Earnings Release Financial Supplement | Fourth ... - JPMorgan Chase

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FOURTH QUARTER 2015

JPMORGAN CHASE & CO. TABLE OF CONTENTS Page(s) Consolidated Results Consolidated Financial Highlights Consolidated Statements of Income Consolidated Balance Sheets Condensed Average Balance Sheets and Annualized Yields Reconciliation from Reported to Managed Basis Segment Results - Managed Basis Capital and Other Selected Balance Sheet Items Earnings Per Share and Related Information

2–3 4 5 6 7 8 9 10

Business Segment Results Consumer & Community Banking Consumer & Business Banking Mortgage Banking Card, Commerce Solutions & Auto Corporate & Investment Bank Commercial Banking Asset Management Corporate

11–12 13 14–16 17–18 19–21 22–23 24–26 27–28

Credit-Related Information

29–32

Non-GAAP Financial Measures and Other Notes Glossary of Terms (a)

(a)

33

Refer to the Glossary of Terms on pages 309–313 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Annual Report”) and the Glossary of Terms and Line of Business Metrics on pages 178–184 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015.

JPMORGAN CHASE & CO.

CONSOLIDATED FINANCIAL HIGHLIGHTS (in millions, except per share and ratio data) QUARTERLY TRENDS SELECTED INCOME STATEMENT DATA Reported Basis Total net revenue Total noninterest expense Pre-provision profit Provision for credit losses NET INCOME

4Q15 $

Managed Basis (a) Total net revenue Total noninterest expense Pre-provision profit Provision for credit losses NET INCOME EARNINGS PER SHARE DATA Net income: Basic

$

$ $

FINANCIAL RATIOS (d) Return on common equity (“ROE”) Return on tangible common equity (“ROTCE”) (c) Return on assets High quality liquid assets (“HQLA”) (in billions) (e) CAPITAL RATIOS (f) Common equity Tier 1 (“CET1”) capital ratio Tier 1 capital ratio Total capital ratio

22,885 14,263 8,622 1,251 5,434

$

23,747 14,263 9,484 1,251 5,434

Diluted Average shares: Basic Diluted MARKET AND PER COMMON SHARE DATA Market capitalization Common shares at period-end Closing share price (b) Book value per share Tangible book value per share (c) Cash dividends declared per share

3Q15

1.34

$

1.70

1.32 3,674.2 3,704.6

1.68 3,694.4 3,725.6

241,899 3,663.5 66.03 60.46 48.13

$ 224,438 3,681.1 60.97 $ 59.67 47.36

0.44

0.44

9%

496

$

23,535 15,368 8,167 682 6,804

(h)

11.8% (h) 13.5 (h) 15.0 (h)

$

505

11.5% 13.3 14.9

1Q15

23,812 14,500 9,312 935 6,290

$

24,531 14,500 10,031 935 6,290

$

$

532

11.2% 12.8 14.4

$

(g)

1.46 1.45 3,725.3 3,757.5

$

$ 224,818 3,711.1 $ 60.58 57.77 45.45 0.40

$

11% 14 1.01 $

24,066 14,883 9,183 959 5,914

4Q14

24,820 14,883 9,937 959 5,914

1.56 1.54 3,707.8 3,743.6

$ 250,581 3,698.1 $ 67.76 58.49 46.13 0.44

12% 15 1.11

11 0.90 $

22,780 15,368 7,412 682 6,804

2Q15

FULL YEAR

$

11% 14 0.94 $

614

10.7% 12.1 13.7

4Q15 Change 3Q15 4Q14

2015 $

—% (7) 16 83 (20)

1% (7) 17 49 10

23,549 15,409 8,140 840 4,931

1 (7) 16 83 (20)

1 (7) 17 49 10

1.20 1.19 3,730.9 3,765.2

(21) (21) (1) (1)

12 11 (2) (2)

3,700.4 3,732.8

3,763.5 3,797.5

(2) (2)

232,472 3,714.8 62.58 56.98 44.60 0.40

8 — 8 1 2 —

4 (1) 6 6 8 10

$ 241,899 3,663.5 $ 66.03 60.46 48.13 1.72

$ 232,472 3,714.8 $ 62.58 56.98 44.60 1.58

4 (1) 6 6 8 9

600

10.2% 11.6 13.1

93,543 59,014 34,529 3,827 24,442

$

2015 Change 2014

22,750 15,409 7,341 840 4,931

96,633 59,014 37,619 3,827 24,442

$

6.05 6.00

$

(g)

11% 13 0.99

9% 11 0.78 $

2014

(2)

(17)

$

496

95,112 61,274 33,838 3,139 21,745

(2)% (4) 2 22 12

97,885 61,274 36,611 3,139 21,745

(1) (4) 3 22 12

5.33 5.29

14 13

10% 13 0.89 (h)

11.8% (h) 13.5 (h) 15.0 (h)

$

(17)

600

10.2% 11.6 13.1

Note: Effective October 1, 2015, and January 1, 2015, the Firm adopted new accounting guidance, retrospectively, related to (1) the presentation of debt issuance costs, and (2) investments in affordable housing projects that qualify for the low-income housing tax credit, respectively. For additional information, see Notes 1 and 2 on page 33. (a) (b) (c) (d) (e) (f) (g) (h)

For a further discussion of managed basis, see Reconciliation from Reported to Managed Basis on page 7. Share price shown is from the New York Stock Exchange. Tangible book value per share and ROTCE are non-GAAP financial measures. Tangible book value per share represents tangible common equity (“TCE”) divided by common shares at period-end. ROTCE measures the Firm’s annualized earnings as a percentage of tangible common equity. For further discussion of these measures, see page 33. Quarterly ratios are based upon annualized amounts. HQLA represents the amount of assets that qualify for inclusion in the liquidity coverage ratio under the final U.S. rule (“U.S. LCR”) for 4Q15, 3Q15, 2Q15 and 1Q15 as well as the estimated amount as of 4Q14, prior to the effective date of the final rule. For additional information on HQLA and LCR, see pages 156-157 of the 2014 Annual Report, and page 76 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015. Ratios presented are calculated under the transitional Basel III rules and represent the Collins Floor. See footnote (a) on page 9 for additional information on Basel III and the Collins Floor. On May 19, 2015, the Board of Directors increased the quarterly common stock dividend from $0.40 to $0.44 per share. Estimated.

Page 2


CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio and headcount data) QUARTERLY TRENDS

SELECTED BALANCE SHEET DATA (period-end) Total assets Loans: Consumer, excluding credit card loans Credit card loans Wholesale loans Total Loans Core loans (a)

4Q15

3Q15

2Q15

1Q15

4Q14

$ 2,351,698

$ 2,416,635

$ 2,449,098

$ 2,576,619

$ 2,572,274

344,821 131,463 361,015 837,299 732,093

331,969 126,979 350,509 809,457 698,988

318,286 126,025 346,936 791,247 674,767

305,215 123,257 335,713 764,185 641,285

295,374 131,048 330,914 757,336 628,785

4 4 3 3 5

392,721 663,004

404,984 624,014

432,052 611,438

441,245 644,228

437,558 643,350

18,921 205,069 1,279,715

20,174 223,934 1,273,106

21,777 222,065 1,287,332

18,484 263,930 1,367,887

288,651 221,505 247,573

292,503 219,660 245,728

286,240 216,287 241,205

280,123 214,371 235,864

Deposits: U.S. offices: Noninterest-bearing Interest-bearing Non-U.S. offices: Noninterest-bearing Interest-bearing Total deposits Long-term debt (b) Common stockholders’ equity Total stockholders’ equity Loans-to-deposits ratio

65 %

Headcount 95% CONFIDENCE LEVEL- TOTAL VaR (c) Average VaR

64 %

234,598

49

$

$

11,222 7,069 1,760 3,045 651 23,747

$

$

$

2,407

$

1,748 550 507 222 5,434

$

LINE OF BUSINESS NET INCOME Consumer & Community Banking

61 %

235,678

$

LINE OF BUSINESS NET REVENUE (d) Consumer & Community Banking Corporate & Investment Bank Commercial Banking Asset Management Corporate TOTAL NET REVENUE

Corporate & Investment Bank Commercial Banking Asset Management Corporate NET INCOME

FULL YEAR 4Q15 Change 3Q15 4Q14

54

56 %

237,459

$

10,879 8,168 1,644 2,894 (50) 23,535

$

$

$

2,630

$

1,464 518 475 1,717 6,804

42

$

11,015 8,723 1,739 3,175 (121) 24,531

$

$

$

2,533

$

2,341 525 451 440 6,290

43

2014

$ 2,351,698

$ 2,572,274

— 9 11 16

344,821 131,463 361,015 837,299 732,093

295,374 131,048 330,914 757,336 628,785

(3) 6

(10) 3

392,721 663,004

437,558 643,350

(10)

19,078 263,441 1,363,427

(6) (8) 1

(1) (22) (6)

18,921 205,069 1,279,715

19,078 263,441 1,363,427

(1) (22)

276,379 211,664 231,727

(1) 1 1

4 5 7

288,651 221,505 247,573

276,379 211,664 231,727

(3)%

(9)% 17

56 %

241,145

2015 Change 2014

2015

241,359

$

40

$

65 % (3)

(9)

23

$

47

$

43

3 (13) 7 5 NM 1

2 (4) (1) (5) 164 1

$

$

$

43,820 33,542 6,885 12,119 267 96,633

44,368 34,595 6,882 12,028 12 97,885

$

$

10,949 7,383 1,770 3,200 247 23,549

$

2,219

$

2,179

(8)

10

$

972 693 540 547 4,931

19 6 7 (87) (20)

80

$

2,537 598 502 58 5,914

(21) (6) (59) 10

234,598

$

9,789 8,090 2,191 1,935 2,437 24,442

17 — 9 11 16

3

(6) 4 5 7

56 %

—

10,704 9,582 1,742 3,005 (213) 24,820

(9)%

241,359

$

$

$

9,185 6,908 2,635 2,153 864 21,745

(3)

9

(1) (3) — 1 NM (1)

7 17 (17) (10) 182 12

See notes 1 and 2 on page 33. (a) (b) (c)

(d)

Loans considered central to the Firm’s ongoing businesses; core loans exclude loans classified as trading assets, runoff portfolios, discontinued portfolios and portfolios the Firm has an intent to exit. Included unsecured long-term debt of $211.8 billion, $214.6 billion, $209.1 billion, $209.0 billion and $207.0 billion for the periods ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively. As part of the Firm’s continuous evaluation and periodic enhancement of its VaR model calculations, during the second quarter of 2015 the Firm refined the historical proxy time series inputs to certain VaR models to more appropriately reflect the risk exposure from certain asset-backed products. Had these new time series been used as inputs into these VaR models in the first quarter of 2015, the Firm estimates they would have resulted in a reduction to average total VaR of $3 million. The impact of this refinement on all other periods presented was not material. The Firm expects in subsequent quarters to continue to refine the VaR model calculations and times series inputs related to these products. For information regarding CIB VaR, see Corporate & Investment Bank on page 21. For a further discussion of managed basis, see Reconciliation from Reported to Managed Basis on page 7.

Page 3


CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share and ratio data) QUARTERLY TRENDS REVENUE Investment banking fees Principal transactions Lending- and deposit-related fees Asset management, administration and commissions Securities gains Mortgage fees and related income Card income Other income Noninterest revenue Interest income Interest expense Net interest income TOTAL NET REVENUE

$

Provision for credit losses NONINTEREST EXPENSE Compensation expense Occupancy expense Technology, communications and equipment expense Professional and outside services Marketing Other expense (a) TOTAL NONINTEREST EXPENSE Income before income tax expense Income tax expense/(benefit) (b) NET INCOME NET INCOME PER COMMON SHARE DATA Basic earnings per share Diluted earnings per share FINANCIAL RATIOS Return on common equity (c) Return on tangible common equity (c)(d) Return on assets (c) Effective income tax rate (b) Overhead ratio

$

$

4Q15 1,520 1,552 1,450 3,842 73 556 1,431 1,236 11,660 13,155 1,930 11,225 22,885

3Q15 1,604 2,367 1,463 3,845 33 469 1,447 628 11,856 12,739 1,815 10,924 22,780

1,251

682

6,693 947 1,657 1,824 771 2,371 14,263 7,371 1,937 5,434

1.34 1.32

9% 11 0.90 26.3 62

$

$

$

7,320 965 1,546 1,776 704 3,057 15,368 6,730 (74) 6,804

1.70 1.68

12% 15 1.11 (1.1) 67

$

$

$

2Q15 1,833 2,834 1,418 4,015 44 783 1,615 586 13,128 12,514 1,830 10,684 23,812

$

1Q15 1,794 3,655 1,363 3,807 52 705 1,431 582 13,389 12,565 1,888 10,677 24,066

FULL YEAR

$

4Q14 1,833 1,335 1,454 4,110 29 855 1,526 546 11,688 12,951 1,889 11,062 22,750

935

959

840

7,694 923 1,499 1,768 642 1,974 14,500 8,377 2,087 6,290

8,043 933 1,491 1,634 591 2,191 14,883 8,224 2,310 5,914

6,860 1,006 1,495 2,080 726 3,242 15,409 6,501 1,570 4,931

1.56 1.54

11% 14 1.01 24.9 61

$

$

1.46 1.45

11% 14 0.94 28.1 62

$

$

1.20 1.19

9% 11 0.78 24.2 68

4Q15 Change 3Q15 4Q14 (17)% (5)% 16 (34)

$

2015 6,751 10,408 5,694 15,509 202 2,513 5,924 3,032 50,033 50,973 7,463 43,510 93,543

$

2014 6,542 10,531 5,801 15,931 77

2015 Change 2014 3% (1) (2) (3) 162 (29)

(1) — 121 19 (1) 97 (2) 3 6 3 —

— (7) 152 (35)

83

49

3,827

3,139

22

(9) (2) 7 3 10 (22) (7) 10 NM (20)

(2) (6) 11 (12) 6 (27)

29,750 3,768 6,193 7,002 2,708 9,593 59,014 30,702 6,260 24,442

30,160 3,909 5,804 7,705 2,550 11,146 61,274 30,699 8,954 21,745

(1) (4) 7 (9) 6 (14)

(21) (21)

12 11

(6) 126 — 2 2 1 1

(7) 13 23 10

$

$

6.05 6.00

11% 13 0.99 20.4 63

3,563 6,020 3,013 51,478 51,531 7,897 43,634 95,112

$

$

(2) 1 (3) (1) (5) — (2)

(4) — (30) 12

5.33 5.29

14 13

10% 13 0.89 29.2 64

See notes 1 and 2 on page 33. (a) (b) (c) (d)

Included Firmwide legal expense of $644 million, $1.3 billion, $291 million, $687 million and $1.1 billion for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively; and $3.0 billion and $2.9 billion for the full year 2015 and 2014, respectively. The three months ended September 30, 2015 and full year 2015 reflected tax benefits of $2.2 billion and $2.9 billion, respectively, which reduced the Firm’s effective tax rate by 32.0% and 9.4%, respectively. The recognition of tax benefits in 2015 resulted from the resolution of various tax audits, as well as the release of U.S. deferred taxes associated with the restructuring of certain non-U.S. entities. Quarterly ratios are based upon annualized amounts. For further discussion of ROTCE see pages 2 and 33.

Page 4


CONSOLIDATED BALANCE SHEETS (in millions)

Dec 31, 2015 ASSETS Cash and due from banks Deposits with banks Federal funds sold and securities purchased under resale agreements Securities borrowed Trading assets: Debt and equity instruments Derivative receivables Securities Loans Less: Allowance for loan losses Loans, net of allowance for loan losses Accrued interest and accounts receivable Premises and equipment Goodwill Mortgage servicing rights Other intangible assets Other assets TOTAL ASSETS LIABILITIES Deposits Federal funds purchased and securities loaned or sold under repurchase agreements Commercial paper Other borrowed funds Trading liabilities: Debt and equity instruments Derivative payables Accounts payable and other liabilities Beneficial interests issued by consolidated VIEs Long-term debt TOTAL LIABILITIES STOCKHOLDERS’ EQUITY Preferred stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Shares held in RSU Trust, at cost Treasury stock, at cost TOTAL STOCKHOLDERS’ EQUITY TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

20,490 340,015

Sep 30, 2015 $

21,258 376,196

Jun 30, 2015 $

24,095 398,807

Mar 31, 2015 $

22,821 506,383

Dec 31, 2014 $

Dec 31, 2015 Change Sep 30, Dec 31, 2015 2014

27,831 484,477

(4)% (10)

(26)% (30)

212,575 98,721

218,467 105,668

212,850 98,528

219,344 108,376

215,803 110,435

(3) (7)

(1) (11)

284,162 59,677 290,827 837,299 13,555 823,744 46,605 14,362 47,325 6,608 1,015 105,572 $ 2,351,698

293,040 68,668 306,660 809,457 13,466 795,991 57,926 14,709 47,405 6,716 1,036 102,895 $ 2,416,635

310,419 67,451 317,795 791,247 13,915 777,332 69,642 15,073 47,476 7,571 1,091 100,968 $ 2,449,098

317,407 81,574 331,136 764,185 14,065 750,120 70,006 14,963 47,453 6,641 1,128 99,267 $ 2,576,619

320,013 78,975 348,004 757,336 14,185 743,151 70,079 15,133 47,647 7,436 1,192 102,098 $ 2,572,274

(3) (13) (5) 3 1 3 (20) (2) — (2) (2) 3 (3)

(11) (24) (16) 11

$ 1,279,715

$ 1,273,106

$ 1,287,332

$ 1,367,887

$ 1,363,427

1

(6)

152,678 15,562 21,105

180,319 19,656 27,174

180,897 42,238 30,061

196,578 55,655 29,035

192,101 66,344 30,222

(15) (21) (22)

(21) (77) (30)

74,107 52,790 177,638 41,879 288,651 2,104,125

84,334 57,140 187,986 48,689 292,503 2,170,907

80,396 59,026 191,749 49,954 286,240 2,207,893

84,437 73,836 202,157 51,047 280,123 2,340,755

81,699 71,116 206,939 52,320 276,379 2,340,547

(12) (8) (6) (14) (1) (3)

(9) (26) (14) (20)

— — — 2 (74) — (6) 1 (3)

30

26,068 4,105 92,500 146,420 192 (21) (21,691) 247,573 $ 2,351,698

26,068 4,105 92,316 143,050 751 (21) (20,541) 245,728 $ 2,416,635

24,918 4,105 92,204 138,294 1,102 (21) (19,397) 241,205 $ 2,449,098

21,493 4,105 92,245 134,048 2,430 (21) (18,436) 235,864 $ 2,576,619

20,063 4,105 93,270 129,977 2,189 (21) (17,856) 231,727 $ 2,572,274

(4) 11 (33) (5) (1) (11) (15) 3 (9)

4 (10)

— (1) 13 (91) — (21) 7 (9)

See notes 1 and 2 on page 33.

Page 5


CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS (in millions, except rates) QUARTERLY TRENDS AVERAGE BALANCES ASSETS Deposits with banks Federal funds sold and securities purchased under resale agreements Securities borrowed Trading assets - debt instruments Securities Loans Other assets (a) Total interest-earning assets Trading assets - equity instruments Trading assets - derivative receivables All other noninterest-earning assets TOTAL ASSETS LIABILITIES Interest-bearing deposits Federal funds purchased and securities loaned or sold under repurchase agreements Commercial paper Trading liabilities - debt, short-term and other liabilities (b) Beneficial interests issued by consolidated VIEs Long-term debt Total interest-bearing liabilities Noninterest-bearing deposits Trading liabilities - equity instruments Trading liabilities - derivative payables All other noninterest-bearing liabilities TOTAL LIABILITIES Preferred stock Common stockholders’ equity TOTAL STOCKHOLDERS’ EQUITY TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY AVERAGE RATES (c) INTEREST-EARNING ASSETS Deposits with banks Federal funds sold and securities purchased under resale agreements Securities borrowed (d) Trading assets - debt instruments Securities Loans Other assets (a) Total interest-earning assets

4Q15 $

382,098

3Q15 $

413,038

2Q15 $

437,776

FULL YEAR

1Q15 $

480,182

4Q14 $

414,672

202,205 104,672 204,365 297,648 823,057 37,012 2,051,057 95,609 66,043 195,544 $ 2,408,253

201,673 98,193 202,388 307,364 793,584 40,650 2,056,890 96,868 69,646 197,812 $ 2,421,216

205,352 107,178 208,823 323,941 774,205 40,362 2,097,637 117,638 73,805 204,753 $ 2,493,833

217,546 111,197 210,069 334,967 757,638 37,202 2,148,801 112,118 83,901 211,671 $ 2,556,491

215,439 115,033 222,223 350,804 746,735 38,873 2,103,779 114,652 76,937 215,577 $ 2,510,945

$

$

$

$

$

864,878

181,995 17,952 196,154 44,774 290,083 1,595,836 412,575 16,806 57,053 80,366 2,162,636 26,068 219,549 245,617 $ 2,408,253

0.32 %

852,219

188,006 26,167 198,876 49,808 288,413 1,603,489 418,742 17,595 61,754 76,895 2,178,475 25,718 217,023 242,741 $ 2,421,216

0.28 %

869,523

200,054 49,020 213,246 51,600 282,262 1,665,705 429,622 16,528 64,249 80,515 2,256,619 23,476 213,738 237,214 $ 2,493,833

0.29 %

904,325

200,236 60,013 223,361 50,677 278,840 1,717,452 432,188 18,210 76,049 79,415 2,323,314 20,825 212,352 233,177 $ 2,556,491

0.29 %

880,283

206,671 61,833 224,967 48,239 273,372 1,695,365 418,313 15,659 64,784 84,874 2,278,995 20,063 211,887 231,950 $ 2,510,945

0.31 %

4Q15 Change 3Q15 4Q14 (7)%

(8)%

— 7 1 (3) 4 (9) — (1) (5) (1) (1)

(6) (9) (8) (15) 10 (5) (3) (17) (14) (9) (4)

1

(2)

(3) (31) (1) (10) 1 — (1) (4) (8) 5 (1) 1 1 1 (1)

(12) (71) (13) (7) 6 (6) (1) 7 (12) (5) (5) 30 4 6 (4)

2015 $

427,963

2014 $

358,072

206,637 105,273 206,385 315,855 787,318 38,811 2,088,242 105,489 73,290 202,388 $ 2,469,409

230,489 116,540 210,609 353,329 739,175 40,879 2,049,093 116,650 67,123 214,369 $ 2,447,235

$

$

872,572

192,510 38,140 207,810 49,200 284,940 1,645,172 423,216 17,282 64,716 79,293 2,229,679 24,040 215,690 239,730 $ 2,469,409

0.29 %

2015 Change 2014 20% (10) (10) (2) (11) 7 (5) 2 (10) 9 (6) 1

868,838

208,560 59,916 220,137 47,974 269,814 1,675,239 395,463 16,246 54,758 81,111 2,222,817 17,018 207,400 224,418 $ 2,447,235

— (8) (36) (6) 3 6 (2) 7 6 18 (2) — 41 4 7 1

0.32 %

0.83 (0.51) 3.16 3.11 4.20 1.71 2.60

0.85 (0.48) 3.04 2.85 4.24 1.67 2.51

0.66 (0.59) 3.37 2.77 4.21 1.74 2.44

0.74 (0.44) 3.39 2.82 4.28 1.59 2.42

0.75 (0.45) 3.35 2.77 4.32 1.61 2.49

0.77 (0.50) 3.24 2.88 4.23 1.68 2.49

0.71 (0.43) 3.51 2.77 4.38 1.62 2.56

INTEREST-BEARING LIABILITIES Interest-bearing deposits Federal funds purchased and securities loaned or sold under repurchase agreements Commercial paper Trading liabilities - debt, short-term and other liabilities (b) Beneficial interests issued by consolidated VIEs Long-term debt Total interest-bearing liabilities

0.13

0.14

0.14

0.16

0.18

0.14

0.19

0.36 0.49 0.33 0.99 1.62 0.48

0.34 0.35 0.26 0.92 1.50 0.45

0.29 0.25 0.32 0.85 1.52 0.44

0.29 0.23 0.28 0.79 1.59 0.45

0.28 0.22 0.26 0.80 1.56 0.44

0.32 0.29 0.30 0.88 1.56 0.45

0.29 0.22 0.32 0.84 1.63 0.47

INTEREST RATE SPREAD NET YIELD ON INTEREST-EARNING ASSETS

2.12 % 2.23 %

2.06 % 2.16 %

2.00 % 2.09 %

1.97 % 2.07 %

2.05 % 2.14 %

2.04 % 2.14 %

2.09 % 2.18 %

See note 1 on page 33. (a) (b) (c) (d)

Includes margin loans. Includes brokerage customer payables. Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable. Negative yield is a result of increased client-driven demand for certain securities combined with the impact of low interest rates; this is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense and reported within trading liabilities - debt, short-term and other liabilities. Page 6


RECONCILIATION FROM REPORTED TO MANAGED BASIS

(in millions, except ratios) The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the U.S. (“U.S. GAAP”). 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 other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. For additional information on managed basis, refer to the notes on Non-GAAP Financial Measures on page 33. The following summary table provides a reconciliation from reported U.S. GAAP results to managed basis. QUARTERLY TRENDS 4Q15 OTHER INCOME Other income - reported Fully taxable-equivalent adjustments (a) Other income - managed TOTAL NONINTEREST REVENUE Total noninterest revenue - reported Fully taxable-equivalent adjustments (a) Total noninterest revenue - managed NET INTEREST INCOME Net interest income - reported Fully taxable-equivalent adjustments (a) Net interest income - managed TOTAL NET REVENUE Total net revenue - reported Fully taxable-equivalent adjustments (a) Total net revenue - managed PRE-PROVISION PROFIT Pre-provision profit - reported Fully taxable-equivalent adjustments (a) Pre-provision profit - managed INCOME BEFORE INCOME TAX EXPENSE Income before income tax expense - reported Fully taxable-equivalent adjustments (a) Income before income tax expense - managed INCOME TAX EXPENSE Income tax expense/(benefit) - reported Fully taxable-equivalent adjustments (a) Income tax expense - managed OVERHEAD RATIO Overhead ratio - reported Overhead ratio - managed

$ $

$ $

$ $

$ $

$ $

$ $

$ $

3Q15

1,236 575 1,811

$

11,660 575 12,235

$

11,225 287 11,512

22,885 862 23,747

$

$

$ $

$ $

8,622 862 9,484

$

7,371 862 8,233

$

1,937 862 2,799

62 % 60

$

$

$ $

2Q15

628 477 1,105

$

11,856 477 12,333

$

10,924 278 11,202

22,780 755 23,535

$

$

$ $

$ $

7,412 755 8,167

$

6,730 755 7,485

$

(74) 755 681

67 % 65

$

$

$ $

FULL YEAR

1Q15

586 447 1,033

$

13,128 447 13,575

$

10,684 272 10,956

23,812 719 24,531

$

$

$ $

$ $

9,312 719 10,031

$

8,377 719 9,096

$

2,087 719 2,806

61 % 59

$

$

$ $


4Q14

582 481 1,063

$

13,389 481 13,870

$

$

$

10,677 273 10,950

$

24,066 754 24,820

$

$

$

9,183 754 9,937

$

8,224 754 8,978

$

2,310 754 3,064

$

62 % 60

$

$

$

2015

546 537 1,083

97% 21 64

126% 7 67

$

11,688 537 12,225

(2) 21 (1)

— 7 —

$

11,062 262 11,324

3 3 3

1 10

$

2

$

22,750 799 23,549

— 14 1

1 8 1

$

7,341 799 8,140

16 14 16

17

$

8 17

$

6,501 799 7,300

10 14 10

13

$

8 13

$

1,570 799 2,369

NM 14 311

23

$

8 18

$

68 % 65

$

$

$

2015 Change 2014

2014

3,032 1,980 5,012

$

50,033 1,980 52,013

$

$

$

43,510 1,110 44,620

$

93,543 3,090 96,633

$

34,529 3,090 37,619

$

30,702 3,090 33,792

$

6,260 3,090 9,350

63 % 61

$

$

$

$

$ $

3,013 1,788 4,801

1% 11

51,478 1,788 53,266

(3) 11

43,634 985 44,619

— 13

95,112 2,773 97,885

(2) 11

33,838 2,773 36,611

2 11

30,699 2,773 33,472

— 11

8,954 2,773 11,727

(30) 11 (20)

4

(2)

—

(1)

3

1

64 % 63

See note 2 on page 33. (a)

Predominantly recognized in the CIB and Commercial Banking (“CB”) business segments and Corporate.

Page 7


SEGMENT RESULTS - MANAGED BASIS (in millions)

QUARTERLY TRENDS 4Q15 TOTAL NET REVENUE (fully taxable-equivalent (“FTE”)) Consumer & Community Banking Corporate & Investment Bank Commercial Banking Asset Management Corporate TOTAL NET REVENUE TOTAL NONINTEREST EXPENSE Consumer & Community Banking Corporate & Investment Bank Commercial Banking Asset Management Corporate TOTAL NONINTEREST EXPENSE PRE-PROVISION PROFIT/(LOSS) Consumer & Community Banking Corporate & Investment Bank Commercial Banking Asset Management Corporate PRE-PROVISION PROFIT PROVISION FOR CREDIT LOSSES Consumer & Community Banking Corporate & Investment Bank Commercial Banking Asset Management Corporate PROVISION FOR CREDIT LOSSES NET INCOME Consumer & Community Banking Corporate & Investment Bank Commercial Banking Asset Management Corporate TOTAL NET INCOME

$

$

$

$

$

$

$

$

$

$

3Q15

11,222 7,069 1,760 3,045 651 23,747

$

6,272 4,436 750 2,196 609 14,263

$

$

$

4,950 2,633 1,010 849 42 9,484

$

1,038 81 117 17 (2) 1,251

$

2,407 1,748 550 507 222 5,434

$

$

$

$

2Q15

10,879 8,168 1,644 2,894 (50) 23,535

$

6,237 6,131 719 2,109 172 15,368

$

$

$

4,642 2,037 925 785 (222) 8,167

$

389 232 82 (17) (4) 682

$

2,630 1,464 518 475 1,717 6,804

$

$

$

$

FULL YEAR

1Q15

11,015 8,723 1,739 3,175 (121) 24,531

$

6,210 5,137 703 2,406 44 14,500

$

4,805 3,586 1,036 769 (165) 10,031

$

$

$

$

702 50 182 — 1 935

$

2,533 2,341 525 451 440 6,290

$

$

$


4Q14

10,704 9,582 1,742 3,005 (213) 24,820

$

6,190 5,657 709 2,175 152 14,883

$

$

$

4,514 3,925 1,033 830 (365) 9,937

$

930 (31) 61 4 (5) 959

$

2,219 2,537 598 502 58 5,914

$

$

$

$

2015

10,949 7,383 1,770 3,200 247 23,549

3% (13) 7 5 NM 1

2% (4) (1) (5) 164 1

$

6,411 5,576 666 2,320 436 15,409

1 (28) 4 4 254 (7)

(2) (20) 13

$

(7)

$

4,538 1,807 1,104 880 (189) 8,140

7 29 9 8 NM 16

9 46

$

(9) (4) NM 17

950 (59) (48) 3 (6) 840

167 (65) 43 NM 50 83

9 NM NM 467 67 49

$

(8) 19 6 7 (87) (20)

10 80 (21)

$

2,179 972 693 540 547 4,931

$

(5) 40

(6) (59) 10

$

$

$

2014

43,820 33,542 6,885 12,119 267 96,633

$

24,909 21,361 2,881 8,886 977 59,014

$

18,911 12,181 4,004 3,233 (710) 37,619

$

3,059 332 442 4 (10) 3,827

$

9,789 8,090 2,191 1,935 2,437 24,442

$

$

$

$

$

$

2015 Change 2014

44,368 34,595 6,882 12,028 12 97,885

(1)% (3) — 1 NM (1)

25,609 23,273 2,695 8,538 1,159 61,274

(3) (8) 7 4 (16)

18,759 11,322 4,187 3,490 (1,147) 36,611

1 8 (4) (7) 38

3,520 (161) (189) 4 (35) 3,139

(13)

9,185 6,908 2,635 2,153 864 21,745

(4)

3

NM NM — 71 22

7 17 (17) (10) 182 12

See note 2 on page 33.

Page 8


CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS

(in millions, except ratio data)

Dec 31, 2015

Sep 30, 2015

Jun 30, 2015

Mar 31, 2015

Dec 31, 2014


CAPITAL (a) Risk-based capital metrics Standardized Transitional CET1 capital Tier 1 capital Total capital Risk-weighted assets (b) CET1 capital ratio Tier 1 capital ratio Total capital ratio

$ 175,398 200,486 234,417 1,467,489 12.0% 13.7 16.0

(g) (g)(h) (g) (g) (g) (g) (g)

$ 173,577 199,222 234,388 1,503,370 11.5% 13.3 15.6

$ 169,769 194,725 228,314 1,499,638 11.3% 13.0 15.2

$ 167,142 188,791 223,190 1,536,688 10.9% 12.3 14.5

$ 164,426 186,294 221,148 1,472,602 11.2% 12.7 15.0

1% 1 — (2)

7% 8 6 —

Advanced Transitional CET1 capital Tier 1 capital Total capital Risk-weighted assets CET1 capital ratio Tier 1 capital ratio Total capital ratio

$ 175,398 200,486 224,023 1,488,887 11.8% 13.5 15.0

(g) (g)(h) (g) (g) (g) (g) (g)

173,577 199,222 223,888 1,502,685 11.6% 13.3 14.9

169,769 194,725 218,735 1,520,140 11.2% 12.8 14.4

167,142 188,791 213,300 1,562,570 10.7% 12.1 13.7

164,426 186,294 210,607 1,608,240 10.2% 11.6 13.1

1 1 — (1)

7 8 6 (7)

Leverage-based capital metrics Adjusted average assets (c) Tier 1 leverage ratio SLR leverage exposure (d) SLR (d)

$2,361,344 8.5% $3,079,806 6.5%

(g) (g) (g) (g)

$2,375,317 8.4% $3,116,633 6.4%

$2,447,864 8.0% 3,223,351 6.0%

$2,510,378 7.5% 3,300,300 5.7%

$2,464,915 7.6% 3,320,919 5.6

(1)

(4)

TANGIBLE COMMON EQUITY (period-end) (e) Common stockholders’ equity Less: Goodwill Less: Other intangible assets Add: Deferred tax liabilities (f) Total tangible common equity

$ 221,505 47,325 1,015 3,148 $ 176,313

$ 219,660 47,405 1,036 3,105 $ 174,324

$ 216,287 47,476 1,091 2,876 $ 170,596

$ 214,371 47,453 1,128 2,870 $ 168,660

$ 211,664 47,647 1,192 2,853 $ 165,678

1 — (2) 1 1

5 (1) (15) 10 6

TANGIBLE COMMON EQUITY (average) (e) Common stockholders’ equity Less: Goodwill Less: Other intangible assets Add: Deferred tax liabilities (f) Total tangible common equity

$ 219,549 47,377 1,030 3,127 $ 174,269

$ 217,023 47,428 1,064 2,991 $ 171,522

$ 213,738 47,485 1,113 2,873 $ 168,013

$ 212,352 47,491 1,162 2,862 $ 166,561

$ 211,887 47,900 1,241 2,922 $ 165,668

1 — (3) 5 2

4 (1) (17) 7 5

$

$

$

$

$

— (2) (2) —

(1) (11) (15) (2)

INTANGIBLE ASSETS (period-end) Goodwill Mortgage servicing rights Other intangible assets Total intangible assets

$

47,325 6,608 1,015 54,948

$

47,405 6,716 1,036 55,157

$

47,476 7,571 1,091 56,138

$

47,453 6,641 1,128 55,222

$

47,647 7,436 1,192 56,275

FULL YEAR 2015

2014

$ 215,690 47,445 1,092 2,964 $ 170,117

$ 207,400 48,029 1,378 2,950 $ 160,943

2015 Change 2014

(1)

4 (1) (21) — 6

See notes 1 and 2 on page 33. (a)

(b) (c) (d) (e) (f) (g) (h)

Basel III presents two comprehensive methodologies for calculating risk-weighted assets: a Standardized approach and an Advanced approach. As required by the Collins Amendment of the Wall Street Reform and Consumer Protection Act, the capital adequacy of the Firm is evaluated against the Basel III approach (Standardized or Advanced) that results, for each quarter, in the lower ratio (the “Collins Floor”). For further discussion of the implementation of Basel III, see Regulatory capital on pages 146-153 of JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2014, and on pages 69–73 of the Firm’s Form 10-Q for the quarter ended September 30, 2015. Effective January 1, 2015, Basel III Standardized Transitional RWA is calculated under the Basel III definition of the Standardized approach. December 31, 2014, was based on Basel I with 2.5. Adjusted average assets, for purposes of calculating the Tier 1 leverage ratio, includes total quarterly average assets adjusted for unrealized gains/(losses) on securities, less deductions for goodwill and other intangible assets, defined benefit pension plan assets, and deferred tax assets related to net operating loss carryforwards. Beginning with the first quarter of 2015, the Firm is required to calculate a supplementary leverage ratio (“SLR”). The SLR is defined as Tier 1 capital divided by the Firm’s total leverage exposure. Total leverage exposure is calculated by taking the Firm’s adjusted average assets as calculated for the Tier 1 leverage ratio, and adding certain off-balance sheet exposures, such as undrawn commitments and derivatives potential future exposure. For further discussion of TCE, see page 33. Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted against goodwill and other intangibles when calculating TCE. Estimated. At December 31, 2015, trust preferred securities included in Basel III Tier 1 capital were $992 million.

Page 9


EARNINGS PER SHARE AND RELATED INFORMATION (in millions, except per share and ratio data) QUARTERLY TRENDS 4Q15 EARNINGS PER SHARE Basic earnings per share Net income Less: Preferred stock dividends Net income applicable to common equity Less: Dividends and undistributed earnings allocated to participating securities Net income applicable to common stockholders Total weighted-average basic shares outstanding Net income per share Diluted earnings per share Net income applicable to common stockholders Total weighted-average basic shares outstanding Add: Employee stock options, SARs and warrants (a) Total weighted-average diluted shares outstanding Net income per share COMMON DIVIDENDS Cash dividends declared per share Dividend payout ratio COMMON EQUITY REPURCHASE PROGRAM (b) Total shares of common stock repurchased Average price paid per share of common stock Aggregate repurchases of common equity EMPLOYEE ISSUANCE Shares issued from treasury stock related to employee stock-based compensation awards and employee stock purchase plans Net impact of employee issuances on stockholders’ equity (c)

$

$

5,434 418 5,016 108 4,908

3Q15

$

$

3,674.2

6,804 393 6,411 141 6,270

2Q15

$

9

24,442 1,515 22,927

$

21,745 1,125 20,620

12% 35 11

$

521 22,406

$

543 20,077

(4) 12

3,707.8 1.56

$

3,725.3 1.46

$

3,730.9 1.20

(1) (21)

(2) 12

$

3,700.4 6.05

$

3,763.5 5.33

(2) 14

4,488 3,730.9 34.3 3,765.2 1.19

(22) (1) (3) (1) (21)

9 (2) (11)

20,077 3,763.5 34.0

12

(2) 11

$

—

10

$

25.3 59.80 1,510

(1) (2) (2)

(25) 7 (19)

1.8 295

(42) 2

(39) (15)

$

6,270 3,694.4

$

31.2 3,725.6

$

1.32

$

1.68

$

$

0.44 33%

$

0.44 26%

$

1.9 248

$

(8) 9

4,908 3,674.2

$

10% 28

(23) (22)

$

1.1 252

(20)% 6 (22)

117 4,488

$

$

4,931 326 4,605

2015 Change 2014

$

1.70

19.1 65.30 1,248

$

2014

138 5,452

3,694.4

$

5,914 324 5,590

2015

$

$

19.0 63.92 1,219

$

4Q14

134 5,776

1.34

$

1Q15

$

$

30.4 3,704.6

6,290 380 5,910


$

$

5,776 3,707.8 35.8 3,743.6 1.54

0.44 (d) 28%

19.2 65.32 1,249

2.0 290

$

$

$

$

$

5,452 3,725.3 32.2 3,757.5 1.45

0.40 27%

32.5 58.40 1,900

28.8 333

$

$

$

$

$

0.40 33%

$

22,406 3,700.4 32.4 3,732.8 6.00

1.72 (e) 28%

$

$

$

89.8 $

62.51 5,616

$

1,123

(2) (5) (2) 13

3,797.5 5.29

1.58 29%

9

82.3 $

57.87 4,760

$

1,243

33.8

40.9

9 8 18

(17) (10)

See note 2 on page 33. (a) (b) (c) (d)

Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans. The aggregate number of shares issuable upon the exercise of such options was [not material] for the each of the three months ended December 31, 2015, September 30, 2015, June 30, 2015, and for full year December 31, 2015; and 1 million for each of the three months ended March 31, 2015 and December 31, 2014, and for full year December 31, 2014, respectively. On March 11, 2015, the Firm announced, following the release by the Board of Governors of the Federal Reserve System (“Federal Reserve”) of the 2015 CCAR results, that it is authorized to repurchase up to $6.4 billion of common equity between April 1, 2015, and June 30, 2016. The net impact of employee issuances on stockholders’ equity is driven by the cost of equity compensation awards that is recognized over the applicable vesting periods. The cost is partially offset by tax impacts related to the distribution of shares and the exercise of employee stock options and stock appreciation rights (“SARs”). On May 19, 2015, the Board of Directors increased the quarterly common stock dividend from $0.40 to $0.44 per share.

Page 10


CONSUMER & COMMUNITY BANKING FINANCIAL HIGHLIGHTS (in millions, except ratio and headcount data)

QUARTERLY TRENDS 4Q15 INCOME STATEMENT REVENUE Lending- and deposit-related fees Asset management, administration and commissions Mortgage fees and related income Card income All other income Noninterest revenue Net interest income TOTAL NET REVENUE

$

3Q15

817 524 556 1,326 815 4,038 7,184 11,222

$

2Q15

836 565 469 1,335 524 3,729 7,150 10,879

$

FULL YEAR

1Q15

766 553 782 1,506 482 4,089 6,926 11,015

$


4Q14

718 530 704 1,324 460 3,736 6,968 10,704

$

782 538 854 1,467 180 3,821 7,128 10,949

(2)% (7) 19 (1) 56 8 — 3

4% (3) (35) (10)

$

2015 Change 2014

2014

353 6 1 2

3,137 2,172 2,511 5,491 2,281 15,592 28,228 43,820

$

3,039 2,096 3,560 5,779 1,463 15,937 28,431 44,368

3% 4 (29)

9

3,059

3,520

(13)

(5) 56 (2) (1) (1)

Provision for credit losses

1,038

389

702

930

950

NONINTEREST EXPENSE Compensation expense

2,349

2,413

2,478

2,530

2,535

(3)

(7)

9,770

10,538

(7)

Noncompensation expense

3,923

3,824

3,732

3,660

3,876

3

1

15,139

15,071

—

6,272

6,237

6,210

6,190

6,411

1

(2)

24,909

25,609

(3)

TOTAL NONINTEREST EXPENSE

167

2015

Income before income tax expense

3,912

4,253

4,103

3,584

3,588

(8)

9

15,852

15,239

4

Income tax expense NET INCOME

1,505 2,407

1,623 2,630

1,570 2,533

1,365 2,219

1,409 2,179

(7) (8)

7 10

6,063 9,789

6,054 9,185

— 7

$

FINANCIAL RATIOS ROE Overhead ratio SELECTED BALANCE SHEET DATA (period-end) Total assets Trading assets - loans (a) Loans: Loans retained Loans held-for-sale Total loans Core loans

18 % 56

$

Deposits Equity (b) SELECTED BALANCE SHEET DATA (average) Total assets Trading assets - loans (a) Loans: Loans retained Loans held-for-sale Total loans Deposits Equity (b) Headcount

(a) (b)

$

$

502,652 5,953

$

20 % 57

$

484,253 6,633

$

19 % 56

$

472,181 6,700

$

17 % 58

$

455,624 6,756

$

16 % 59

$

18 57

455,634 8,423

4 (10)

10 (29)

$

502,652 5,953

$

%

18 %

58

$

455,634 8,423

10 (29)

445,316 542 445,858 341,881

427,958 1,582 429,540 320,415

413,363 2,825 416,188 301,154

398,314 2,720 401,034 280,252

396,288 3,416 399,704 273,494

4 (66) 4 7

12 (84) 12 25

445,316 542 445,858 341,881

396,288 3,416 399,704 273,494

12 (84) 12 25

557,645 51,000

539,182 51,000

530,767 51,000

531,027 51,000

502,520 51,000

3 —

11

557,645 51,000

502,520 51,000

11

450,260 8,746

3 (24)

10 (27)

447,750 8,040

6 (7)

494,306 6,412

$

478,914 8,468

$

463,404 7,068

$

454,763 7,992

$

—

436,702 1,063 437,765 545,734 51,000

419,741 2,124 421,865 535,987 51,000

406,029 2,100 408,129 529,448 51,000

395,084 2,984 398,068 512,157 51,000

392,764 1,417 394,181 497,667 51,000

4 (50) 4 2 —

11 (25) 11 10

127,094

128,601

132,302

135,908

137,186

(1)

$

472,972 7,484

$

—

414,518 2,062 416,580 530,938 51,000

389,967 917 390,884 486,919 51,000

(7)

127,094

137,186

—

6 125 7 9 — (7)

Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value. Equity is allocated to the sub-business segments with $5.0 billion and $3.0 billion of capital in 2015 and 2014, respectively, held at the CCB level related to legacy mortgage servicing matters. Page 11


CONSUMER & COMMUNITY BANKING FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted) QUARTERLY TRENDS 4Q15 CREDIT DATA AND QUALITY STATISTICS Net charge-offs (a) Nonaccrual loans (b)(c) Nonperforming assets (b)(c) Allowance for loan losses (a) Net charge-off rate (a) Net charge-off rate, excluding purchased credit-impaired (“PCI”) loans Allowance for loan losses to period-end loans retained Allowance for loan losses to period-end loans retained, excluding PCI loans (d) Allowance for loan losses to nonaccrual loans retained, excluding credit card (b)(d) Nonaccrual loans to total period-end loans, excluding credit card Nonaccrual loans to total period-end loans, excluding credit card and PCI loans (b) BUSINESS METRICS Number of: Branches ATMs Active online customers (in thousands) (e) Active mobile customers (in thousands)

$

3Q15

1,038 5,313 5,635 9,165

$

2Q15

965 5,433 5,778 9,211

$

FULL YEAR

1Q15

1,027 5,876 6,250 9,838

$


4Q14

1,054 6,143 6,569 10,219

$

1,197 6,401 6,872 10,404

8% (2) (2) —

(13)% (17) (18) (12)

2015 $

2015 Change 2014

2014

4,084 5,313 5,635 9,165

$

4,773 6,401 6,872 10,404

0.94 %

0.91 %

1.01 %

1.08 %

1.21 %

0.99 %

1.22 %

1.04 2.06

1.02 2.15

1.14 2.38

1.22 2.57

1.38 2.63

1.10 2.06

1.40 2.63

1.59

1.67

1.79

1.97

2.02

1.59

2.02

57

55

56

57

58

57

58

1.69

1.80

2.03

2.21

2.38

1.69

2.38

1.94

2.09

2.39

2.64

2.88

1.94

2.88

5,413 17,777 39,242 22,810

5,471 18,623 38,511 22,232

5,504 18,050 37,878 21,001

5,570 18,298 37,696 19,962

5,602 18,056 36,396 19,084

5,413 17,777 39,242 22,810

5,602 18,056 36,396 19,084

(1) (5) 2 3

(3) (2) 8 20

(14)% (17) (18) (12)

(3) (2) 8 20

Note: CCB provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, see page 33. (a) (b) (c)

(d) (e)

Net charge-offs and the net charge-off rates for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014, excluded $46 million, $52 million, $55 million, $55 million and $337 million, respectively, and $208 million and $533 million, for the full year 2015 and 2014, respectively, of write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans. For further information on PCI write-offs, see summary of changes in the allowances on page 31. Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing. At December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $6.3 billion, $6.6 billion, $7.0 billion, $7.5 billion and $7.8 billion respectively, that are 90 or more days past due; (2) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $290 million, $289 million, $282 million, $346 million and $367 million, respectively, that are 90 or more days past due; (3) real estate owned (“REO”) insured by U.S. government agencies of $343 million, $327 million, $384 million, $469 million and $462 million, respectively. These amounts have been excluded based upon the government guarantee. The allowance for loan losses for PCI loans was $2.7 billion at December 31, 2015, $2.8 billion at September 30, 2015, $3.2 billion at June 30, 2015, and $3.3 billion at both March 31, 2015, and December 31, 2014; these amounts were also excluded from the applicable ratios. Users of all internet browsers and mobile platforms (mobile smartphone, tablet and SMS) who have logged in within the past 90 days.

Page 12


CONSUMER & COMMUNITY BANKING FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted) QUARTERLY TRENDS 4Q15

3Q15

2Q15

FULL YEAR

1Q15


4Q14

2015

2015 Change 2014

2014

CONSUMER & BUSINESS BANKING INCOME STATEMENT REVENUE Lending- and deposit-related fees Asset management, administration and commissions Card income All other income Noninterest revenue Net interest income Total net revenue Provision for credit losses Noninterest expense Income before income tax expense Net income ROE Overhead ratio Equity (period-end and average) BUSINESS METRICS Business banking origination volume Period-end loans Period-end deposits: Checking Savings Time and other Total period-end deposits Average loans Average deposits: Checking Savings Time and other Total average deposits Deposit margin Average assets CREDIT DATA AND QUALITY STATISTICS Net charge-offs Net charge-off rate Allowance for loan losses Nonperforming assets RETAIL BRANCH BUSINESS METRICS Net new investment assets Client investment assets % managed accounts Number of: Chase Private Client locations Personal bankers Sales specialists Client advisors Chase Private Clients Accounts (in thousands) (a)

(a)

$

812 505 442 219 1,978 2,609 4,587

$

76 2,946 1,565 968

$

32% 64 11,500

$

$

1,609 22,730

$

50 2,956 1,549 954

$

760 534 435 135 1,864 2,619 4,483 68 3,056 1,359 831

$

32% 65 11,500

$

28% 68 11,500

1,715

$

$

246,448 279,897 18,063 544,408 22,445 235,498 276,823 18,290

$

$ $

$

530,611 1.83 41,779

% $

76 1.34% 703 270

$ $

1,886 218,551 41

$ %

829 546 440 135 1,950 2,605 4,555

$

$

$

711 512 404 122 1,749 2,609 4,358 60 2,958 1,340 828

$

28% 68 11,500

$

31% 66 11,000

—

5

$

11,500

$

11,000

5

1,529 21,200

(6) 2

5 7

$

6,775 22,730

$

6,599 21,200

3 7

5% (2) 7 78

$

8 (5) 1 (14) (3) 8 12

$

3,112 2,097 1,721 611 7,541 10,442 17,983 254 11,916 5,813 3,581

$

$

30% 66

3,010 2,025 1,605 534 7,174 11,052 18,226 305 12,149 5,772 3,443

3% 4 7 14 5 (6) (1) (17) (2) 1

4

31% 67

231,968 273,468 18,547 523,983 22,069

226,888 268,777 19,317 514,982 21,732

227,382 267,696 20,329 515,407 21,317

213,049 255,148 21,349 489,546 20,830

6 2 (3) 4 2

16 10 (15) 11

246,448 279,897

213,049 255,148

18,063 544,408

21,349 489,546

16 10 (15) 11

8

21,894

20,152

9

229,003 271,526 18,885 519,414 1.86 40,991

225,803 267,212 19,829 512,844 1.92 41,290

216,312 260,461 20,837 497,610 1.99 41,774

207,312 253,412 22,113 482,837 2.11 39,163

3 2 (3) 2

14

226,713 269,057

198,996 249,281

14

19,452 515,222 1.90

24,057 472,334 2.21

$

50 0.90% 703 242

$ $

2,783 213,263 41

$ %

$

68 1.26% 703 246

3,362 221,490 41

$ $

$ %

$

(2)% (8) — 62 1 — 1 52 — 1 1

1,911 21,940

%

1,540 21,608

$

776 513 414 123 1,826 2,733 4,559 88 3,026 1,445 861

22,346

%

$

$

% $

59 1.12% 703 274

3,821 219,192 40

$ $

$ %

%

85 1.62% 703 286

3,254 213,459 39

2,764

2,740

2,661

2,573

2,514

18,041 3,539 2,931

18,554 3,600 2,965

441,369 31,342

418,258 31,277

19,735 3,763 2,996 390,220 31,041

20,503 3,842 3,065 358,115 30,755

21,039 3,994 3,090 325,653 30,481

9 (17) 10

%

7

$

52

(11)

$

253 1.16%

$

305 1.51%

— 12

— (6)

$

703 270

$

703 286

—

(6)

(32) 2

(42)

$

11,852 218,551 41

$

16,088 213,459 39

(26)

% 1

10

(3) (2) (1) 6 —

(14) (11)

$

9 %

2

2

41,457

8 (19)

%

38,298

8

(17)

2 %

2,514 21,039 3,994 3,090 325,653

10 (14) (11)

(5) 36

2,764 18,041 3,539 2,931 441,369

3

31,342

30,481

3

(5) 36

Includes checking accounts and Chase Liquid® cards.

Page 13


CONSUMER & COMMUNITY BANKING FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data) QUARTERLY TRENDS 4Q15

3Q15

2Q15

FULL YEAR

1Q15


4Q14

2015

2015 Change 2014

2014

MORTGAGE BANKING INCOME STATEMENT REVENUE Mortgage fees and related income All other income Noninterest revenue Net interest income Total net revenue Provision for credit losses Noninterest expense Income before income tax expense Net income ROE Overhead ratio Equity (period-end and average) SUPPLEMENTAL INFORMATION MORTGAGE FEES AND RELATED INCOME DETAILS: Net production revenue (a) Net mortgage servicing revenue: Operating revenue: Loan servicing revenue Changes in MSR asset fair value due to collection/ realization of expected cash flows Total operating revenue Risk management: Changes in MSR asset fair value due to market interest rates and other (b) Other changes in MSR asset fair value due to other inputs and assumptions in model (c) Changes in derivative fair value and other Total risk management Total net mortgage servicing revenue Mortgage fees and related income NET INTEREST INCOME: Mortgage Production and Mortgage Servicing Real Estate Portfolios Total net interest income NONINTEREST EXPENSE: Mortgage Production Mortgage Servicing Real Estate Portfolios Total noninterest expense

(a) (b) (c)

$

$

556 (23) 533 1,147 1,680 59 1,160 461 266

$

6 69 16,000

$

123

$

$ $

$

$

$

$ %

469 (26) 443 1,112 1,555 (534) 1,118 971 602

$

14 72 16,000

$

176

$

$ %

782 (5) 777 1,056 1,833 (219) 1,110 942 584

$

14 61 16,000

$

233

$

$ %

704 (11) 693 1,056 1,749 4 1,219 526 326

$

7 70 16,000

$

237

$

$ %

854 (9) 845 1,030 1,875 13 1,296 566 338

$

7 69 18,000

$

19% 12 20 3 8 NM 4 (53) (56)

(35)%

$

(156) (37) 11 (10) 354 (10) (19) (21)

$

%

2,511 (65) 2,446 4,371 6,817 (690) 4,607 2,900 1,778

—

(11)

$

10 68 16,000

325

(30)

(62)

$

769

$

$ %

(29)%

3,560 37 3,597 4,229 7,826 (217) 5,284 2,759 1,668

NM (32) 3 (13) (218) (13) 5 7

$

9 68 18,000

%

$

1,190

(35)

(11)

672

648

707

749

779

4

(14)

2,776

3,303

(16)

(243) 429

(232) 416

(228) 479

(214) 535

(209) 570

(5) 3

(16) (25)

(917) 1,859

(905) 2,398

(1) (22)

178

(677)

815

(476)

(775)

NM

(160)

(1,606)

90

(33) (141) 4 433 556

(88) 642 (123) 293 469

(22) (723) 70 549 782

(102) 510 (68) 467 704

(22) 756 (41) 529 854

63 NM NM 48 19

NM NM (18) (35)

(245) 288 (117) 1,742 2,511

(218) 1,796 (28) 2,370 3,560

(12) (84)

172 858 1,030

(11) 5 3

(24) 18 11

373 559 364 1,296

(10) 19 (2) 4

(10) (3) (22) (10)

131 1,016 1,147

336 540 284 1,160

$

$ $

$

$

147 965 1,112

374 453 291 1,118

$

$ $

$

$

139 917 1,056

360 466 284 1,110

$

$ $

$

$

158 898 1,056

421 582 216 1,219

$

$ $

$

$

NM (50)

$

$ $

$

$

575 3,796 4,371

1,491 2,041 1,075 4,607

$

$ $

$

$

(318) (26) (29)

736 3,493 4,229

(22)

1,644 2,267 1,373 5,284

(9) (10) (22) (13)

9 3

Included repurchase (losses)/benefits of $3 million, $44 million, $28 million, $33 million and $131 million for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014, respectively, and $108 million and $458 million for the full year 2015 and 2014, respectively. 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. 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).

Page 14


CONSUMER & COMMUNITY BANKING FINANCIAL HIGHLIGHTS, CONTINUED (in millions) QUARTERLY TRENDS 4Q15

3Q15

2Q15

FULL YEAR

1Q15

4Q14


2015

2014

2015 Change 2014

MORTGAGE BANKING (continued) SELECTED BALANCE SHEET DATA Trading assets - loans (period-end) (a) Trading assets - loans (average) (a) Loans, excluding PCI loans Period-end loans owned Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total period-end loans owned Average loans owned Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total average loans owned PCI loans Period-end loans owned Home equity Prime mortgage Subprime mortgage Option ARMs Total period-end loans owned Average loans owned Home equity Prime mortgage Subprime mortgage Option ARMs Total average loans owned Total Mortgage Banking Period-end loans owned Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total period-end loans owned Average loans owned Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total average loans owned

(a)

$

5,953 6,412

$

6,633 8,468

$

6,700 7,068

$

6,756 7,992

$

8,423 8,746

$

43,745 134,361 3,732 398 182,236

$

45,359 122,714 3,853 417 172,343

$

47,228 107,001 4,660 435 159,324

$

49,067 91,956 4,828 454 146,305

$

50,899 80,414 5,083 477 136,873

44,530 130,369 3,786 407 179,092

$

46,250 114,537 4,261 426 165,474

$

48,148 99,315 4,735 445 152,643

$

50,007 86,111 4,968 466 141,552

$

14,989 8,893 3,263 13,853 40,998

$

15,490 9,196 3,329 14,221 42,236

$

16,088 9,553 3,449 14,716 43,806

$

16,638 9,916 3,559 15,243 45,356

$

$ $

$

$

$ $

$

$

$ $

$

15,227 9,048 3,292 14,023 41,590

$

$

$ $

$

58,734 157,107 6,995 398 223,234

$

59,757 153,440 7,078 407 220,682

$

$

$

15,775 9,372 3,385 14,451 42,983

$

$

$ $

16,354 9,724 3,490 14,940 44,508

$

60,849 146,131 7,182 417 214,579

$

62,025 138,360 7,646 426 208,457

$

$

$

$

$

$ $

$

63,316 131,270 8,109 435 203,130

$

64,502 123,979 8,225 445 197,151

$

$

$

16,847 10,063 3,604 15,446 45,960

$

$

$ $

$

65,705 117,115 8,387 454 191,661

$

66,854 111,620 8,572 466 187,512

$

$

$

(10)% (24)

(29)% (27)

$

5,953 7,484

$

8,423 8,040

(4) 9 (3) (5) 6

(14) 67 (27) (17) 33

$

43,745 134,361 3,732 398 182,236

$

50,899 80,414 5,083 477 136,873

(14) 67 (27) (17) 33

51,803 77,663 5,365 484 135,315

(4) 14 (11) (4) 8

(14) 68 (29) (16) 32

54,410 71,491 6,257 511 132,669

(13) 51 (29) (15) 20

17,095 10,220 3,673 15,708 46,696

(3) (3) (2) (3) (3)

(12) (13) (11) (12) (12)

17,095 10,220 3,673 15,708 46,696

(12) (13) (11) (12) (12)

17,319 10,584 3,717 15,934 47,554

(3) (3) (3) (3) (3)

(12) (15) (11) (12) (13)

18,030 11,257 3,921 16,794 50,002

(11) (15) (12) (12) (13)

67,994 106,342 8,756 477 183,569

(3) 8 (3) (5) 4

(14) 48 (20) (17) 22

67,994 106,342 8,756 477 183,569

(14) 48 (20) (17) 22

69,122 104,181 9,082 484 182,869

(4) 11 (7) (4) 6

(14) 47 (22) (16) 21

72,440 99,542 10,178 511 182,671

(13) 33 (23) (15) 11

$ $

$

$

$ $

$

$

$ $

$

47,216 107,723 4,434 436 159,809

14,989 8,893 3,263 13,853 40,998 16,045 9,548 3,442 14,711 43,746

58,734 157,107 6,995 398 223,234 63,261 131,982 7,876 436 203,555

$ $

$

$

$ $

$

$

$ $

$

(29)% (7)

Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value.

Page 15



3Q15

2Q15

FULL YEAR

1Q15


4Q14

2015

2015 Change 2014

2014

MORTGAGE BANKING (continued) CREDIT DATA AND QUALITY STATISTICS Net charge-offs/(recoveries), excluding PCI loans (a) Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total net charge-offs/(recoveries), excluding PCI loans Net charge-off/(recovery) rate, excluding PCI loans Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total net charge-off/(recovery) rate, excluding PCI loans Net charge-off/(recovery) rate - reported (a) Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total net charge-off/(recovery) rate - reported 30+ day delinquency rate, excluding PCI loans (b)(c) Allowance for loan losses, excluding PCI loans Allowance for PCI loans (a) Allowance for loan losses Nonperforming assets (d)(e) Allowance for loan losses to period-end loans retained Allowance for loan losses to period-end loans retained, excluding PCI loans BUSINESS METRICS (in billions) Mortgage origination volume by channel Retail Correspondent Total mortgage origination volume (f) Total loans serviced (period-end) Third-party mortgage loans serviced (period-end) Third-party mortgage loans serviced (average) MSR carrying value (period-end) Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) Ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average) MSR revenue multiple (g)

(a) (b) (c) (d) (e) (f) (g)

$

$

$ $

45 14 (2) 2 59

$

$

$ $

$

$

69 11 (1) 2 81

$

$

87 14 1 2 104

$

$

87 34 (10) 2 113

(45)% 56 96 100 44

(48)% (59) 80 — (48)

$

$

283 48 (53) 7 285

$

$

(40)% 71 (96) (22) (41)

473 28 (27) 9 483

0.40 % 0.04 (0.21) 1.95 0.13

0.70 % 0.03 (5.17) 0.93 0.10

0.57 % 0.04 (0.08) 1.80 0.21

0.71 0.07 0.08 1.74 0.30

%

0.67 % 0.17 (0.74) 1.64 0.33

0.60 % 0.04 (1.22) 1.61 0.18

0.87 % 0.04 (0.43) 1.76 0.37

0.30 % 0.04 (0.11) 1.95 0.11

0.52 % 0.03 (2.77) 0.93 0.08

0.43 % 0.04 (0.05) 1.80 0.17

0.53 0.05 0.05 1.74 0.23

%

0.50 % 0.13 (0.44) 1.64 0.25

0.45 % 0.04 (0.68) 1.61 0.14

0.65 % 0.03 (0.27) 1.76 0.27

2.30 2,088 3,270 5,358 5,910 2.80

%

1.57 1,588 2,742 4,330 4,971 1.94

% $ $ %

0.87

$

82 9 (51) 1 41

$

910.1 674.0 688.3 6.6

$

0.33 2.97x

% $ $ %

0.92

8.7 13.8 22.5

0.98

1.74 1,588 2,788 4,376 5,143 2.04

$

%

$

929.0 702.6 713.0 6.7

$

0.34 2.79x

% $ $ %

1.13

9.5 20.4 29.9

0.95

1.95 1,788 3,215 5,003 5,630 2.48

$

%

$

917.0 723.4 723.5 7.6

$

0.35 3.00x

$ %

1.43

9.8 19.5 29.3

1.05

$

$

%

$

924.3 723.5 737.5 6.6

$

0.36 2.53x

% — (2) (1) (3)

(27) (18) (21) (19)

$ $

%

1.60

8.1 16.6 24.7

0.91

2.61 2,188 3,325 5,513 6,175 3.01

$

%

(8) (32) (25)

13 (10) (2)

$

948.8 751.5 758.9 7.4

(2) (4) (3) (1)

(4) (10) (9) (11)

$ $

0.35 2.80x

% $ $ %

0.87

7.7 15.3 23.0

0.98

1.57 1,588 2,742 4,330 4,971 1.94

%

$

$

910.1 674.0 715.4 6.6

$

0.35 2.80x

% (27) (18) (21) (19) %

1.60

36.1 70.3 106.4

0.98

2.61 2,188 3,325 5,513 6,175 3.01

$

%

29.5 48.5 78.0

22 45 36

948.8 751.5 784.6 7.4

(4) (10) (9) (11)

0.98

%

0.36 2.72x

Net charge-offs and the net charge-off rates for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014, excluded $46 million, $52 million, $55 million, $55 million and $337 million, respectively, and $208 million and $533 million, for the full year 2015 and 2014, respectively, of write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans. For further information on PCI write-offs, see summary of changes in the allowances on page 31. At December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, excluded mortgage loans insured by U.S. government agencies of $8.4 billion, $8.5 billion, $8.8 billion, $9.2 billion and $9.7 billion respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. The 30+ day delinquency rate for PCI loans was 11.21%, 11.29%, 11.65%, 12.25% and 13.33%, at December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively. At December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $6.3 billion, $6.6 billion, $7.0 billion, $7.5 billion and $7.8 billion, respectively, that are 90 or more days past due and (2) real estate owned (“REO”) insured by U.S. government agencies of $343 million, $327 million, $384 million, $469 million and $462 million, respectively. These amounts have been excluded based upon the government guarantee. Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing. Firmwide mortgage origination volume was $24.7 billion, $32.2 billion, $31.7 billion, $26.6 billion and $24.4 billion for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively, and $115.2 billion and $83.3 billion for the full year 2015, and 2014, respectively. Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average).

Page 16



3Q15

2Q15

FULL YEAR

1Q15


4Q14

2015

2014

2015 Change 2014

CARD, COMMERCE SOLUTIONS & AUTO INCOME STATEMENT REVENUE Card income All other income Noninterest revenue Net interest income Total net revenue Provision for credit losses Noninterest expense (a) Income before income tax expense Net income ROE Overhead ratio Equity (period-end and average) SELECTED BALANCE SHEET DATA (period-end) Loans: Credit Card Auto Student Total loans Auto operating lease assets SELECTED BALANCE SHEET DATA (average) Total assets Loans: Credit Card Auto Student Total loans Auto operating lease assets BUSINESS METRICS Credit Card, excluding Commercial Card Sales volume (in billions) New accounts opened Open accounts Accounts with sales activity % of accounts acquired online Commerce Solutions (Chase Paymentech Solutions) Merchant processing volume (in billions) Total transactions (in billions) Auto Loan and lease origination volume (in billions)

$

$

$

$

$

$

$

884 643 1,527 3,428 4,955 903 2,166 1,886 1,173 24 % 44 18,500

$

$

895 441 1,336 3,433 4,769 873 2,163 1,733 1,074

$

22 45 18,500

131,463 60,255 8,176 199,894 9,182

$

211,799

$

127,620 58,692 8,326 194,638 8,794

$

$

$

$

1,070 378 1,448 3,251 4,699 853 2,044 1,802 1,118

$

23 43 18,500

%

126,979 57,174 8,462 192,615 8,428

$

206,653

$

126,305 56,412 8,622 191,339 8,073

$

$

$

$ % $

126,025 56,330 8,763 191,118 7,742

$

204,596

$

124,539 55,800 8,907 189,246 7,437

$

$

920 374 1,294 3,303 4,597 866 2,013 1,718 1,065 22 % 44 18,500

$

$

$

123,257 55,455 9,053 187,765 7,123

$

203,925

$

125,025 55,005 9,209 189,239 6,899

$

$

1,053 97 1,150 3,365 4,515 849 2,089 1,577 980 20 % 46 19,000

(1)% 46 14 — 4 3 — 9 9

(16)%

$

$

3,769 1,836 5,605 13,415 19,020 3,495 8,386 7,139 4,430 23 % 44 18,500

NM 33 2 10 6 4 20 20

—

(3)

$

131,048 54,536 9,351 194,935 6,690

4 5 (3) 4 9

— 10 (13)

$

3 37

$

205,081

2

3

$

127,351 53,612 9,519 190,482 6,553

1 4 (3) 2 9

— 9 (13) 2 34

$

$

$

4,173 993 5,166 13,150 18,316 3,432 8,176 6,708 4,074

$

21 % 45 19,000

131,463 60,255 8,176 199,894 9,182

$

206,765

$

125,881 56,487 8,763 191,131 7,807

$

$

(10)% 85 8 2 4 2 3 6 9

(3)

131,048 54,536 9,351 194,935 6,690

— 10 (13)

202,609

2

125,113 52,961 9,987 188,061 6,106

1 7 (12)

3 37

2 28

$

130.8 2.5 59.3 33.8 72 %

$

126.6 2.0 62.9 33.0 69 %

$

125.7 2.1 62.8 32.6 62 %

$

112.8 2.1 64.9 32.5 62 %

$

123.6 2.4 64.6 34.0 62 %

3 25 (6) 2

6 4 (8) (1)

$

495.9 8.7 59.3 33.8 67 %

$

465.6 8.8 64.6 34.0 56 %

7 (1) (8) (1)

$

258.2 11.7

$

235.8 10.4

$

234.1 10.1

$

221.2 9.8

$

230.2 10.3

9 13

12 14

$

949.3 42.0

$

847.9 38.1

12 10

$

9.2

$

8.1

$

7.8

$

7.3

$

6.9

14

33

$

32.4

$

27.5

18

Note: Chase Commerce Solutions, formerly known as Merchant Services, includes Chase Paymentech, ChaseNet and Chase Offers businesses. (a)

Included operating lease depreciation expense of $401 million, $372 million, $348 million, $326 million and,$303 million for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively, and $1.4 billion and $1.2 billion for the full year 2015 and 2014, respectively.

Page 17


CONSUMER & COMMUNITY BANKING FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data)

QUARTERLY TRENDS 4Q15

3Q15

2Q15

FULL YEAR

1Q15


4Q14

2015

2015 Change 2014

2014

CARD, COMMERCE SOLUTIONS & AUTO (continued) CREDIT DATA AND QUALITY STATISTICS Net charge-offs: Credit Card Auto Student Total net charge-offs Net charge-off rate: Credit Card (a) Auto Student Total net charge-off rate

$

Delinquency rates 30+ day delinquency rate: Credit Card (b) Auto Student (c) Total 30+ day delinquency rate 90+ day delinquency rate - Credit Card (b) Nonperforming assets (d) Allowance for loan losses: Credit Card Auto & Student Total allowance for loan losses Allowance for loan losses to period-end loans: Credit Card (b) Auto & Student Total allowance for loan losses to period-end loans CARD SERVICES SUPPLEMENTAL INFORMATION Noninterest revenue Net interest income Total net revenue Provision for credit losses Noninterest expense Income before income tax expense Net income Percentage of average loans: Noninterest revenue Net interest income Total net revenue

(a) (b) (c) (d)

$

774 74 55 903

$

800 32 46 878

$

789 51 51 891

$

858 61 80 999

2% 30 (5) 3

(10)% 21 (31) (10)

$

3,122 214 210 3,546

$

3,429 181 375 3,985

2.41 % 0.40 2.67 1.82

2.61 % 0.23 2.07 1.88

2.62 % 0.38 2.25 1.94

2.69 % 0.45 3.33 2.09

2.51 % 0.38 2.40 1.87

2.75 % 0.34 3.75 2.12

1.43 1.35 1.81 1.42 0.72

1.38 1.06 1.99 1.31 0.66

1.29 0.95 2.00 1.22 0.63

1.41 0.90 1.77 1.27 0.73

1.44 1.23 2.35 1.42 0.70

1.43 1.35 1.81 1.42 0.72

1.44 1.23 2.35 1.42 0.70

394

$

997 3,038 4,035 774 1,544 1,717 1,069

3.10 % 9.44 12.54

393

$

3,434 698 4,132

2.61 % 1.02 2.07

$

$

2.42 % 0.50 2.62 1.85

3,434 698 4,132

$

759 57 58 874

$

838 3,051 3,889 759 1,581 1,549 961

2.63 % 9.58 12.22

$

3,434 698 4,132

2.73 % 1.06 2.16

$

374

$

980 2,855 3,835 800 1,478 1,557 965

3.16 % 9.20 12.35

$

3,434 724 4,158

2.75 % 1.07 2.18

$

385

2.84 % 1.12 2.24

$

$

858 2,901 3,759 789 1,462 1,508 935

2.78 % 9.41 12.19

411

—

(4)

3,439 749 4,188

— — —

— (7) (1)

$

$

736 2,947 3,683 708 1,568 1,407 879

2.29 % 9.18 11.47

$

3,434 698 4,132

2.69 % 1.17 2.18

$

394

2.61 % 1.02 2.07

19 — 4 2 (2) 11 11

35

$

3 10 9 (2) 22 22

$

3,673 11,845 15,518 3,122 6,065 6,331 3,930

2.92 % 9.41 12.33

(9)% 18 (44) (11)

411

(4)

3,439 749 4,188

— (7) (1)

2.69 % 1.17 2.18

$

$

3,593 11,462 15,055 3,079 6,152 5,824 3,547

2 3 3 1 (1) 9 11

2.87 % 9.16 12.03

Average credit card loans included loans held-for-sale of $717 million, $1.3 billion, $1.8 billion, $2.7 billion and $976 million for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively, and $1.6 billion and $509 million for the full year 2015 and 2014, respectively. These amounts are excluded when calculating the net charge-off rate. Period-end credit card loans included loans held-for-sale of $76 million, $1.3 billion, $1.3 billion, $2.4 billion and $3.0 billion at December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively. These amounts are excluded when calculating delinquency rates and the allowance for loan losses to period-end loans. Excluded student loans insured by U.S. government agencies under the FFELP of $526 million, $507 million, $546 million, $596 million and $654 million at December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. Nonperforming assets excluded student loans insured by U.S. government agencies under the FFELP of $290 million, $289 million, $282 million, $346 million and $367 million at December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively, that are 90 or more days past due. These amounts have been excluded from nonaccrual loans based upon the government guarantee.

Page 18


CORPORATE & INVESTMENT BANK FINANCIAL HIGHLIGHTS (in millions, except ratio data) QUARTERLY TRENDS 4Q15 INCOME STATEMENT REVENUE Investment banking fees Principal transactions Lending- and deposit-related fees Asset management, administration and commissions All other income Noninterest revenue Net interest income TOTAL NET REVENUE (a)

$


3Q15

1,538 1,396 387 1,049 268 4,638 2,431 7,069

$

2Q15

1,612 2,370 389 1,083 294 5,748 2,420 8,168

$

FULL YEAR

1Q15

1,825 2,657 400 1,181 170 6,233 2,490 8,723

$


4Q14

1,761 3,482 397 1,154 280 7,074 2,508 9,582

$

$

$

3% 11 (10) (5) (31) 1 (12) (3)

1,860 2,576 4,436

2,434 3,697 6,131

2,656 2,481 5,137

3,023 2,634 5,657

2,017 3,559 5,576

(24) (30) (28)

(8) (28) (20)

9,973 11,388 21,361

10,449 12,824 23,273

(5) (11) (8)

Income before income tax expense Income tax expense NET INCOME

2,552 804 1,748

1,805 341 1,464

3,536 1,195 2,341

3,956 1,419 2,537

1,866 894 972

41 136 19

37 (10) 80

11,849 3,759 8,090

11,483 4,575 6,908

3 (18) 17

FINANCIAL RATIOS ROE Overhead ratio Compensation expense as a percent of total net revenue REVENUE BY BUSINESS Investment banking revenue (b) Treasury Services (c) Lending (c) Total Banking (b) Fixed Income Markets (b) Equity Markets (b) Securities Services Credit Adjustments & Other (d) Total Markets & Investor Services (b) TOTAL NET REVENUE

$

$

1,470 901 390 2,761 2,574 1,064 933 (263) 4,308 7,069

$

$

1,530 899 334 2,763 2,933 1,403 915 154 5,405 8,168

$

$

1,746 901 302 2,949 2,931 1,576 995 272 5,774 8,723

$

$

1,630 930 435 2,995 4,154 1,651 934 (152) 6,587 9,582

$

$

$

1,650 937 358 2,945 2,653 1,143 1,094 (452) 4,438 7,383

(161)

$

(4) — 17 — (12) (24) 2 NM (20) (13)

(11) (4) 9 (6) (3) (7) (15) 42 (3) (4)

$

$

6,376 3,631 1,461 11,468 12,592 5,694 3,777 11 22,074 33,542

NM

10% 67 30

12% 64 30

5% 76 27

16% 59 32

14% 59 30

8% 75 30

10% 63 26

$

332

6,570 8,947 1,742 4,687 1,474 23,420 11,175 34,595

NONINTEREST EXPENSE Compensation expense Noncompensation expense TOTAL NONINTEREST EXPENSE

$

NM

6,736 9,905 1,573 4,467 1,012 23,693 9,849 33,542

50

$

(65)

(15)% 96 (9) (11) (36) 2 (14) (4)

232

$

(59)

(5)% (41) (1) (3) (9) (19) — (13)

2015 Change 2014

2014

81

$

(31)

1,811 712 425 1,181 417 4,546 2,837 7,383

2015

$

$

6,122 3,728 1,547 11,397 14,075 5,044 4,351 (272) 23,198 34,595

4 (3) (6) 1 (11) 13 (13) NM (5) (3)

See note 2 on page 33. (a)

(b) (c) (d)

Included tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; as well as tax-exempt income from municipal bond investments of $486 million, $417 million, $396 million, $432 million and $453 million for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively, and $1.7 billion and $1.6 billion for full year 2015 and 2014, respectively. Effective in the second quarter of 2015, Investment banking revenue (formerly Investment banking fees) incorporates all revenue associated with investment banking activities, and is reported net of investment banking revenue shared with other lines of business; previously such shared revenue had been reported in Fixed Income Markets and Equity Markets. Prior periods have been revised to conform with the current period presentation. Effective in the second quarter of 2015, Trade Finance revenue was transferred from Treasury Services to Lending. Prior periods have been revised to conform with the current period presentation. Consists primarily of credit valuation adjustments (“CVA”) managed by the credit portfolio group, and funding valuation adjustments (“FVA”) and debit valuation adjustments (“DVA”) on over-the-counter (“OTC”) derivatives and structured notes. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.

Page 19


CORPORATE & INVESTMENT BANK FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio and headcount data) QUARTERLY TRENDS 4Q15 SELECTED BALANCE SHEET DATA (period-end) Assets Loans: Loans retained (a) Loans held-for-sale and loans at fair value Total loans Core loans Equity

4Q14

(7)%

(13)%

5 10 6 6 —

11 (34)

1 1 (7)

95,146 5,428 100,574

62,000 50,634

3,698 110,606 110,084

96,409 5,567 101,976 100,772

62,000

61,000

(8) (11) (18)

$ 824,208 302,514

$ 854,712 317,535

67,263

64,833

5 28 5

7 (10)

95,764 7,599 103,363

3 (40)

6

98,331 4,572 102,903

61,000

—

2

62,000

61,000

2

50,965

(1)

(4)

49,067

50,965

(4)

101,420 3,369

110,606 110,084 62,000

104,789 104,270 62,000

96,579 7,211 103,790 103,235 62,000

98,625 3,987 102,612 101,537 62,000

96,409 5,567 101,976 100,772 61,000

789,975 288,828 63,561

$ 845,225 317,385 68,949

$ 865,327 312,260 77,353

$ 867,618 326,312 72,543

101,959 4,897

97,518 3,827

106,856

101,345

94,711 5,504 100,215

99,113 4,061 103,174

Equity

62,000

62,000

62,000

Headcount (b)

49,067

49,384

49,367

Derivative receivables Assets acquired in loan satisfactions Total nonperforming assets Allowance for credit losses: Allowance for loan losses Allowance for lending-related commitments Total allowance for credit losses

Net charge-off/(recovery) rate (a) Allowance for loan losses to period-end loans retained (a) Allowance for loan losses to period-end loans retained, excluding trade finance and conduits (d) Allowance for loan losses to nonaccrual loans retained (a)(c) Nonaccrual loans to total period-end loans

$

5

$

2

428

464

10 438

12 476

204

235

62 704 1,258 569 1,827

$

(15)

$

(11)

$

(4)

150

8 9 2

NM

$

(19)

$

(8) (17) (8)

289 (9) 262

428 10

110 11

438

121

256 60 652

249 63 575

275 67 463

(13) 11 (8)

(26)

56 767

204 62

275 67

704

463

1,205 547 1,752

1,086 437 1,523

1,047 411 1,458

1,034 439 1,473

4 4 4

22 30 24

1,258 569 1,827

1,034 439 1,473

(0.06)% 1.12

(0.05)% 1.06

(0.02)% 1.07

(0.02)% 1.18

(0.01)% 1.07

1.88 294

1.85 260

0.40

0.45

1.73 335 0.32

1.64 417 0.26

1.82 940 0.12

8 9 2

(4) (5) 4

—

289 (9) 262

110 11 121

0.01% 1.19

11 (34)

(58)

251 12 263

(7) 52

(13)%

(12)

324 12 336

0.02% 1.18

2015 Change 2014

106,908

106,908 3,698

CREDIT DATA AND QUALITY STATISTICS Net charge-offs/(recoveries) Nonperforming assets: Nonaccrual loans: Nonaccrual loans retained (a)(c) Nonaccrual loans held-for-sale and loans at fair value Total nonaccrual loans

2014 $ 861,466

$ 861,466

$

2015 $ 748,691

$ 854,275

797,427 291,958 59,425

$

1Q15

$ 819,745

$

748,691

2Q15

801,133

SELECTED BALANCE SHEET DATA (average) Assets Trading assets - debt and equity instruments Trading assets - derivative receivables Loans: Loans retained (a) Loans held-for-sale and loans at fair value Total loans

$

3Q15


1.88

1.82

294 0.40

940 0.12

(26) (7) 52 22 30 24

See note 2 on page 33. (a) (b)

(c) (d)

Loans retained includes credit portfolio loans, trade finance loans, other held-for-investment loans and overdrafts. Effective in the second quarter of 2015, certain technology staff were transferred from CIB to CB; previously reported headcount has been revised to conform with the current presentation. As the related expense for these staff is not material, prior period expenses have not been revised. Prior to the second quarter of 2015 compensation expense related to this headcount was recorded in the CIB, with an allocation to CB (reported in noncompensation expense); commencing with the second quarter, such expense was recorded as compensation expense in CB and accordingly total noninterest expense related to this headcount in both CB and CIB was unchanged. Allowance for loan losses of $177 million, $160 million, $64 million, $51 million, and $18 million were held against these nonaccrual loans at December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively. Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB’s allowance coverage ratio.

Page 20


CORPORATE & INVESTMENT BANK FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except rankings data and where otherwise noted) QUARTERLY TRENDS 4Q15 BUSINESS METRICS Advisory Equity underwriting Debt underwriting Total investment banking fees Assets under custody (“AUC”) (period-end) (in billions)

$

3Q15 $

$

622 314 602 1,538

$

19,943

Client deposits and other third-party liabilities (average) (a) Trade finance loans (period-end)

2Q15 $

$

503 269 840 1,612

$

19,691

FULL YEAR

1Q15 $

$

466 452 907 1,825

$

20,497


4Q14 $

$

542 399 820 1,761

$

20,561

43%

$

434 327 1,050 1,811

24% 17 (28) (5)

(4) (43) (15)

$

20,549

1

(3)

2015 $

2015 Change 2014

2014

31%

$

1,627 1,571 3,372 6,570

$

20,549

(3)

$

$

2,133 1,434 3,169 6,736

$

19,943

(9) (6) 3

364,794

372,070

401,280

444,171

433,822

(2)

(16)

395,297

417,369

(5)

19,255

21,138

21,195

22,853

25,713

(9)

(25)

19,255

25,713

(25)

(16) 11 (10) 10 11 (7) (15) 10 (9)

27 25 13 83

95% Confidence Level - Total CIB VaR (average) CIB trading VaR by risk type: (b) Fixed income (c) Foreign exchange Equities Commodities and other Diversification benefit to CIB trading VaR (d) CIB trading VaR (b) Credit portfolio VaR (e) Diversification benefit to CIB VaR (d) CIB VaR (b)(c)

(a) (b) (c)

(d) (e)

$

$

42 10 18 11 (31) 50 11 (9) 52

$

$

50 9 20 10 (35) 54 13 (10) 57

$

$

41 9 16 9 (37) 38 15 (10) 43

$

$

35 9 18 8 (36) 34 18 (9) 43

$

$

33 8 16 6 (30) 33 17 (10) 40

(3) 52 (35) 10 30

$

$

42 9 18 10 (35) 44 14 (9) 49

$

$

34 8 15 8 (30) 35 13 (8) 40

24 13 20 25 (17) 26 8 (13) 23

Client deposits and other third party liabilities pertain to the Treasury Services and Securities Services businesses. CIB trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in CIB, including credit spread sensitivity to CVA. For further information, see VaR measurement on pages 133–135 of the 2014 Annual Report. As part of the Firm’s continuous evaluation and periodic enhancement of its VaR model calculations, during the second quarter of 2015 the Firm refined the historical proxy time series inputs to certain VaR models to more appropriately reflect the risk exposure from certain asset-backed products. Had these new time series been used as inputs into these VaR models in the first quarter of 2015, the Firm estimates they would have resulted in a reduction to average Fixed income VaR of $3 million and average CIB VaR of $2 million. The impact of this refinement on all other periods presented was not material. The Firm expects in subsequent quarters to continue to refine the VaR model calculations and times series inputs related to these products. Average portfolio VaR was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated. Credit portfolio VaR includes the derivative CVA, hedges of the CVA and hedges of the retained loan portfolio, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value.

Page 21


COMMERCIAL BANKING FINANCIAL HIGHLIGHTS (in millions, except ratio data)

QUARTERLY TRENDS 4Q15 INCOME STATEMENT REVENUE Lending- and deposit-related fees Asset management, administration and commissions All other income (a) Noninterest revenue Net interest income TOTAL NET REVENUE (b)

$

3Q15

236 20 342 598 1,162 1,760

$

2Q15

229 22 271 522 1,122 1,644

$

FULL YEAR

1Q15

242 22 345 609 1,130 1,739

$


4Q14

237 24 375 636 1,106 1,742

$

239 22 382 643 1,127 1,770

3% (9) 26 15 4 7

(1)% (9) (10)

2015

$

(7) 3 (1)

2015 Change 2014

2014

944 88 1,333 2,365 4,520 6,885

$

(3)% (4) 4 1 — —


117

82

182

61

(48)

43

NM


310 440 750

311 408 719

308 395 703

309 400 709

303 363 666

— 8 4

2 21 13

1,238 1,643 2,881

1,203 1,492 2,695

3 10


893 343 550

843 325 518

854 329 525

972 374 598

1,152 459 693

6 6 6

(22) (25) (21)

3,562 1,371 2,191

4,376 1,741 2,635

(19) (21) (17)

4 3 20 100 7

5 — (24) (3) (1)

2 (4) 7 (9) —

Revenue by product Lending (c) Treasury services (c) Investment banking Other (c) Total Commercial Banking net revenue Investment banking revenue, gross (d) Revenue by client segment Middle Market Banking (e) Corporate Client Banking (e) Commercial Term Lending Real Estate Banking Other Total Commercial Banking net revenue FINANCIAL RATIOS ROE Overhead ratio

(a) (b)

(c) (d) (e)

$

$

$

887 655 156 62 1,760

$

$

$

$

$

850 633 130 31 1,644

455

$

702 470 331 138 119 1,760

$

15 % 43

$

$

$

$

867 646 196 30 1,739

382

$

675 446 318 123 82 1,644

$

14 % 44

$

$

$

$

825 647 248 22 1,742

$

843 657 206 64 1,770

589

$

753

$

557

19

688 532 318 117 84 1,739

$

677 564 308 116 77 1,742

$

692 524 313 120 121 1,770

4 5 4 12 45 7

14 % 40

$

$

$

17 % 41

$

$

19 % 38

442

978 92 1,279 2,349 4,533 6,882

$

$

(189)

$

NM

7

$

$

3,429 2,581 730 145 6,885

$

3,358 2,681 684 159 6,882

(18)

$

2,179

$

1,986

10

1 (10)

$

2,742 2,012 1,275 494 362 6,885

$

2,791 1,982 1,252 495 362 6,882

(2) 2 2 — — —

6 15 (2) (1)

$

15 % 42

$

18 % 39

Includes revenue from investment banking products and commercial card transactions. Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities, as well as tax-exempt income from municipal bond activity of $149 million, $116 million, $115 million, $113 million, and $145 million for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively, and $493 million and $462 million for full year 2015, and 2014, respectively. Effective in the second quarter of 2015, Commercial Card and Chase Commerce Solutions/Paymentech product revenue was transferred from Lending and Other, respectively, to Treasury Services. Prior period amounts were revised to conform with the current period presentation. Represents the total revenue from investment banking products sold to CB clients. Effective in the first quarter of 2015, mortgage warehouse lending clients were transferred from Middle Market Banking to Corporate Client Banking. Prior period revenue, period-end loans, and average loans by client segment were revised to conform with the current period presentation.

Page 22


COMMERCIAL BANKING FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except headcount and ratio data) QUARTERLY TRENDS 4Q15 SELECTED BALANCE SHEET DATA (period-end) Total assets Loans: Loans retained Loans held-for-sale and loans at fair value Total loans Core loans Equity Period-end loans by client segment: Middle Market Banking (a) Corporate Client Banking (a) Commercial Term Lending Real Estate Banking Other Total Commercial Banking loans SELECTED BALANCE SHEET DATA (average) Total assets Loans: Loans retained Loans held-for-sale and loans at fair value Total loans Client deposits and other third-party liabilities Equity Average loans by client segment: Middle Market Banking (a) Corporate Client Banking (a) Commercial Term Lending Real Estate Banking Other Total Commercial Banking loans

$

200,700

$

167,374 267 167,641 166,939 14,000

$

$

51,362 31,871 62,860 16,211 5,337 167,641

$

200,325

$

165,679 188 165,867 178,637 14,000

$

$

Headcount (b) CREDIT DATA AND QUALITY STATISTICS Net charge-offs/(recoveries) Nonperforming assets Nonaccrual loans: Nonaccrual loans retained (c) Nonaccrual loans held-for-sale and loans at fair value Total nonaccrual loans Assets acquired in loan satisfactions Total nonperforming assets Allowance for credit losses: Allowance for loan losses Allowance for lending-related commitments Total allowance for credit losses Net charge-off/(recovery) rate (d) Allowance for loan losses to period-end loans retained Allowance for loan losses to nonaccrual loans retained (c) Nonaccrual loans to period-end total loans (a) (b)

(c) (d)

3Q15 $

201,157

$

162,269 213 162,482 161,662 14,000

$

51,844 31,840 61,574 15,565 5,044 165,867

$

51,985 29,634 60,684 15,068 5,111 162,482

$

197,274

$

158,845 359 159,204 180,892 14,000

$

$

7,845

$

2Q15

51,373 28,964 59,323 14,487 5,057 159,204

201,377

$

157,947 1,506 159,453 158,568 14,000

$

51,713 30,171 58,314 14,231 5,024 159,453

$

198,740

$

155,110 870 155,980 197,004 14,000

$

$

7,735

16

$

1Q15

$

$

51,440 28,986 56,814 13,732 5,008 155,980

$

(4)

4Q14

$

197,931

$

153,173 507 153,680 152,659 14,000

$

2015

$

195,267

—%

$

147,661 845 148,506 147,392 14,000

3 25 3 3 —

13 (68) 13 13 —

(1) 8 4 8 4 3

1 26 16 22 10 13

$

$

51,009 25,321 54,038 13,298 4,840 148,506

$

195,927

$

191,664

2

5

$

149,731 557 150,288 210,046 14,000

$

145,184 467 145,651 208,424 14,000

4 (48) 4 (1) —

14 (60) 14 (14) —

50,778 24,169 53,024 12,901 4,779 145,651

1 10 4 7 — 4

2 32 16 21 6 14

7,426

1

6

NM

(43)

$

$

$

3%

51,071 28,379 55,824 13,537 4,869 153,680

7,568

(2)


50,538 26,653 54,754 13,472 4,871 150,288

$

$

7,489

$

11

$

28

$

200,700

$

167,374 267 167,641 166,939 14,000

$

2015 Change 2014

2014 $

195,267

$

147,661 845 148,506 147,392 14,000

13 (68) 13 13 —

1 26 16 22 10 13

$

51,362 31,871 62,860 16,211 5,337 167,641

$

51,009 25,321 54,038 13,298 4,840 148,506

$

198,076

$

191,857

3

$

157,389 492 157,881 191,529 14,000

$

140,982 782 141,764 204,017 14,000

12 (37) 11 (6) —

50,939 23,113 51,120 12,080 4,512 141,764

1 26 14 19 11 11

7,426

6

$

$

51,303 29,125 58,138 14,320 4,995 157,881

$

3%

$

$

7,845

$

21

$

(7)

NM

375

423

384

304

317

(11)

18

375

317

18

18 393

16 439

14 398

12 316

14 331

13 (10)

29 19

18 393

14 331

29 19

8 401

4 443

5 403

5 321

10 341

100 (9)

(20) 18

8 401

10 341

(20) 18

2,855 198 3,053

2,782 170 2,952

2,705 163 2,868

2,519 162 2,681

2,466 165 2,631

3 16 3

16 20 16

2,855 198 3,053

2,466 165 2,631

0.04 1.71 761 0.23

%

— 1.71 658 0.27

%

(0.01) % 1.71 704 0.25

0.03 1.64 829 0.21

%

0.08 1.67 778 0.22

%

0.01 % 1.71 761 0.23

16 20 16

— % 1.67 778 0.22

Effective in the first quarter of 2015, mortgage warehouse lending clients were transferred from Middle Market Banking to Corporate Client Banking. Prior period revenue, period-end loans, and average loans by client segment were revised to conform with the current period presentation. Effective in the second quarter of 2015, certain technology staff were transferred from CIB to CB; previously-reported headcount has been revised to conform with the current period presentation. As the related expense for these staff is not material, prior period expenses have not been revised. Prior to the second quarter of 2015, compensation expense related to this headcount was recorded in the CIB, with an allocation to CB (reported in noncompensation expense); commencing with the second quarter of 2015, such expense was recorded as compensation expense in CB and accordingly total noninterest expense related to this headcount in both CB and CIB was unchanged. Allowance for loan losses of $64 million, $80 million, $42 million, $29 million, and $45 million was held against nonaccrual loans retained at December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively. Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate. Page 23


ASSET MANAGEMENT FINANCIAL HIGHLIGHTS (in millions, except ratio and headcount data)

QUARTERLY TRENDS 4Q15 INCOME STATEMENT REVENUE Asset management, administration and commissions All other income Noninterest revenue Net interest income TOTAL NET REVENUE

$


3Q15

2,328 46 2,374 671 3,045

$

17

2Q15

2,237 24 2,261 633 2,894

$

(17)

FULL YEAR

1Q15

2,381 163 2,544 631 3,175

$


4Q14

2,229 155 2,384 621 3,005

$

2,419 149 2,568 632 3,200

—

4

3


1,307 889 2,196

1,218 891 2,109

1,299 1,107 2,406

1,289 886 2,175

1,317 1,003 2,320


832 325 507

802 327 475

769 318 451

826 324 502

877 337 540

REVENUE BY LINE OF BUSINESS Global Investment Management Global Wealth Management TOTAL NET REVENUE FINANCIAL RATIOS ROE Overhead ratio Pretax margin ratio: Global Investment Management Global Wealth Management Asset Management Headcount Number of client advisors

$

$ $

1,615 1,430 3,045

$

$ $

1,483 1,411 2,894

$

$ $

1,670 1,505 3,175

$

$ $

1,533 1,472 3,005

$

$ $

1,740 1,460 3,200

4% 92 5 6 5

(4)% (69)

NM

467

7 — 4

(1) (11)

2015

$

(8) 6 (5)

2015 Change 2014

2014

9,175 388 9,563 2,556 12,119

$

9,024 564 9,588 2,440 12,028

2%

(31)

—

5 1

4

4

—

(5)

5,113 3,773 8,886

5,082 3,456 8,538

1 9 4

4 (1) 7

(5) (4) (6)

3,229 1,294 1,935

3,486 1,333 2,153

(7) (3) (10)

9 1 5

(7) (2) (5)

6,327 5,701 12,028

— 2 1

$

$ $

6,301 5,818 12,119

$

$ $

21 % 72

20 % 73

19 % 76

22 % 72

23 % 73

21 % 73

23 % 71

36 17 27

31 24 28

26 22 24

30 25 27

31 24 27

31 22 27

31

27

29

20,975

20,651

20,237

20,095

19,735

2

6

20,975

19,735

6

2,778

2,796

2,746

2,803

2,836

(1)

(2)

2,778

2,836

(2)

Page 24


ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data) QUARTERLY TRENDS 4Q15 SELECTED BALANCE SHEET DATA (period-end) Total assets Loans (a) Core loans Deposits Equity SELECTED BALANCE SHEET DATA (average) Total assets Loans Deposits Equity CREDIT DATA AND QUALITY STATISTICS Net charge-offs Nonaccrual loans Allowance for credit losses: Allowance for loan losses Allowance for lending-related commitments Total allowance for credit losses Net charge-off/(recovery) rate Allowance for loan losses to period-end loans Allowance for loan losses to nonaccrual loans Nonaccrual loans to period-end loans

(a)

$

$

$

3Q15

131,451 111,007 111,007 146,766 9,000

$

130,980 110,305 145,623 9,000

$

8 218

$

266 5 271 0.03 0.24 122 0.20

2Q15

131,412 110,314 110,314 140,121 9,000

$

131,100 108,741 141,896 9,000

$

2 229

$

258 4 262 %

0.01 0.23 113 0.21

%

1Q15

134,059 109,336 109,336 141,179 9,000

$

130,548 107,250 152,563 9,000

$

(1) 209 273 5 278 — 0.25 131 0.19

FULL YEAR

$

%

4Q14

126,233 104,165 104,165 155,347 9,000

$

126,276 103,286 158,240 9,000

$

3 175

$

271 5 276 0.01 0.26 155 0.17


%

2015

128,701 104,279 104,279 155,247 9,000

—% 1 1 5 —

2% 6 6 (5) —

$

129,029 103,336 152,022 9,000

— 1 3 —

2 7 (4) —

$

3 218

300% (5)

271 5 276 0.01 0.26 124 0.21

3 25 3 %

167 — (2) — (2)

131,451 111,007 111,007 146,766

$

9,000

128,701 104,279 104,279 155,247

2 % 6 6 (5) —

9,000

129,743 107,418 149,525

$

126,440

3 8 — —

99,805 150,121

9,000

$

2015 Change 2014

2014

9,000

12 218

6 218

100 % —

266 5 271 0.01 0.24

271 5 276 0.01 0.26

(2) — (2)

122 0.20

$

%

%

124 0.21

Included $26.6 billion, $25.4 billion, $24.0 billion, $23.0 billion, and $22.1 billion of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively.

Page 25


ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in billions)

CLIENT ASSETS Assets by asset class Liquidity Fixed income Equity Multi-asset and alternatives TOTAL ASSETS UNDER MANAGEMENT Custody/brokerage/administration/deposits TOTAL CLIENT ASSETS MEMO: Alternatives client assets (a) Assets by client segment Private Banking Institutional Retail TOTAL ASSETS UNDER MANAGEMENT Private Banking Institutional Retail TOTAL CLIENT ASSETS Assets under management rollforward Beginning balance Net asset flows: Liquidity Fixed income Equity Multi-asset and alternatives Market/performance/other impacts Ending balance Client assets rollforward Beginning balance Net asset flows Market/performance/other impacts Ending balance

(a)

Dec 31, 2015 $

$

464 342 353 564 1,723 627 2,350

$

$

Sep 30, 2015

$

463 351 336 561 1,711 612 2,323

172

$

437 816 470 1,723

$

$

$

1,050 824 476 2,350

$

1,711

$

(1) (7) 3 (5) 22 1,723

$ $

$

$

2,323 1 26 2,350

$

Jun 30, 2015

$

466 357 380 578 1,781 642 2,423

172

$

438 816 457 1,711

$

$

$

1,037 823 463 2,323

$

1,781

$

(5) (5) (5) 6 (61) 1,711

$

$

$

2,423 (7) (93) 2,323

$

Mar 31, 2015

$

454 359 380 566 1,759 646 2,405

$

461 359 375 549 1,744 643 2,387

173

$

168

$

166

452 830 499 1,781

$

440 825 494 1,759

$

$

$

1,073 833 499 2,405

$

$

1,080 838 505 2,423

$

1,759

$

1,744

$

6 3 (1) 11 3 1,781

$

(1) 2 4 10 — 1,759

$

$

$

2,405 16 2 2,423

$

Dec 31, 2014

$

$

$

2,387 17 1 2,405

$

Dec 31, 2015 Change Sep 30, Dec 31, 2015 2014 1% (5) (6) 3 (1) (2) (2)

—

428 827 489 1,744

$

1,057 835 495 2,387

$

1,711

$

27 4 2 4 (4) 1,744

$

$

$

2,344 47 (4) 2,387

—% (3) 5 1 1 2 1

FULL YEAR 2015 $

2015 Change 2014

2014

$

464 342 353 564 1,723 627 2,350

$

461 359 375 549 1,744 643 2,387

4

$

172

$

166

— — 3 1

2 (1) (4) (1)

$

437 816 470 1,723

$

428 827 489 1,744

2 (1) (4) (1)

1 — 3 1

(1) (1) (4) (2)

$

$

$

1,050 824 476 2,350

$

1,057 835 495 2,387

(1) (1) (4) (2)

$

1,744

$

1,598

$

(1) (7) 1 22 (36) 1,723

$

18 33 5 42 48 1,744

$

$

$

2,387 27 (64) 2,350

$

$

$

$

1% (5) (6) 3 (1) (2) (2)

4

2,343

118

(74)

2,387

Represents assets under management, as well as client balances in brokerage accounts.

Page 26


CORPORATE FINANCIAL HIGHLIGHTS (in millions, except headcount data) QUARTERLY TRENDS 4Q15 INCOME STATEMENT REVENUE Principal transactions Securities gains All other income (a) Noninterest revenue Net interest income TOTAL NET REVENUE (b)

$


MEMO: TOTAL NET REVENUE Treasury and Chief Investment Office (“CIO”) Other Corporate (e) TOTAL NET REVENUE NET INCOME/(LOSS) Treasury and CIO Other Corporate (e) TOTAL NET INCOME/(LOSS) SELECTED BALANCE SHEET DATA (period-end) Total assets Loans Core loans Headcount

(56) 72 571 587 64 651

$

2Q15

(70) 25 118 73 (123) (50)

(2)

(4)

867 1,451 2,318 (1,709) 609

944 960 1,904 (1,732) 172

$

44 (178) 222

$

(218) (1,935) 1,717

$

137 514 651

$

(89) 39 (50)

$

138 84 222

$

(40) 1,757 1,717

NONINTEREST EXPENSE Compensation expense Noncompensation expense (c) Subtotal Net expense allocated to other businesses TOTAL NONINTEREST EXPENSE Income/(loss) before income tax expense/(benefit) Income tax expense/(benefit) (d) NET INCOME/(LOSS)

3Q15

$

768,204 2,187 2,182 29,617

$

798,680 2,332 2,327 29,307

$

FULL YEAR

1Q15

67 40 (7) 100 (221) (121)

$

1


4Q14

100 53 (113) 40 (253) (213)

$

509 28 110 647 (400) 247

20% 188 384 NM NM NM

NM 157 419 (9) NM 164

50

67

(5)

(6)

953 791 1,744 (1,700) 44

892 946 1,838 (1,686) 152

688 1,347 2,035 (1,599) 436

(8) 51 22 1 254

$

(166) (606) 440

$

(360) (418) 58

$

(183) (730) 547

$

(163) 42 (121)

$

(378) 165 (213)

$

(112) 552 440

$

(221) 279 58

$

821,736 2,480 2,474 27,985

$

942,556 2,694 2,672 27,019

2015

$

2015 Change 2014

2014

41 190 569 800 (533) 267

$

1,197 71 704 1,972 (1,960) 12

(97)% 168 (19) (59) 73 NM 71

(10)

(35)

26 8 14 (7) 40

3,656 4,148 7,804 (6,827) 977

2,888 4,589 7,477 (6,318) 1,159

27 (10)

NM 91 (87)

NM 76 (59)

$

(1,112) (1,976) 864

37 (59)

$

(700) (3,137) 2,437

NM NM NM

NM 5 164

$

(493) 760 267

$

(1,317) 1,329 12

63 (43)

$

(243) 490 247

NM (95) (87)

NM (89) (59)

$

(235) 2,672 2,437

$

(1,165) 2,029 864

80 32

$

(205) 752 547

931,206 2,871 2,848

(4) (6) (6)

(18) (24) (23)

26,047

1

14

$

$

768,204 2,187 2,182 29,617

$

4 (8) (16)

182

NM

182

931,206 2,871 2,848

(18) (24) (23)

26,047

14

See note 1 on page 33. (a) (b) (c) (d) (e)

Included revenue related to a legal settlement of $514 million for both the three months ended December 31, 2015 and full year 2015. Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $219 million, $215 million, $202 million, $203 million, and $196 million for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively, and $839 million and $730 million for full year 2015, and 2014, respectively. Included legal expense of $407 million, $102 million, $18 million, $305 million, and $84 million for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively. Included legal expense of $832 million and $821 million for full year 2015, and 2014, respectively. The three months ended September 30, 2015 and full year 2015 reflected tax benefits of $1.9 billion and $2.6 billion, respectively, due to the resolution of various tax audits. Effective with the first quarter of 2015, the Firm has included the results of Private Equity in the Other Corporate line within the Corporate segment. Prior period amounts have been revised to conform with the current period presentation. The Corporate segment’s balance sheets and results of operations were not impacted by this reporting change.

Page 27


CORPORATE FINANCIAL HIGHLIGHTS, CONTINUED (in millions)

QUARTERLY TRENDS 4Q15

3Q15

2Q15

FULL YEAR

1Q15

4Q14


2015

2014

2015 Change 2014

SUPPLEMENTAL INFORMATION TREASURY and CHIEF INVESTMENT OFFICE (“CIO”) Securities gains Investment securities portfolio (average) (a) Investment securities portfolio (period-end) (b) Mortgage loans (average) Mortgage loans (period-end) Private equity portfolio Carrying value Cost

(a) (b)

$

72 296,693 287,777 2,221 2,136

$

25 306,370 303,057 2,400 2,293

$

40 322,954 314,048 2,599 2,455

$

53 333,692 327,859 2,790 2,664

$

28 347,480 343,146 2,962 2,834

$

2,103 3,798

$

2,192 3,832

$

2,718 4,252

$

3,064 4,485

$

5,866 6,281

188% (3) (5) (7) (7)

157% (15) (16) (25) (25)

$

190 314,802 287,777 2,501 2,136

$

71 349,285 343,146 3,308 2,834

(4) (1)

(64) (40)

$

2,103 3,798

$

5,866 6,281

168% (10) (16) (24) (25)

(64) (40)

Average investment securities included held-to-maturity balances of $49.5 billion, $50.7 billion, $50.7 billion, $49.3 billion, and $49.0 billion for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively, and $50.0 million and $47.2 billion for the full year 2015, and 2014, respectively. Period-end investment securities included held-to-maturity balances of $49.1 million, $50.2 billion, $51.6 billion , $49.3 billion, and $49.3 billion at December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively.

Page 28


CREDIT-RELATED INFORMATION (in millions)

Dec 31, 2015 CREDIT EXPOSURE Consumer, excluding credit card loans (a) Loans retained, excluding PCI loans Loans - PCI Total loans retained Loans held-for-sale Total consumer, excluding credit card loans

$

303,357 40,998 344,355 466 344,821

Sep 30, 2015

$

289,496 42,236 331,732 237 331,969

Jun 30, 2015

$

272,975 43,806 316,781 1,505 318,286

Mar 31, 2015

$

259,561 45,356 304,917 298 305,215

Dec 31, 2014

$

248,283 46,696 294,979 395 295,374


5% (3) 4 97 4

22% (12) 17 18 17

Credit card loans Loans retained (b) Loans held-for-sale Total credit card loans Total consumer loans

131,387 76 131,463 476,284

125,634 1,345 126,979 458,948

124,705 1,320 126,025 444,311

120,835 2,422 123,257 428,472

128,027 3,021 131,048 426,422

5 (94) 4 4

3 (97)

Wholesale loans (c) Loans retained Loans held-for-sale and loans at fair value Total wholesale loans

357,050 3,965 361,015

346,927 3,582 350,509

338,219 8,717 346,936

331,219 4,494 335,713

324,502 6,412 330,914

3 11 3

10 (38)

Total loans

837,299

809,457

791,247

764,185

757,336

3

11

59,677 13,497 73,174

68,668 17,016 85,684

67,451 22,591 90,042

81,574 22,777 104,351

78,975 29,080 108,055

(13) (21) (15)

(24) (54) (32)

58,478 515,518 366,399 940,395

60,005 526,433 354,348 940,786

59,817 523,717 352,048 935,582

60,151 533,511 355,504 949,166

58,153 525,963 366,881 950,997

(3) (2) 3 —

1 (2) — (1)

Total credit exposure

$ 1,850,868

$ 1,835,927

$ 1,816,871

$ 1,817,702

$ 1,816,388

1

2

Memo: Total by category Consumer exposure (f) Wholesale exposures (g) Total credit exposure

$ 1,050,405 800,463 $ 1,850,868

$ 1,045,505 790,422 $ 1,835,927

$ 1,027,958 788,913 $ 1,816,871

$ 1,022,239 795,463 $ 1,817,702

$ 1,010,646 805,742 $ 1,816,388

— 1 1

4 (1) 2

Derivative receivables Receivables from customers and other (d) Total credit-related assets Lending-related commitments Consumer, excluding credit card Credit card Wholesale (e) Total lending-related commitments

— 12

9

Note: The Firm provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, see page 33. (a) (b) (c) (d) (e) (f) (g)

Includes loans reported in CCB, prime mortgage and home equity loans reported in AM, and prime mortgage loans reported in Corporate. Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income. Includes loans reported in CIB, CB and AM business segments and Corporate. Predominantly includes receivables from customers, which represent margin loans to prime and retail brokerage customers; these are classified in accrued interest and accounts receivable on the Consolidated balance sheets. Effective January 1, 2015, the Firm no longer includes unused advised lines of credit in wholesale lending-related commitments as the Firm may cancel these facilities at any time by providing the borrower notice or, in some cases without notice, as permitted by law. This presentation is consistent with U.S. bank regulatory filings. Prior period amounts have been revised to conform with the current period presentation. Represents total consumer loans and lending-related commitments. Represents total wholesale loans and lending-related commitments, derivative receivables and receivables from customers.

Page 29


CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)

Dec 31, 2015 NONPERFORMING ASSETS (a) Consumer nonaccrual loans (b)(c)

$

5,413

Sep 30, 2015 $

5,530

Jun 30, 2015 $

5,984

Mar 31, 2015 $

6,241

Dec 31, 2014 $


6,509

(2)

(17)

Wholesale nonaccrual loans Loans retained Loans held-for-sale and loans at fair value Total wholesale nonaccrual loans

988

1,086

28 1,016

28 1,114

873 26 899

696 24 720

599 25 624

(9) — (9)

65 12 63

Total nonaccrual loans

6,429

6,644

6,883

6,961

7,133

(3)

(10)

Derivative receivables Assets acquired in loan satisfactions Total nonperforming assets Wholesale lending-related commitments (d) Total nonperforming exposure

204 401 7,034 193 7,227

235 415 7,294 176 7,470

256 449 7,588 133 7,721

249 504 7,714 131 7,845

275 559 7,967 103 8,070

(13) (3) (4) 10 (3)

(26) (28) (12) 87 (10)

NONACCRUAL LOAN-RELATED RATIOS Total nonaccrual loans to total loans Total consumer, excluding credit card nonaccrual loans to total consumer, excluding credit card loans Total wholesale nonaccrual loans to total wholesale loans

(a)

(b) (c) (d)

$

$

$

$

$

0.77%

0.82%

0.87%

0.91%

0.94%

1.57

1.67

1.88

2.04

2.20

0.28

0.32

0.26

0.21

0.19

At December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $6.3 billion, $6.6 billion, $7.0 billion, $7.5 billion and $7.8 billion, respectively, that are 90 or more days past due; (2) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $290 million, $289 million, $282 million, $346 million and $367 million, respectively, that are 90 or more days past due; (3) real estate owned (“REO”) insured by U.S. government agencies of $343 million, $327 million, $384 million, $469 million and $462 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”). Under this guidance, non modified credit card loans are charged off by the end of the month in which the account becomes 180 days past due, while modified credit card loans are charged off when the account becomes 120 days past due. Moreover, all credit card loans must be charged off within 60 days of receiving notification about certain specified events (e.g., bankruptcy of the borrower). Includes nonaccrual loans held-for-sale of $98 million, $212 million, $16 million, and $91 million at December 31, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively. There were no nonaccrual loans held-for-sale at September 30, 2015. Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing. Represents commitments that are risk rated as nonaccrual.

Page 30


CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratio data)

QUARTERLY TRENDS 4Q15 SUMMARY OF CHANGES IN THE ALLOWANCES ALLOWANCE FOR LOAN LOSSES Beginning balance Net charge-offs: Gross charge-offs Gross recoveries Net charge-offs Write-offs of PCI loans and other (a) Provision for loan losses Other Ending balance

$

3Q15

13,466 1,300 (236) 1,064

$

$

735

$

51 — 786

Total allowance for credit losses

$

14,341

NET CHARGE-OFF/(RECOVERY) RATES Consumer retained, excluding credit card loans (b) Credit card retained loans Total consumer retained loans Wholesale retained loans Total retained loans Consumer retained loans, excluding credit card and PCI loans Consumer retained loans, excluding PCI loans Total retained, excluding PCI loans

Consumer retained, excluding credit card and PCI loans Consumer retained, excluding PCI loans Total retained, excluding PCI loans

(a)

(b)

$

$

$

13,915

52

$

13,466

$

$

620 115

$

908 4 13,915

$

— 735

$

593 27 — 620

$

14,201

$

14,535

0.25% 2.41 0.85 — 0.49

0.35 0.97 0.54

0.29 0.94 0.51

298,047 424,950 775,316

14,065

$

$

$

1Q15

$

1,284 (277) 1,007 55

567 (1)

0.31% 2.42 0.88 0.03 0.52

339,637 126,903 466,540 350,370 816,910

$

1,305 (342) 963

46 1,200 (1) 13,555

ALLOWANCE FOR LENDING-RELATED COMMITMENTS Beginning balance Provision for lending-related commitments Other Ending balance

Memo: Average retained loans Consumer retained, excluding credit card loans Credit card retained loans Total average retained consumer loans Wholesale retained loans Total average retained loans

$

2Q15

$

$

$ $

0.29% 2.61 0.95 (0.02) 0.53 0.34 1.06 0.56

323,458 125,048 448,506 339,172 787,678

$

280,475 405,524 744,692

$

$

FULL YEAR

311,074 122,732 433,806 331,924 765,730

$

266,567 389,299 721,219

$

$

14,185

4Q14

$

14,889


(3)%

(10)%

2015

$

14,185

2014

$

2015 Change 2014

16,264

(13)%

1,352 (300) 1,052 55

1,513 (295) 1,218 337

— 31 10 (12)

(14) 20 (13) (86)

5,241 (1,155) 4,086 208

6,114 (1,355) 4,759 533

(14) 15 (14) (61)

988 (1) 14,065

856 (5) 14,185

112 — 1

40 80

3,224 (11)

14

(4)

$

3,663 1 13,555

19 (56) — 7

15

$

622 (29) — 593 14,658

$

$

$ $

637 (16) 1 622 14,807

1

NM (100) 26 (3)

$

$

14,185

$

622 164 — 786

705 (85)

$

2 622

$

14,341

$

14,807

0.36% 2.62 1.01 — 0.57

0.45% 2.69 1.13 0.03 0.65

0.30% 2.51 0.92

0.46% 2.75 1.15

— 0.52

— 0.65

0.42 1.14 0.61

0.54 1.28 0.70

0.35 1.02 0.55

0.55 1.30 0.70

299,789 122,352 422,141 327,895 750,036

$

253,829 376,181 704,072

$

$

291,628 126,375 418,003 321,421 739,424

5 1 4 3 4

16

244,074 370,449 691,865

6 5 4

22 15 12

$

— 12 9 10

$

$

318,612 124,274 442,886 337,407 780,293

$

274,866 399,140 736,543

$

$

NM (4)

(12) NM (100) 26 (3)

289,212 124,604 413,816 316,060 729,876

10

239,210 363,814 679,869

15 10

— 7 7 7

8

Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool (e.g., upon liquidation). During the fourth quarter of 2014, the Firm recorded a $291 million adjustment to reduce the PCI allowance and the recorded investment in the Firm’s PCI loan portfolio, primarily reflecting the cumulative effect of interest forgiveness modifications. This adjustment had no impact to the Firm’s Consolidated statements of income. The net charge-off rates exclude the write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans.

Page 31


CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratio data)

Dec 31, 2015 ALLOWANCE COMPONENTS AND RATIOS ALLOWANCE FOR LOAN LOSSES Consumer, excluding credit card Asset-specific (a) Formula-based PCI (b) Total consumer, excluding credit card Credit card Asset-specific (a)(c) Formula-based Total credit card Total consumer Wholesale Asset-specific (a) Formula-based Total wholesale Total allowance for loan losses Allowance for lending-related commitments Total allowance for credit losses CREDIT RATIOS Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans Credit card allowance to total credit card retained loans Wholesale allowance to total wholesale retained loans Wholesale allowance to total wholesale retained loans, excluding trade finance and conduits (d) Total allowance to total retained loans Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (e) Total allowance, excluding credit card allowance, to retained nonaccrual loans, excluding credit card nonaccrual loans (e) Wholesale allowance to wholesale retained nonaccrual loans Total allowance to total retained nonaccrual loans CREDIT RATIOS, excluding PCI loans Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans Total allowance to total retained loans Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (e) Allowance, excluding credit card allowance, to retained nonaccrual loans, excluding credit card nonaccrual loans (e) Total allowance to total retained nonaccrual loans

(a) (b) (c) (d) (e)

$

$

364 2,700 2,742 5,806

Sep 30, 2015

$

359 2,702 2,788 5,849

Jun 30, 2015

$

436 2,841 3,215 6,492

Mar 31, 2015

$

537 3,065 3,270 6,872

Dec 31, 2014

$


539 3,186 3,325 7,050

1% — (2) (1)

(32)% (15) (18) (18)

460 2,974 3,434 9,240

485 2,949 3,434 9,283

518 2,916 3,434 9,926

458 2,976 3,434 10,306

500 2,939 3,439 10,489

(5) 1 — —

(8) 1 — (12)

274 4,041 4,315 13,555 786 14,341

281 3,902 4,183

147 3,842 3,989 13,915 620 14,535

115 3,644 3,759 14,065 593 14,658

87 3,609 3,696 14,185 622 14,807

(2) 4 3 1 7 1

215 12 17

13,466 735 $

14,201

$

$

$

1.69% 2.61 1.21

1.76% 2.73 1.21

2.05% 2.75 1.18

2.25% 2.84 1.13

2.39% 2.69 1.14

1.35 1.63

1.34 1.67

1.30 1.78

1.26 1.86

1.29 1.90

109

106

112

110

110

161 437 215

152 385 204

158 457 209

154 540 203

153 617 202

1.01 1.37

1.06 1.40

1.20 1.45

1.39 1.52

1.50 1.55

58

55

57

58

58

117 172

109 161

109 161

106 156

106 155

(4) 26 (3)

Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a troubled debt restructuring (“TDR”). During the fourth quarter of 2014, the Firm recorded a $291 million adjustment to reduce the PCI allowance. For further information, see Summary of changes in the allowances on page 31. The asset-specific credit card allowance for loan losses is related to loans that have been modified in a TDR; such allowance is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates. Management uses allowance for loan losses to period-end loans retained, excluding CIB’s trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of the wholesale allowance coverage ratio. For information on the Firm’s nonaccrual policy for credit card loans, see footnote (a) on page 30.

Page 32


NON-GAAP FINANCIAL MEASURES AND OTHER NOTES

Non-GAAP Financial Measures The following are several of the non-GAAP financial measures that the Firm uses for various reasons, including: (i) to allow management to assess the comparability of revenue arising from both taxable and tax-exempt sources, and (ii) more generally, to provide a more meaningful measure of certain metrics that enables comparability with prior periods, as well as with competitors. (a) In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on a 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 non-GAAP financial measure allows management to assess the comparability of revenue arising from both taxable and taxexempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business. (b) The ratios of the allowance for loan losses to period-end loans retained, the allowance for loan losses to nonaccrual loans retained, and nonaccrual loans to total period-end loans excluding credit card and PCI loans, exclude the following: loans accounted for at fair value and loans held-for-sale; PCI loans; and the allowance for loan losses related to PCI loans. Additionally, net charge-offs and net charge-off rates exclude the impact of PCI loans. The ratio of the wholesale allowance for loan losses to period-end loans retained, excluding trade finance and conduits, is calculated excluding loans accounted for at fair value, loans held-for-sale, CIB’s trade finance loans and consolidated Firm-administered multi-seller conduits, as well as their related allowances, to provide a more meaningful assessment of the wholesale allowance coverage ratio. (c) Tangible common equity (“TCE”), Return on tangible common equity (“ROTCE”), and Tangible book value per share (“TBVPS”). 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 periodend. TCE, ROTCE, and TBVPS are meaningful to the Firm, as well as investors and analysts, in assessing the Firm’s use of equity. (d) Corporate & Investment Bank calculates the ratio of the allowance for loan losses to end-of-period loans excluding the impact of consolidated Firm-administered multi-seller conduits and trade finance loans, to provide a more meaningful assessment of CIB’s allowance coverage ratio.

Other Notes (1) Effective October 1, 2015, the Firm early adopted new accounting guidance that simplifies the presentation of debt issuance costs, by requiring that unamortized debt issuance costs be presented as a reduction of the applicable debt rather than as an asset. The adoption of this guidance had no material impact on the Firm’s Consolidated balance sheets, and no impact on the Firm’s consolidated results of operations. The guidance was required to be applied retrospectively, and accordingly, certain prior period amounts have been revised to conform with the current period presentation. (2) Effective January 1, 2015, the Firm adopted new accounting guidance for investments in affordable housing projects that qualify for the low-income housing tax credit, which impacted the Corporate & Investment Bank (“CIB”). As a result of the adoption of this new guidance, the Firm made an accounting policy election to amortize the initial cost of its qualifying investments in proportion to the tax credits and other benefits received, and to present the amortization as a component of income tax expense (previously such amounts were predominantly presented in other income). The guidance was required to be applied retrospectively and accordingly, certain prior period amounts have been revised to conform with the current period presentation. The cumulative effect on retained earnings was a reduction of $321 million as of January 1, 2014; and the amount of amortization of such investments reported in income tax expense under the current period presentation was $289 million, $274 million, $281 million, $274 million and $270 million for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, respectively, and $1.1 billion for each of the full years ended December 31, 2015 and 2014. For additional information on the impact to the effective tax rate as a result of this adoption, see page 4. The impact on net income and earnings per share in prior periods was not material. The adoption of the guidance did not materially change the Firm’s consolidated results of operations on a managed basis as the Firm had previously presented and will continue to present the revenue from such investments on a fully taxable-equivalent (“FTE”) basis for purposes of managed basis reporting.

Page 33