724

373

(808)

6,898
Balance at December 31, 2023
$ (3,743) (a)
$
(1,216) $
(134)
$ (3,932)
$
(1,078)
$
(340)
$
(10,443)
Net change

(87)

(858)
(87)

(882)

(63)

(36)

(2,013)
Balance at December 31, 2024
$ (3,830) (a)
$
(2,074) $
(221)
$ (4,814)
$
(1,141)
$
(376)
$
(12,456)
(a) Included after-tax net unamortized unrealized gains/(losses) of $(651) million, $(895) million, and $(1.3) billion for the years ended 2024, 2023
and 2022, respectively, related to AFS securities that have been transferred to HTM. As of December 31, 2023 included 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. Refer to Note 10 for further information.
The following table presents the pre-tax and after-tax changes in the components of OCI.
2024
2023
2022
Year ended December 31, (in millions)
Pre-tax
Tax
effect
After-tax
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
$ (1,135) $
274
$
(861) $ 3,891
$
(922) $ 2,969
$ (17,862) $ 4,290
$ (13,572)
Reclassification adjustment for realized (gains)/
losses included in net income(a)

1,021

(247)
774

3,180

(768)
2,412

2,380

(572)
1,808
Net change

(114)
27

(87)
7,071
(1,690)
5,381
(15,482)
3,718

(11,764)
Translation adjustments(b):
Translation
(4,385)
250

(4,135)
1,714

(95)
1,619

(3,574)
265

(3,309)
Hedges

4,322
(1,045)
3,277

(1,697)
407

(1,290)
3,553

(855)
2,698
Net change

(63)
(795)
(858)
17

312

329

(21)
(590)
(611)
Fair value hedges, net change(c)

(115)
28

(87)
(134)
33

(101)
130

(32)
98
Cash flow hedges:
Net unrealized gains/(losses) arising during the
period
(3,742)
904
(2,838)
483

(114)
369

(7,473)
1,794

(5,679)
Reclassification adjustment for realized (gains)/
losses included in net income(d)

2,579

(623)
1,956

1,775

(420)
1,355

420

(101)
319
Net change

(1,163)
281

(882)
2,258

(534)
1,724

(7,053)
1,693

(5,360)
Defined benefit pension and OPEB plans, net
change(e)

(131)
68

(63)
421

(48)
373

(1,459)
218

(1,241)
DVA on fair value option elected liabilities, net
change

(45)
9

(36)
(1,066)
258

(808)
2,141

(520)
1,621
Total other comprehensive income/(loss)
$ (1,631) $ (382) $ (2,013) $ 8,567
$ (1,669) $ 6,898
$ (21,744) $ 4,487
$ (17,257)
(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 year ended December 31, 2024, the Firm reclassified a net pre-tax gain of $7 million to
other income/expense, of which $89 million gain related to net investment hedges and $(82) million loss related to cumulative translation
adjustments. During the year ended December 31, 2023, the Firm reclassified a net pre-tax loss of $(3) million. During the year ended
December 31, 2022, the Firm reclassified a net pre-tax loss of $(8) million.
(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 year ended December 31, 2022, a remeasurement of the Firm’s U.S. principal defined benefit plan in the third quarter, was required
as a result of a pension settlement. The remeasurement resulted in a net decrease of $1.4 billion in pre-tax AOCI.
JPMorgan Chase & Co./2024 Form 10-K
295

Note 25 – Income taxes
JPMorganChase and its eligible subsidiaries file a
consolidated U.S. federal income tax return.
JPMorganChase uses the asset and liability method to
provide for income taxes on all transactions recorded
in the Consolidated Financial Statements. This method
requires that income taxes reflect the expected future
tax consequences of temporary differences between
the carrying amounts of assets or liabilities for book
and tax purposes. Accordingly, a deferred tax asset or
liability for each temporary difference is determined
based on the tax rates that the Firm expects to be in
effect when the underlying items of income and
expense are realized. JPMorganChase’s expense for
income taxes includes the current and deferred
portions of that expense. A valuation allowance is
established to reduce deferred tax assets to the
amount the Firm expects to realize.
Due to the inherent complexities arising from the
nature of the Firm’s businesses, and from conducting
business and being taxed in a substantial number of
jurisdictions, significant judgments and estimates are
required to be made. Agreement of tax liabilities
between JPMorganChase and the many tax
jurisdictions in which the Firm files tax returns may not
be finalized for several years. Thus, the Firm’s final tax-
related assets and liabilities may ultimately be
different from those currently reported.
Effective January 1, 2024, the Firm adopted updates to
the Accounting for Investments in Tax Credit
Structures Using the Proportional Amortization
Method guidance, under the modified retrospective
method. Refer to Notes 1, 6 and 14 for additional
information.
Effective tax rate and expense
The following table presents a reconciliation of the
applicable statutory U.S. federal income tax rate to the
effective tax rate.
Effective tax rate
Year ended December 31,
2024
2023
2022
Statutory U.S. federal tax rate
21.0 % 21.0 %
21.0 %
Increase/(decrease) in tax rate
resulting from:
U.S. state and local income taxes,
net of U.S. federal income tax
benefit
3.1
2.8
3.5
Tax-exempt income
(0.7)
(0.9)
(0.9)
Non-U.S. earnings
1.4
1.5
0.4
Business tax credits
(2.4)
(4.4)
(5.4)
Other, net
(0.3)
(0.4)
(0.2)
Effective tax rate
22.1 % 19.6 % (a)
18.4 %
(a) Income tax expense associated with the First Republic
acquisition was reflected in the estimated bargain purchase
gain, which resulted in a reduction in the Firm’s effective tax rate.
The following table reflects the components of income
tax expense/(benefit) included in the Consolidated
statements of income.
Income tax expense/(benefit)
Year ended December 31,
(in millions)
2024
2023
2022
Current income tax expense/(benefit)
U.S. federal
$ 7,091 $ 8,973 $ 5,606
Non-U.S.

4,753
4,355
2,992
U.S. state and local

2,762
3,266
2,630
Total current income tax expense/
(benefit)
14,606 16,594
11,228
Deferred income tax expense/(benefit)
U.S. federal

1,771 (3,475) (2,004)
Non-U.S.

72
35
(154)
U.S. state and local

161
(1,094)
(580)
Total deferred income tax
expense/(benefit)
2,004 (4,534) (2,738)
Total income tax expense
$ 16,610 $ 12,060 $ 8,490
Total income tax expense includes $314 million, $68
million and $331 million of tax benefits in 2024, 2023,
and 2022, respectively, resulting from the resolution of
tax audits.
Tax effect of items recorded in stockholders’ equity
The preceding table does not reflect the tax effect of
certain items that are recorded each period directly in
stockholders’ equity, which are predominantly
reflected in OCI as disclosed in Note 24. For the year
ended December 31, 2024, stockholders’ equity
reflected the tax effect associated with the Firm’s
adoption of the Accounting for Investments in Tax
Credit Structures Using the Proportional Amortization
Method guidance. For the year ended December 31,
2023, stockholders’ equity reflected the tax effect
associated with the Firm’s adoption of the TDR
accounting guidance. Both of the respective adoptions
were recognized in retained earnings. Refer to Note 1,
6 and 14 for further information.
Results from U.S. and non-U.S. earnings
The following table presents the U.S. and non-U.S.
components of income before income tax expense.
Year ended December 31,
(in millions)
2024
2023
2022
U.S.
$ 59,472 $ 46,868 $ 34,626
Non-U.S.
(a)
15,609 14,744 11,540
Income before income tax expense $ 75,081 $ 61,612 $ 46,166
(a) For purposes of this table, non-U.S. income is defined as income
generated from operations located outside the U.S.
The Firm will recognize any U.S. income tax expense it
may incur on global intangible low tax income as
income tax expense in the period in which the tax is
incurred.
Notes to consolidated financial statements
296
JPMorgan Chase & Co./2024 Form 10-K

Deferred taxes
Deferred income tax expense/(benefit) reflects the
differences between assets and liabilities measured
for financial reporting purposes versus income tax
return purposes. Deferred tax assets are recognized if,
in management’s judgment, their realizability is
determined to be more likely than not. If a deferred tax
asset is determined to be unrealizable, a valuation
allowance is established. The significant components
of deferred tax assets and liabilities are reflected in the
following table, the net deferred tax assets are
reflected in other assets on the Firm’s Consolidated
balance sheets.
December 31, (in millions)
2024
2023
Deferred tax assets
Allowance for loan losses
$
6,117 $ 5,809
Employee benefits

1,165
1,247
Accrued expenses and other

8,881
9,887
(a)
Depreciation and amortization

386
—
Non-U.S. operations

948
860
Tax attribute carryforwards

352
290
Gross deferred tax assets

17,849
18,093
Valuation allowance

(249)
(183)
Deferred tax assets, net of valuation
allowance
$ 17,600 $ 17,910
Deferred tax liabilities
Depreciation and amortization
$
— $
779
Mortgage servicing rights, net of hedges

1,912
1,794
Leasing transactions

2,249
2,254
Other, net

1,264
2,935
Gross deferred tax liabilities

5,425
7,762
Net deferred tax assets
$ 12,175 $ 10,148
(a) Includes the estimated net deferred tax asset associated with
the First Republic acquisition.
JPMorganChase has recorded deferred tax assets of
$352 million at December 31, 2024 in connection with
tax attribute carryforwards. State and local capital loss
carryforwards were $914 million, U.S. federal NOL
carryforwards were $496 million, non-U.S. NOL
carryforwards were $958 million, and other U.S. federal
tax attributes were $111 million. If not utilized, a portion
of the U.S. federal NOL carryforwards and other U.S.
federal tax attributes will expire between 2026 and
2036 whereas others have an unlimited carryforward
period. Similarly, certain non-U.S. NOL carryforwards
will expire between 2026 and 2041 whereas others
have an unlimited carryforward period. The state and
local capital loss carryforwards will expire in 2026.
The valuation allowance at December 31, 2024, was
predominantly driven by certain non-U.S. deferred tax
assets, including NOL carryforwards.
JPMorgan Chase & Co./2024 Form 10-K
297

Unrecognized tax benefits
At December 31, 2024, 2023 and 2022,
JPMorganChase’s unrecognized tax benefits,
excluding related interest expense and penalties, were
$6.2 billion, $5.4 billion and $5.0 billion, respectively, of
which $4.4 billion, $3.9 billion and $3.8 billion,
respectively, if recognized, would reduce the annual
effective tax rate. Included in the amount of
unrecognized tax benefits are certain items that would
not affect the effective tax rate if they were recognized
in the Consolidated statements of income. These
unrecognized items include the tax effect of certain
temporary differences, the portion of gross state and
local unrecognized tax benefits that would be offset by
the benefit from associated U.S. federal income tax
deductions, and the portion of gross non-U.S.
unrecognized tax benefits that would have offsets in
other jurisdictions. JPMorganChase evaluates the
need for changes in unrecognized tax benefits based
on its anticipated tax return filing positions as part of
its U.S. federal and state and local tax returns. In
addition, the Firm is presently under audit by a number
of taxing authorities, most notably by the Internal
Revenue Service, as summarized in the Tax
examination status table below. The evaluation of
unrecognized tax benefits as well as the potential for
audit settlements make it reasonably possible that
over the next 12 months the gross balance of
unrecognized tax benefits may increase or decrease
by as much as approximately $2.4 billion. The change
in the unrecognized tax benefit would result in a
payment or income statement recognition.
The following table presents a reconciliation of the
beginning and ending amount of unrecognized tax
benefits.
(in millions)
2024
2023
2022
Balance at January 1,
$ 5,401
$ 5,043
$ 4,636
Increases based on tax positions
related to the current period

1,721

1,440

1,234
Increases based on tax positions
related to prior periods

123
Decreases based on tax positions
related to prior periods

(907)
(1,110)
(824)
Decreases related to cash
settlements with taxing
authorities

(148)
(9)
(126)
Balance at December 31,
$ 6,159
$ 5,401
$ 5,043
After-tax interest expense/(benefit) and penalties
related to income tax liabilities recognized in income
tax expense were $288 million, $229 million and $141
million in 2024, 2023 and 2022, respectively.
At December 31, 2024 and 2023, in addition to the
liability for unrecognized tax benefits, the Firm had
accrued $1.7 billion and $1.6 billion, respectively, for
income tax-related interest and penalties.
Tax examination status
JPMorganChase is continually under examination by
the Internal Revenue Service, by taxing authorities
throughout the world, and by many state and local
jurisdictions throughout the U.S. The following table
summarizes the status of tax years that remain subject
to income tax examination of JPMorganChase and its
consolidated subsidiaries by significant jurisdictions
as of December 31, 2024.
Periods
under
examination
Status
JPMorganChase – U.S.
2011 – 2013
Field examination of
amended returns; certain
matters at Appellate level
JPMorganChase – U.S.
2014 - 2020
Field examination of
original and amended
returns; certain matters at
Appellate level
JPMorganChase – New
York City
2015 - 2018
Field Examination
JPMorganChase – U.K.
2017 – 2022
Field examination of
certain select entities
Notes to consolidated financial statements
298
JPMorgan Chase & Co./2024 Form 10-K

Note 26 – Restricted cash, other restricted
assets and intercompany funds transfers
Restricted cash and other restricted assets
Certain of the Firm’s cash and other assets are restricted
as to withdrawal or usage. These restrictions are
imposed by various regulatory authorities based on the
particular activities of the Firm’s subsidiaries.
The business of JPMorgan Chase Bank, N.A. is subject to
examination and regulation by the OCC. The Bank is a
member of the U.S. Federal Reserve System, and its
deposits in the U.S. are insured by the FDIC, subject to
applicable limits.
The Firm is required to maintain cash reserves at
certain non-US central banks.
The Firm is also subject to rules and regulations
established by other U.S. and non U.S. regulators. As
part of its compliance with the respective regulatory
requirements, the Firm’s broker-dealer activities are
subject to certain restrictions on cash and other assets.
The following table presents the components of the
Firm’s restricted cash:
December 31, (in billions)
2024
2023
Segregated for the benefit of securities
and cleared derivative customers

18.7

10.3
Cash reserves at non-U.S. central banks
and held for other general purposes

8.8

9.3
Total restricted cash
(a)
$
27.5
$
19.6
(a) Comprises $26.1 billion and $18.2 billion in deposits with banks,
and $1.4 billion and $1.4 billion in cash and due from banks on the
Consolidated balance sheets as of December 31, 2024 and 2023,
respectively.
Also, as of December 31, 2024 and 2023, the Firm had
the following other restricted assets:
• Cash and securities pledged with clearing
organizations for the benefit of customers of $40.7
billion and $40.5 billion, respectively.
• Securities with a fair value of $26.8 billion and $20.5
billion, respectively, were also restricted in relation to
customer activity.
Intercompany funds transfers
Restrictions imposed by U.S. federal law prohibit
JPMorgan Chase Bank, N.A., and its subsidiaries, from
lending to JPMorgan Chase & Co. (“Parent Company”)
and certain of its affiliates unless the loans are secured
in specified amounts. Such secured loans provided by
any banking subsidiary to the Parent Company or to any
particular affiliate, together with certain other
transactions with such affiliate (collectively referred to
as “covered transactions”), must be made on terms and
conditions that are consistent with safe and sound
banking practices. In addition, unless collateralized with
cash or US Government debt obligations, covered
transactions are generally limited to 10% of the banking
subsidiary’s total capital, as determined by the risk-
based capital guidelines; the aggregate amount of
covered transactions between any banking subsidiary
and all of its affiliates is limited to 20% of the banking
subsidiary’s total capital.
The Parent Company’s two principal subsidiaries are
JPMorgan Chase Bank, N.A. and JPMorgan Chase
Holdings LLC, an intermediate holding company (the
“IHC”). The IHC generally holds the stock of
JPMorganChase’s subsidiaries other than JPMorgan
Chase Bank, N.A. and its subsidiaries. The IHC also owns
other assets and provides intercompany loans to the
Parent Company. The Parent Company is obligated to
contribute to the IHC substantially all the net proceeds
received from securities issuances (including issuances
of senior and subordinated debt securities and of
preferred and common stock).
The principal sources of income and funding for the
Parent Company are dividends from JPMorgan Chase
Bank, N.A. and dividends and extensions of credit from
the IHC. In addition to dividend restrictions set forth in
statutes and regulations, the Federal Reserve, the OCC
and the FDIC have authority under the Financial
Institutions Supervisory Act to prohibit or to limit the
payment of dividends by the banking organizations they
supervise, including the Parent Company and its
subsidiaries that are banks or bank holding companies,
if, in the banking regulator’s opinion, payment of a
dividend would constitute an unsafe or unsound
practice in light of the financial condition of the banking
organization. The IHC is prohibited from paying
dividends or extending credit to the Parent Company if
certain capital or liquidity “thresholds” are breached or if
limits are otherwise imposed by the Parent Company’s
management or Board of Directors.
At January 1, 2025, the Parent Company’s banking
subsidiaries could pay, in the aggregate, approximately
$15.5 billion in dividends to their respective bank holding
companies without the prior approval of their relevant
banking regulators. The capacity to pay dividends in
2025 will be supplemented by the banking subsidiaries’
earnings during the year.
JPMorgan Chase & Co./2024 Form 10-K
299

Note 27 – Regulatory capital
The Federal Reserve establishes capital requirements,
including well-capitalized standards, for the Firm as a
consolidated financial holding company. The OCC
establishes similar minimum capital requirements and
standards for the Firm’s principal IDI subsidiary,
JPMorgan Chase Bank, N.A.
The capital rules under Basel III establish minimum
capital ratios and overall capital adequacy standards
for large and internationally active U.S. bank holding
companies and banks, including the Firm and
JPMorgan Chase Bank, N.A. Under the rules currently
in effect, two comprehensive approaches are
prescribed for calculating RWA: a standardized
approach (“Basel III Standardized”), and an advanced
approach (“Basel III Advanced”). For each of these risk-
based capital ratios, the capital adequacy of the Firm
and JPMorgan Chase Bank, N.A. is evaluated against
the lower of the Standardized or Advanced
approaches compared to their respective regulatory
capital ratio requirements.
The three components of regulatory capital under the
Basel III rules and their primary drivers are as
illustrated below:
Under the risk-based capital and leverage-based
guidelines of the Federal Reserve, JPMorgan Chase &
Co. is required to maintain minimum ratios for CET1
capital, Tier 1 capital, Total capital, Tier 1 leverage and
the SLR. Failure to meet these minimum requirements
could cause the Federal Reserve to take action.
JPMorgan Chase Bank, N.A. is also subject to these
capital requirements established by its primary
regulators.
The following table presents the risk-based regulatory
capital ratio requirements and well-capitalized ratios
to which the Firm and JPMorgan Chase Bank, N.A.
were subject as of December 31, 2024 and 2023.
Standardized
capital ratio
requirements
Advanced capital
ratio requirements
Well-capitalized
ratios
BHC
(a)(b)
IDI
(c)
BHC
(a)(b)
IDI
(c)
BHC
(d)
IDI
(e)
Risk-based capital ratios
CET1
capital
12.3 %
7.0 %
11.5 %
7.0 %
NA
6.5 %
Tier 1
capital
13.8
8.5
13.0
8.5
6.0 %
8.0
Total
capital
15.8
10.5
15.0
10.5
10.0
10.0
Note: The table above is as defined by the regulations issued by the
Federal Reserve, OCC and FDIC and to which the Firm and JPMorgan
Chase Bank, N.A. are subject.
(a) Represents the regulatory capital ratio requirements applicable
to the Firm. The CET1, Tier 1 and Total capital ratio requirements
each include a respective minimum requirement plus a GSIB
surcharge of 4.5% as calculated under Method 2; plus a 3.3%
SCB for Basel III Standardized ratios and a fixed 2.5% capital
conservation buffer for Basel III Advanced ratios. The
countercyclical buffer is currently set to 0% by the federal
banking agencies.
(b) For the period ended December 31, 2023, the CET1, Tier 1, and
Total capital ratio requirements under Basel III Standardized
applicable to the Firm were 11.4%, 12.9%, and 14.9%, respectively;
the Basel III Advanced CET1, Tier 1, and Total capital ratio
requirements applicable to the Firm were 11.0%, 12.5%, and
14.5%, respectively.
(c) Represents requirements for JPMorgan Chase Bank, N.A. The
CET1, Tier 1 and Total capital ratio requirements include a fixed
capital conservation buffer requirement of 2.5% that is
applicable to JPMorgan Chase Bank, N.A. JPMorgan Chase Bank,
N.A. is not subject to the GSIB surcharge.
(d) Represents requirements for bank holding companies pursuant
to regulations issued by the Federal Reserve.
(e) Represents requirements for JPMorgan Chase Bank, N.A.
pursuant to regulations issued under the FDIC Improvement Act.
The following table presents the leverage-based
regulatory capital ratio requirements and well-
capitalized ratios to which the Firm and JPMorgan
Chase Bank, N.A. were subject as of December 31,
2024 and 2023.
Capital ratio
requirements(a)
Well-capitalized
ratios
BHC
IDI
BHC
(b)
IDI
Leverage-based capital
ratios
Tier 1 leverage
4.0 %
4.0 %
NA
5.0 %
SLR
5.0
6.0
NA
6.0
Note: The table above is as defined by the regulations issued by the
Federal Reserve, OCC and FDIC and to which the Firm and JPMorgan
Chase Bank, N.A. are subject.
(a) Represents minimum SLR requirement of 3.0%, as well as
supplementary leverage buffer requirements of 2.0% and 3.0%
for BHC and JPMorgan Chase Bank, N.A., respectively.
(b) The Federal Reserve's regulations do not establish well-
capitalized thresholds for these measures for BHCs.
Notes to consolidated financial statements
300
JPMorgan Chase & Co./2024 Form 10-K

CECL Regulatory Capital Transition
Beginning January 1, 2022, the $2.9 billion CECL
capital benefit, provided by the Federal Reserve in
response to the COVID-19 pandemic, is being phased
out at 25% per year over a three-year period. As of
December 31, 2024 and 2023, the Firm’s CET1 capital
reflected the remaining benefit of $720 million and
$1.4 billion, respectively, associated with the CECL
capital transition provisions.
Similarly, as of January 1, 2024, the Firm has phased
out 75% of the other CECL capital transition provisions
which impacted Tier 2 capital, adjusted average
assets, total leverage exposure and RWA, as
applicable.
The following tables present risk-based capital metrics under both the Basel III Standardized and Basel III Advanced
approaches and leverage-based capital metrics for JPMorgan Chase & Co. and JPMorgan Chase Bank, N.A. As of
December 31, 2024 and 2023, JPMorgan Chase & Co. and JPMorgan Chase Bank, N.A. were well-capitalized and
met all capital requirements to which each was subject.
December 31, 2024
(in millions, except ratios)
Basel III Standardized
Basel III Advanced
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
Risk-based capital metrics:(a)
CET1 capital
$
275,513
$
275,732
$
275,513
$
275,732
Tier 1 capital

294,881

275,737

294,881

275,737
Total capital

325,589

296,041

311,898
(b)
282,328
(b)
Risk-weighted assets

1,757,460

1,718,777

1,740,429
(b)
1,594,072
(b)
CET1 capital ratio
15.7 %
16.0 %
15.8 %
17.3 %
Tier 1 capital ratio
16.8
16.0
16.9
17.3
Total capital ratio
18.5
17.2
17.9
17.7
December 31, 2023
(in millions, except ratios)
Basel III Standardized
Basel III Advanced
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
Risk-based capital metrics:
(a)
CET1 capital
$
250,585
$
262,030
$
250,585
$
262,030
Tier 1 capital

277,306

262,032

277,306

262,032
Total capital

308,497

281,308

295,417
(b)
268,392
(b)
Risk-weighted assets

1,671,995

1,621,789

1,669,156
(b)
1,526,952
(b)
CET1 capital ratio
15.0 %
16.2 %
15.0 %
17.2 %
Tier 1 capital ratio
16.6
16.2
16.6
17.2
Total capital ratio
18.5
17.3
17.7
17.6
(a) The capital metrics reflect the CECL capital transition provisions.
(b) Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by
the transition provisions in the U.S. capital rules.
Three months ended
(in millions, except ratios)
December 31, 2024
December 31, 2023
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
Leverage-based capital metrics: (a)
Adjusted average assets(b)
$
4,070,499
$
3,491,283
$
3,831,200
$
3,337,842
Tier 1 leverage ratio
7.2 %
7.9 %
7.2 %
7.9 %
Total leverage exposure
$
4,837,568
$
4,246,516
$
4,540,465
$
4,038,739
SLR
6.1 %
6.5 %
6.1 %
6.5 %
(a) The capital metrics reflect the CECL capital transition provisions.
(b) Adjusted average assets, for purposes of calculating the leverage ratios, includes quarterly average assets adjusted for on-balance sheet
assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, and other
intangible assets.
JPMorgan Chase & Co./2024 Form 10-K
301

Note 28 – Off–balance sheet lending-related
financial instruments, guarantees, and
other commitments
JPMorganChase provides lending-related financial
instruments (e.g., commitments and guarantees) to
address the financing needs of its customers and
clients. The contractual amount of these financial
instruments represents the maximum possible credit
risk to the Firm should the customer or client draw
upon the commitment or the Firm be required to fulfill
its obligation under the guarantee, and should the
customer or client subsequently fail to perform
according to the terms of the contract. Most of these
commitments and guarantees have historically been
refinanced, extended, cancelled, or expired without
being drawn or a default occurring. As a result, the
total contractual amount of these instruments is not, in
the Firm’s view, representative of its expected future
credit exposure or funding requirements.
To provide for expected credit losses in wholesale and
certain consumer lending-related commitments, an
allowance for credit losses on lending-related
commitments is maintained. Refer to Note 13 for
further information regarding the allowance for credit
losses on lending-related commitments.
The following table summarizes the contractual
amounts and carrying values of off-balance sheet
lending-related financial instruments, guarantees and
other commitments at December 31, 2024 and 2023.
The amounts in the table below for credit card, home
equity and certain scored business banking lending-
related commitments represent the total available
credit for these products. The Firm has not
experienced, and does not anticipate, that all available
lines of credit for these commitments will be utilized at
the same time. The Firm can reduce or cancel these
commitments, in accordance with the contract, or to
the extent otherwise permitted by law, including when
there has been a demonstrable decline in the
creditworthiness of the borrower or significant
decrease in the value of underlying property.
Notes to consolidated financial statements
302
JPMorgan Chase & Co./2024 Form 10-K

Off–balance sheet lending-related financial instruments, guarantees and other commitments
Contractual amount
Carrying value(h)(i)
2024
2023
2024
2023
By remaining maturity
as of December 31,
(in millions)
Expires in 1
year or less
Expires
after
1 year
through
3 years
Expires
after
3 years
through
5 years
Expires
after 5
years
Total
Total
Lending-related
Consumer, excluding credit card:
Residential Real Estate(a)
$
10,838 $
7,240 $
4,601 $ 7,670 $ 30,349
$
30,125
$
534
(j) $
678
(j)
Auto and other

10,833
14
5
3,643
14,495

15,278

37
(j)
148
(j)
Total consumer, excluding credit card

21,671
7,254
4,606
11,313
44,844

45,403

571

826
Credit card(b)

1,001,311
—
—
— 1,001,311

915,658

—

—
Total consumer(c)
1,022,982
7,254
4,606
11,313 1,046,155

961,061

571

826
Wholesale:
Other unfunded commitments to
extend credit(d)

101,500 199,878 172,066 24,993 498,437

503,526
2,608
(j)

2,797
(j)
Standby letters of credit and other
financial guarantees(d)

15,825
8,506
3,780
565
28,676

28,872

473

479
Other letters of credit(d)

3,958
278
21
97
4,354

4,388

37
Total wholesale
(c)

121,283 208,662 175,867 25,655
531,467

536,786

3,118

3,313
Total lending-related
$ 1,144,265 $ 215,916 $ 180,473 $ 36,968 $ 1,577,622 $ 1,497,847
$ 3,689
$ 4,139
Other guarantees and commitments
Securities lending indemnification
agreements and guarantees
(e)
$ 310,046 $
— $
— $
— $ 310,046
$ 283,664
$
—
$
—
Derivatives qualifying as guarantees

902
343
9,890 38,493
49,628

54,562

113

89
Unsettled resale and securities
borrowed agreements

115,939
—
—
—
115,939

95,106

—
Unsettled repurchase and securities
loaned agreements

66,986
—
—
—
66,986

60,724

(2)

—
Loan sale and securitization-related
indemnifications:
Mortgage repurchase liability
NA
NA
NA
NA
NA
NA

76
Loans sold with recourse
NA
NA
NA
NA
1,189

803

24
Exchange & clearing house guarantees
and commitments
(f)

401,486
—
—
—
401,486

265,887

—

—
Other guarantees and commitments
(g)

10,652
425
435
884
12,396

15,074

38
(a) Includes certain commitments to purchase loans from correspondents.
(b) Also includes commercial card lending-related commitments primarily in CIB.
(c) Predominantly all consumer and wholesale lending-related commitments are in the U.S.
(d) As of December 31, 2024 and 2023, reflected the contractual amount net of risk participations totaling $85 million and $88 million,
respectively, for other unfunded commitments to extend credit; $9.5 billion and $8.2 billion, respectively, for standby letters of credit and
other financial guarantees; and $556 million and $589 million, respectively, for other letters of credit. In regulatory filings with the Federal
Reserve these commitments are shown gross of risk participations.
(e) As of December 31, 2024 and 2023, collateral held by the Firm in support of securities lending indemnification agreements was $328.7 billion
and $300.3 billion, respectively. Securities lending collateral primarily consists of cash, G7 government securities, and securities issued by
U.S. GSEs and government agencies.
(f) As of December 31, 2024 and 2023, includes guarantees to the Fixed Income Clearing Corporation under the sponsored member repo
program and commitments and guarantees associated with the Firm’s membership in certain clearing houses.
(g) As of December 31, 2024 and 2023, primarily includes unfunded commitments to purchase secondary market loans, other equity investment
commitments, and unfunded commitments related to certain tax-oriented equity investments, and reflects the impact of adopting updates to
the Accounting for Investments in Tax Credit Structures guidance effective January 1, 2024.
(h) For lending-related products, the carrying value includes the allowance for lending-related commitments and the guarantee liability; for
derivative-related products, and lending-related commitments for which the fair value option was elected, the carrying value represents the
fair value.
(i)
For lending-related commitments, the carrying value also includes fees and any purchase discounts or premiums that are deferred and
recognized in accounts payable and other liabilities on the Consolidated balance sheets. Deferred amounts for revolving commitments and
commitments not expected to fund, are amortized to lending- and deposit-related fees on a straight line basis over the commitment period.
For all other commitments the deferred amounts remain deferred until the commitment funds or is sold.
(j)
As of December 31, 2024 and 2023, includes fair value adjustments associated with First Republic for residential real estate lending-related
commitments totaling $459 million and $630 million, respectively; for auto and other lending-related commitments totaling $37 million and
$148 million, respectively; and for other unfunded commitments to extend credit totaling $699 million and $1.1 billion, respectively. Refer to
Note 34 for additional information.
JPMorgan Chase & Co./2024 Form 10-K
303

Other unfunded commitments to extend credit
Other unfunded commitments to extend credit
generally consist of commitments for working capital
and general corporate purposes, extensions of credit
to support commercial paper facilities and bond
financings in the event that those obligations cannot
be remarketed to new investors, as well as committed
liquidity facilities to clearing organizations. The Firm
also issues commitments under multipurpose facilities
which could be drawn upon in several forms, including
the issuance of a standby letter of credit.
Guarantees
U.S. GAAP requires that a guarantor recognize, at the
inception of a guarantee, a liability in an amount equal
to the fair value of the obligation undertaken in issuing
the guarantee. U.S. GAAP defines a guarantee as a
contract that contingently requires the guarantor to
pay the guaranteed party based upon: (a) changes in
an underlying asset, liability or equity security of the
guaranteed party; or (b) a third party’s failure to
perform under a specified agreement. The Firm
considers the following off–balance sheet
arrangements to be guarantees under U.S. GAAP:
standby letters of credit and other financial
guarantees, securities lending indemnifications,
certain indemnification agreements included within
third-party contractual arrangements, certain
derivative contracts and the guarantees under the
sponsored member repo program.
As required by U.S. GAAP, the Firm initially records
guarantees at the inception date fair value of the non-
contingent obligation assumed (e.g., the amount of
consideration received or the net present value of the
premium receivable). For these obligations, the Firm
records this fair value amount in other liabilities with an
offsetting entry recorded in cash (for premiums
received), or other assets (for premiums receivable).
Any premium receivable recorded in other assets is
reduced as cash is received under the contract, and
the fair value of the liability recorded at inception is
amortized into income as lending and deposit-related
fees over the life of the guarantee contract. The
lending-related contingent obligation is recognized
based on expected credit losses in addition to, and
separate from, any non-contingent obligation.
Non-lending-related contingent obligations are
recognized when the liability becomes probable and
reasonably estimable. These obligations are not
recognized if the estimated amount is less than the
carrying amount of any non-contingent liability
recognized at inception (adjusted for any
amortization). Examples of non-lending-related
contingent obligations include indemnifications
provided in sales agreements, where a portion of the
sale proceeds is allocated to the guarantee, which
adjusts the gain or loss that would otherwise result
from the transaction. For these indemnifications, the
initial liability is amortized to income as the Firm’s risk
is reduced (i.e., over time or when the indemnification
expires).
The contractual amount and carrying value of
guarantees and indemnifications are included in the
table on page 303.
For additional information on the guarantees, see
below.
Standby letters of credit and other financial
guarantees
Standby letters of credit and other financial
guarantees are conditional lending commitments
issued by the Firm to guarantee the performance of a
client or customer to a third party under certain
arrangements, such as commercial paper facilities,
bond financings, acquisition financings, trade
financings and similar transactions.
The following table summarizes the contractual amount and carrying value of standby letters of credit and other
financial guarantees and other letters of credit arrangements as of December 31, 2024 and 2023.
Standby letters of credit, other financial guarantees and other letters of credit
2024
2023
December 31,
(in millions)
Standby letters of credit
and
other financial guarantees
Other letters
of credit
Standby letters of credit
and
other financial guarantees
Other letters
of credit
Investment-grade
(a)
$
20,443
$
3,380
$
19,694
$
3,552
Noninvestment-grade
(a)

8,233

974

9,178

836
Total contractual amount
$
28,676
$
4,354
$
28,872
$
4,388
Allowance for lending-related commitments
$
94
$
37
$
110
$
37
Guarantee liability

379

—

369

—
Total carrying value
$
473
$
37
$
479
$
37
Commitments with collateral
$
16,805
$
357
$
16,861
$
539
(a) The ratings scale is based on the Firm’s internal risk ratings. Refer to Note 12 for further information on internal risk ratings.
Notes to consolidated financial statements
304
JPMorgan Chase & Co./2024 Form 10-K

Securities lending indemnifications
Through the Firm’s securities lending program,
counterparties’ securities, via custodial and non-
custodial arrangements, may be lent to third parties.
As part of this program, the Firm provides an
indemnification in the lending agreements which
protects the lender against the failure of the borrower
to return the lent securities. To minimize its liability
under these indemnification agreements, the Firm
obtains cash or other highly liquid collateral with a
market value exceeding 100% of the value of the
securities on loan from the borrower. Collateral is
marked to market daily to help assure that
collateralization is adequate. Additional collateral is
called from the borrower if a shortfall exists, or
collateral may be released to the borrower in the event
of overcollateralization. If a borrower defaults, the Firm
would use the collateral held to purchase replacement
securities in the market or to credit the lending client
or counterparty with the cash equivalent thereof.
The cash collateral held by the Firm may be invested
on behalf of the client in indemnified resale
agreements, whereby the Firm indemnifies the client
against the loss of principal invested. To minimize its
liability under these agreements, the Firm obtains
collateral with a market value exceeding 100% of the
principal invested.
Derivatives qualifying as guarantees
The Firm transacts in certain derivative contracts that
have the characteristics of a guarantee under U.S.
GAAP. These contracts include written put options
that require the Firm to purchase assets upon exercise
by the option holder at a specified price by a specified
date in the future. The Firm may enter into written put
option contracts in order to meet client needs, or for
other trading purposes. The terms of written put
options are typically five years or less.
Derivatives deemed to be guarantees also includes
stable value contracts, commonly referred to as
“stable value products”, that require the Firm to make
a payment of the difference between the market value
and the book value of a counterparty’s reference
portfolio of assets in the event that market value is less
than book value and certain other conditions have
been met. Stable value products are transacted in
order to allow investors to realize investment returns
with less volatility than an unprotected portfolio. These
contracts are typically longer-term or may have no
stated maturity, but allow the Firm to elect to
terminate the contract under certain conditions.
The notional value of derivative guarantees generally
represents the Firm’s maximum exposure. However,
exposure to certain stable value products is
contractually limited to a substantially lower
percentage of the notional amount.
The fair value of derivative guarantees reflects the
probability, in the Firm’s view, of whether the Firm will
be required to perform under the contract. The Firm
reduces exposures to these contracts by entering into
offsetting transactions, or by entering into contracts
that hedge the market risk related to the derivative
guarantees.
The following table summarizes the derivatives
qualifying as guarantees as of December 31, 2024 and
2023.
(in millions)
December 31,
2024
December 31,
2023
Notional amounts
Derivative guarantees
$
49,628
$
54,562
Stable value contracts with
contractually limited exposure

32,939

32,488
Maximum exposure of stable
value contracts with
contractually limited
exposure

1,740

1,652
Fair value
Derivative payables

113

89
In addition to derivative contracts that meet the
characteristics of a guarantee, the Firm is both a
purchaser and seller of credit protection in the credit
derivatives market. Refer to Note 5 for a further
discussion of credit derivatives.
Unsettled securities financing agreements
In the normal course of business, the Firm enters into
resale and securities borrowed agreements. At
settlement, these commitments result in the Firm
advancing cash to and receiving securities collateral
from the counterparty. The Firm also enters into
repurchase and securities loaned agreements. At
settlement, these commitments result in the Firm
receiving cash from and providing securities collateral
to the counterparty. Such agreements settle at a future
date. These agreements generally do not meet the
definition of a derivative, and therefore, are not
recorded on the Consolidated balance sheets until
settlement date. These agreements predominantly
have regular-way settlement terms. Refer to Note 11 for
a further discussion of securities financing
agreements.
Loan sales- and securitization-related
indemnifications
Mortgage repurchase liability
In connection with the Firm’s mortgage loan sale and
securitization activities with U.S. GSEs the Firm has
made representations and warranties that the loans
sold meet certain requirements, and that may require
the Firm to repurchase mortgage loans and/or
indemnify the loan purchaser if such representations
and warranties are breached by the Firm.
JPMorgan Chase & Co./2024 Form 10-K
305

Private label securitizations
The liability related to repurchase demands associated
with private label securitizations is separately
evaluated by the Firm in establishing its litigation
reserves.
Refer to Note 30 for additional information regarding
litigation.
Loans sold with recourse
The Firm provides servicing for mortgages and certain
commercial lending products on both a recourse and
nonrecourse basis. In nonrecourse servicing, the
principal credit risk to the Firm is the cost of temporary
servicing advances of funds (i.e., normal servicing
advances). In recourse servicing, the servicer agrees
to share credit risk with the owner of the mortgage
loans, such as Fannie Mae or Freddie Mac or a private
investor, insurer or guarantor. Losses on recourse
servicing predominantly occur when foreclosure sales
proceeds of the property underlying a defaulted loan
are less than the sum of the outstanding principal
balance, plus accrued interest on the loan and the cost
of holding and disposing of the underlying property.
The Firm’s securitizations are predominantly
nonrecourse, thereby effectively transferring the risk
of future credit losses to the purchaser of the
mortgage-backed securities issued by the trust. The
unpaid principal balance of loans sold with recourse as
well as the carrying value of the related liability that the
Firm has recorded in accounts payable and other
liabilities on the Consolidated balance sheets, which is
representative of the Firm’s view of the likelihood it will
have to perform under its recourse obligations, are
disclosed in the table on page 303.
Other off-balance sheet arrangements
Indemnification agreements – general
In connection with issuing securities to investors
outside the U.S., the Firm may agree to pay additional
amounts to the holders of the securities in the event
that, due to a change in tax law, certain types of
withholding taxes are imposed on payments on the
securities. The terms of the securities may also give
the Firm the right to redeem the securities if such
additional amounts are payable. The Firm may also
enter into indemnification clauses such as in
connection with the licensing of software to clients
(“software licensees”) or when it sells a business or
assets to a third party (“third-party purchasers”),
pursuant to which it indemnifies software licensees for
claims of liability or damages that may occur
subsequent to the licensing of the software, or third-
party purchasers for losses they may incur due to
actions taken by the Firm prior to the sale of the
business or assets. It is difficult to estimate the Firm’s
maximum exposure under these indemnification
arrangements, since this would require an assessment
of future changes in tax law and future claims that may
be made against the Firm that have not yet occurred.
However, based on historical experience,
management expects the risk of loss to be remote.
Merchant charge-backs
Under the rules of payment networks, in its role as a
merchant acquirer, the Firm’s Merchant Services
business in CIB Payments, retains a contingent liability
for disputed processed credit and debit card
transactions that result in a charge-back to the
merchant. If a dispute is resolved in the cardholder’s
favor, the Firm will (through the cardholder’s issuing
bank) credit or refund the amount to the cardholder
and will charge back the transaction to the merchant. If
the Firm is unable to collect the amount from the
merchant, the Firm will bear the loss for the amount
credited or refunded to the cardholder. The Firm
mitigates this risk by withholding future settlements,
retaining cash reserve accounts or obtaining other
collateral. In addition, the Firm recognizes a valuation
allowance that covers the payment or performance
risk related to charge-backs.
Clearing Services – Client Credit Risk
The Firm provides clearing services for clients by
entering into securities purchases and sales and
derivative contracts with CCPs, including ETDs such as
futures and options, as well as OTC-cleared derivative
contracts. As a clearing member, the Firm stands
behind the performance of its clients, collects cash
and securities collateral (margin) as well as any
settlement amounts due from or to clients, and remits
them to the relevant CCP or client in whole or part.
There are two types of margin: variation margin is
posted on a daily basis based on the value of clients’
derivative contracts and initial margin is posted at
inception of a derivative contract, generally on the
basis of the potential changes in the variation margin
requirement for the contract.
As a clearing member, the Firm is exposed to the risk
of nonperformance by its clients, but is not liable to
clients for the performance of the CCPs. Where
possible, the Firm seeks to mitigate its risk to the client
through the collection of appropriate amounts of
margin at inception and throughout the life of the
transactions. The Firm can also cease providing
clearing services if clients do not adhere to their
obligations under the clearing agreement. In the event
of nonperformance by a client, the Firm would close
out the client’s positions and access available margin.
The CCP would utilize any margin it holds to make
itself whole, with any remaining shortfalls required to
be paid by the Firm as a clearing member.
Notes to consolidated financial statements
306
JPMorgan Chase & Co./2024 Form 10-K

The Firm reflects its exposure to nonperformance risk
of the client through the recognition of margin
receivables from clients and margin payables to CCPs;
the clients’ underlying securities or derivative
contracts are not reflected in the Firm’s Consolidated
Financial Statements.
It is difficult to estimate the Firm’s maximum possible
exposure through its role as a clearing member, as this
would require an assessment of transactions that
clients may execute in the future. However, based
upon historical experience, and the credit risk
mitigants available to the Firm, management believes
it is unlikely that the Firm will have to make any
material payments under these arrangements and the
risk of loss is expected to be remote.
Refer to Note 5 for information on the derivatives that
the Firm executes for its own account and records in
its Consolidated Financial Statements.
Exchange & Clearing House Memberships
The Firm is a member of several securities and
derivative exchanges and clearing houses, both in the
U.S. and other countries, and it provides clearing
services to its clients. Membership in some of these
organizations requires the Firm to pay a pro rata share
of the losses incurred by the organization as a result of
the default of another member. Such obligations vary
with different organizations. These obligations may be
limited to the amount (or a multiple of the amount) of
the Firm’s contribution to the guarantee fund
maintained by a clearing house or exchange as part of
the resources available to cover any losses in the event
of a member default. Alternatively, these obligations
may also include a pro rata share of the residual losses
after applying the guarantee fund. Additionally, certain
clearing houses require the Firm as a member to pay a
pro rata share of losses that may result from the
clearing house’s investment of guarantee fund
contributions and initial margin, unrelated to and
independent of the default of another
member. Generally a payment would only be required
should such losses exceed the resources of the
clearing house or exchange that are contractually
required to absorb the losses in the first instance. In
certain cases, it is difficult to estimate the Firm’s
maximum possible exposure under these membership
agreements, since this would require an assessment of
future claims that may be made against the Firm that
have not yet occurred. However, based on historical
experience, management expects the risk of loss to
the Firm to be remote. Where the Firm’s maximum
possible exposure can be estimated, the amount is
disclosed in the table on page 303, in the Exchange &
clearing house guarantees and commitments line.
Sponsored member repo program
The Firm acts as a sponsoring member to clear eligible
overnight and term resale and repurchase agreements
through the Government Securities Division of the
Fixed Income Clearing Corporation (“FICC”) on behalf
of clients that become sponsored members under the
FICC’s rules. The Firm also guarantees to the FICC the
prompt and full payment and performance of its
sponsored member clients’ respective obligations
under the FICC’s rules. The Firm minimizes its liability
under these guarantees by obtaining a security
interest in the cash or high-quality securities collateral
that the clients place with the clearing house;
therefore, the Firm expects the risk of loss to be
remote. The Firm’s maximum possible exposure,
without taking into consideration the associated
collateral, is included in the Exchange & clearing house
guarantees and commitments line on page 303. Refer
to Note 11 for additional information on credit risk
mitigation practices on resale agreements and the
types of collateral pledged under repurchase
agreements.
Guarantees of subsidiaries
In the normal course of business, the Parent Company
may provide counterparties with guarantees of certain
of the trading and other obligations of its subsidiaries
on a contract-by-contract basis, as negotiated with the
Firm’s counterparties. The obligations of the
subsidiaries are included on the Firm’s Consolidated
balance sheets or are reflected as off-balance sheet
commitments; therefore, the Parent Company has not
recognized a separate liability for these guarantees.
The Firm believes that the occurrence of any event
that would trigger payments by the Parent Company
under these guarantees is remote.
The Parent Company has guaranteed certain long-
term debt and structured notes of its subsidiaries,
including JPMorgan Chase Financial Company LLC
(“JPMFC”), a 100%-owned finance subsidiary. All
securities issued by JPMFC are fully and
unconditionally guaranteed by the Parent Company
and no other subsidiary of the Parent Company
guarantees these securities. These guarantees, which
rank pari passu with the Firm’s unsecured and
unsubordinated indebtedness, are not included in the
table on page 303 of this Note. Refer to Note 20 for
additional information.
JPMorgan Chase & Co./2024 Form 10-K
307

Note 29 – Pledged assets and collateral
Pledged assets
The Firm pledges financial assets that it owns to
maintain potential borrowing capacity at discount
windows with Federal Reserve banks, various other
central banks and FHLBs. Additionally, the Firm
pledges assets for other purposes, including to
collateralize repurchase and other securities financing
agreements, to cover short sales and to collateralize
derivative contracts and deposits. Certain of these
pledged assets may be sold or repledged or otherwise
used by the secured parties and are parenthetically
identified on the Consolidated balance sheets as
assets pledged.
The following table presents the carrying value of the
Firm’s pledged assets.
December 31, (in billions)
2024
2023
Assets that may be sold or repledged or
otherwise used by secured parties
$
152.5
$
145.0
Assets that may not be sold or repledged
or otherwise used by secured parties

297.9

244.2
Assets pledged at Federal Reserve banks
and FHLBs

724.0

675.6
Total pledged assets
$ 1,174.4
$ 1,064.8
Total pledged assets do not include assets of
consolidated VIEs; these assets are used to settle the
liabilities of those entities. Refer to Note 14 for
additional information on assets and liabilities of
consolidated VIEs. Refer to Note 11 for additional
information on the Firm’s securities financing
activities. Refer to Note 20 for additional information
on the Firm’s long-term debt. The significant
components of the Firm’s pledged assets were as
follows.
December 31, (in billions)
2024
2023
Investment securities
$
89.6
$
108.6
Loans

740.9

681.7
Trading assets and other

343.9

274.5
Total pledged assets
$ 1,174.4
$ 1,064.8
Collateral
The Firm accepts financial assets as collateral that it is
permitted to sell or repledge, deliver or otherwise use.
This collateral is generally obtained under resale and
other securities financing agreements, prime
brokerage-related held-for-investment customer
receivables and derivative contracts. Collateral is
generally used under repurchase and other securities
financing agreements, to cover short sales, and to
collateralize derivative contracts and deposits.
The following table presents the fair value of collateral
accepted.
December 31, (in billions)
2024
2023
Collateral permitted to be sold or
repledged, delivered, or otherwise used
$ 1,544.0
$ 1,303.9
Collateral sold, repledged, delivered or
otherwise used

1,210.7

982.8
Notes to consolidated financial statements
308
JPMorgan Chase & Co./2024 Form 10-K

Note 30 – Litigation
Contingencies
As of December 31, 2024, the Firm and its subsidiaries
and affiliates are defendants or respondents in
numerous evolving legal proceedings, including private
proceedings, public proceedings, government
investigations, regulatory enforcement matters, and the
matters described below. The litigations range from
individual actions involving a single plaintiff to class
action lawsuits with potentially millions of class
members. Investigations and regulatory enforcement
matters involve both formal and informal proceedings,
by both governmental agencies and self-regulatory
organizations. These legal proceedings are at varying
stages of adjudication, arbitration or investigation, and
involve each of the Firm’s lines of business and several
geographies and a wide variety of claims (including
common law tort and contract claims and statutory
antitrust, securities and consumer protection claims),
some of which present novel legal theories.
The Firm believes the estimate of the aggregate range
of reasonably possible losses, in excess of reserves
established, for its legal proceedings is from $0 to
approximately $1.4 billion at December 31, 2024. This
estimated aggregate range of reasonably possible
losses was based upon information available as of that
date for those proceedings in which the Firm believes
that an estimate of reasonably possible loss can be
made. For certain matters, the Firm does not believe
that such an estimate can be made, as of that date. The
Firm’s estimate of the aggregate range of reasonably
possible losses involves significant judgment, given:
• the number, variety and varying stages of the
proceedings, including the fact that many are in
preliminary stages,
• the existence in many such proceedings of multiple
defendants, including the Firm, whose share of
liability (if any) has yet to be determined,
• the numerous yet-unresolved issues in many of the
proceedings, including issues regarding class
certification and the scope of many of the claims, and
• the uncertainty of the various potential outcomes of
such proceedings, including where the Firm has made
assumptions concerning future rulings by the court or
other adjudicator, or about the behavior or incentives
of adverse parties or regulatory authorities, and those
assumptions prove to be incorrect.
In addition, the outcome of a particular proceeding may
be a result which the Firm did not take into account in its
estimate because the Firm had deemed the likelihood of
that outcome to be remote. Accordingly, the Firm’s
estimate of the aggregate range of reasonably possible
losses will change from time to time, and actual losses
may vary significantly.
Set forth below are descriptions of the Firm’s material
legal proceedings.
1MDB Litigation. J.P. Morgan (Suisse) SA was named as
a defendant in a civil litigation filed in May 2021 in
Malaysia by 1Malaysia Development Berhad (“1MDB”), a
Malaysian state-owned and controlled investment fund.
The claim alleges “dishonest assistance” against J.P.
Morgan (Suisse) SA in relation to payments of
$300 million and $500 million, from 2009 and 2010,
respectively, received from 1MDB and paid into an
account at J.P. Morgan (Suisse) SA held by 1MDB
PetroSaudi Limited, a joint venture company between
1MDB and PetroSaudi Holdings (Cayman) Limited. In
March 2024, the Court upheld the Firm's challenge to
the validity of service and the Malaysian Court’s
jurisdiction to hear the claim. That decision has been
appealed by 1MDB. In August 2023, the Court denied an
application by 1MDB to discontinue its claim with
permission to re-file a new claim in the future. That
decision was appealed by both 1MDB and the Firm, and
an appeals court is scheduled to hear both appeals in
November 2025. In its appeal, the Firm seeks to prevent
any claim from continuing.
In addition, in November 2023, the Federal Office of the
Attorney General (OAG) in Switzerland notified J.P.
Morgan (Suisse) SA that it is conducting an
investigation into possible criminal liability in
connection with transactions arising from J.P. Morgan
(Suisse) SA’s relationship with the 1MDB PetroSaudi
joint venture and its related persons for the period
September 2009 through August 2015. The OAG
investigation is ongoing.
Amrapali. India’s Enforcement Directorate (“ED”) is
investigating J.P. Morgan India Private Limited in
connection with investments made in 2010 and 2012 by
two offshore funds formerly managed by
JPMorganChase entities into residential housing
projects developed by the Amrapali Group (“Amrapali”)
relating to delays in delivering or failure to deliver
residential units. In August 2021, the ED issued an order
fining J.P. Morgan India Private Limited approximately
$31.5 million, and the Firm is appealing that order.
Relatedly, in July 2019, the Supreme Court of India
issued an order making preliminary findings that
Amrapali and other parties, including unspecified
JPMorganChase entities and the offshore funds that had
invested in the projects, violated certain criminal
currency control and money laundering provisions, and
ordered the ED to conduct a further inquiry. The Firm is
responding to and cooperating with the inquiry.
Foreign Exchange Investigations and Litigation. The
Firm previously reported settlements with certain
government authorities relating to its foreign exchange
(“FX”) sales and trading activities and controls related to
those activities. Among those resolutions, in May 2015,
the Firm pleaded guilty to a single violation of federal
antitrust law. The Department of Labor ("DOL") granted
the Firm exemptions that permit the Firm and its
JPMorgan Chase & Co./2024 Form 10-K
309

affiliates to continue to rely on the Qualified Professional
Asset Manager exemption under the Employee
Retirement Income Security Act (“ERISA”) through the
ten-year disqualification period following the antitrust
plea. The only remaining FX-related governmental
inquiry is a South Africa Competition Commission
matter which is currently pending before the South
Africa Competition Tribunal.
With respect to civil litigation matters, some FX-related
individual and putative class actions filed outside the
U.S., including in the U.K., Israel, the Netherlands, Brazil
and Australia, remain. In July 2023, the U.K. Court of
Appeal overturned the Competition Appeal Tribunal's
earlier denial of a request for class certification on an
opt-out basis. The defendants have appealed this
decision to the U.K. Supreme Court. In Israel, a
settlement in principle has been reached on the
putative class action, which remains subject to court
approval.
Interchange Litigation. Groups of merchants and retail
associations filed a series of class action complaints
alleging that Visa and Mastercard, as well as certain
banks, conspired to set the price of credit and debit
card interchange fees and enacted related rules in
violation of antitrust laws.
In September 2018, the parties settled the class action
seeking monetary relief, with the defendants collectively
contributing approximately $6.2 billion. The settlement
has been approved by the United States District Court
for the Eastern District of New York and affirmed on
appeal. Based on the percentage of merchants that
opted out of the settlement, $700 million has been
returned to the defendants from the settlement escrow.
A separate class action seeking injunctive relief
continues, and in September 2021, the District Court
granted plaintiffs’ motion for class certification in part,
and denied the motion in part. In June 2024, the District
Court denied preliminary approval of a settlement of the
injunctive class action in which Visa and Mastercard
agreed to certain changes to their respective network
rules and system-wide reductions in interchange rates
for U.S.-based merchants. The parties are considering
next steps.
Of the merchants who opted out of the damages class
settlement, certain merchants filed individual actions
raising similar allegations against Visa and Mastercard,
as well as against the Firm and other banks. While some
of those actions remain pending, the defendants have
reached settlements with the merchants who opted out
representing over 70% of the combined Mastercard-
branded and Visa-branded payment card sales volume.
LIBOR and Other Benchmark Rate Investigations and
Litigation. JPMorganChase has responded to inquiries
from various governmental agencies and entities
around the world relating primarily to the British
Bankers Association’s (“BBA”) London Interbank
Offered Rate (“LIBOR”) for various currencies and the
European Banking Federation’s Euro Interbank Offered
Rate (“EURIBOR”). The Swiss Competition
Commission’s investigation relating to EURIBOR, to
which the Firm and one other bank remain subject,
continues. The Firm appealed a December 2016
decision by the European Commission against the Firm
and other banks finding an infringement of European
antitrust rules relating to EURIBOR. In December 2023,
the European General Court annulled the fine imposed
by the European Commission, but exercised its
discretion to re-impose a fine in an identical amount. In
March 2024, the Firm filed an appeal of this decision
with the Court of Justice of the European Union.
In addition, the Firm has been named as a defendant
along with other banks in various individual and putative
class actions related to benchmark rates, including U.S.
dollar LIBOR. In actions related to U.S. dollar LIBOR
during the period that it was administered by the BBA,
the United States District Court for the Southern District
of New York granted class certification of antitrust
claims related to bonds and interest rate swaps sold
directly by the defendants, including the Firm. The Firm
has obtained dismissal of certain actions and resolved
certain other actions, and as to all remaining actions has
moved for summary judgment. In addition, a lawsuit
filed by a group of individual plaintiffs asserting antitrust
claims, alleging that the Firm and other defendants
were engaged in an unlawful agreement to set U.S.
dollar LIBOR and conspired to monopolize the market
for LIBOR-based consumer loans and credit cards was
dismissed in October 2023 and affirmed on appeal by
the United States Court of Appeals for the Ninth Circuit
in December 2024. The Firm has resolved all non-U.S.
dollar LIBOR actions.
Russian Litigation. The Firm is obligated to comply with
international sanctions laws, which mandate the
blocking of certain assets. These laws apply when
assets associated with individuals, companies, products
or services are within the scope of the sanctions. The
Firm has faced actual and threatened litigation in Russia
seeking payments that the Firm cannot make under,
and is contractually excused from paying as a result of,
relevant sanctions laws. In claims involving the Firm and
claims filed against other financial institutions, Russian
courts have disregarded the parties’ contractual
agreements concerning forum selection and did not
recognize foreign sanctions laws as a basis for not
making payment. Russian courts have entered
judgment against the Firm in a number of claims,
including one for $439 million, and a judgment has been
executed against assets held onshore by the Firm in
Russia. The total amount of the judgments exceeds the
total amount of available assets that the Firm holds in
Russia. The Firm continues to appeal the Russian
courts' decisions, and judgments may not be executed
while on appeal. Russian courts have also ordered
interim freezes of Firm assets in Russia (including,
among other things, funds in bank accounts, securities,
shares in authorized capital, and certain trademarks, of
the named defendants) pending a determination of
Notes to consolidated financial statements
310
JPMorgan Chase & Co./2024 Form 10-K

certain underlying claims against the Firm. The Firm has
challenged claims being pursued in the Russian courts
and related freeze orders in other jurisdictions provided
for by the parties’ contractual forum selections. If further
claims are enforced despite the actions taken by the
Firm to challenge the claims and orders and to seek the
proper application of law, the Firm’s assets in Russia
could be seized in full, and certain client assets could
also be seized, or the Firm could be prevented from
complying with its obligations.
SEC Inquiries. In October 2024, the Firm entered into
settlements with the SEC to resolve inquiries related to,
among other things, conflict disclosures concerning the
selection of portfolio managers and the timing of the
Firm’s liquidation of shares distributed in-kind to certain
investment vehicles that invest in third-party managed
private funds and certain other matters. The resolutions
required the Firm to pay a combined $151 million in civil
penalties and voluntary payments to customers. The
Firm continues to cooperate in connection with SEC
inquiries concerning the aggregation of accounts for fee
billing and various other matters.
Shareholder Litigation. Several shareholder putative
class actions, as well as shareholder derivative actions
purporting to act on behalf of the Firm, have been filed
against the Firm, its Board of Directors and certain of its
current and former officers.
Certain of these shareholder suits relate to historical
trading practices by former employees in the precious
metals and U.S. treasuries markets and related conduct
which were the subject of the Firm’s resolutions with the
DOJ, CFTC and SEC in September 2020, and fiduciary
activities that were separately the subject of a resolution
between JPMorgan Chase Bank, N.A. and the OCC in
November 2020. One of these shareholder derivative
suits was filed in the Supreme Court of the State of New
York in May 2022, asserting breach of fiduciary duty
and unjust enrichment claims relating to the historical
trading practices and related conduct and fiduciary
activities which were the subject of the resolutions
described above. In December 2022, the court granted
defendants’ motion to dismiss this action in full, and in
July 2023, the plaintiff filed an appeal, which remains
pending.
A second shareholder derivative action relating to the
historical trading practices and related conduct was
filed in the United States District Court for the Eastern
District of New York in December 2022. Defendants
have moved to dismiss the complaint.
Zelle Network Litigation. In December 2024, the
Consumer Financial Protection Bureau (“CFPB”) filed a
complaint against Early Warning Services, LLC (“EWS”),
Bank of America, N.A., Wells Fargo Bank, N.A. and
JPMorgan Chase Bank, N.A. in the United States District
Court for the District of Arizona. The CFPB alleges that
EWS and the defendant banks have failed to take
sufficient efforts to prevent fraud on the Zelle network.
The defendants will file a response to the complaint.
* * *
In addition to the various legal proceedings discussed
above, JPMorganChase and its subsidiaries are named
as defendants or are otherwise involved in a substantial
number of other legal proceedings. The Firm believes it
has meritorious defenses to the claims asserted against
it in its currently outstanding legal proceedings and it
intends to defend itself vigorously. Additional legal
proceedings may be initiated from time to time in the
future.
The Firm has established reserves for several hundred
of its currently outstanding legal proceedings. In
accordance with the provisions of U.S. GAAP for
contingencies, the Firm accrues for a litigation-related
liability when it is probable that such a liability has been
incurred and the amount of the loss can be reasonably
estimated. The Firm evaluates its outstanding legal
proceedings each quarter to assess its litigation
reserves, and makes adjustments in such reserves,
upward or downward, as appropriate, based on
management’s best judgment after consultation with
counsel. The Firm’s legal expense was $740 million,
$1.4 billion and $266 million for the years ended
December 31, 2024, 2023 and 2022, respectively. There
is no assurance that the Firm’s litigation reserves will
not need to be adjusted in the future.
In view of the inherent difficulty of predicting the
outcome of legal proceedings, particularly where the
claimants seek very large or indeterminate damages, or
where the matters present novel legal theories, involve
a large number of parties or are in early stages of
discovery, the Firm cannot state with confidence what
will be the eventual outcomes of the currently pending
matters, the timing of their ultimate resolution or the
eventual losses, fines, penalties or consequences
related to those matters. JPMorganChase believes,
based upon its current knowledge and after
consultation with counsel, consideration of the material
legal proceedings described above and after taking into
account its current litigation reserves and its estimated
aggregate range of possible losses, that the other legal
proceedings currently pending against it should not
have a material adverse effect on the Firm’s
consolidated financial condition. The Firm notes,
however, that in light of the uncertainties involved in
such proceedings, there is no assurance that the
ultimate resolution of these matters will not significantly
exceed the reserves it has currently accrued or that a
matter will not have material reputational
consequences. As a result, the outcome of a particular
matter may be material to JPMorganChase’s operating
results for a particular period, depending on, among
other factors, the size of the loss or liability imposed and
the level of JPMorganChase’s income for that period.
JPMorgan Chase & Co./2024 Form 10-K
311

Note 31 – International operations
The following table presents income statement and
balance sheet-related information for JPMorganChase
by major international geographic area. The Firm
defines international activities for purposes of this
footnote presentation as business transactions that
involve clients residing outside of the U.S., and the
information presented below is based predominantly
on the domicile of the client, the location from which
the client relationship is managed, booking location or
the location of the trading desk. However, many of the
Firm’s U.S. operations serve international businesses.
As the Firm’s operations are highly integrated,
estimates and subjective assumptions have been
made to apportion revenue and expense between U.S.
and international operations. These estimates and
assumptions are consistent with the allocations used
for the Firm’s segment reporting as set forth in Note
32.
The Firm’s long-lived assets for the periods presented
are not considered by management to be significant in
relation to total assets. The majority of the Firm’s long-
lived assets are located in the U.S.
As of or for the year ended December 31,
(in millions)
Revenue(b)
Expense(c)
Income before
income tax expense
Net income
Total assets
2024
Europe/Middle East/Africa
$
22,353
$
12,843
$
9,510
$
6,713
$
552,407
(d)
Asia-Pacific

11,995

6,922

5,073

3,615

296,430
Latin America/Caribbean

3,885

1,895

1,990

1,512

73,631
Total international

38,233

21,660

16,573

11,840

922,468
North America
(a)

139,323

80,815

58,508

46,631

3,080,346
Total
$
177,556
$
102,475
$
75,081
$
58,471
$ 4,002,814
2023
Europe/Middle East/Africa
$
20,974
$
11,947
$
9,027
$
6,402
$
529,335
(d)
Asia-Pacific

10,605

6,550

4,055

2,709

251,588
Latin America/Caribbean

3,294

1,971

1,323

994

83,003
Total international

34,873

20,468

14,405

10,105

863,926
North America
(a)

123,231

76,024

47,207

39,447

3,011,467
Total
$
158,104
$
96,492
$
61,612
$
49,552
$ 3,875,393
2022
Europe/Middle East/Africa
$
18,765
$
11,754
$
7,011
$
5,158
$
558,430
(d)
Asia-Pacific

10,025

6,763

3,262

2,119

281,479
Latin America/Caribbean

3,178

1,697

1,481

1,156

78,673
Total international

31,968

20,214

11,754

8,433

918,582
North America
(a)

96,727

62,315

34,412

29,243

2,747,161
Total
$
128,695
$
82,529
$
46,166
$
37,676
$ 3,665,743
(a) Substantially reflects the U.S.
(b) Revenue is composed of net interest income and noninterest revenue.
(c) Expense is composed of noninterest expense and the provision for credit losses.
(d) Total assets for the U.K. were approximately $369 billion, $352 billion and $357 billion at December 31, 2024, 2023 and 2022, respectively.
Notes to consolidated financial statements
312
JPMorgan Chase & Co./2024 Form 10-K

Note 32 – Business segments & Corporate
Business segment reorganization: Effective in the
second quarter of 2024, the Firm reorganized its
reportable business segments by combining the former
Corporate & Investment Bank and Commercial Banking
business segments to form one reportable segment,
the Commercial & Investment Bank. As a result of the
reorganization, the Firm has three reportable business
segments – Consumer & Community Banking,
Commercial & Investment Bank, and Asset & Wealth
Management – with the remaining activities in
Corporate.
Adoption of accounting standard — Segment
Reporting — Improvements to Reportable Segment
Disclosures: This guidance was adopted
retrospectively for the Firm’s annual Consolidated
Financial Statements for the year ended December 31,
2024. The adoption of this guidance requires additional
reportable segment disclosures, primarily relating to
significant segment expenses and the chief operating
decision maker (“CODM”). Adoption of this guidance did
not result in changes to the identification of the Firm’s
reportable business segments, or of its CODM.
The Firm is managed on an LOB basis. 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
evaluated by the Firm’s Operating Committee, whose
members act collectively as the Firm’s CODM. Segment
results are presented on a managed basis. Refer to
Segment & Corporate results in this footnote for a
further discussion of JPMorganChase’s reportable
business segments and Corporate.
The following is a description of each of the Firm’s
reportable business segments, and the products and
services that they provide to their respective client
bases, as well as a description of Corporate activities.
Consumer & Community Banking
Consumer & Community Banking offers products and
services to consumers and small businesses through
bank branches, ATMs, digital (including mobile and
online) and telephone banking. CCB is organized into
Banking & Wealth Management (including Consumer
Banking, Business Banking and J.P. Morgan Wealth
Management), Home Lending (including Home Lending
Production, Home Lending Servicing and Real Estate
Portfolios) and Card Services & Auto. Banking & Wealth
Management offers deposit, investment and lending
products, cash management, payments and services.
Home Lending includes mortgage origination and
servicing activities, as well as portfolios consisting of
residential mortgages and home equity loans. Card
Services issues credit cards and offers travel services.
Auto originates and services auto loans and leases.
Commercial & Investment Bank
The Commercial & Investment Bank is comprised of the
Banking & Payments and Markets & Securities Services
businesses. These businesses offer investment
banking, lending, payments, market-making, financing,
custody and securities products and services to a
global base of corporate and institutional clients.
Banking & Payments offers products and services in all
major capital markets, including advising on corporate
strategy and structure, capital-raising in equity and
debt markets, and loan origination and syndication.
Banking & Payments also provides services that enable
clients to manage payments globally across liquidity
and account solutions, commerce solutions, clearing,
trade, and working capital. Markets & Securities
Services includes Markets, which is a global market-
maker across products, including cash and derivative
instruments, and also offers sophisticated risk
management solutions, lending, prime brokerage,
clearing and research. Markets & Securities Services
also includes Securities Services, a leading global
custodian that provides custody, fund services, liquidity
and trading services, and data solutions products.
Asset & Wealth Management
Asset & Wealth Management, with client assets of $5.9
trillion, is a global leader in investment and wealth
management.
Asset Management
Offers multi-asset investment management solutions
across equities, fixed income, alternatives and money
market funds to institutional and retail investors
providing for a broad range of clients’ investment
needs.
Global Private Bank
Provides retirement products and services, brokerage,
custody, estate planning, lending, deposits and
investment management to high net worth clients.
The majority of AWM’s client assets are in actively
managed portfolios.
Corporate
Corporate consists of Treasury and Chief Investment
Office (“CIO”) and Other Corporate. Treasury and CIO is
predominantly responsible for measuring, monitoring,
reporting and managing the Firm’s liquidity, funding,
capital, structural interest rate and foreign exchange
risks.
Other Corporate includes staff functions and expense
that is centrally managed as well as certain Firm
initiatives and activities not solely aligned to a specific
LOB. The major Other Corporate functions include Real
Estate, Technology, Legal, Corporate Finance, Human
Resources, Internal Audit, Risk Management,
Compliance, Control Management, Corporate
Responsibility and various Other Corporate groups.
JPMorgan Chase & Co./2024 Form 10-K
313

Description of business segment reporting
methodology
Results of the reportable business segments are
intended to present each segment as if it were a stand-
alone business. The management reporting process
that derives business segment results includes the
allocation of certain income and expense items. The
Firm periodically assesses the assumptions,
methodologies and reporting classifications used for
segment reporting, and therefore further refinements
may be implemented in future periods. The Firm also
assesses the level of capital required for each LOB on
at least an annual basis. The Firm’s LOBs also provide
various business metrics which are utilized by the Firm
and its investors and analysts in assessing
performance.
Revenue sharing
When business segments or businesses within each
segment join efforts to sell products and services to
the Firm’s clients and customers, the participating
businesses may agree to share revenue from those
transactions. Revenue is generally recognized in the
segment responsible for the related product or
service, with allocations to the other segments or
businesses involved in the transaction. The segment
and business results reflect these revenue-sharing
agreements.
Expense allocation
Where business segments use services provided by
Corporate support units, or another business segment,
the costs of those services are allocated to the
respective business segments. The expense is
generally allocated based on the actual cost and use of
services provided. In contrast, certain costs and
investments related to Corporate that are not currently
utilized by any LOB are not allocated to the business
segments and are retained in Corporate. Expense
retained in Corporate generally includes costs that
would not be incurred if the segments were stand-
alone businesses, and other items not solely aligned
with a particular reportable business segment.
Funds transfer pricing
Funds transfer pricing (“FTP”) is the process by which
the Firm allocates interest income and expense to the
LOBs and Other Corporate and transfers the primary
interest rate risk and liquidity risk to Treasury and CIO.
The funds transfer pricing process considers the
interest rate and liquidity risk characteristics of assets
and liabilities and off-balance sheet products.
Periodically, the methodology and assumptions
utilized in the FTP process are adjusted to reflect
economic conditions and other factors, which may
impact the allocation of net interest income to the
segments. Effective in the fourth quarter of 2024, the
Firm updated its FTP with respect to consumer
deposits, which resulted in an increase in the funding
benefit reflected within CCB’s net interest income that
is fully offset in Corporate, with no effect on the Firm’s
net interest income.
Foreign exchange risk
Foreign exchange risk is transferred from the LOBs
and Other Corporate to Treasury and CIO for certain
revenues and expenses. Treasury and CIO manages
these risks centrally and reports the impact of foreign
exchange rate movements related to the transferred
risk in its results.
Debt expense and preferred stock dividend allocation
As part of the FTP process, almost all of the cost of the
credit spread component of outstanding unsecured
long-term debt and preferred stock dividends is
allocated to the reportable business segments, while
the balance of the cost is retained in Corporate. The
methodology to allocate the cost of unsecured long-
term debt and preferred stock dividends to the
business segments is aligned with the relevant
regulatory capital requirements and funding needs of
the LOBs, as applicable. The allocated cost of
unsecured long-term debt is included in a business
segment’s net interest income, and net income is
reduced by preferred stock dividends, to arrive at a
business segment’s net income applicable to common
equity.
Capital allocation
Each LOB and Corporate 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 an LOB’s performance.
The Firm’s current equity allocation methodology
incorporates Basel III Standardized RWA and the GSIB
surcharge, both under rules currently in effect, as well
as a simulation of capital depletion in a severe stress
environment. At least annually, the assumptions,
judgments and methodologies used to allocate capital
are reassessed and, as a result, the capital allocated to
the LOBs and Corporate may change.
Notes to consolidated financial statements
314
JPMorgan Chase & Co./2024 Form 10-K

Segment & Corporate results
The following table provides a summary of results for
the Firm’s reportable business segments and
Corporate activities as of or for the years ended
December 31, 2024, 2023 and 2022, 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 as a whole (and for each of the reportable
business segments and Corporate) 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 each of the LOBs and Corporate.
The Operating Committee reviews segment results
including net interest income, noninterest revenue,
noninterest expense, provision for credit losses and
net income on a managed basis. The Operating
Committee uses these measures to evaluate segment
performance and to make key operating decisions,
including resource and capital allocations.
Segment & Corporate results and reconciliation
(a)
(Table continued on next page)
As of or for the year ended
December 31,
(in millions, except ratios)
Consumer & Community Banking
Commercial & Investment Bank
Asset & Wealth Management
2024
2023
2022
2024
2023
2022
2024
2023
2022
Noninterest revenue
$
16,649
$
15,118
$
14,886
(e)
$
48,253
$
43,809
$
39,538
(b)
$
15,023
$
13,560
$
12,507
Net interest income

54,858

55,030

39,928

21,861

20,544

20,097

6,555

6,267

5,241
Total net revenue

71,507

70,148

54,814

70,114

64,353

59,635

21,578

19,827

17,748
Provision for credit losses

9,974

6,899

3,813

762

2,091

2,426

(68)

159

128
Compensation expense
(b)

17,045

15,171

13,092

18,191

17,105

16,214

7,984

7,115

6,336
Noncompensation expense
(c)(d)

20,991

19,648

18,116

17,162

16,867

15,855

6,430

5,665

5,493
Total noninterest expense

38,036

34,819

31,208
(e)

35,353

33,972

32,069
(b)

14,414

12,780

11,829
Income/(loss) before income tax
expense/(benefit)

23,497

28,430

19,793

33,999

28,290

25,140

7,232

6,888

5,791
Income tax expense/(benefit)

5,894

7,198

4,877
(e)

9,153

8,018

6,002
(b)

1,811

1,661

1,426
Net income/(loss)
$
17,603
$
21,232
$
14,916
$
24,846
$
20,272
$
19,138
$
5,421
$
5,227
$
4,365
Average equity
$ 54,500
$
54,349
$ 50,000
$ 132,000
$ 137,507
$ 128,000
$
15,500
$
16,671
$
17,000
Total assets

650,268

642,951

514,085
1,773,194
1,638,493
1,591,402

255,385

245,512

232,037
Return on equity
32 %
38 %
29 %
18 %
14 %
14 %
34 %
31 %
25 %
Overhead ratio
53
50
57
50
53
54
67
64
67
JPMorgan Chase & Co./2024 Form 10-K
315

(Table continued from previous page)
As of or for the year ended
December 31,
(in millions, except ratios)
Corporate
Reconciling Items
(a)
Total
2024
2023
2022
2024
2023
2022
2024
2023
2022
Noninterest revenue
$
7,608
(f)
$
132
$
(1,798)
$
(2,560) $
(3,782)
$
(3,148)
$
84,973
(f)
$
68,837
$
61,985
Net interest income

9,786

7,906

1,878

(477)
(480)

(434)

92,583

89,267

66,710
Total net revenue

17,394

8,038

(3,037)
(4,262)

(3,582)

177,556

158,104

128,695
Provision for credit losses

171

—
—

—

10,678

9,320

6,389
Total noninterest expense
(d)

3,994
(g)

5,601

1,034

—
—

—

91,797
(g)

87,172

76,140
Income/(loss) before income
tax expense/(benefit)

13,390

2,266

(976)

(3,037)
(4,262)

(3,582)

75,081

61,612

46,166
Income tax expense/(benefit)

2,789

(555)

(233)

(3,037)
(4,262)

(3,582)

16,610

12,060

8,490
Net income/(loss)
$
10,601
$
2,821
$
(743)
$
— $
—
$
—
$
58,471
$
49,552
$
37,676
Average equity
$
110,370
$
73,529
$
58,068
$
— $
—
$
—
$ 312,370
$ 282,056
$ 253,068
Total assets

1,323,967

1,348,437

1,328,219
NA
NA
NA
4,002,814
3,875,393
3,665,743
Return on equity
NM
NM
NM
NM
NM
NM
18 %
17 %
14 %
Overhead ratio
NM
NM
NM
NM
NM
NM
52
55
59
(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. In addition,
effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures guidance, under the modified
retrospective method. Refer to Notes 1, 6, 14 and 25 for additional information.
(b) Excludes expense related to services provided by Corporate support units, which is allocated from Corporate to each respective reportable
business segment, as applicable, through noncompensation expense.
(c) Reflects occupancy; technology, communications and equipment; professional and outside services; marketing; and other expense. Refer to
Note 6 for additional information on other expense.
(d) Certain services are provided by Corporate and used by each of the reportable business segments. The costs of these services, including
compensation-related costs, are allocated from Corporate to the respective reportable business segments, with the allocations recorded in
noncompensation expense.
(e) 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.
(f) Included a $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional
information.
(g) Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Notes
2 and 6 for additional information.
Notes to consolidated financial statements
316
JPMorgan Chase & Co./2024 Form 10-K

Note 33 – Parent Company
The following tables present Parent Company-only
financial statements.
Statements of income and comprehensive income
Year ended December 31,
(in millions)
2024
2023
2022
Income
Dividends from subsidiaries
and affiliates:
Bank and bank holding
company
$ 37,000
$ 61,000
$ 40,500
Non-bank

—

—
Interest income from
subsidiaries

1,228

1,166

498
Other income/(expense) from
subsidiaries:
Bank and bank holding
company

555

1,801

(3,497)
Non-bank

172

250

335
Other income/(expense)

1,252

(654)
5,271
Total income

40,207

63,563

43,107
Expense
Interest expense/(income) to
subsidiaries and affiliates(a)

7,433

2,258

22,731
Other interest expense/
(income)(a)

8,068

11,714

(14,658)
Noninterest expense

3,280

3,431

2,817
Total expense

18,781

17,403

10,890
Income before income tax
benefit and undistributed net
income of subsidiaries

21,426

46,160

32,217
Income tax benefit

1,264

1,525

1,260
Equity in undistributed net
income of subsidiaries

35,781

1,867

4,199
Net income
$ 58,471
$ 49,552
$ 37,676
Other comprehensive income/
(loss), net

(2,013)
6,898

(17,257)
Comprehensive income
$ 56,458
$ 56,450
$ 20,419
Balance sheets
December 31, (in millions)
2024
2023
Assets
Cash and due from banks
$
38
$
42
Deposits with banking subsidiaries

9,762

9,804
Trading assets

43,214

3,198
Advances to, and receivables from,
subsidiaries:
Bank and bank holding company

142

152
Non-bank

21
Investments (at equity) in subsidiaries and
affiliates:
Bank and bank holding company
603,044
568,472
Non-bank

1,238

1,045
Other assets

12,097

8,962
Total assets
$ 669,614
$ 591,696
Liabilities and stockholders’ equity
Borrowings from, and payables to,
subsidiaries and affiliates
$ 72,881
$ 22,777
Short-term borrowings

—

999
Other liabilities

12,349

11,500
Long-term debt(b)(c)
239,626
228,542
Total liabilities(c)
324,856
263,818
Total stockholders’ equity
344,758
327,878
Total liabilities and stockholders’ equity
$ 669,614
$ 591,696
JPMorgan Chase & Co./2024 Form 10-K
317

Statements of cash flows
Year ended December 31,
(in millions)
2024
2023
2022
Operating activities
Net income
$ 58,471
$ 49,552
$ 37,676
Less: Net income of
subsidiaries and affiliates

72,781
62,868
44,699
Parent company net loss
(14,310)
(13,316)
(7,023)
Cash dividends from
subsidiaries and affiliates
37,000

61,000
40,500
Other operating adjustments
(44,671)
9,412
(23,747)
Net cash provided by/(used
in) operating activities
(21,981)
57,096

9,730
Investing activities
Net change in:
Advances to and
investments in subsidiaries
and affiliates, net

—
(25,000)
—
All other investing activities,
net

31
Net cash provided by/(used
in) investing activities

21
(24,975)
31
Financing activities
Net change in:
Borrowings from
subsidiaries and affiliates
49,902

(2,249)
(4,491)
Short-term borrowings

(999)
—

—
Proceeds from long-term
borrowings
44,997

19,398

41,389
Payments of long-term
borrowings
(29,753) (25,105) (18,294)
Proceeds from issuance of
preferred stock

2,500

—

—
Redemption of preferred
stock

(9,850)
—

(7,434)
Treasury stock repurchased
(18,830)
(9,824)
(3,162)
Dividends paid
(14,783) (13,463) (13,562)
All other financing activities,
net

(1,270)
(879)
(1,205)
Net cash provided by/(used
in) financing activities

21,914
(32,122)
(6,759)
Net increase/(decrease) in
cash and due from banks and
deposits with banking
subsidiaries

(46)
(1)
3,002
Cash and due from banks and
deposits with banking
subsidiaries at the beginning
of the year

9,846

9,847

6,845
Cash and due from banks and
deposits with banking
subsidiaries at the end of
the year
$ 9,800
$ 9,846
$
9,847
Cash interest paid
$ 14,851
$ 13,742
$
7,462
Cash income taxes paid, net
(d)

6,252

10,291

6,941
(a) Includes interest expense for intercompany derivative hedges
on the Firm’s LTD and related fair value adjustments, which is
offset by related amounts in Other interest expense/(income).
(b) At December 31, 2024, long-term debt that contractually
matures in 2025 through 2029 totaled $7.7 billion, $29.3 billion,
$20.2 billion, $35.0 billion, and $18.5 billion, respectively.
(c) Refer to Notes 20 and 28 for information regarding the Parent
Company’s guarantees of its subsidiaries’ obligations.
(d) Represents payments, net of refunds, made by the Parent
Company to various taxing authorities and includes taxes paid
on behalf of certain of its subsidiaries that are subsequently
reimbursed. The reimbursements were $5.0 billion, $13.2 billion,
and $11.3 billion for the years ended December 31, 2024, 2023
and 2022, respectively.
Notes to consolidated financial statements
318
JPMorgan Chase & Co./2024 Form 10-K

Note 34 – Business combinations
On May 1, 2023, JPMorganChase acquired certain
assets and assumed certain liabilities of First Republic
Bank (the "First Republic acquisition") from the Federal
Deposit Insurance Corporation (“FDIC”), as receiver.
The acquisition resulted in a bargain purchase gain,
which represents the excess of the estimated fair value
of the net assets acquired above the purchase price.
The Firm has determined that this acquisition
constitutes a business combination under U.S. GAAP.
Accordingly, the initial recognition of the assets
acquired and liabilities assumed were generally
measured at their estimated fair values as of May 1,
2023. The determination of those fair values required
management to make certain market-based
assumptions about expected future cash flows,
discount rates and other valuation inputs at the time of
the acquisition. The Firm believes that the fair value
estimates of the assets acquired and liabilities
assumed provide a reasonable basis for determining
the estimated bargain purchase gain.
The First Republic acquisition resulted in a preliminary
estimated bargain purchase gain of $2.7 billion. The
final bargain purchase gain of $2.9 billion reflects
adjustments of $103 million and $63 million for the
years ended December 31, 2024 and 2023,
respectively, made during the one-year measurement
period, as permitted by U.S. GAAP, to finalize
management's fair value estimates for the assets
acquired and liabilities assumed. As of December 31,
2024, certain matters related to the final settlement
remained outstanding between the Firm and the FDIC.
On January 17, 2025, the Firm reached an agreement
with the FDIC with respect to certain outstanding
items. As a result of the agreement, the Firm made a
payment of $609 million to the FDIC on January 31,
2025 and reduced its additional payable to the FDIC,
which will result in a gain of approximately
$600 million to be recorded in other income in the first
quarter of 2025.
In connection with the First Republic acquisition, the
Firm and the FDIC entered into two shared-loss
agreements with respect to certain loans and lending-
related commitments (the "shared-loss assets"): the
Commercial Shared-Loss Agreement ("CSLA") and the
Single-Family Shared-Loss Agreement (“SFSLA”). The
CSLA covers 80% of credit losses, on a pari passu
basis, over 5 years with a subsequent 3-year recovery
period for certain acquired commercial loans and
other real estate exposure. The SFSLA covers 80% of
credit losses, on a pari passu basis, for 7 years for
certain acquired loans secured by mortgages on real
property or shares in cooperative property
constituting a primary residence. The indemnification
assets, which represent the fair value of the CSLA and
SFSLA on the acquisition date, are reflected in the total
assets acquired.
As part of the consideration paid, JPMorganChase
issued a five-year, $50 billion secured note to the FDIC
(the "Purchase Money Note"). The Purchase Money
Note bears interest at a fixed rate of 3.4% and is
secured by certain of the acquired loans. The Purchase
Money Note is prepayable upon notice to the holder.
The Firm had placed a $5 billion deposit with First
Republic Bank on March 16, 2023, as part of $30 billion
of deposits provided by a consortium of large U.S.
banks. The Firm's $5 billion deposit was effectively
settled as part of the acquisition and the associated
allowance for credit losses was released upon closing.
The Firm subsequently repaid the remaining $25
billion of deposits to the consortium of banks,
including accrued interest through the payment date
on May 9, 2023.

JPMorgan Chase & Co./2024 Form 10-K
319

The computation of the purchase price, the fair values of the assets acquired and liabilities assumed as part of the First
Republic acquisition and the related bargain purchase gain are presented below, which reflects adjustments made
during the measurement period to the acquisition-date fair value of the net assets acquired. The measurement period
ended on April 30, 2024.
Fair value purchase
price allocation as of
May 1, 2023
(in millions)
Purchase price consideration
Amounts paid/due to the FDIC, net of cash acquired(a)
$
13,555
Purchase Money Note (at fair value)(b)

48,848
Settlement of First Republic deposit and other related party transactions(c)

5,447
Contingent consideration - Shared-loss agreements

15
Purchase price consideration
$
67,865
Assets
Securities
$
30,285
Loans

153,242
Core deposit and customer relationship intangibles

1,455
Indemnification assets - Shared-loss agreements

675
Accounts receivable and other assets(d)

6,740
Total assets acquired
$
192,397
Liabilities
Deposits
$
87,572
FHLB advances

27,919
Lending-related commitments

2,614
Accounts payable and other liabilities
(d)

2,792
Deferred tax liabilities

757
Total liabilities assumed
$
121,654
Fair value of net assets acquired
$
70,743
Gain on acquisition, after income taxes
$
2,878
(a) Net of cash acquired of $680 million, and including disputed amounts with the FDIC as of April 30, 2024.
(b) As part of the consideration paid, JPMorganChase issued a five-year, $50 billion secured note to the FDIC (the "Purchase Money Note").
(c) Includes $447 million of securities financing transactions with First Republic Bank that were effectively settled on the acquisition date.
(d) Other assets include $1.2 billion in tax-oriented investments and $683 million of lease right-of-use assets. Other liabilities include the related
tax-oriented investment liabilities of $669 million and lease liabilities of $748 million.
The following describes the accounting policies and fair value methodologies generally used by the Firm for the
following assets acquired and liabilities assumed: core deposit and customer relationship intangibles, shared-loss
agreements and the related indemnification assets, Purchase Money Note, and FHLB advances.
For further discussion of the Firm’s accounting policies and valuation methodologies, refer to Notes 2 and 3 for fair
value measurement, Note 10 for investment securities, Note 12 for loans, Note 17 for deposits, and Note 28 for
lending-related commitments.
Core deposit and customer relationship intangibles
Core deposit and certain wealth management
customer relationship intangibles were acquired as
part of the First Republic acquisition. The core deposit
intangible of $1.3 billion was valued by discounting
estimated after-tax cost savings over the remaining
useful life of the deposits using the favorable source of
funds method. The after-tax cost savings were
estimated based on the difference between the cost of
maintaining the core deposit base relative to the cost
of next best alternative funding sources available to
market participants. The customer relationship
intangibles of $180 million were valued by discounting
estimated after-tax earnings over their remaining
useful lives using the multi-period excess earnings
method. Both intangible asset valuations utilized
assumptions that the Firm believes a market
participant would use to estimate fair values, such as
growth and attrition rates, projected fee income as well
as related costs to service the relationships, and
discount rates. The core deposit and customer
relationship intangibles are amortized over a projected
period of future cash flows of approximately 7 years.
Refer to Note 15 for further discussion on other
intangible assets.
Notes to consolidated financial statements
320
JPMorgan Chase & Co./2024 Form 10-K

Indemnification assets - Shared-loss agreements
The indemnification assets represent forecasted
recoveries from the FDIC associated with the shared-
loss assets over the respective shared-loss recovery
periods. The indemnification assets were recorded at
fair value in other assets on the Consolidated balance
sheets on the acquisition date. The fair values of the
indemnification assets were estimated based on the
timing of the forecasted losses underlying the related
allowance for credit losses. The subsequent quarterly
remeasurement of the indemnification assets is based
on changes in the amount and timing of forecasted
losses in the allowance for credit losses associated
with the shared-loss assets and is recorded in other
income. Under certain circumstances, the Firm may be
required to make a payment to the FDIC upon
termination of the shared-loss agreements based on
the level of actual losses and recoveries on the shared-
loss assets. The estimated potential future payment is
reflected as contingent consideration as part of the
purchase price consideration.
Purchase Money Note and FHLB advances
The Purchase Money Note is recorded in long-term
debt on the Consolidated balance sheets. The fair
value of the Purchase Money Note was estimated
based on a discounted cash flow methodology and
incorporated estimated market discount rates.
The FHLB advances assumed in the acquisition are
recorded in short-term borrowings and in long-term
debt. The fair values of the FHLB advances were based
on a discounted cash flow methodology and
considered the observed FHLB advance issuance
rates.
Loans
The following table presents the unpaid principal balance ("UPB") and fair values of the loans acquired as of May 1,
2023, and reflects adjustments made during the measurement period to the acquisition-date fair value of the loans
acquired.
May 1, 2023
(in millions)
UPB
Fair value
Residential real estate
$
106,240
$
92,053
Auto and other

3,093

2,030
Total consumer

109,333

94,083
Secured by real estate

37,117

33,602
Commercial & industrial

4,332

3,932
Other

23,499

21,625
Total wholesale

64,948

59,159
Total loans
$
174,281
$
153,242
Unaudited pro forma condensed combined financial information
The following table presents certain unaudited pro forma financial information for the year ended December 31, 2023
and 2022 as if the First Republic acquisition had occurred on January 1, 2022, including recognition of the estimated
bargain purchase gain of $2.8 billion and the provision for credit losses of $1.2 billion. Additional adjustments include
the interest on the Purchase Money Note and the impact of amortizing and accreting certain estimated fair value
adjustments related to intangible assets, loans and lending-related commitments.
The Firm expects to achieve operating cost savings and other business synergies resulting from the acquisition that
are not reflected in the pro forma amounts. The pro forma information is not necessarily indicative of the historical
results of operations had the acquisition occurred on January 1, 2022, nor is it indicative of the results of operations in
future periods.
Year ended December 31,
(in millions)
2023
2022
Noninterest revenue
$
65,816
$
66,510
Net interest income

90,856

71,005
Net income

48,665

41,089
JPMorgan Chase & Co./2024 Form 10-K
321

Consolidated average balance sheets, interest and
rates
Provided below is a summary of JPMorganChase’s
consolidated average balances, interest and rates on a
taxable-equivalent basis for the years 2022 through
2024. Income computed on a taxable-equivalent basis
is the income reported in the Consolidated statements
of income, adjusted to present interest income and
rates earned on assets exempt from income taxes (i.e.,
federal taxes) on a basis comparable with other
taxable investments. The incremental tax rate used for
calculating the taxable-equivalent adjustment was
approximately 24% in 2024, 2023 and 2022.
(Table continued on next page)
(Unaudited)
2024
Year ended December 31,
(Taxable-equivalent interest and rates; in millions, except rates)
Average
balance
(f)
Interest
(f)
Rate
Assets
Deposits with banks
$
490,205
$
22,297
4.55 %
Federal funds sold and securities purchased under resale agreements

359,197

18,299
5.09
Securities borrowed

209,744

9,208
4.39
Trading assets – debt instruments

456,029

20,373
4.47
Taxable securities

583,329

21,947
3.76
Non-taxable securities
(a)

27,912

1,393
4.99
Total investment securities

611,241

23,340
3.82
(i)
Loans

1,322,425

92,588
(h)
7.00
All other interest-earning assets(b)(c)

88,726

8,305
9.36
Total interest-earning assets

3,537,567

194,410
5.50
Allowance for loan losses

(22,877)
Cash and due from banks

22,591
Trading assets – equity and other instruments

208,534
Trading assets – derivative receivables

57,005
Goodwill, MSRs and other intangible assets

64,393
All other noninterest-earning assets

218,709
Total assets
$
4,085,922
Liabilities
Interest-bearing deposits
$
1,748,050
$
49,559
2.84 %
Federal funds purchased and securities loaned or sold under repurchase
agreements

363,820

19,149
5.26
Short-term borrowings

39,593

2,101
5.31
Trading liabilities – debt and all other interest-bearing liabilities(d)(e)

314,054

10,238
3.26
Beneficial interests issued by consolidated VIEs

26,515

1,383
5.22
Long-term debt

344,346

18,920
5.49
Total interest-bearing liabilities

2,836,378

101,350
3.57
Noninterest-bearing deposits

638,592
Trading liabilities – equity and other instruments(e)

32,025
Trading liabilities – derivative payables

39,497
All other liabilities, including the allowance for lending-related commitments

203,006
Total liabilities

3,749,498
Stockholders’ equity
Preferred stock

24,054
Common stockholders’ equity

312,370
Total stockholders’ equity

336,424
(g)
Total liabilities and stockholders’ equity
$
4,085,922
Interest rate spread
1.93 %
Net interest income and net yield on interest-earning assets
$
93,060
2.63
(a) Represents securities that are tax-exempt for U.S. federal income tax purposes.
(b) Includes brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and
all other interest-earning assets, which are classified in other assets on the Consolidated Balance Sheets.
(c) The rates reflect the impact of interest earned on cash collateral where the cash collateral has been netted against certain derivative
payables.
(d) All other interest-bearing liabilities include brokerage-related customer payables.
(e) The combined balance of trading liabilities – debt and equity instruments was $185.4 billion, $153.3 billion and $138.1 billion for the years
ended December 31, 2024, 2023 and 2022, respectively.
(f) Includes the effect of derivatives that qualify for hedge accounting where applicable. Taxable-equivalent amounts are used, also where
applicable. Refer to Note 5 for additional information on hedge accounting.
Supplementary Information: Distribution of assets, liabilities and stockholders’ equity;
interest rates and interest differentials
322
JPMorgan Chase & Co./2024 Form 10-K

(Table continued from previous page)
2023
2022
Average
balance
(f)
Interest
(f)
Rate
Average
balance
(f)
Interest
(f)
Rate
$
499,396
$
21,797
4.36 %
$
670,773
$
9,039
1.35 %

317,159

15,079
4.75

307,150

4,632
1.51

193,228

7,983
4.13

205,516

2,237
1.09

376,928

16,001
4.25

283,108

9,097
3.21

573,914

17,390
3.03

626,122

10,372
1.66

30,886

1,560
5.05

27,863

1,224
4.39

604,800

18,950
3.13
(i)

653,985

11,596
1.77
(i)

1,248,076

83,589
(h)
6.70

1,100,318

52,877
(h)
4.81

86,121

7,669
8.90

128,229

3,763
2.93

3,325,708

171,068
5.14

3,349,079

93,241
2.78

(20,762)

(17,399)

24,853

27,601

160,087

140,778

64,227

78,606

63,212

59,467

204,899

215,408
$
3,822,224
$
3,853,540
$
1,698,529
$
40,016
2.36 %
$
1,748,666
$
10,082
0.58 %

256,086

13,259
5.18

242,762

3,721
1.53

37,468

1,894
5.05

46,063

747
1.62

286,605

9,396
3.28

268,019

3,246
1.21

18,648

953
5.11

11,208

226
2.02

296,433

15,803
5.33

250,080

8,075
3.23

2,593,769

81,321
3.14

2,566,798

26,097
1.02

660,538

719,249

30,501

39,155

46,355

57,388

181,601

185,989

3,512,764

3,568,579

27,404

31,893

282,056

253,068

309,460
(g)

284,961
(g)
$
3,822,224
$
3,853,540
2.00 %
1.76 %
$
89,747

2.70
$
67,144

2.00
(g) The ratio of average stockholders’ equity to average assets was 8.2%, 8.1% and 7.4% for the years ended December 31, 2024, 2023 and 2022,
respectively. The return on average stockholders’ equity, based on net income, was 17.4%, 16.0% and 13.2% for the years ended December 31,
2024, 2023 and 2022, respectively.
(h) Included fees and commissions on loans of $3.6 billion, $2.2 billion and $1.8 billion for the years ended December 31, 2024, 2023 and 2022,
respectively.
(i)
The annualized rate for securities based on amortized cost was 3.79%, 3.09% and 1.75% for the years ended December 31, 2024, 2023 and
2022, respectively, and does not give effect to changes in fair value that are reflected in AOCI.
Within the Consolidated average balance sheets, interest and rates summary, the principal amounts of nonaccrual
loans have been included in the average loan balances used to determine the average interest rate earned on loans.
Refer to Note 12 for additional information on nonaccrual loans, including interest accrued.
JPMorgan Chase & Co./2024 Form 10-K
323

Presented below is a summary of interest and rates segregated between U.S. and non-U.S. operations for the years
2022 through 2024. The segregation of U.S. and non-U.S. components is based on the location of the office
recording the transaction.
(Table continued on next page)
2024
(Unaudited)
Year ended December 31,
(Taxable-equivalent interest and rates; in millions, except rates)
Average balance
Interest
Rate
Interest-earning assets
Deposits with banks:
U.S.
$
284,913 $
15,157
5.32 %
Non-U.S.

205,292
7,140
3.48
Federal funds sold and securities purchased under resale agreements:
U.S.

193,210
10,686
5.53
Non-U.S.

165,987
7,613
4.59
Securities borrowed:
U.S.

150,251
7,330
4.88
Non-U.S.

59,493
1,878
3.16
Trading assets – debt instruments:
U.S.

309,568
13,579
4.39
Non-U.S.

146,461
6,794
4.64
Investment securities:
U.S.

567,784
21,458
3.78
Non-U.S.

43,457
1,882
4.33
Loans:
U.S.

1,211,978
85,621
7.06
Non-U.S.

110,447
6,967
6.31
All other interest-earning assets, predominantly U.S.
(a)

88,726
8,305
9.36
Total interest-earning assets

3,537,567
194,410
5.50
Interest-bearing liabilities
Interest-bearing deposits:
U.S.

1,307,000
33,173
2.54
Non-U.S.

441,050
16,386
3.72
Federal funds purchased and securities loaned or sold under repurchase
agreements:
U.S.

294,476
15,949
5.42
Non-U.S.

69,344
3,200
4.61
Trading liabilities – debt, short-term and all other interest-bearing liabilities:
U.S.

222,710
8,289
3.72
Non-U.S.

130,937
4,050
3.09
Beneficial interests issued by consolidated VIEs, predominantly U.S.

26,515
1,383
5.22
Long-term debt:
U.S.

338,166
18,760
5.55
Non-U.S.

6,180
160
2.59
Total interest-bearing liabilities

2,836,378
101,350
3.57
Noninterest-bearing liabilities
(b)

701,189
Total investable funds
$
3,537,567 $
101,350
2.86 %
Net interest income and net yield:
$
93,060
2.63 %
U.S.

80,913
2.92
Non-U.S.

12,147
1.58
Percentage of total assets and liabilities attributable to non-U.S. operations:
Assets
24.3
Liabilities
20.5
(a) The rates reflect the impact of interest earned on cash collateral where that cash collateral has been netted against certain derivative
payables.
(b) Represents the amount of noninterest-bearing liabilities funding interest-earning assets.
Refer to the “Net interest income” discussion in Consolidated Results of Operations on pages 59–62 for further
information.
Interest rates and interest differential analysis of net interest income – U.S. and non-U.S.
324
JPMorgan Chase & Co./2024 Form 10-K

(Table continued from previous page)
2023
2022
Average balance
Interest
Rate
Average balance
Interest
Rate
$
296,784 $
15,348
5.17 %
$
456,366 $
7,418
1.63 %

202,612
6,449
3.18

214,407
1,621
0.76

155,304
8,330
5.36

130,213
2,191
1.68

161,855
6,749
4.17

176,937
2,441
1.38

133,805
6,239
4.66

142,736
1,811
1.27

59,423
1,744
2.93

62,780
426
0.68

248,541
10,721
4.31

170,975
5,414
3.17

128,387
5,280
4.11

112,133
3,683
3.28

568,505
17,469
3.07

623,285
10,994
1.76

36,295
1,481
4.08

30,700
602
1.96

1,137,162
76,884
6.76

985,187
48,953
4.97

110,914
6,705
6.05

115,131
3,924
3.41

86,121
7,669
8.90

128,229
3,763
2.93

3,325,708
171,068
5.14

3,349,079
93,241
2.78

1,290,110
26,253
2.03

1,358,322
7,026
0.52

408,419
13,763
3.37

390,344
3,056
0.78

197,049
10,639
5.40

173,016
3,083
1.78

59,037
2,620
4.44

69,746
638
0.91

205,388
7,774
3.79

194,570
2,384
1.23

118,685
3,516
2.96

119,512
1,609
1.35

18,648
953
5.11

11,208
226
2.02

293,218
15,749
5.37

246,670
8,026
3.25

3,215
54
1.68

3,410
49
1.44

2,593,769
81,321
3.14

2,566,798
26,097
1.02

731,939

782,281
$
3,325,708 $
81,321
2.45 %
$
3,349,079 $
26,097
0.78 %
$
89,747
2.70 %
$
67,144
2.00 %

77,923
3.01

58,950
2.27

11,824
1.61

8,194
1.09
24.7
24.9
20.2
20.6
JPMorgan Chase & Co./2024 Form 10-K
325

The table below presents an attribution of net interest income between volume and rate. The attribution between
volume and rate is calculated using annual average balances for each category of assets and liabilities shown in the
table and the corresponding annual rates (refer to pages 322-325 for more information on average balances and rates).
In this analysis, when the change cannot be isolated to either volume or rate, it has been allocated to volume. The annual
rates include the impact of changes in market rates, as well as the impact of any change in composition of the various
products within each category of asset or liability. This analysis is calculated separately for each category without
consideration of the relationship between categories (for example, the net spread between the rates earned on assets
and the rates paid on liabilities that fund those assets). As a result, changes in the granularity or groupings considered in
this analysis would produce a different attribution result, and due to the complexities involved, precise allocation of
changes in interest rates between volume and rates is inherently complex and judgmental.
2024 versus 2023
2023 versus 2022
(Unaudited)
Increase/(decrease)
due to change in:
Increase/(decrease)
due to change in:
Year ended December 31,
(On a taxable-equivalent basis; in millions)
Volume
Rate
Net
change
Volume
Rate
Net
change
Interest-earning assets
Deposits with banks:
U.S.
$
(636) $
445
$
(191)
$
(8,225) $
16,155
$
7,930
Non-U.S.

608

691

(361)
5,189

4,828
Federal funds sold and securities purchased under resale
agreements:
U.S.

2,092

264

2,356

1,347

4,792

6,139
Non-U.S.

184

680

864

(629)
4,937

4,308
Securities borrowed:
U.S.

797

294

1,091

(411)
4,839

4,428
Non-U.S.

(3)
137

134

(95)
1,413

1,318
Trading assets – debt instruments:
U.S.

2,659

199

2,858

3,358

1,949

5,307
Non-U.S.

834

680

1,514

666

931

1,597
Investment securities:
U.S.

(47)
4,036

3,989

(1,690)
8,165

6,475
Non-U.S.

310

401

228

651

879
Loans:
U.S.

5,326

3,411

8,737

10,296

17,635

27,931
Non-U.S.

(26)
288

262

(258)
3,039

2,781
All other interest-earning assets, predominantly U.S.

240

396

636

(3,749)
7,655

3,906
Change in interest income

11,813

11,529

23,342

477

77,350

77,827
Interest-bearing liabilities
Interest-bearing deposits:
U.S.

340

6,580

6,920

(1,284)
20,511

19,227
Non-U.S.

1,194

1,429

2,623

597

10,110

10,707
Federal funds purchased and securities loaned or sold under
repurchase agreements:
U.S.

5,271

5,310

1,293

6,263

7,556
Non-U.S.

480

100

580

(480)
2,462

1,982
Trading liabilities – debt, short-term and all other interest-
bearing liabilities:
U.S.

659

(144)
515

409

4,981

5,390
Non-U.S.

380

154

534

(17)
1,924

1,907
Beneficial interests issued by consolidated VIEs,
predominantly U.S.

409

430

381

346

727
Long-term debt:
U.S.

2,483

528

3,011

2,494

5,229

7,723
Non-U.S.

106

(3)
8

5
Change in interest expense

11,293

8,736

20,029

3,390

51,834

55,224
Change in net interest income
$
520
$
2,793
$
3,313
$
(2,913) $
25,516
$ 22,603

Changes in net interest income, volume and rate analysis
326
JPMorgan Chase & Co./2024 Form 10-K

2023 Form 10-K: Annual report on Form 10-K for the
year ended December 31, 2023, filed with the U.S.
Securities and Exchange Commission.
ABS: Asset-backed securities
Active foreclosures: Loans referred to foreclosure
where formal foreclosure proceedings are ongoing.
Includes both judicial and non-judicial states.
AFS: Available-for-sale
ALCO: Asset Liability Committee
Alternative assets “Alternatives”: The following types
of assets constitute alternative investments - hedge
funds, currency, real estate, private equity and other
investment funds designed to focus on nontraditional
strategies
Amortized cost: Amount at which a financing
receivable or investment is originated or acquired,
adjusted for accretion or amortization of premium,
discount, and net deferred fees or costs, collection of
cash, charge-offs, foreign exchange, and fair value
hedge accounting adjustments. For AFS securities,
amortized cost is also reduced by any impairment
losses recognized in earnings. Amortized cost is not
reduced by the allowance for credit losses, except
where explicitly presented net.
AOCI: Accumulated other comprehensive income/
(loss)
ARM: Adjustable rate mortgage(s)
AUC: “Assets under custody”: Represents assets held
directly or indirectly on behalf of clients under
safekeeping, custody and servicing arrangements.
AUM: “Assets under management”: Represent assets
managed by AWM on behalf of its Private Banking,
Institutional and Retail clients. Includes “Committed
capital not Called.”
Auto loan and lease origination volume: Dollar amount
of auto loans and leases originated.
AWM: Asset & Wealth Management
Beneficial interests issued by consolidated VIEs:
Represents the interest of third-party holders of debt,
equity securities, or other obligations, issued by VIEs
that JPMorganChase consolidates.
Benefit obligation: Refers to the projected benefit
obligation for pension plans and the accumulated
postretirement benefit obligation for OPEB plans.
BHC: Bank holding company
BWM: Banking & Wealth Management
Bridge Financing Portfolio: A portfolio of held-for-sale
unfunded loan commitments and funded loans. The
unfunded commitments include both short-term bridge
loan commitments that will ultimately be replaced by
longer term financing as well as term loan
commitments. The funded loans include term loans and
funded revolver facilities.
CB: Commercial Banking
CCAR: Comprehensive Capital Analysis and Review
CCB: Consumer & Community Banking
CCB Consumer customer: A unique individual that has
financial ownership or decision-making power with
respect to accounts; excludes customers under the age
of 18. Where a customer uses the same identifier as
both a Consumer and a Small business, the customer is
included in both metrics.
CCB Small business customer: A unique business or
legal entity that has financial ownership or decision-
making power with respect to accounts. Where a
customer uses the same identifier as both a Consumer
and a Small business, the customer is included in both
metrics.
CCO: Chief Compliance Officer
CCP: “Central counterparty” is a clearing house that
interposes itself between counterparties to contracts
traded in one or more financial markets, becoming the
buyer to every seller and the seller to every buyer and
thereby ensuring the future performance of open
contracts. A CCP becomes a counterparty to trades
with market participants through novation, an open
offer system, or another legally binding arrangement.
CDS: Credit default swaps
CECL: Current Expected Credit Losses
CEO: Chief Executive Officer
CET1 Capital: Common equity Tier 1 capital
CFO: Chief Financial Officer
CFP: Contingency funding plan
CFTC: Commodity Futures Trading Commission
CIB: Commercial & Investment Bank
CIO: Chief Investment Office
Client assets: Represent assets under management as
well as custody, brokerage, administration and deposit
accounts.
Client deposits and other third-party liabilities:
Deposits, as well as deposits that are swept to on-
balance sheet liabilities (e.g., commercial paper, federal
funds purchased and securities loaned or sold under
repurchase agreements) as part of client cash
management programs.
Client investment assets: Represent assets under
management as well as custody, brokerage and annuity
accounts, and deposits held in investment accounts.
CLO: Collateralized loan obligations
CLTV: Combined loan-to-value
CMT: Constant Maturity Treasury
Collateral-dependent: A loan is considered to be
collateral-dependent when repayment of the loan is
expected to be provided substantially through the
operation or sale of the collateral when the borrower is
Glossary of Terms and Acronyms
JPMorgan Chase & Co./2024 Form 10-K
327

experiencing financial difficulty, including when
foreclosure is deemed probable based on borrower
delinquency.
Commercial Card: provides a wide range of payment
services to corporate and public sector clients
worldwide through the commercial card products.
Services include procurement, corporate travel and
entertainment, expense management services, and
business-to-business payment solutions.
Credit derivatives: Financial instruments whose value
is derived from the credit risk associated with the debt
of a third-party issuer (the reference entity) which allow
one party (the protection purchaser) to transfer that risk
to another party (the protection seller). Upon the
occurrence of a credit event by the reference entity,
which may include, among other events, the bankruptcy
or failure to pay its obligations, or certain restructurings
of the debt of the reference entity, neither party has
recourse to the reference entity. The protection
purchaser has recourse to the protection seller for the
difference between the face value of the CDS contract
and the fair value at the time of settling the credit
derivative contract. The determination as to whether a
credit event has occurred is generally made by the
relevant International Swaps and Derivatives
Association (“ISDA”) Determinations Committee.
Criticized: Criticized loans, lending-related
commitments and derivative receivables that are
classified as special mention, substandard and doubtful
categories for regulatory purposes and are generally
consistent with a rating of CCC+/Caa1 and below, as
defined by S&P and Moody’s.
CRO: Chief Risk Officer
CRR: Capital Requirements Regulation
CTC: CIO, Treasury and Corporate
Custom lending: Loans to AWM’s Global Private Bank
clients, including loans to private investment funds and
loans that are collateralized by nontraditional asset
types, such as art work, aircraft, etc.
CVA: Credit valuation adjustment
Debit and credit card sales volume: Dollar amount of
card member purchases, net of returns.
Deposit margin: Represents net interest income
expressed as a percentage of average deposits.
Distributed denial-of-service attack: The use of a large
number of remote computer systems to electronically
send a high volume of traffic to a target website to
create a service outage at the target. This is a form of
cyberattack.
Dodd-Frank Act: Wall Street Reform and Consumer
Protection Act
DVA: Debit valuation adjustment
EC: European Commission
Eligible HQLA: Eligible high-quality liquid assets, for
purposes of calculating the LCR, is the amount of
unencumbered HQLA that satisfy certain operational
considerations as defined in the LCR rule.
Eligible LTD: Long-term debt satisfying certain
eligibility criteria
Embedded derivatives: are implicit or explicit terms or
features of a financial instrument that affect some or all
of the cash flows or the value of the instrument in a
manner similar to a derivative. An instrument containing
such terms or features is referred to as a “hybrid.” The
component of the hybrid that is the non-derivative
instrument is referred to as the “host.” For example,
callable debt is a hybrid instrument that contains a plain
vanilla debt instrument (i.e., the host) and an embedded
option that allows the issuer to redeem the debt issue at
a specified date for a specified amount (i.e., the
embedded derivative). However, a floating rate
instrument is not a hybrid composed of a fixed-rate
instrument and an interest rate swap.
EPS: Earnings per share
ERISA: Employee Retirement Income Security Act of
1974
ETD: “Exchange-traded derivatives”: Derivative
contracts that are executed on an exchange and settled
via a central clearing house.
EU: European Union
Expense categories:
• Volume- and/or revenue-related expenses generally
correlate with changes in the related business/
transaction volume or revenue. Examples include
commissions and incentive compensation within the
LOBs, depreciation expense related to operating
lease assets, and brokerage expense related to
trading transaction volume.
• Investments in the business include expenses
associated with supporting medium- to longer-term
strategic plans of the Firm. Examples include front
office growth, market expansion, initiatives in
technology (including related compensation),
marketing, and acquisitions.
• Structural expenses are those associated with the
day-to-day cost of running the Firm and are expenses
not included in the above two categories. Examples
include employee salaries and benefits, certain other
incentive compensation, and costs related to real
estate.
Fannie Mae: Federal National Mortgage Association
FASB: Financial Accounting Standards Board
FCA: Financial Conduct Authority
FCC: Firmwide Control Committee
FDIC: Federal Deposit Insurance Corporation
FDM: "Financial difficulty modification" applies to loan
modifications effective January 1, 2023, and is deemed
Glossary of Terms and Acronyms
328
JPMorgan Chase & Co./2024 Form 10-K

to occur when the Firm modifies specific terms of the
original loan agreement. The following types of
modifications are considered FDMs: principal
forgiveness, interest rate reduction, other-than-
insignificant payment delay, term extension or a
combination of these modifications.
Federal Reserve: The Board of the Governors of the
Federal Reserve System
FFIEC: Federal Financial Institutions Examination
Council
FHA: Federal Housing Administration
FHLB: Federal Home Loan Bank
FICC: The Fixed Income Clearing Corporation
FICO score: A measure of consumer credit risk
provided by credit bureaus, typically produced from
statistical models by Fair Isaac Corporation utilizing
data collected by the credit bureaus.
FINRA: Financial Industry Regulatory Authority
Firm: JPMorgan Chase & Co.
Forward points: Represents the interest rate
differential between two currencies, which is either
added to or subtracted from the current exchange rate
(i.e., “spot rate”) to determine the forward exchange
rate.
FRC: Firmwide Risk Committee
Freddie Mac: Federal Home Loan Mortgage
Corporation
Free standing derivatives: a derivative contract
entered into either separate and apart from any of the
Firm’s other financial instruments or equity
transactions. Or, in conjunction with some other
transaction and is legally detachable and separately
exercisable.
FSB: Financial Stability Board
FTE: Fully taxable equivalent
FVA: Funding valuation adjustment
FX: Foreign exchange
G7: Group of Seven nations: Countries in the G7 are
Canada, France, Germany, Italy, Japan, the U.K. and the
U.S.
G7 government securities: Securities issued by the
government of one of the G7 nations.
Ginnie Mae: Government National Mortgage
Association
GSIB: Global systemically important banks
HELOC: Home equity line of credit
Home equity – senior lien: Represents loans and
commitments where JPMorganChase holds the first
security interest on the property.
Home equity – junior lien: Represents loans and
commitments where JPMorganChase holds a security
interest that is subordinate in rank to other liens.
HQLA: “High-quality liquid assets” consist of cash and
certain high-quality liquid securities as defined in the
LCR rule.
HTM: Held-to-maturity
IBOR: Interbank Offered Rate
ICAAP: Internal capital adequacy assessment process
IDI: Insured depository institutions
IHC: JPMorgan Chase Holdings LLC, an intermediate
holding company
Indirect tax expense: Refers to taxes that are imposed
on goods and services rather than on income. Examples
of indirect taxes include value-added tax (“VAT”) and
sales tax, among others.
Investment-grade: An indication of credit quality based
on JPMorganChase’s internal risk assessment. The Firm
considers ratings of BBB-/Baa3 or higher as
investment-grade.
IPO: Initial public offering
ISDA: International Swaps and Derivatives Association
JPMorganChase: JPMorgan Chase & Co.
JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank,
National Association
JPMorgan Chase Foundation or the Firm’s
Foundation: A not-for-profit organization that makes
contributions for charitable and educational purposes.
J.P. Morgan Securities: J.P. Morgan Securities LLC
JPMSE: J.P. Morgan SE
LCR: Liquidity coverage ratio
LDA: Loss Distribution Approach
LGD: Loss given default
LIBOR: London Interbank Offered Rate
LLC: Limited Liability Company
LOB: Line of business
LOB CROs: Line of Business and CTC Chief Risk Officers
LTIP: Long-term incentive plan
LTV: “Loan-to-value”: For residential real estate loans,
the relationship, expressed as a percentage, between
the principal amount of a loan and the appraised value
of the collateral (i.e., residential real estate) securing the
loan.
Origination date LTV ratio
The LTV ratio at the origination date of the loan.
Origination date LTV ratios are calculated based on the
actual appraised values of collateral (i.e., loan-level
data) at the origination date.
Current estimated LTV ratio
An estimate of the LTV as of a certain date. The current
estimated LTV ratios are calculated using estimated
collateral values derived from a nationally recognized
Glossary of Terms and Acronyms
JPMorgan Chase & Co./2024 Form 10-K
329

home price index measured at the metropolitan
statistical area (“MSA”) level. These MSA-level home
price indices consist of actual data to the extent
available and forecasted data where actual data is not
available. As a result, the estimated collateral values
used to calculate these ratios do not represent actual
appraised loan-level collateral values; as such, the
resulting LTV ratios are necessarily imprecise and
should therefore be viewed as estimates.
Combined LTV ratio
The LTV ratio considering all available lien positions, as
well as unused lines, related to the property. Combined
LTV ratios are used for junior lien home equity
products.
Macro businesses: the macro businesses include
Rates, Currencies and Emerging Markets, Fixed Income
Financing and Commodities in CIB's Fixed Income
Markets.
Managed basis: A non-GAAP presentation of Firmwide
financial results that includes reclassifications to
present revenue on a fully taxable-equivalent basis.
Management also uses this financial measure at the
segment level, because it believes this provides
information to enable investors to understand the
underlying operational performance and trends of the
particular business segment and facilitates a
comparison of the business segment with the
performance of competitors.
Markets: consists of CIB’s Fixed Income Markets and
Equity Markets businesses.
Master netting agreement: A single agreement with a
counterparty that permits multiple transactions
governed by that agreement to be terminated or
accelerated and settled through a single payment in a
single currency in the event of a default (e.g.,
bankruptcy, failure to make a required payment or
securities transfer or deliver collateral or margin when
due).
MBS: Mortgage-backed securities
MD&A: Management’s discussion and analysis
Measurement alternative: Measures equity securities
without readily determinable fair values at cost less
impairment (if any), plus or minus observable price
changes from an identical or similar investment of the
same issuer.
Merchant Services: offers merchants payment
processing capabilities, fraud and risk management,
data and analytics, and other payments services.
Through Merchant Services, merchants of all sizes can
accept payments via credit and debit cards and
payments in multiple currencies.
MEV: Macroeconomic variable
Moody’s: Moody’s Investor Services
Mortgage origination channels:
Retail – Borrowers who buy or refinance a home
through direct contact with a mortgage banker
employed by the Firm using a branch office, the Internet
or by phone. Borrowers are frequently referred to a
mortgage banker by a banker in a Chase branch, real
estate brokers, home builders or other third parties.
Correspondent – Banks, thrifts, other mortgage banks
and other financial institutions that sell closed loans to
the Firm.
Mortgage product types:
Alt-A
Alt-A loans are generally higher in credit quality than
subprime loans but have characteristics that would
disqualify the borrower from a traditional prime loan.
Alt-A lending characteristics may include one or more
of the following: (i) limited documentation; (ii) a high
CLTV ratio; (iii) loans secured by non-owner occupied
properties; or (iv) a debt-to-income ratio above normal
limits. A substantial proportion of the Firm’s Alt-A loans
are those where a borrower does not provide complete
documentation of his or her assets or the amount or
source of his or her income.
Option ARMs
The option ARM real estate loan product is an
adjustable-rate mortgage loan that provides the
borrower with the option each month to make a fully
amortizing, interest-only or minimum payment. The
minimum payment on an option ARM loan is based on
the interest rate charged during the introductory
period. This introductory rate is usually significantly
below the fully indexed rate. The fully indexed rate is
calculated using an index rate plus a margin. Once the
introductory period ends, the contractual interest rate
charged on the loan increases to the fully indexed rate
and adjusts monthly to reflect movements in the index.
The minimum payment is typically insufficient to cover
interest accrued in the prior month, and any unpaid
interest is deferred and added to the principal balance
of the loan. Option ARM loans are subject to payment
recast, which converts the loan to a variable-rate fully
amortizing loan upon meeting specified loan balance
and anniversary date triggers.
Prime
Prime mortgage loans are made to borrowers with good
credit records who meet specific underwriting
requirements, including prescriptive requirements
related to income and overall debt levels. New prime
mortgage borrowers provide full documentation and
generally have reliable payment histories.
Subprime
Subprime loans are loans that, prior to mid-2008, were
offered to certain customers with one or more high risk
characteristics, including but not limited to: (i)
unreliable or poor payment histories; (ii) a high LTV ratio
of greater than 80% (without borrower-paid mortgage
insurance); (iii) a high debt-to-income ratio; (iv) an
occupancy type for the loan is other than the borrower’s
Glossary of Terms and Acronyms
330
JPMorgan Chase & Co./2024 Form 10-K

primary residence; or (v) a history of delinquencies or
late payments on the loan.
MREL: Minimum requirements for own funds and
eligible liabilities
MSR: Mortgage servicing rights
Multi-asset: Any fund or account that allocates assets
under management to more than one asset class.
NA: Data is not applicable or available for the period
presented.
NAV: Net Asset Value
Net Capital Rule: Rule 15c3-1 under the Securities
Exchange Act of 1934.
Net charge-off/(recovery) rate: Represents net
charge-offs/(recoveries) (annualized) divided by
average retained loans for the reporting period.
Net interchange income includes the following
components:
• Interchange income: Fees earned by credit and debit
card issuers on sales transactions.
• Rewards costs: The cost to the Firm for points earned
by cardholders enrolled in credit card rewards
programs generally tied to sales transactions.
• Partner payments: Payments to co-brand credit card
partners based on the cost of loyalty program
rewards earned by cardholders on credit card
transactions.
Net mortgage servicing revenue: Includes operating
revenue earned from servicing third-party mortgage
loans, which is recognized over the period in which the
service is provided; changes in the fair value of MSRs;
the impact of risk management activities associated
with MSRs; and gains and losses on securitization of
excess mortgage servicing. Net mortgage servicing
revenue also includes gains and losses on sales and
lower of cost or fair value adjustments of certain
repurchased loans insured by U.S. government
agencies.
Net revenue rate: Represents Card Services net
revenue (annualized) expressed as a percentage of
average loans for the period.
Net yield on interest-earning assets: The average rate
for interest-earning assets less the average rate paid for
all sources of funds.
NFA: National Futures Association
NM: Not meaningful
NOL: Net operating loss
Nonaccrual loans: Loans for which interest income is
not recognized on an accrual basis. Loans (other than
credit card loans and certain consumer loans insured by
U.S. government agencies) are placed on nonaccrual
status when full payment of principal and interest is not
expected, regardless of delinquency status, or when
principal and interest have been in default for a period
of 90 days or more unless the loan is both well-secured
and in the process of collection. Collateral-dependent
loans are typically maintained on nonaccrual status.
Nonperforming assets: Nonperforming assets include
nonaccrual loans, nonperforming derivatives and
certain assets acquired in loan satisfactions,
predominantly real estate owned and other commercial
and personal property.
NSFR: Net Stable Funding Ratio
OAS: Option-adjusted spread
OCC: Office of the Comptroller of the Currency
OCI: Other comprehensive income/(loss)
OPEB: Other postretirement employee benefit
Operating losses: Primarily refer to fraud losses
associated with customer deposit accounts, credit and
debit cards; exclude legal expense.
Over-the-counter (“OTC”) derivatives: Derivative
contracts that are negotiated, executed and settled
bilaterally between two derivative counterparties, where
one or both counterparties is a derivatives dealer.
Over-the-counter cleared (“OTC-cleared”)
derivatives: Derivative contracts that are negotiated
and executed bilaterally, but subsequently settled via a
central clearing house, such that each derivative
counterparty is only exposed to the default of that
clearing house.
Overhead ratio: Noninterest expense as a percentage
of total net revenue.
Parent Company: JPMorgan Chase & Co.
Participating securities: Represents unvested share-
based compensation awards containing nonforfeitable
rights to dividends or dividend equivalents (collectively,
“dividends”), which are included in the earnings per
share calculation using the two-class method.
JPMorganChase grants RSUs to certain employees
under its share-based compensation programs, which
entitle the recipients to receive nonforfeitable dividends
during the vesting period on a basis equivalent to the
dividends paid to holders of common stock. These
unvested awards meet the definition of participating
securities. Under the two-class method, all earnings
(distributed and undistributed) are allocated to each
class of common stock and participating securities,
based on their respective rights to receive dividends.
PCAOB: Public Company Accounting Oversight Board
PCD: “Purchased credit deteriorated” assets
represent acquired financial assets that as of the date of
acquisition have experienced a more-than-insignificant
deterioration in credit quality since origination, as
determined by the Firm.
PD: Probability of default
Pillar 1: The Basel framework consists of a three “Pillar”
approach. Pillar 1 establishes minimum capital
Glossary of Terms and Acronyms
JPMorgan Chase & Co./2024 Form 10-K
331

requirements, defines eligible capital instruments, and
prescribes rules for calculating RWA.
Pillar 3: The Basel framework consists of a three “Pillar”
approach. Pillar 3 encourages market discipline through
disclosure requirements which allow market
participants to assess the risk and capital profiles of
banks.
PRA: Prudential Regulation Authority
Preferred stock dividends: reflects dividends declared
and deemed dividends upon redemption of preferred
stock
Pre-provision profit/(loss): Represents total net
revenue less noninterest expense. The Firm believes
that this financial measure is useful in assessing the
ability of a lending institution to generate income in
excess of its provision for credit losses.
Pre-tax margin: Represents income before income tax
expense divided by total net revenue, which is, in
management’s view, a comprehensive measure of
pretax performance derived by measuring earnings
after all costs are taken into consideration. It is one
basis upon which management evaluates the
performance of AWM against the performance of their
respective competitors.
Principal transactions revenue: Principal transactions
revenue is driven by many factors, including:
• the bid-offer spread, which is the difference between
the price at which a market participant is willing and
able to sell an instrument to the Firm and the price at
which another market participant is willing and able to
buy it from the Firm, and vice versa; and
• realized and unrealized gains and losses on financial
instruments and commodities transactions, including
those accounted for under the fair value option,
primarily used in client-driven market-making
activities.
– Realized gains and losses result from the sale of
instruments, closing out or termination of
transactions, or interim cash payments.
– Unrealized gains and losses result from changes in
valuation.
In connection with its client-driven market-making
activities, the Firm transacts in debt and equity
instruments, derivatives and commodities, including
physical commodities inventories and financial
instruments that reference commodities.
Principal transactions revenue also includes realized
and unrealized gains and losses related to:
• derivatives designated in qualifying hedge
accounting relationships, primarily fair value hedges
of commodity and foreign exchange risk;
• derivatives used for specific risk management
purposes, primarily to mitigate credit, foreign
exchange and interest rate risks.
Production revenue: Includes fees and income
recognized as earned on mortgage loans originated
with the intent to sell, and the impact of risk
management activities associated with the mortgage
pipeline and warehouse loans. Production revenue also
includes gains and losses on sales and lower of cost or
fair value adjustments on mortgage loans held-for-sale
(excluding certain repurchased loans insured by U.S.
government agencies), and changes in the fair value of
financial instruments measured under the fair value
option.
PSU(s): Performance share units
Regulatory VaR: Daily aggregated VaR calculated in
accordance with regulatory rules.
REO: Real estate owned
Reported basis: Financial statements prepared under
U.S. GAAP, which excludes the impact of taxable-
equivalent adjustments.
Retained loans: Loans that are held-for-investment (i.e.,
excludes loans held-for-sale and loans at fair value).
Revenue wallet: Proportion of fee revenue based on
estimates of investment banking fees generated across
the industry (i.e., the revenue wallet) from investment
banking transactions in M&A, equity and debt
underwriting, and loan syndications. Source: Dealogic, a
third-party provider of investment banking competitive
analysis and volume-based league tables for the above
noted industry products.
RHS: Rural Housing Service of the U.S. Department of
Agriculture
ROA: Return on assets
ROE: Return on equity
ROTCE: Return on tangible common equity
ROU assets: Right-of-use assets
RSU(s): Restricted stock units
RWA “Risk-weighted assets”: Basel III establishes two
comprehensive approaches for calculating RWA (a
Standardized approach and an Advanced approach)
which include capital requirements for credit risk,
market risk, and in the case of Basel III Advanced, also
operational risk. Key differences in the calculation of
credit risk RWA between the Standardized and
Advanced approaches are that for Basel III Advanced,
credit risk RWA is based on risk-sensitive approaches
which largely rely on the use of internal credit models
and parameters, whereas for Basel III Standardized,
credit risk RWA is generally based on supervisory risk-
weightings which vary primarily by counterparty type
and asset class. Market risk RWA is calculated on a
generally consistent basis between Basel III
Standardized and Basel III Advanced.
S&P: Standard and Poor’s
SAR as it pertains to Hong Kong: Special
Administrative Region
Glossary of Terms and Acronyms
332
JPMorgan Chase & Co./2024 Form 10-K

SAR(s) as it pertains to employee stock awards: Stock
appreciation rights
SCB: Stress capital buffer
Scored portfolios: Consumer loan portfolios that
predominantly include residential real estate loans,
credit card loans, auto loans to individuals and certain
small business loans.
SEC: U.S. Securities and Exchange Commission
Securities financing agreements: Include resale,
repurchase, securities borrowed and securities loaned
agreements
Securitized Products Group: Comprised of Securitized
Products and tax-oriented investments.
Seed capital: Initial JPMorgan capital invested in
products, such as mutual funds, with the intention of
ensuring the fund is of sufficient size to represent a
viable offering to clients, enabling pricing of its shares,
and allowing the manager to develop a track record.
After these goals are achieved, the intent is to remove
the Firm’s capital from the investment.
Shelf securities: Securities registered with the SEC
under a shelf registration statement that have not been
issued, offered or sold. These securities are not
included in league tables until they have actually been
issued.
Single-name: Single reference-entities
SLR: Supplementary leverage ratio
SMBS: Stripped mortgage-backed securities
SOFR: Secured Overnight Financing Rate
SPEs: Special purpose entities
Structural interest rate risk: Represents interest rate
risk of the non-trading assets and liabilities of the Firm.
Structured notes: Structured notes are financial
instruments whose cash flows are linked to the
movement in one or more indexes, interest rates,
foreign exchange rates, commodities prices,
prepayment rates, underlying reference pool of loans or
other market variables. The notes typically contain
embedded (but not separable or detachable)
derivatives. Contractual cash flows for principal,
interest, or both can vary in amount and timing
throughout the life of the note based on non-traditional
indexes or non-traditional uses of traditional interest
rates or indexes.
Suspended foreclosures: Loans referred to foreclosure
where formal foreclosure proceedings have started but
are currently on hold, which could be due to bankruptcy
or loss mitigation. Includes both judicial and non-
judicial states.
Taxable-equivalent basis: In presenting results on a
managed basis, the total net revenue for each of the
reportable business segments and Corporate, and the
Firm as a whole, is presented on a tax-equivalent basis.
Accordingly, revenue from investments that receive tax
credits and tax-exempt securities is presented in
managed basis results on a level comparable to taxable
investments and securities; the corresponding income
tax impact related to tax-exempt items is recorded
within income tax expense.
TBVPS: Tangible book value per share
TCE: Tangible common equity
TDR: “Troubled debt restructuring” applies to loan
modifications granted prior to January 1, 2023 and is
deemed to occur when the Firm modifies the original
terms of a loan agreement by granting a concession to a
borrower that is experiencing financial difficulty. Loans
with short-term and other insignificant modifications
that are not considered concessions are not TDRs.
TLAC: Total Loss Absorbing Capacity
U.K.: United Kingdom
Unaudited: Financial statements and/or information
that have not been subject to auditing procedures by an
independent registered public accounting firm.
U.S.: United States of America
U.S. GAAP: Accounting principles generally accepted in
the U.S.
U.S. government agencies: U.S. government agencies
include, but are not limited to, agencies such as Ginnie
Mae and FHA, and do not include Fannie Mae and
Freddie Mac which are U.S. government-sponsored
enterprises (“U.S. GSEs”). In general, obligations of U.S.
government agencies are fully and explicitly
guaranteed as to the timely payment of principal and
interest by the full faith and credit of the U.S.
government in the event of a default.
U.S. GSE(s): “U.S. government-sponsored enterprises”
are quasi-governmental, privately-held entities
established or chartered by the U.S. government to
serve public purposes as specified by the U.S. Congress
to improve the flow of credit to specific sectors of the
economy and provide certain essential services to the
public. U.S. GSEs include Fannie Mae and Freddie Mac,
but do not include Ginnie Mae or FHA. U.S. GSE
obligations are not explicitly guaranteed as to the timely
payment of principal and interest by the full faith and
credit of the U.S. government.
U.S. Treasury: U.S. Department of the Treasury
VA: U.S. Department of Veterans Affairs
VaR: “Value-at-risk” is a measure of the dollar amount
of potential loss from adverse market moves in an
ordinary market environment.
VCG: Valuation Control Group
VGF: Valuation Governance Forum
VIEs: Variable interest entities
Warehouse loans: Consist of prime mortgages
originated with the intent to sell that are accounted for
at fair value and classified as loans.
Glossary of Terms and Acronyms
JPMorgan Chase & Co./2024 Form 10-K
333

334
JPMorgan Chase & Co./2024 Annual Report
Linda B. Bammann 2, 4
Retired Deputy Head of Risk
Management
JPMorgan Chase & Co.
(Financial services)
Michele G. Buck1
Chairman, President and
Chief Executive Officer
The Hershey Company
(Snacks industry)
Stephen B. Burke 2, 3
Retired Chairman and
Chief Executive Officer
NBCUniversal, LLC
(Entertainment industry)
Todd A. Combs 2, 3
Investment Officer
Berkshire Hathaway Inc.;
Chairman, President and
Chief Executive Officer
GEICO
(Conglomerate; insurance)

Alicia Boler Davis 4
Chief Executive Officer
Alto Pharmacy, LLC
(Digital pharmacy)
James Dimon
Chairman and
Chief Executive Officer
JPMorgan Chase & Co.
(Financial services)
Alex Gorsky 1, 5
Retired Chairman and
Chief Executive Officer
Johnson & Johnson
(Healthcare)
Mellody Hobson 4, 5
Co-CEO and President
Ariel Investments, LLC
(Investment management)
Phebe N. Novakovic 1, 5
Chairman and
Chief Executive Officer
General Dynamics
(Aerospace and defense)
Virginia M. Rometty 2, 3
Retired Executive Chairman,
President and Chief Executive Officer
International Business Machines
Corporation
(Technology)
Brad D. Smith 4
President
Marshall University;
Retired Executive Chairman,
President and Chief Executive Officer
Intuit Inc.
(Education; technology)
Mark A. Weinberger 1
Retired Global Chairman and
Chief Executive Officer
Ernst & Young LLP
(Professional services)

Member of:
1
Audit Committee
2 Compensation & Management
Development Committee
3 Corporate Governance &
Nominating Committee
4 Risk Committee
5 Public Responsibility Committee
Board of Directors
Operating Committee
James Dimon
Chairman and Chief Executive
Officer
Daniel E. Pinto
President and Chief Operating
Officer
Ashley Bacon
Chief Risk Officer
Jeremy Barnum
Chief Financial Officer
Lori A. Beer
Global Chief Information Officer
Tim Berry
Global Head of Corporate
Responsibility; Chairman of the
Mid-Atlantic Region
Mary Callahan Erdoes
CEO, Asset & Wealth Management
Stacey Friedman
General Counsel
Teresa A. Heitsenrether
Chief Data & Analytics Officer
Marianne Lake
CEO, Consumer & Community
Banking
Robin Leopold
Head of Human Resources
Douglas B. Petno
Co-CEO, Commercial & Investment
Bank
Jennifer A. Piepszak
Chief Operating Officer
Troy L. Rohrbaugh
Co-CEO, Commercial & Investment
Bank
Sanoke Viswanathan
CEO, International Consumer
and Wealth
Other Corporate Officers
Joseph M. Evangelisti
Corporate Communications
Mikael Grubb
Investor Relations
Elena A. Korablina
Firmwide Controller
Lou Rauchenberger
General Auditor
John H. Tribolati
Secretary

JPMorgan Chase & Co./2024 Annual Report
335
JPMorganChase Vice Chairs
Asia Pacific
Australia and New Zealand
Robert Bedwell
China
Rita Chan
Alan Ho
Hong Kong
Kam Shing Kwang
India
Kaustubh Kulkarni
Japan
Steve Teru Rinoie
Korea
Howard Kim
Southeast Asia
Sudhir Goel
Indonesia
Gioshia Ralie
Malaysia
Hooi Ching Wong
Philippines
Carlos Ma. G Mendoza
Singapore
Wai Mei Hong
Thailand
Marco Sucharitkul
Vietnam
Van Phan
Taiwan
Carl K. Chien
Europe/Middle East/Africa
Belgium
Tanguy A. Piret
Commonwealth of
Independent States
Timur Kunanbayev
France
Kyril Courboin
Germany and Austria
Alex Mayer
Greece
Stelios Papadopolous
Iberia
Ignacio de la Colina
Ireland
Marc Hussey
Israel
Roy Navon
Italy
Francesco Cardinali
Luxembourg
Philippe Ringard
Middle East and North Africa
Khaled Hobballah
Saudi Arabia and Bahrain
Bader Alamoudi
The Netherlands
Cassander Verwey
Nordics
Klaus Thune
Jonas Wikmark
Poland
Michal Szwarc
Sub-Saharan Africa
Kevin Latter
Switzerland
Reinout Böttcher
Türkiye and Azerbaijan
Mustafa Bagriacik
Latin America
Andean, Caribbean and
Central America
Moises Mainster
Argentina
Facundo Gómez Minujin
Brazil
Marcelo Alvarez Gaiani
Chile
Andres Errazuriz
Colombia
Angela Hurtado
Mexico
Felipe García-Moreno
North America
Canada
David E. Rawlings
Senior Country Officers and Location Heads
Regional Chief Executive Officers
Asia Pacific
Sjoerd Leenart
Regional CEO
Europe/Middle East/Africa
Filippo Gori
Regional CEO;
Co-Head of Global Banking
Latin America/Canada
Alfonso Eyzaguirre
Regional CEO
Vittorio U. Grilli
David Mayhew
Peter L. Scher

336
JPMorgan Chase & Co./2024 Annual Report
The Rt. Hon. Tony Blair
Chairman of the Council
Executive Chairman
Tony Blair Institute for Global Change
Former Prime Minister of
Great Britain and Northern Ireland
London, United Kingdom
The Hon. Robert M. Gates
Vice Chairman of the Council
Principal
Rice, Hadley, Gates & Manuel LLC
Washington, District of Columbia
Paul Bulcke
Chairman of the Board of Directors
Nestlé S.A.
Vevey, Switzerland
Aliko Dangote
Group President and Chief Executive
Dangote Group
Lagos, Nigeria
Juan Pablo del Valle
Chairman
Orbia SAB and
Elementia Materiales SAB
Mexico City, Mexico
Jamie Dimon*
Chairman and Chief Executive
Officer
JPMorganChase
New York, New York
Axel Dumas
Executive Chairman
Hermès International
Paris, France
John Elkann
Chief Executive Officer
Exor N.V.
Turin, Italy
David Feffer
President of the Board
Suzano Holding S.A.
São Paulo, Brazil
Adena Friedman
Chair and Chief Executive Officer
Nasdaq
New York, New York
Ignacio S. Galán
Executive Chairman
Iberdrola, S.A.
Madrid, Spain
Marcos Galperin
Chief Executive Officer
Mercado Libre
Montevideo, Uruguay
Alex Gorsky
Former Chairman and
Chief Executive Officer
Johnson & Johnson
New Brunswick, New Jersey
Joe Kaeser
Chairman of the Supervisory Board
Siemens Energy AG and
Daimler Truck Holding AG
Munich, Germany
Lee Hsien Loong
Former Prime Minister
of Singapore
Senior Minister
Singapore
Nancy McKinstry
Chief Executive Officer and
Chair of the Executive Board
Wolters Kluwer
Alphen aan den Rijn,
The Netherlands
Carlo Messina
Managing Director and
Chief Executive Officer
Intesa Sanpaolo
Milan, Italy
Amin H. Nasser
President and
Chief Executive Officer
Saudi Aramco
Dhahran, Saudi Arabia
The Hon. Condoleezza Rice
Principal
Rice, Hadley, Gates & Manuel LLC
Stanford, California
David A. Ricks
Chair and Chief Executive Officer
Eli Lilly and Company
Indianapolis, Indiana
Paul Ryan
Former Speaker of the
U.S. House of Representatives
Partner
Solamere Capital
New York, New York
Nassef Sawiris
Executive Chair
OCI Global
London, United Kingdom
Joseph C. Tsai
Co-Founder and Chairman
Alibaba Group
Hong Kong SAR, China
Jaime Augusto Zobel de Ayala
Chairman
Ayala Corporation
Makati City, Philippines
J.P. Morgan International Council
*Ex-officio
As of March, 2025

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Annual Report on Form 10-K
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