JPMorgan Chase : Form 8-K

Published: 2025-01-15 10:09:07 ET JPM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): January 15, 2025

JPMorgan Chase & Co.

(Exact name of registrant as specified in its charter)

Delaware

1-5805

13-2624428

(State or other jurisdiction of

(Commission File

(I.R.S. employer

incorporation or organization)

Number)

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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-

JPM PR D

The New York Stock Exchange

Cumulative Preferred Stock, Series DD

Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-

JPM PR C

The New York Stock Exchange

Cumulative Preferred Stock, Series EE

Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-

JPM PR J

The New York Stock Exchange

Cumulative Preferred Stock, Series GG

Depositary Shares, each representing a one-four hundredth interest in a share of 4.55% Non-

JPM PR K

The New York Stock Exchange

Cumulative Preferred Stock, Series JJ

Depositary Shares, each representing a one-four hundredth interest in a share of 4.625% Non-

JPM PR L

The New York Stock Exchange

Cumulative Preferred Stock, Series LL

Depositary Shares, each representing a one-four hundredth interest in a share of 4.20% Non-

JPM PR M

The New York Stock Exchange

Cumulative Preferred Stock, Series MM

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

JPM/32

The New York Stock Exchange

LLC

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

AMJB

NYSE Arca, Inc.

LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ☐

Item 2.02 Results of Operations and Financial Condition

On January 15, 2025, JPMorgan Chase & Co. ("JPMorganChase" or the "Firm") reported 2024 fourth quarter net income of $14.0 billion, or $4.81 per share, compared with net income of $9.3 billion, or $3.04 per share, in the fourth quarter of 2023. A copy of the 2024 fourth quarter earnings release is attached hereto as Exhibit 99.1, and a copy of the earnings release financial supplement is attached hereto as Exhibit 99.2.

Each of the Exhibits provided with this Form 8-K shall be deemed to be "filed" for purposes of the Securities Exchange Act of 1934.

This Current Report on Form 8-K (including the Exhibits hereto) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorganChase's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorganChase's actual results to differ materially from those described in the forward-looking statements can be found in JPMorganChase's Annual Report on Form 10-K for the year ended December 31, 2023, and Quarterly Report on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024, which have been filed with the Securities and Exchange Commission and are available on JPMorganChase's website (https://jpmorganchaseco.gcs-web.com/financial-information/sec-filings) and on the Securities and Exchange Commission's website (www.sec.gov). JPMorganChase does not undertake to update any forward-looking statements.

Item 9.01 Financial Statements and Exhibits

Exhibit No.

Description of Exhibit

101Pursuant to Rule 406 of Regulation S-T, the cover page is formatted in Inline XBRL (Inline eXtensible Business Reporting Language).

104Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

JPMorgan Chase & Co.

(Registrant)

By:

/s/ Elena Korablina

Elena Korablina

Managing Director and Firmwide Controller

(Principal Accounting Officer)

Dated: January 15, 2025

Exhibit 99.1

JPMorgan Chase & Co.

383 Madison Avenue, New York, NY 10179-0001 NYSE symbol: JPM www.jpmorganchase.com

JPMORGANCHASE REPORTS FOURTH-QUARTER 2024 NET INCOME OF $14.0 BILLION ($4.81 PER SHARE)

RECORD FULL-YEAR 2024 NET INCOME OF $58.5 BILLION ($19.75 PER SHARE)

RECORD FULL-YEAR 2024 NET INCOME EXCLUDING SIGNIFICANT ITEMS OF $54.0 BILLION ($18.22 PER SHARE)

FOURTH-QUARTER 2024 RESULTS 1

ROE 17%

CET1 Capital Ratios3

Std. RWA3 $1.8T

Std. 15.7% | Adv. 15.8%

Cash and marketable securities4 $1.4T

ROTCE2 21%

Total Loss-Absorbing Capacity3 $547B

Average loans $1.3T

Jamie Dimon, Chairman and CEO, commented: "The Firm concluded the year

with a strong fourth quarter, generating net income of $14.0 billion."

Dimon continued: "Each line of business posted solid results. In the CIB, clients

n Reported revenue of $42.8 billion and managed revenue

were active, with IB fees up 49%, and Markets revenue rose 21%. Additionally,

of $43.7 billion2

Payments fees grew by double digits for the fourth consecutive quarter, helping

drive Payments revenue to a record $18.1 billion for the year. In CCB, we

Firmwide

n Expense of $22.8 billion; reported overhead ratio of 53%

continued to acquire new customers across Consumer Banking, Business

Metrics

and managed overhead ratio2 of 52%

Banking, Card and wealth management. For example, nearly 2 million net new

checking accounts were opened during 2024. Finally, in AWM, management fees

2024 ROE 18%

n Credit costs of $2.6 billion with $2.4 billion of net charge-

rose 21%, and revenue hit a record $5.8 billion. More impressively, client asset

offs and a $267 million net reserve build

net inflows totaled $486 billion in 2024, bringing cumulative net inflows over the

2024 ROTCE 22%

past two years to $976 billion."

up 2% YoY, up 1% QoQ

Dimon added: "Regarding regulation, we have consistently said that regulation

should be designed to effectively balance promoting economic growth and

n Average deposits down 4% YoY, flat QoQ; client

maintaining a safe and sound banking system. It is possible to achieve both goals.

investment assets up 14% YoY

This is not about weakening regulation - we maintain a fortress balance sheet,

CCB

evidenced by $547 billion of total loss-absorbing capacity and $1.4 trillion of cash

n Average loans up 1% YoY and QoQ; Card Services net

and marketable securities - but rather about setting rules that are transparent,

4Q24 ROE 32%

charge-off rate of 3.30%

fair, holistic in their approach and based on rigorous data analysis, so that banks

can play their critical role in the economy and markets."

n Debit and credit card sales volume5 up 8% YoY

2024 ROE 32%

Dimon added: "The U.S. economy has been resilient. Unemployment remains

n Active mobile customers6 up 7% YoY

relatively low, and consumer spending stayed healthy, including during the holiday

n Investment Banking fees up 49% YoY, up 9% QoQ; #1

season. Businesses are more optimistic about the economy, and they are

encouraged by expectations for a more pro-growth agenda and improved

ranking for Global Investment Banking fees with 9.3%

collaboration between government and business. However, two significant risks

wallet share for the year

remain. Ongoing and future spending requirements will likely be inflationary, and

CIB

n Markets revenue up 21% YoY, with Fixed Income Markets

therefore, inflation may persist for some time. Additionally, geopolitical conditions

remain the most dangerous and complicated since World War II. As always, we

4Q24 ROE 19%

up 20% YoY and Equity Markets up 22% YoY

hope for the best but prepare the Firm for a wide range of scenarios."

2024 ROE 18%

Average Banking & Payments loans down 2% YoY, down

Dimon concluded: "I want to thank our exceptional employees across the globe.

Their passion and dedication are what set us apart and enable us to be trusted

1% QoQ; average client deposits8 up 9% YoY, up 5%

partners for our clients and communities, which include consumers, small and

QoQ

large-sized businesses, schools, cities, states and countries."

AWM

n AUM9 of $4.0 trillion, up 18% YoY

4Q24 ROE 38%

n Average loans up 3% YoY, up 2% QoQ; average deposits

up 10% YoY, up 5% QoQ

2024 ROE 34%

CAPITAL DISTRIBUTIONS

SUPPORTED CONSUMERS, BUSINESSES & COMMUNITIES

n Common dividend of $3.5 billion or $1.25 per share

n Approximately $2.8 trillion of credit and capital12 raised in 2024:

n $4.0 billion of common stock net repurchases10

n $250 billion of credit for consumers

n Net payout LTM10,11 of 54%

n $40 billion of credit for U.S. small businesses

FORTRESS PRINCIPLES

n $2.4 trillion of credit and capital for corporations and non-U.S. government

n Book value per share of $116.07, up 11%; tangible book value per share2 of

entities

$97.30, up 13%

n $65 billion of credit and capital for nonprofit and U.S. government entities,

n Basel III common equity Tier 1 capital3 of $276 billion, Standardized ratio3 of

including states, municipalities, hospitals and universities

15.7% and Advanced ratio3 of 15.8%

Investor Contact: Mikael Grubb (212) 270-2479

Media Contact: Joseph Evangelisti (212) 270-7438

Note: Totals may not sum due to rounding.

JPMorgan Chase & Co.

News Release

In the discussion below of Firmwide results of JPMorgan Chase & Co. ("JPMorganChase" or the "Firm"), information is presented on a managed basis, which is a non-GAAP financial measure, unless otherwise specified. The discussion below of the Firm's business segments and Corporate is also presented on a managed basis. For more information about managed basis and non-GAAP financial measures used by management to evaluate the performance of each line of business, refer to page 6.

Comparisons noted in the sections below are for the fourth quarter of 2024 versus the prior-year fourth quarter, unless otherwise specified.

JPMORGANCHASE (JPM)

Results for JPM

3Q24

4Q23

($ millions, except per share data)

4Q24

3Q24

4Q23

O/(U)

O/(U) %

$ O/(U)

O/(U) %

Net revenue - reported

42,768

42,654

38,574

114

- %

4,194

11 %

Net revenue - managed

43,738

43,315

39,943

423

3,795

Noninterest expense

22,762

22,565

24,486

197

(1,724)

(7)

Provision for credit losses

2,631

3,111

2,762

(480)

(15)

(131)

(5)

Net income

14,005

12,898

9,307

1,107

9 %

4,698

50 %

Earnings per share - diluted

4.81

4.37

3.04

0.44

10 %

1.77

58 %

Return on common equity

17 %

16 %

12 %

Return on tangible common equity

Discussion of Results:

Net income was $14.0 billion, up 50%.

Net revenue was $43.7 billion, up 10%. Net interest income was $23.5 billion, down 3%. Noninterest revenue was $20.3 billion, up 29%.

Net interest income excluding Markets2 was $23.0 billion, down 2%, driven by lower rates and deposit margin compression across the lines of business, as well as lower deposit balances in CCB. This was largely offset by the impact of balance sheet actions, primarily securities reinvestment, as well as higher revolving balances in Card Services and higher wholesale deposit balances. Noninterest revenue excluding Markets2 was $13.7 billion, up 30%, largely driven by higher asset management fees in AWM and CCB, higher investment banking fees and lower net investment securities losses compared to the prior year. Markets revenue was $7.0 billion, up 21%.

Noninterest expense was $22.8 billion, down 7%. Excluding the $2.9 billion FDIC special assessment in the prior year, noninterest expense was up 5%, predominantly driven by higher compensation, including growth in front office and technology employees, as well as higher brokerage expense and distribution fees.

The provision for credit losses was $2.6 billion, reflecting net charge-offs of $2.4 billion and a net reserve build of $267 million. Net charge-offs of $2.4 billion were up $200 million, primarily driven by Card Services. The net reserve build included a $572 million net build in Consumer, predominantly in Card Services, and a $282 million net release in Wholesale. The prior-year provision was $2.8 billion, reflecting net charge-offs of $2.2 billion and a net reserve build of $598 million.

JPMorgan Chase & Co.

News Release

CONSUMER & COMMUNITY BANKING (CCB)

Results for CCB

3Q24

4Q23

($ millions)

4Q24

3Q24

4Q23

$ O/(U)

O/(U) %

$ O/(U)

O/(U) %

Net revenue13

18,362

17,791

18,097

571

3 %

265

1 %

Banking & Wealth Management

10,154

10,090

10,877

(723)

(7)

Home Lending

1,297

1,295

1,161

136

Card Services & Auto

6,911

6,406

6,059

505

852

Noninterest expense

9,728

9,586

9,336

142

392

Provision for credit losses

2,623

2,795

2,189

(172)

(6)

434

Net income

4,516

4,046

4,788

470

12 %

(272)

(6)%

Discussion of Results:

Net income was $4.5 billion, down 6%.

Net revenue13 was $18.4 billion, up 1%. Banking & Wealth Management net revenue was $10.2 billion, down 7%, driven by lower net interest income on deposit margin compression and lower deposit balances, partially offset by higher asset management fees in J.P. Morgan Wealth Management. Home Lending net revenue was $1.3 billion, up 12%, predominantly driven by higher production revenue. Card Services & Auto net revenue was $6.9 billion, up 14%, driven by Card Services, reflecting higher net interest income on higher revolving balances and higher card income on higher sales volume.

Noninterest expense was $9.7 billion, up 4%, predominantly driven by higher compensation for advisors and bankers, as well as higher technology expense.

The provision for credit losses was $2.6 billion, reflecting net charge-offs of $2.1 billion and a net reserve build of $557 million. Net charge-offs of $2.1 billion were up $428 million, driven by Card Services, primarily due to the seasoning of vintages originated in recent years and balance growth. The net reserve build was predominantly in Card Services, driven by growth in revolving balances, partially offset by changes in certain macroeconomic variables. The prior-year provision was $2.2 billion, reflecting net charge-offs of $1.6 billion and a net reserve build of $551 million.

JPMorgan Chase & Co.

News Release

COMMERCIAL & INVESTMENT BANK (CIB)7

Results for CIB

3Q24

4Q23

($ millions)

4Q24

3Q24

4Q23

$ O/(U)

O/(U) %

$ O/(U)

O/(U) %

Net revenue

17,598

17,015

14,974

583

3 %

2,624

18 %

Banking & Payments

9,268

8,646

8,038

622

1,230

Markets & Securities Services

8,330

8,369

6,936

(39)

1,394

Noninterest expense

8,712

8,751

8,169

(39)

543

Provision for credit losses

316

576

(255)

(81)

(515)

(89)

Net income

6,636

5,691

4,177

945

17 %

2,459

59 %

Discussion of Results7:

Net income was $6.6 billion, up 59%.

Net revenue was $17.6 billion, up 18%. Banking & Payments revenue was $9.3 billion, up 15%. Investment Banking revenue was $2.6 billion, up 46%. Investment Banking fees were up 49%, driven by higher fees across all products. Payments revenue was $4.7 billion, up 6%. Excluding the net impact of equity investments, Payments revenue was up 3%, driven by higher deposit balances and fee growth, largely offset by deposit margin compression. Lending revenue was $1.9 billion, up 9%, predominantly driven by lower losses on hedges of the retained lending portfolio.

Markets & Securities Services revenue was $8.3 billion, up 20%. Markets revenue was $7.0 billion, up 21%. Fixed Income Markets revenue was $5.0 billion, up 20%, largely driven by higher revenue in Credit and Currencies & Emerging Markets. Equity Markets revenue was $2.0 billion, up 22%, predominantly driven by higher client activity in Derivatives and Cash. Securities Services revenue was $1.3 billion, up 10%, driven by fee growth on higher client activity and market levels, as well as higher deposit balances.

Noninterest expense was $8.7 billion, up 7%, predominantly driven by higher brokerage, technology and legal expense.

The provision for credit losses was $61 million, reflecting net charge-offs of $300 million and a net reserve release of $239 million. The provision was driven by net downgrade activity and the net impact of charge-offs, largely offset by a reserve release due to an update to loss assumptions on certain loans in Markets. The prior-year provision was $576 million, reflecting a net reserve build of $329 million and net charge-offs of $247 million.

ASSET & WEALTH MANAGEMENT (AWM)

Results for AWM

3Q24

4Q23

($ millions)

4Q24

3Q24

4Q23

$ O/(U)

O/(U) %

$ O/(U)

O/(U) %

Net revenue

5,778

5,439

5,095

339

6 %

683

13 %

Noninterest expense

3,772

3,639

3,388

133

384

Provision for credit losses

(35)

(1)

(39)

(34)

Net income

1,517

1,351

1,217

166

12 %

300

25 %

Discussion of Results:

Net income was $1.5 billion, up 25%.

Net revenue was $5.8 billion, up 13%, predominantly driven by growth in management fees on higher average market levels and strong net inflows, as well as higher performance fees.

Noninterest expense was $3.8 billion, up 11%, predominantly driven by higher compensation, including revenue-related compensation and continued growth in private banking advisor teams, as well as higher distribution fees.

Assets under management were $4.0 trillion, and client assets were $5.9 trillion, each up 18%, driven by continued net inflows and higher market levels.

JPMorgan Chase & Co.

News Release

CORPORATE

Results for Corporate

3Q24

4Q23

($ millions)

4Q24

3Q24

4Q23

$ O/(U)

O/(U) %

$ O/(U)

O/(U) %

Net revenue13

2,000

3,070

1,777

(1,070)

(35)%

223

13 %

Noninterest expense

550

589

3,593

(39)

(7)

(3,043)

(85)

Provision for credit losses

(18)

(4)

(2)

(14)

(350)

(16)

Net income/(loss)

1,336

1,810

(875)

(474)

(26)%

2,211

Discussion of Results:

Net income was $1.3 billion, compared with a net loss of $875 million in the prior year.

Net revenue13 was $2.0 billion, up $223 million. Net interest income was $2.0 billion, down $415 million, driven by lower rates, largely offset by the impact of balance sheet actions, primarily securities reinvestment. Noninterest revenue was a net loss of $30 million, compared with a net loss of $668 million in the prior year, driven by lower net investment securities losses.

Noninterest expense was $550 million, down $3.0 billion, predominantly driven by the absence of the $2.9 billion FDIC special assessment in the prior year.

JPMorgan Chase & Co.

News Release

2. Notes on non-GAAP financial measures:

JPMorgan Chase & Co.

News Release

Additional notes:

Disclaimer

JPMorgan Chase & Co. published this content on January 15, 2025, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on January 15, 2025 at 15:08:07.210.