JPMorgan Chase : JPMC&Co. 1Q 2025 Form 10-Q

Published: 2025-05-01 17:04:56 ET JPM

Published on 05/01/2025 at 17:04

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended Commission file

March 31, 2025 number 1-5805

(Exact name of registrant as specified in its charter)

Delaware 13-2624428

(State or other jurisdiction of incorporation or organization)

(I.R.S. employer identification no.)

383 Madison Avenue,

New York, New York 10179

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (212) 270-6000 Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Common stock JPM The New York Stock Exchange

Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-Cumulative Preferred Stock, Series DD

Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-Cumulative Preferred Stock, Series EE

Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-Cumulative Preferred Stock, Series GG

Depositary Shares, each representing a one-four hundredth interest in a share of 4.55% Non-Cumulative Preferred Stock, Series JJ

Depositary Shares, each representing a one-four hundredth interest in a share of 4.625% Non-Cumulative Preferred Stock, Series LL

Depositary Shares, each representing a one-four hundredth interest in a share of 4.20% Non-Cumulative Preferred Stock, Series MM

Guarantee of Callable Fixed Rate Notes due June 10, 2032 of JPMorgan Chase Financial Company LLC

Guarantee of Alerian MLP Index ETNs due January 28, 2044 of JPMorgan Chase Financial Company LLC

Guarantee of Inverse VIX Short-Term Futures ETNs due March 22, 2045 of JPMorgan Chase Financial Company LLC

JPM PR D The New York Stock Exchange

JPM PR C The New York Stock Exchange

JPM PR J The New York Stock Exchange

JPM PR K The New York Stock Exchange

JPM PR L The New York Stock Exchange

JPM PR M The New York Stock Exchange

JPM/32 The New York Stock Exchange

AMJB NYSE Arca, Inc.

VYLD NYSE Arca, Inc.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Number of shares of common stock outstanding as of March 31, 2025: 2,779,094,488

‌FORM 10-Q TABLE OF CONTENTS

Part I - Financial information Page

Item 1. Financial Statements

Page

Report of Independent Registered Public Accounting

Consolidated Financial Statements - JPMorgan Chase & Co.:

Consolidated statements of income (unaudited) for

the three months ended March 31, 2025 and 2024 78

Firm 170

Consolidated Average Balance Sheets, Interest and Rates (unaudited) for the three months ended March

31, 2025 and 2024 171

Consolidated statements of comprehensive income ( unaudited) for the three months ended March 31,

2025 and 2024 79

Consolidated balance sheets (unaudited) at March

Glossary of Terms and Acronyms and Line of Business Metrics

Item 2. Management's Discussion and Analy sis of Financial Condition and Results of Operations.

172

31, 2025 and December 31, 2024 80

Consolidated statements of changes in stockholders' equity (unaudited) for the three months ended

March 31, 2025 and 2024 81

Consolidated statements of cash flows (unaudited) for the three months ended March 31, 2025 and

2024 82

Notes to Consolidated Financial Statements ( unaudited)

Note 1 - Basis of presentation 83

Note 2 - Fair value measurement 84

Note 3 - Fair value option 96

Note 4 - Derivative instruments 99

Note 5 - Noninterest revenue and noninterest

Consolidated Financial Highlights3

Introduction 4

Executive Overview 5

Consolidated Results of Operations 9

Consolidated Balance Sheets and Cash Flows

Analy sis12

Explanation and Reconciliation of the Firm's Use of

Non-GAAP Financial Measures 15

Business Segment & Corporate Results 17

Firmwide Risk Management 32

Capital Risk Management 33

Liquidity Risk Management 40

Consumer Credit Portfolio 49

expense

112

Wholesale Credit Portfolio

Note 6 - Interest income and interest expense

114

Allowance for Credit Losses

Note 7 - Pension and other postretirement employee

benefit plans 115

Note 8 - Employee share-based incentives 116

Note 9 - Investment securities 117

Note 10 - Securities financing activities 121

Note 11 - Loans 123

Note 12 - Allowance for credit losses 139

Note 13 - Variable interest entities 142

Note 14 - Goodwill and mortgage servicing rights 149

Note 15 - Deposits 153

Note 16 - Leases 153

Note 17 - Preferred stock 154

Note 18 - Earnings per share 155

Note 19 - Accumulated other comprehensive

income/(loss) 156

Note 20 - Restricted cash and other restricted assets 157

Note 21 - Regulatory capital 158

Note 22 - Off-balance sheet lending-related financial instruments, guarantees, and other commitments 160

Note 23 - Pledged assets and collateral 163

Note 24 - Litigation 164

Note 25 - Business segments & Corporate 168

Investment Portfolio Risk Management 64

Market Risk Management 65

Country Risk Management 71

Critical Accounting Estimates Used by the Firm 72

Accounting and Reporting Developments 76

Forward-Looking Statements 77

Item 3. Quantitative and Qualitative Disclosures About Market

Risk. 181

Item 4. Controls and Procedures 181

Part II - Other information

Item 1. Legal Proceedings. 181

Item 1A. Risk Factors. 181

Item 2. Unregistered Sales of EquitySecurities and Use of

Proceeds. 181

Item 3. Defaults Upon Senior Securities. 182

Item 4. Mine SafetyDisclosures. 182

Item 5. Other Information. 182

Item 6. Exhibits. 183

‌JPMorgan Chase & Co.

‌Consolidated financial highlights (unaudited)

As of or for the period ended, (in millions, except per share, ratio, employee data and where otherwise noted)

1Q25

4Q24

3Q24

2Q24

1Q24

Selected income statement data

Total net revenue

$ 45,310

$ 42,768

$ 42,654

$ 50,200 (e)$ 41,934

Total noninterest expense

23,597

22,762

22,565

23,713 (e)22,757

Pre-provision profit(a)

21,713

20,006

20,089

26,487

19,177

Provision for credit losses

3,305

2,631

3,111

3,052

1,884

Income before income tax expense

18,408

17,375

16,978

23,435

17,293

Income tax expense

3,765

3,370

4,080

5,286

3,874

Net income

$ 14,643

$ 14,005 $

12,898 $

18,149

$ 13,419

Earnings per share data

Net income: Basic

$ 5.08

$ 4.82 $

4.38 $

6.13

$ 4.45

Diluted

5.07

4.81

4.37

6.12

4.44

Average shares: Basic

2,819.4

2,836.9

2,860.6

2,889.8

2,908.3

Diluted

2,824.3

2,842.4

2,865.9

2,894.9

2,912.8

Market and per common share data

Market capitalization

681,712

670,618

593,643

575,463

575,195

Common shares at period-end

2,779.1

2,797.6

2,815.3

2,845.1

2,871.6

Book value per share

119.24

116.07

115.15

111.29

106.81

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

100.36

97.30

96.42

92.77

88.43

Cash dividends declared per share

1.40

1.25

1.15

Selected ratios and metrics

Return on common equity ("ROE")(b)

17 %

16 %

23 %

17 %

Return on tangible common equity ("ROTCE")(a)(b)

Return on assets(b)

1.40

1.35

1.23

1.79

1.36

Overhead ratio

Loans-to-deposits ratio

Firm Liquidity coverage ratio ("LCR") (average)

113

114

112

JPMorgan Chase Bank, N.A. LCR (average)

124

121

125

129

Common equity Tier 1 ("CET1") capital ratio(c)(d)

15.4

15.7

15.3

15.0

Tier 1 capital ratio(c)(d)

16.5

16.8

16.4

16.7

16.4

Total capital ratio(c)(d)

18.2

18.5

18.2

18.5

18.2

Tier 1 leverage ratio(c)

7.2

7.1

7.2

Supplementary leverage ratio ("SLR")(c)

6.0

6.1

6.0

6.1

Selected balance sheet data (period-end)

Trading assets

$ 875,203

$ 637,784 $

787,489 $

733,882

$ 754,409

Investment securities, net of allowance for credit losses

664,447

681,320

634,502

589,998

570,679

Loans

1,355,695

1,347,988

1,340,011

1,320,700

1,309,616

Total assets

4,357,856

4,002,814

4,210,048

4,143,003

4,090,727

Deposits

2,495,877

2,406,032

2,430,772

2,396,530

2,428,409

Long-term debt

407,224

401,418

410,157

394,028

395,872

Common stockholders' equity

331,375

324,708

324,186

316,652

306,737

Total stockholders' equity

351,420

344,758

345,836

340,552

336,637

Employees

318,477

317,233

316,043

313,206

311,921

Credit quality metrics

Allowances for credit losses

$ 27,835

$ 26,866 $

26,543 $

25,514

$ 24,695

Allowance for loan losses to total retained loans

1.94

1.87 %

1.86 %

1.81 %

1.77 %

Nonperforming assets

$ 9,105

$ 9,300 $

8,628 $

8,423

$ 8,265

Net charge-offs

2,332

2,364

2,087

2,231

1,956

Net charge-off rate

0.74

0.73 %

0.65 %

0.71 %

0.62 %

Pre-provision profit, TBVPS and ROTCE are each non-GAAP financial measures. Tangible common equity ("TCE") is also a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 15-16 for a further discussion of these measures.

Ratios are based upon annualized amounts.

As of January 1, 2025, the benefit from the Current Expected Credit Losses ("CECL") capital transition provision had been fully phased out. For the periods ended December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, the ratios reflected the CECL capital transition provisions. Refer to Note 21 of this Form 10-Q and Note 27 of JPMorganChase's 2024 Form 10-K for additional information.

Reflects the Firm's ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 33-39 for additional information.

Total net revenue included a $7.9 billion net gain related to Visa shares, and total noninterest expense included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation. Refer to Executive Overview on pages 54-58, and Notes 2 and 6 of JPMorganChase's 2024 Form 10-K for additional information on the exchange offer for Visa Class B-1 common stock.

‌INTRODUCTION

‌The following is Management's discussion and analysis of the financial condition and results of operations ("MD&A") of JPMorgan Chase & Co. ("JPMorganChase" or the "Firm") for the first quarter of 2025.

This Quarterly Report on Form 10-Q for the first quarter of 2025 ("Form 10-Q") should be read together with JPMorganChase's Annual Report on Form 10-K for the year ended December 31, 2024 ("2024 Form 10-K"). Refer to the Glossary of terms and acronyms and line of business metrics on pages 172-180 for definitions of terms and acronyms used throughout this Form 10-Q.

This Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of JPMorganChase's management, speak only as of the date of this Form 10-Q and are subject to significant risks and uncertainties. Refer to Forward-looking Statements on page 77 of this Form 10-Q and Part I, Item 1A, Risk Factors on pages 10-37 of the 2024 Form 10-K for a discussion of certain of those risks and uncertainties and the factors that could cause JPMorganChase's actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results will be in line with any outlook information set forth herein, and the Firm does not undertake to update any forward-looking statements.

JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorganChase had $4.4 trillion in assets and $351.4 billion in stockholders' equity as of March 31, 2025. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers, predominantly in the U.S., and many of the world's most prominent corporate, institutional and government clients globally.

JPMorganChase's principal bank subsidiary is JPMorgan Chase Bank, National Association ("JPMorgan Chase Bank, N.A."), a national banking association with U.S. branches in 48 states and Washington, D.C. JPMorganChase's principal non-bank subsidiary is J.P. Morgan Securities LLC ("J.P. Morgan Securities"), a U.S. broker-dealer. The bank and non-bank subsidiaries of JPMorganChase operate nationally as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. The Firm's principal operating subsidiaries outside the U.S. are J.P. Morgan Securities

plc and J.P. Morgan SE ("JPMSE"), which are subsidiaries of JPMorgan Chase Bank, N.A. and are based in the United Kingdom ("U.K.") and Germany, respectively.

For management reporting purposes, the Firm has three reportable business segments - Consumer & Community Banking ("CCB"), Commercial & Investment Bank ("CIB") and Asset & Wealth Management ("AWM") - with the remaining activities in Corporate. The Firm's consumer business segment is CCB, and the Firm's wholesale business segments are CIB and AWM. Refer to Business Segment & Corporate Results on pages 17-31 and Note 25 of this Form 10-Q, and Note 32 of JPMorganChase's 2024 Form 10-K, for a description of the Firm's reportable business segments and the products and services they provide to their respective client bases, as well as a description of Corporate activities.

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

EXECUTIVE OVERVIEW

This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of this Form 10-Q. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, this Form 10-Q and the 2024 Form 10-K should be read together and in their entirety.

Financial performance of JPMorganChase

(unaudited)

As of or for the period ended,

(in millions, except per share data and ratios)

Three months ended March 31,

2025 2024 Change

First Republic-related gain: On January 17, 2025, the Firm reached an agreement with the FDIC with respect to certain outstanding items related to the First Republic acquisition. As a result of the agreement, the Firm made a payment of $609 million to the FDIC on January 31, 2025 and reduced its additional payable to the FDIC, which resulted in a gain of $588 million recorded in other income in the first quarter of 2025. Refer to Note 5 of this Form 10-Q and Note 34 on pages 319-321 of the Firm's 2024 Form 10-K for additional information.

Selected income statement data

Noninterest revenue

$ 22,037

$ 18,852

17 %

Net interest income

23,273

23,082

Total net revenue

45,310

41,934

Comparisons noted in the sections below are for the first quarter of 2025 versus the first quarter of 2024, unless otherwise specified.

Firmwide overview

For the first quarter of 2025, JPMorganChase reported net income of $14.6 billion, up 9%, earnings per share of $5.07, ROE of 18%

Total noninterest expense

23,597

22,757

and ROTCE of 21%. The Firm's results included a $588 million

Pre-provision profit

21,713

19,177

First Republic-related gain in Corporate.

Provision for credit losses

3,305

1,884

Total net revenue was $45.3 billion, up 8%, reflecting:

Net income

14,643

13,419

Diluted earnings per share

5.07

4.44

Selected ratios and metrics

Return on common equity

Return on tangible common equity

18 %

17 %

in Card Services, the impact of securities activity including from prior quarters, and higher wholesale deposit balances.

- Net interest income ("NII") of $23.3 billion, up 1%, driven by higher Markets net interest income, higher revolving balances

Book value per share

$ 119.24

$ 106.81

12 These factors were predominantly offset by the impact of lower

Tangible book value per share

Capital ratios(a)(b)

100.36

88.43

13 rates and deposit margin compression, as well as lower

average deposit balances in CCB. NII excluding Markets was

CET1 capital

15.4 %

15.0 %

$22.6 billion, down 2%.

Tier 1 capital

16.5

16.4

Total capital

18.2

Memo:

NII excluding Markets(c)

$ 22,590

$ 23,020

(2)

NIR excluding Markets(c)

13,761

11,515

Markets(d)

9,663

8,013

Total net revenue - managed basis

$ 46,014

$ 42,548

As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. For the period ended March 31, 2024, the ratios reflected the CECL capital transition provisions. Refer to Note 21 of this Form 10-Q and Note 27 of JPMorganChase's 2024 Form 10-K for additional information.

Reflects the Firm's ratios under the Basel III Standardized approach. Refer to

Capital Risk Management on pages 33-39 for additional information.

NII and NIR refer to net interest income and noninterest revenue, respectively.

Markets consists of CIB's Fixed Income Markets and Equity Markets businesses. The Firm assesses the performance of its Markets business on a total net revenue basis, as revenues in NII generally have offsets across other revenue lines, primarily Principal transactions revenue.

- Noninterest revenue ("NIR") was $22.0 billion, up 17%, predominantly driven by higher Markets noninterest revenue, a

$588 million First Republic-related gain, higher asset management fees in AWM and CCB, lower net investment securities losses in Treasury and CIO, and higher investment banking fees.

Noninterest expense was $23.6 billion, up 4%, driven by higher compensation expense, including higher revenue-related compensation and growth in the number of employees. The increase in expense was also driven by higher brokerage expense and distribution fees, and continued investments in technology and marketing, as well as the absence of a legal benefit from the prior year. These factors were largely offset by the impact of an FDIC special assessment accrual release of

$323 million compared with an accrual increase of $725 million in the prior year.

The provision for credit losses was $3.3 billion. Net charge-offs were $2.3 billion, up $376 million, predominantly driven by Card Services, reflecting

the seasoning of vintages originated in recent years. The net addition to the allowance for credit losses was $973 million and included $549 million in wholesale and $441 million in consumer, and was largely driven by changes in the weighted-average macroeconomic outlook.

In the prior year, the provision was $1.9 billion, net charge-offs were $2.0 billion and the net reduction in the allowance for credit losses was $72 million.

The total allowance for credit losses was $27.8 billion at March 31, 2025. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.94%, compared with 1.77% in the prior year.

Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 9-11 and pages 12-13, respectively, for a further discussion of the Firm's results, including the provision for credit losses.

Pre-provision profit, ROTCE, TCE, TBVPS, NII and NIR excluding Markets, and total net revenue on a managed basis are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 15-16 for a further discussion of each of these measures.

The Firm's nonperforming assets totaled $9.1 billion at

March 31, 2025, up 10%, driven by higher wholesale nonaccrual loans, largely in Real Estate, concentrated in Multifamily and Lodging, reflecting downgrades, partially offset by lower consumer nonaccrual loans, which included loan sales. Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 52-60 and pages 49-51, respectively, for additional information.

Firmwide average loans of $1.3 trillion were up 2%, predominantly driven by higher loans in CIB and AWM.

Firmwide average deposits of $2.4 trillion were up 2%, reflecting:

net inflows in Payments and Securities Services, and

growth in balances in new and existing client accounts in AWM,

partially offset by

a decline in CCB primarily driven by a decrease in balances in existing accounts due to migration into higher-yielding investments and increased customer spending.

Refer to Liquidity Risk Management on pages 40-46 for additional information.

Selected capital and other metrics

CET1 capital was $280 billion, and the Standardized and Advanced CET1 ratios were 15.4% and 15.6%, respectively.

SLR was 6.0%.

TBVPS grew 13%, ending the first quarter of 2025 at $100.36.

As of March 31, 2025, the Firm had eligible end-of-period High Quality Liquid Assets ("HQLA") of approximately $881 billion and unencumbered marketable securities with a fair value of approximately $635 billion, resulting in approximately $1.5 trillion of liquidity sources. Refer to Liquidity Risk Management on pages 40-46 for additional information.

Business segment highlights

Selected business metrics for each of the Firm's lines of business ("LOB") are presented below for the first quarter of 2025.

Average deposits down 2%; client investment assets up 7%

Average loans up 1%; Card Services net charge-off rate of 3.58%

Debit and credit card sales volume(a) up 7%

Active mobile customers(b) up 8%

Investment Banking fees up 12%; #1 ranking for Global Investment Banking fees with 9.0% wallet share in 1Q25

Markets revenue up 21%, with Fixed Income Markets up 8% and Equity Markets up 48%

Average Banking & Payments loans(c)down 3%; average client deposits(d)up 11%

Assets under management ("AUM") of $4.1 trillion, up 15%

Average loans up 5% YoY; average deposits up 7%

CCB ROE 31%

CIB ROE 18%

AWM ROE 39%

Excludes Commercial Card.

Users of all mobile platforms who have logged in within the past 90 days.

On January 1, 2025, $5.6 billion of loans were realigned from Global Corporate Banking to Fixed Income Markets.

Represents client deposits and other third-party liabilities pertaining to the Payments and Securities Services businesses.

Refer to the Business Segment & Corporate Results on pages 17-31 for a detailed discussion of results by business segment.

Credit provided and capital raised

JPMorganChase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during the first three months of 2025, consisting of approximately:

$840

billion

Total credit provided and capital raised (including loans and commitments)

$60 billion

Credit for consumers

$10 billion

Credit for U.S. small businesses

$760

billion

Credit and capital for corporations and non-U.S. government entities(a)

$10 billion

Credit and capital for nonprofit and U.S. government entities(b)

Includes Individuals and Individual Entities primarily consisting of Global Private Bank clients within AWM.

Includes states, municipalities, hospitals and universities.

‌Outlook

These current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorganChase's management, speak only as of the date of this Form 10-Q, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 77 of this Form 10-Q and Part I, Item 1A, Risk Factors on pages 10-37 of the 2024 Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorganChase's actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2025 will be in line with the outlook information set forth below, and the Firm does not undertake to update any forward-looking statements.

JPMorganChase's current outlook for full-year 2025 should be viewed against the backdrop of the global and U.S. economies, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the U.S. and other countries where the Firm does business. Each of these factors will affect the performance of the Firm. The Firm will continue to make appropriate adjustments to its businesses and operations in response to ongoing developments in the business, economic, regulatory and legal environments in which it operates.

Full-year 2025

Management expects net interest income to be approximately

$94.5 billion and net interest income excluding Markets to be approximately $90.0 billion, market dependent.

Management expects adjusted expense to be approximately

$95.0 billion, market dependent.

Management expects the net charge-off rate in Card Services to be approximately 3.60%.

Net interest income excluding Markets and adjusted expense are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 15-16.

Regulatory developments

In April 2025, a Texas federal district court granted a joint request by the Consumer Financial Protection Bureau ("CFPB") and trade organizations to vacate the CFPB Late Fee Rule. Also in April 2025, Congress passed a resolution of disapproval overturning the CFPB Overdraft Rule that is expected to be signed into law by the President.

Refer to the Supervision and regulation section on pages 2-7 of JPMorganChase's 2024 Form 10-K for additional information on the CFPB Late Fee Rule and the CFPB Overdraft Rule.

CONSOLIDATED RESULTS OF OPERATIONS

This section provides a comparative discussion of JPMorganChase's Consolidated Results of Operations on a reported basis for the three months ended March 31, 2025 and 2024, unless otherwise specified. Factors that relate primarily to a single business segment or Corporate are discussed in more detail in the results of that segment or Corporate. Refer to pages 72-75 of this Form 10-Q and pages 161-164 of JPMorganChase's 2024 Form 10-K for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.

Revenue

(in millions)

Three months ended March 31,

2025 2024 Change

Investment banking fees

$ 2,178

$ 1,954

11 %

Principal transactions

7,614

6,790

Lending- and deposit-related fees

2,132

1,902

Asset management fees

4,700

4,146

Commissions and other fees

2,033

1,805

Investment securities losses

(37)

(366)

Mortgage fees and related income

278

275

Card income

1,216

1,218

Other income(a)

1,923

1,128

Noninterest revenue

22,037

18,852

Net interest income

23,273

23,082

Total net revenue

45,310

41,934

8 %

(a) Included operating lease income of $829 million and $672 million for the three months ended March 31, 2025 and 2024. Refer to Note 5 for additional information.

Quarterly results

Investment banking fees increased, reflecting in CIB:

higher debt underwriting fees predominantly driven by elevated refinancing activity, particularly in leveraged finance, and

higher advisory fees predominantly driven by the closing of deals announced in 2024,

partially offset by

lower equity underwriting fees as challenging market conditions resulted in lower fees.

Refer to CIB segment results on pages 22-26 and Note 5 for additional information.

Principal transactions revenue increased, reflecting in CIB:

higher Equity Markets revenue, particularly in Equity Derivatives, and

higher Fixed Income Markets revenue, reflecting higher revenue in Rates, predominantly offset by lower revenue in Currencies & Emerging Markets, and Securitized Products.

Principal transactions revenue in CIB generally has offsets across other revenue lines, including net interest income. The Firm assesses the performance of its Markets business on a total net revenue basis.

Refer to CIB segment results on pages 22-26 and Note 5 for additional information.

Lending- and deposit-related fees increased due to:

a reduction in client credits applied to deposit-related fees as well as increased volumes resulting in higher cash management fees in Payments,

partially offset by

a decline in the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, primarily in AWM, as certain of the commitments have expired.

Refer to CIB and AWM segment results on pages 22-26 and pages 27-29, respectively, and Note 5 for additional information.

Asset management fees increased as a result of net inflows in AWM and higher average market levels in AWM and CCB. Refer to CCB and AWM segment results on pages 19-21 and pages 27-29, respectively, and Note 5 for additional information.

Commissions and other fees increased, largely due to higher brokerage commissions and fees on higher volume, in both CIB and AWM. Refer to CIB and AWM segment results on pages 22-26 and pages 27-29, respectively, and Note 5 for additional information.

Investment securities losses decreased, reflecting lower net losses compared to the prior year, which included sales of securities, primarily U.S. GSE and government agency MBS and

U.S. Treasuries, associated with repositioning the investment securities portfolio in Treasury and CIO. Refer to Corporate results on pages 30-31 and Note 9 for additional information.

Mortgage fees and related income: refer to Note 14 for additional information.

Card income was flat, reflecting, primarily in CCB, lower net interchange income and an increase in amortization related to new account origination costs, offset by higher annual fees. Refer to CCB segment results on pages 19-21 and Note 5 for additional information.

Other income increased, reflecting:

(in millions)

Three months ended March 31,

2025 2024 Change

a $588 million First Republic-related gain in Corporate, and

higher auto operating lease income due to an increase in origination volume in CCB.

Refer to CCB and Corporate results on pages 19-21 and pages 30-31, respectively, for additional information; and Note 5 for additional information on the First Republic-related gain.

Net interest income increased driven by higher Markets net interest income, higher revolving balances in Card Services, the impact of securities activity including from prior quarters, and higher wholesale deposit balances. These factors were predominantly offset by the impact of lower rates and deposit margin compression, as well as lower average deposit balances in CCB.

The Firm's average interest-earning assets were $3.7 trillion, up

$223 billion, and the yield was 5.19%, down 36 basis points ("bps"). The net yield on these assets, on an FTE basis, was 2.58%, a decrease of 13 bps. The net yield excluding Markets was 3.80%, down 3 bps.

Refer to the Consolidated average balance sheets, interest and rates schedule on page 171 for additional information. Net yield excluding Markets is a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 15-16 for an additional discussion of net yield excluding Markets.

Provision for credit losses

Consumer, excluding credit card

$ 204 $

165 %

Credit card

2,382

1,837

Total consumer

2,586

1,914

Wholesale

736

(56)

Investment securities

(17)

Total provision for credit losses

3,305 $

1,884

75 %

Quarterly results

The provision for credit losses was $3.3 billion. Net charge-offs were $2.3 billion and the net addition to the allowance for credit losses was $973 million.

Net charge-offs included $2.1 billion in consumer, predominantly driven by Card Services, reflecting the seasoning of vintages originated in recent years, and $187 million in wholesale.

The net addition to the allowance for credit losses was largely driven by changes in the weighted-average macroeconomic outlook, and consisted of:

$549 million in wholesale, which also reflected changes in credit quality on client-specific exposures and the impact of new lending-related commitments, and

$441 million in consumer, predominantly driven by Card Services.

In the prior year, the provision was $1.9 billion, net charge-offs were $2.0 billion and the net reduction in the allowance for credit losses was $72 million.

Refer to CCB, CIB and AWM segment and Corporate results on pages 19-21, pages 22-26, pages 27-29, and pages 30-31, respectively; Allowance for Credit Losses on pages 61-63; Critical Accounting Estimates Used by the Firm on pages 72-75; and Notes 11 and 12 for additional information on the credit portfolio and the allowance for credit losses.

‌ Noninterest expense

(in millions)

Three months ended March 31,

2025 2024 Change

Occupancy

Technology, communications and

1,302

1,211

equipment(a)

2,578

2,421

Compensation expense $ 14,093 $ 13,118 7 % Noncompensation expense:

Income tax expense

Three months ended March 31,

(in millions)

2025 2024 Change

Income before income tax expense

$ 18,408 $

17,293

6 %

Income tax expense

3,765

3,874

(3)

Effective tax rate

20.5 %

22.4 %

Quarterly results

Professional and outside services

2,839

2,548

The effective tax rate decreased predominantly driven by higher

Marketing

1,304

1,160

benefits related to the vesting of employee share-based awards in

Other expense

1,481

2,299

(36)

the current period as a result of the Firm's higher share price, and

Total noncompensation expense

9,504

9,639

(1)

changes in the mix of income and expenses subject to U.S.

Total noninterest expense

$ 23,597

$ 22,757

4 %

federal, state and local taxes.

Certain components of other expense(b)

FDIC-related expense

$ (11)

$ 973

Operating losses

386

299

Includes depreciation expense associated with auto operating lease assets. Refer to Note 16 for additional information.

Refer to Note 5 for additional information.

Quarterly results

Compensation expense increased driven by:

higher revenue-related compensation, particularly in CIB and AWM, and

growth in the number of employees across the LOBs and Corporate, primarily in front office and technology.

Noncompensation expense decreased as a result of:

lower FDIC-related expense, which included the impact of an FDIC special assessment accrual release of $323 million in Corporate, compared with an accrual increase of $725 million in the prior year, and

the absence of restructuring and integration costs associated with First Republic recorded in the prior year,

offset by

higher legal expense, particularly in CIB, largely due to the absence of a legal benefit from the prior year,

higher brokerage expense in CIB and higher distribution fees in AWM,

higher investments in marketing, predominantly in CCB, as well as in technology across the Firm; and to a lesser extent,

higher occupancy expense, higher operating losses, largely in CCB, and higher depreciation expense on higher auto lease assets.

Refer to Note 5 for additional information on other expense.

CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS

Consolidated balance sheets analysis

The following is a discussion of the significant changes between March 31, 2025 and December 31, 2024. Refer to pages 161-164 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Balance Sheets.

Selected Consolidated balance sheets data

(in millions)

March 31,

2025

December 31,

2024

Change

Assets

Cash and due from banks

$ 22,066

$ 23,372

(6)%

Deposits with banks

403,837

445,945

(9)

Federal funds sold and securities purchased under resale agreements

429,506

295,001

Securities borrowed

238,702

219,546

Trading assets

875,203

637,784

Available-for-sale securities

399,363

406,852

(2)

Held-to-maturity securities

265,084

274,468

(3)

Investment securities, net of allowance for credit losses

664,447

681,320

(2)

Loans

1,355,695

1,347,988

Allowance for loan losses

(25,208)

(24,345)

Loans, net of allowance for loan losses

1,330,487

1,323,643

Accrued interest and accounts receivable

117,845

101,223

Premises and equipment

32,811

32,223

Goodwill, MSRs and other intangible assets

64,525

64,560

Other assets

178,427

178,197

Total assets

$ 4,357,856

$ 4,002,814

9 %

Cash and due from banks and deposits with banks decreased driven by Markets activities in CIB and cash deployment in Treasury and CIO, largely offset by the impact of higher deposits.

Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting higher client-driven market-making activities and the impact of lower levels of netting, as well as when compared with seasonally lower levels at year-end.

Securities borrowed increased driven by Markets, reflecting higher client-driven activities.

Refer to Note 10 for additional information on securities purchased under resale agreements and securities borrowed.

Trading assets increased due to higher levels of debt and equity instruments in Markets related to client-driven market-making activities, as well as when compared with seasonally lower levels at year-end. Refer to Notes 2 and 4 for additional information.

Investment securities decreased due to lower available-for-sale ("AFS") and held-to-maturity ("HTM") securities driven by maturities and paydowns. Refer to Corporate results on pages 30-31, Investment Portfolio Risk Management on page 64, and Notes 2 and 9 for additional information.

Loans increased, reflecting:

higher wholesale loans, predominantly in Markets, associated with higher client demand,

largely offset by

a reduction in Card Services due to the impact of seasonality, and

a decline in Home Lending as loan sales and paydowns outpaced originations.

The allowance for loan losses increased, reflecting a net addition to the allowance for loan losses of $863 million, largely driven by changes in the weighted-average macroeconomic outlook, and consisted of:

$451 million in consumer, predominantly driven by Card Services, and

$412 million in wholesale, which also reflected changes in credit quality on client-specific exposures.

There was also a $125 million net addition to the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets.

Refer to Consolidated Results of Operations and Credit and Investment Risk Management on pages 9-11 and pages 47-64, respectively, Critical Accounting Estimates Used by the Firm on pages 72-75, and

Notes 2, 3, 11 and 12 for additional information on loans and the total allowance for credit losses.

Accrued interest and accounts receivable increased primarily due to higher client receivables related to client-driven activities in CIB.

Selected Consolidated balance sheets data (continued)

Goodwill, MSRs and other intangible assets: refer to Note 14 for additional information.

(in millions)

March 31,

2025

December 31,

2024

Change

Liabilities

Deposits

$ 2,495,877

$ 2,406,032

4 %

Federal funds purchased and securities loaned or sold under repurchase agreements

533,046

296,835

Short-term borrowings

64,980

52,893

Trading liabilities

187,103

192,883

(3)

Accounts payable and other liabilities

293,538

280,672

Beneficial interests issued by consolidated variable interest entities ("VIEs")

24,668

27,323

(10)

Long-term debt

407,224

401,418

Total liabilities

4,006,436

3,658,056

Stockholders' equity

351,420

344,758

Total liabilities and stockholders' equity

$ 4,357,856

$ 4,002,814

9 %

Deposits increased, reflecting the impact of:

an increase in CIB predominantly due to net inflows related to client-driven activities in Securities Services and Payments,

an increase in CCB primarily driven by new accounts, and

an increase in AWM as a result of growth in balances in new and existing client accounts, reflecting the impact of higher-yielding product offerings, predominantly offset by continued migration into other investments.

Federal funds purchased and securities loaned or sold under repurchase agreements increased driven by Markets, reflecting higher client-driven market-making activities, higher secured financing of trading assets and the impact of lower levels of netting, as well as when compared with seasonally lower levels at year-end.

Short-term borrowings increased driven by higher financing requirements in Markets.

Refer to Liquidity Risk Management on pages 40-46 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; and Notes 2 and 15 for deposits; and Note 10 for federal funds purchased and securities loaned or sold under repurchase agreements.

Trading liabilities: refer to Notes 2 and 4 for additional information.

Accounts payable and other liabilities increased due to higher client payables related to client-driven activities in CIB.

Beneficial interests issued by consolidated VIEs decreased largely driven by lower levels of outstanding commercial paper as a result of a decrease in loan balances in the Firm-administered multi-seller conduits in CIB. Refer to Liquidity Risk Management on pages 40-46 and Notes 13 and 22 for additional information, specifically Firm-sponsored VIEs and loan securitization trusts.

Long-term debt: refer to Liquidity Risk Management on pages 40-46 for additional information.

Stockholders' equity increased reflecting net income and lower unrealized losses in AOCI, predominantly driven by the impact of lower interest rates on cash flow hedges and on the AFS portfolio in Treasury and CIO, largely offset by the impact of capital actions, including net repurchases of common shares and common and preferred stock dividend payments. Refer to Consolidated statements of changes in stockholders' equity on page 81, Capital Actions on page 37, and Note 19 for additional information.

Three months ended March 31,

(in millions)

2025

2024

Net cash provided by/(used in)

Operating activities

$ (251,839)

$ (154,158)

The following is a discussion of cash flow activities during the three months ended March 31, 2025 and 2024.

Financing activities

In 2025, cash provided reflected higher securities loaned or sold under repurchase agreements, higher deposits, and net proceeds from long-and short-term borrowings.

In 2024, cash provided reflected higher securities loaned or sold under repurchase agreements, higher deposits, net proceeds from long- and short-term borrowings and proceeds from the

Investing activities

(118,076)

(43,379)

issuance of preferred stock.

Financing activities

318,059

141,168

Effect of exchange rate changes on cash

8,442

(5,666)

stock and cash dividends on common and preferred stock.

For both periods, cash was used for repurchases of common

Net decrease in cash and due from banks and deposits with banks

Operating activities

$ (43,414) $ (62,035)

* * *

Refer to Consolidated Balance Sheets Analysis on pages 12-13, Capital Risk Management on pages 33-39, and Liquidity Risk

In 2025, cash used resulted from higher trading assets, higher securities borrowed, higher accrued interest and accounts receivable and lower trading liabilities.

In 2024, cash used resulted from higher trading assets and higher accrued interest and accounts receivable, partially offset by higher trading liabilities, accounts payable and other liabilities, and lower other assets.

Investing activities

In 2025, cash used resulted from higher securities purchased under resale agreements, partially offset by net proceeds from investment securities.

In 2024, cash used resulted from higher securities purchased under resale agreements, partially offset by proceeds from sales and securitizations of loans held-for-investment.

Management on pages 40-46, and the Consolidated Statements of Cash Flows on page 82 of this Form 10-Q, and pages 108-115 of JPMorganChase's 2024 Form 10-K for a further discussion of the activities affecting the Firm's cash flows.

EXPLANATION AND RECONCILIATION OF THE FIRM'S USE OF NON-GAAP FINANCIAL MEASURES

The Firm prepares its Consolidated Financial Statements in accordance with U.S. GAAP and this presentation is referred to as "reported" basis; these financial statements appear on pages 78-82.

In addition to analyzing the Firm's results on a reported basis, the Firm also reviews and uses certain non-GAAP financial measures at the Firmwide and segment level. These non-GAAP measures include:

Firmwide "managed" basis results, including the overhead ratio, which include certain reclassifications to present total net revenue from investments that receive tax credits and tax-exempt securities on a basis comparable to taxable investments and securities ("FTE" basis). 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 LOBs;

Pre-provision profit, which represents total net revenue less total noninterest expense;

Net interest income, net yield, and noninterest revenue excluding Markets;

TCE, ROTCE, and TBVPS; and

Adjusted expense, which represents noninterest expense excluding Firmwide legal expense.

Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 67-69 of JPMorganChase's 2024 Form 10-K for a further discussion of management's use of non-GAAP financial measures.

The following summary table provides a reconciliation from the Firm's reported U.S. GAAP results to managed basis.

Three months ended March 31,

2025

2024

(in millions, except ratios)

Reported

Fully taxable-equivalent adjustments(a)

Managed basis

Reported

Fully taxable-equivalent adjustments(a)

Managed basis

Other income

$ 1,923

$ 602

$ 2,525

$ 1,128

$ 493

$ 1,621

Total noninterest revenue

22,037

602

22,639

18,852

493

19,345

Net interest income

23,273

102

23,375

23,082

121

23,203

Total net revenue

45,310

704

46,014

41,934

614

42,548

Total noninterest expense

23,597

22,757

Pre-provision profit

21,713

704

22,417

19,177

614

19,791

Provision for credit losses

3,305

1,884

Income before income tax expense

18,408

704

19,112

17,293

614

17,907

Income tax expense

3,765

704

4,469

3,874

614

4,488

Net income

$ 14,643

$ 13,419

Overhead ratio

52 %

51 %

54 %

53 %

(a) Predominantly recognized in CIB and Corporate.

‌The following table provides information on net interest income, net yield, and noninterest revenue excluding Markets.

(in millions, except rates)

Three months ended March 31,

2025 2024 Change

Net interest income - reported(a)

$ 23,273

$ 23,082

1 %

Fully taxable-equivalent adjustments

102

121

(16)

Net interest income - managed basis

$ 23,375

$ 23,203

Less: Markets net interest income(b)

785

183

329

Net interest income excluding Markets

$ 22,590

$ 23,020

(2)

Average interest-earning assets(a)

$ 3,668,384

$ 3,445,515

Less: Average Markets interest-earning assets(b)

1,255,149

1,031,075

Average interest-earning assets excluding Markets

$ 2,413,235

$ 2,414,440

Net yield on average interest-earning assets - managed basis

2.58 %

2.71 %

Net yield on average Markets interest-earning assets(b)

0.25

0.07

Net yield on average interest-earning assets excluding Markets

3.80 %

3.83 %

Noninterest revenue - reported

$ 22,037

$ 18,852

Fully taxable-equivalent adjustments

602

493

Noninterest revenue - managed basis

$ 22,639

$ 19,345

Less: Markets noninterest revenue(b)(c)

8,878

7,830

Noninterest revenue excluding Markets

$ 13,761

$ 11,515

Memo: Total Markets net revenue(b)

$ 9,663

$ 8,013

Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable. Refer to Note 5 of the Firm's 2024 Form 10-K for additional information on hedge accounting.

Refer to page 25 for further information on Markets.

Includes the market-related revenues of the former Commercial Banking business segment. Prior-period amounts have been revised to conform with the current presentation. Refer to Business Segment & Corporate Results on page 70 of the Firm's 2024 Form 10-K for additional information.

Period-end

Average

Three months ended March 31,

The following summary table provides a reconciliation from the Firm's common stockholders' equity to TCE.

(in millions, except per share and ratio data)

Mar 31,

2025

Dec 31,

2024

2025

2024

Common stockholders' equity

$ 331,375 $

324,708

$ 324,345

$ 300,277

Less: Goodwill

52,621

52,565

52,581

52,614

Less: Other intangible assets

2,777

2,874

2,830

3,157

Add: Certain deferred tax liabilities(a)

2,928

2,943

2,938

2,988

Tangible common equity

$ 278,905 $

272,212

$ 271,872

$ 247,494

Return on tangible common equity Tangible book value per share

$ 100.36 $

NA 97.30

21 % NA

Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating TCE.

BUSINESS SEGMENT & CORPORATE RESULTS

The Firm is managed on an LOB basis. There are three reportable business segments - Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management - with the remaining activities in Corporate.

The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is evaluated by the Firm's Operating Committee, whose members act collectively as the Firm's chief operating decision maker. Segment results are presented on a managed basis. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 15-16 for a definition of managed basis.

Description of business segment reporting methodology Results of the reportable business segments are intended to present each segment as if it were a stand-alone business. The management reporting process that derives business segment results includes the allocation of certain income and expense items. The Firm periodically assesses the assumptions, methodologies and reporting classifications used for segment reporting, and therefore further refinements may be implemented in future periods. The Firm also assesses the level of capital required for each LOB on at least an annual basis. The Firm's LOBs also provide various business metrics which are utilized by the Firm and its investors and analysts in assessing performance.

Revenue sharing

When business segments or businesses within each segment join efforts to sell products and services to the Firm's clients and customers, the participating businesses may agree to share revenue from those transactions. Revenue is generally recognized in the segment responsible for the related product or service, with allocations to the other segments or businesses involved in the transaction. The segment and business results reflect these revenue-sharing agreements.

Funds transfer pricing

Funds transfer pricing ("FTP") is the process by which the Firm allocates interest income and expense to the LOBs and Other Corporate and transfers the primary interest rate risk and liquidity risk to Treasury and CIO.

The funds transfer pricing process considers the interest rate and liquidity risk characteristics of assets and liabilities and off-balance sheet products. Periodically, the methodology and assumptions utilized in the FTP process are adjusted to reflect economic conditions and other factors, which may impact the allocation of net interest income to the segments. Effective in the fourth quarter of 2024, the Firm updated its FTP with respect to consumer deposits, which resulted in an increase in the funding benefit reflected within CCB's net interest income that is fully offset in Corporate, with no effect on the Firm's net interest income.

As a result of lower average interest rates in the current period, the cost of funding for assets and the funding benefit earned for liabilities generally decreased compared with the prior year.

Foreign exchange risk

Foreign exchange risk is transferred from the LOBs and Other Corporate to Treasury and CIO for certain revenues and expenses. Treasury and CIO manages these risks centrally and reports the impact of foreign exchange rate movements related to the transferred risk in its results. Refer to Market Risk Management on pages 65-70 for additional information.

Capital allocation

The amount of capital assigned to each LOB and Corporate is referred to as equity. At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs and Corporate may change. Refer to Line of business and Corporate equity on page 36, and page 104 of JPMorganChase's 2024 Form 10-K for additional information on capital allocation.

Refer to Business Segment & Corporate Results - Description of business segment reporting methodology on pages 70-90 and Note 32 of JPMorganChase's 2024 Form 10-K for a further discussion of those methodologies.

Segment & Corporate Results - Managed basis

The following tables summarize the Firm's results by business segments and Corporate for the periods indicated.

Three months ended March 31,

Consumer &

Community

Banking

Commercial & Investment Bank

Asset & Wealth Management

(in millions, except ratios)

2025

2024

Change

2025

2024

Change

2025

2024

Change

Total net revenue

$ 18,313

$ 17,653

4 %

$ 19,666

$ 17,584

12 %

$ 5,731

$ 5,109

12 %

Total noninterest expense

9,857

9,297

9,842

8,724

3,713

3,460

Pre-provision profit

8,456

8,356

9,824

8,860

2,018

1,649

Provision for credit losses

2,629

1,913

705

(10)

(57)

Net income

4,425

4,831

(8)

6,942

6,622

1,583

1,290

Return on equity ("ROE")

31 %

35 %

18 %

20 %

39 %

33 %

Three months ended March 31,

Corporate

Total

(in millions, except ratios)

2025

2024

Change

2025

2024

Change

Total net revenue

$ 2,304

$ 2,202

5 %

$ 46,014

$ 42,548

8 %

Total noninterest expense

185

1,276

(86)

23,597

22,757

Pre-provision profit

2,119

926

129

22,417

19,791

Provision for credit losses

(19)

3,305

1,884

Net income

1,693

676

150

14,643

13,419

ROE

18 %

17 %

Refer to Note 25 for further details on total net revenue and total noninterest expense.

The following sections provide a comparative discussion of the Firm's results by business segments and Corporate as of or for the three months ended March 31, 2025 and 2024, unless otherwise specified.

CONSUMER & COMMUNITY BANKING

Refer to pages 73-76 of JPMorganChase's 2024 Form 10-K and Line of Business Metrics on page 179 for a discussion of the business profile of CCB.

Selected income statement data

Three months ended March 31,

(in millions, except ratios)

2025 2024 Change

Revenue

Lending- and deposit-related

fees $ 839 $ 822 2 %

Asset management fees

Mortgage fees and related income

Card income

1,093

263

653

947

274

682

(4)

All other income(a)

1,323

1,220

Noninterest revenue

4,171

3,945

Net interest income

14,142

13,708

Total net revenue

18,313

17,653

Provision for credit losses

2,629

1,913

Noninterest expense

Compensation expense

4,448

4,229

Noncompensation expense(b)

5,409

5,068

Total noninterest expense

9,857

9,297

Income before income tax expense

5,827

6,443

(10)

Income tax expense

1,402

1,612

(13)

Net income

$ 4,425

$ 4,831

(8)

Revenue by business

Banking & Wealth Management

$ 10,254

$ 10,324

(1)

Home Lending

1,207

1,186

Card Services & Auto

6,852

6,143

Quarterly results

Net income was $4.4 billion, down 8%. Net revenue was $18.3 billion, up 4%.

Net interest income was $14.1 billion, up 3%, driven by:

higher Card Services NII, predominantly driven by higher revolving balances,

partially offset by

lower NII in Banking & Wealth Management ("BWM"), driven by lower average deposit balances.

Noninterest revenue was $4.2 billion, up 6%, driven by:

higher auto operating lease income as a result of higher lease origination volume, and

higher asset management fees reflecting higher average market levels,

partially offset by

in BWM, the absence of other service fees associated with First Republic recorded in the prior year, as well as

lower card income, driven by lower net interchange and an increase in amortization related to new account origination costs, largely offset by higher annual fees. The net interchange decreased as the impact of increased debit and credit card sales volume was more than offset by higher rewards costs and partner payments.

Refer to Note 5 for additional information on card income, asset management fees and commissions and other fees; and Critical Accounting Estimates on pages 72-75 for additional information on the credit card rewards liability.

Mortgage fees and relat

income details:

Production revenue Net mortgage servicing

revenue(c)

110

153

130

144

(15)

Noninterest expense was $9.9 billion, up 6%, reflecting:

higher noncompensation expense, predominantly driven by marketing, higher auto lease depreciation on higher auto lea assets, and higher operating losses, as well as

Mortgage fees and relat income

$ 263

$ 274

(4)%

higher compensation expense, predominantly driven by an

Financial ratios

Return on equity

increase in the number of employees, primarily bankers and

advisors and employees in technology, as well as higher

Overhead ratio

revenue-related compensation for advisors.

Primarily includes operating lease income and commissions and other fees. Operating lease income was $824 million and $665 million for the three months ended March 31, 2025 and 2024, respectively.

Included depreciation expense on leased assets of $499 million and $427 million for the three months ended March 31, 2025 and 2024, respectively.

Included MSR risk management results of $9 million and $(1) million for the

three months ended March 31, 2025 and 2024, respectively.

The provision for credit losses was $2.6 billion. Net charge-offs were $2.2 billion, up $275 million, predominantly in Card Services, reflecting the seasoning of vintages originated in recent years. The net addition to the allowance for credit losses of $475 million was predominantly driven by changes in the weighted-average macroeconomic outlook.

In the prior year, the provision was $1.9 billion, net charge-offs were $1.9 billion and the net addition to the allowance for credit losses was $34 million.

Refer to Credit and Investment Risk Management on pages 47-64 and Allowance for Credit Losses on pages 61-63 for a further discussion of the credit portfolios and the allowance for credit losses.

Selected metrics

(in millions, except employees)

As of or for the three months ended March 31,

2025 2024 Change

Selected balance sheet data (period-end)

Total assets $ 636,105 $ 629,122 1 % Loans:

Banking & Wealth

Management

33,098

31,266

Home Lending(a)

241,427

254,243

(5)

Card Services

223,517

206,823

Auto

72,116

76,508

(6)

Total loans

570,158

568,840

Deposits

1,080,138

1,105,583

(2)

Equity

56,000

54,500

Selected balance sheet data

(average)

Total assets

$ 639,664

$ 627,862

Loans:

Banking & Wealth

Management

33,160

31,241

Home Lending(b)

244,282

257,866

(5)

Card Services

224,493

204,701

Auto

72,462

77,268

(6)

Total loans

574,397

571,076

Deposits

1,053,677

1,079,243

(2)

Equity

56,000

54,500

Employees

145,530

(c)

142,758

2 %

At March 31, 2025 and 2024, Home Lending loans held-for-sale and loans at fair value were $6.4 billion and $4.8 billion, respectively.

Average Home Lending loans held-for sale and loans at fair value were $7.5 billion and $4.7 billion for the three months ended March 31, 2025 and 2024, respectively.

In the first quarter of 2025, 419 employees were transferred to Corporate as a result of the centralization of certain functions.

Disclaimer

JPMorgan Chase & Co. published this content on May 01, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 01, 2025 at 21:02 UTC.