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

JPMORGAN CHASE REPORTS SECOND-QUARTER 2020 NET INCOME OF $4.7 BILLION, OR $1.38 PER SHARESECOND-QUARTER 2020 RESULTS1
ROE 7%ROTCE2 9%

Firmwide
Metrics

CET1 Capital Ratios3
Std. 12.4%; Adv. 13.1%

Reported revenue of $33.0 billion; managed revenue of$33.8 billion2
Credit costs of $10.5 billion, including reserve builds of$8.9 billion
Average loans up 4%; average deposits up 25%

CCB
ROE (2)%

CIB
ROE 27%

Average deposits up 20%; client investment assets up 9%
6

Average loans down 7%; credit card sales volume down
23%
Credit costs of $5.8 billion, including reserve builds of$4.6 billion#1 ranking for Global Investment Banking fees with 9.8%
wallet share year-to-dateTotal Markets revenue of $9.7 billion, up 79%, with Fixed
Income Markets up 99% and Equity Markets up 38%
Credit costs of $2.0 billion, including reserve builds of$1.8 billionCB
ROE (14)%Gross Investment Banking revenue of $851 million, up
44%
Average loans up 13%; average deposits up 41%
Credit costs of $2.4 billion driven by reserve builds

AWM
ROE 24%

Assets under management (AUM) of $2.5 trillion, up 15%
Average loans up 12%; average deposits up 20%
Credit costs of $223 million driven by reserve builds

Net payout LTM4,5
129%

Jamie Dimon, Chairman and CEO, commented: “I want to thank our employees aroundthe world for their exceptional work under the most difficult of circumstances over the
past several months. As one of the world’s largest financial institutions, our actions are
critical to keep the global economy going - from processing $6 trillion in payments
each day worldwide to keeping three-quarters of our nearly 5,000 branches open - andsafe - to meet individuals’ financial needs. During these unprecedented times,
JPMorgan Chase remains resilient and steadfast in using all of our resources tosupport our colleagues, clients and communities across the globe.”
Dimon added: “Despite some recent positive macroeconomic data and significant,decisive government action, we still face much uncertainty regarding the future path ofthe economy. However, we are prepared for all eventualities as our fortress balance
sheet allows us to remain a port in the storm. We ended the quarter with massive lossabsorbing capacity - over $34 billion of credit reserves and total liquidity resources of$1.5 trillion, on top of $191 billion of CET1 capital, with significant earnings powerthat would allow us to absorb even more credit reserves if needed. This is why we cancontinue to serve all of our stakeholders and to pay our dividend - unless the economic
situation deteriorates materially and significantly.”
Dimon commented on the results: “We earned $4.7 billion of net income in the second
quarter despite building $8.9 billion of credit reserves because we generated ourhighest quarterly revenue ever, which demonstrates the benefit of our diversified global
business model. Record Markets revenue (up 79%) and Investment Banking fees (up54%) in the Corporate & Investment Bank more than offset interest rate headwinds andreduced consumer activity. In Consumer & Community Banking, deposits and client
investment assets continued to grow (up 20% and 9%, respectively) as we addressed
our customers’ needs remotely as well as in our branches. Card sales volumes are down
but have been consistently trending upward since April. We remained active in Home
Lending on the strength of our digital platform, and Auto originations picked up in thesecond half of the quarter driven by pent up demand in states that are re-opening. We
maintained our #1 rank in Global IB fees and grew our year-to-date share to 9.8% withstrength across the franchise, including in Commercial Banking. The CB also grewloans 13% to $234 billion and deposits were up 41% as we helped clients manage theirliquidity needs. In Asset & Wealth Management, AUM grew 15% driven by $124 billionof net inflows into liquidity and long-term products as we helped clients navigate
market volatility.”
Dimon concluded: “We are fully committed to doing our part both in promoting thesafety of our employees and customers and helping the economies of the world recoverfrom the impact of the ongoing COVID-19 crisis, including helping to drive policies
and programs for the benefit of all of society and create opportunity for those who havebeen left out of the economy for far too long.”

SIGNIFICANT ITEMSFORTRESS PRINCIPLES
2Q20 results included:Book value per share of $76.91, up 4%; tangible book value per share2 of $61.76, up$8.9 billion of reserve builds Firmwide, as a result of COVID-19 ($2.19 decrease4%
in earnings per share (EPS))
Basel III common equity Tier 1 capital3 of $191 billion and Standardized ratio3 of
7$678 million of Firmwide bridge book markups ($0.17 increase in EPS)
12.4%; Advanced ratio3 of 13.1%$510 million of gains in Credit Adjustments & Other in CIB related to funding
Firm supplementary leverage ratio of 6.8%3
spread tightening on derivatives ($0.13 increase in EPS)SUPPORTED CONSUMERS, BUSINESSES & COMMUNITIESOPERATING LEVERAGE$1.2 trillion of credit and capital9 raised YTD
2Q20 reported expense of $16.9 billion; reported overhead ratio of 51%; managed$107 billion of credit for consumers
2
overhead ratio of 50%$11 billion of credit for U.S. small businesses
CAPITAL DISTRIBUTED$404 billion of credit for corporations
Common dividend of $2.8 billion, or $0.90 per share$651 billion of capital raised for corporate clients and non-U.S. government
Announced suspension of repurchases at least through the end of 3Q208
entities$53 billion of credit and capital raised for nonprofit and U.S. government entities,
including states, municipalities, hospitals and universities$28 billion of loans under the Small Business Administration’s Paycheck Protection
ProgramInvestor Contact: Jason Scott (212) 270-2479
1

Percentage comparisons noted in the bullet points are for the second quarter of 2020 versus the prior-year second quarter,
unless otherwise specified.
2
For notes on non-GAAP financial measures, including managed basis reporting, see page 6.
For additional notes see page 7.

Media Contact: Joseph Evangelisti (212) 270-7438

JPMorgan Chase & Co.
News Release
In the discussion below of Firmwide results of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”), information ispresented on a managed basis, which is a non-GAAP financial measure, unless otherwise specified. The discussion below of the
Firm’s business segments 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 second quarter of 2020 versus the prior-year second quarter, unless otherwise
specified.

JPMORGAN CHASE (JPM)
Net revenue on a reported basis was $33.0 billion, $28.2 billion, and $28.7 billion for the second quarter of 2020, first quarter of
2020, and second quarter of 2019, respectively.
Results for JPM($ millions, except per share data)
Net revenue - managed

1Q20
2Q20

1Q20

2Q19

$ O/(U)$ 33,817$ 29,010$ 29,481

Noninterest expense

16,942

16,791

16,256

151

Provision for credit losses

10,473

8,285

1,149

$

4,807

2Q19

O/(U) %$ O/(U)

17% $O/(U) %

4,336

15%

1

686

4

2,188

26

9,324

NM

Net income

$

4,687

$

2,865

$

9,652

$

1,822

64% $ (4,965)(51)%

Earnings per share

$

1.38

$

0.78

$

2.82

$

0.60

77% $

(1.44)(51)%

Return on common equity

7%

4%

16%

Return on tangible common equity

9

5

20

Discussion of Results10:
Net income was $4.7 billion, down 51%, driven by reserve builds across the firm.
Net revenue was $33.8 billion, up 15%. Net interest income was $14.0 billion, down 4%, with the impact of lower rates
predominantly offset by higher net interest income in CIB Markets and balance sheet growth. Noninterest revenue was $19.9
billion, up 33%, largely driven by higher CIB Markets revenue and Investment Banking fees. The increase in revenue also included$678 million of markups on held-for-sale positions in the bridge book7 and a $510 million gain in Credit Adjustments & Other in
CIB driven by funding spread tightening on derivatives.
Noninterest expense of $16.9 billion, up 4%, predominantly driven by higher revenue-related expense, primarily compensation,
largely offset by lower structural expense.
The provision for credit losses was $10.5 billion, up $9.3 billion from the prior year driven by reserve builds which reflect further
deterioration and increased uncertainty in the macroeconomic outlook as a result of the impact of COVID-19. The Wholesale
reserve build was $4.6 billion across multiple sectors, and the Consumer reserve build was $4.4 billion, largely in Card.

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JPMorgan Chase & Co.
News Release

CONSUMER & COMMUNITY BANKING (CCB)
Results for CCB($ millions)
Net revenue
Consumer & Business Banking
Home Lending
Card & Auto
Noninterest expense
Provision for credit losses
Net income/(loss)

2Q20
1Q20
$ 12,217 $ 13,112
5,107
6,091
1,687
1,161
5,423
5,860
6,626
7,102
5,828
5,772
$
(176) $
191

2Q19
$ 13,484
6,897
1,118
5,469
6,836
1,120
$ 4,157

1Q20
2Q19$ O/(U) O/(U) %$ O/(U) O/(U) %(895)$(7)% $ (1,267)
(9)%
(984)
(1,790)
(16)
(26)
526
45
569
51
(437)
(46)
(7)
(1)
(476)
(210)
(7)
(3)
56
1
4,708
420
(367)
$
NM $ (4,333)
NM

Discussion of Results10,11:
Net loss was $176 million, compared with net income of $4.2 billion in the prior year, predominantly driven by reserve builds.
Net revenue was $12.2 billion, down 9%.
Consumer & Business Banking net revenue was $5.1 billion, down 26%, predominantly driven by the impact of deposit
margin compression, lower transaction activity and customer relief, partially offset by growth in deposit balances. Home
Lending net revenue was $1.7 billion, up 51%, predominantly driven by higher production margins. Card & Auto net revenue
was $5.4 billion, relatively flat to the prior year, as the impact from lower Card sales volumes was largely offset by higher
Card annual fees and lower acquisition costs.
Noninterest expense was $6.6 billion, down 3%, driven by lower travel-related benefits, structural expense and marketinginvestments.
The provision for credit losses was $5.8 billion, up $4.7 billion from the prior year driven by reserve builds, largely in Card. Net
charge-offs were $1.3 billion, relatively flat versus the prior year.

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JPMorgan Chase & Co.
News Release

CORPORATE & INVESTMENT BANK (CIB)
Results for CIB($ millions)
Net revenue
Banking
Markets & Securities Services
Noninterest expense
Provision for credit losses
Net income

2Q20$ 16,352
5,027
11,3256,764
1,987$ 5,464

1Q20
9,948
2,595
7,353
5,896
1,401
$ 1,988
$

2Q19
9,831
3,438
6,393
5,661
—
$ 2,946
$

1Q20
2Q19
$ O/(U) O/(U) %$ O/(U) O/(U) %$ 6,404
64% $ 6,521
66%
2,432
94
1,589
46
3,972
54
4,932
77
868
15
1,103
19
586
42
1,987
NM
$ 3,476
175% $ 2,51885%

Discussion of Results11:
Net income was $5.5 billion, up 85%, with record revenue of $16.4 billion, up 66%, more than offsetting higher noninterest
expense and reserve builds.
Banking revenue was $5.0 billion, up 46%. Investment Banking revenue was $3.4 billion, up 91%, driven by higher Investment
Banking fees, up 54%, reflecting higher fees across products, as well as $659 million of markups on held-for-sale positions in
the bridge book7. Wholesale Payments revenue was $1.4 billion, down 3%, driven by a reporting re-classification in MerchantServices. The impact of higher deposit balances was predominantly offset by deposit margin compression. Lending revenue was$270 million, up 4%, with higher net interest income on higher loan balances, as well as higher fees, offset by mark-to-market
losses on hedges of accrual loans.
Markets & Securities Services revenue was $11.3 billion, up 77%. Markets revenue was $9.7 billion, up 79%. Fixed Income
Markets revenue was $7.3 billion, up 99%, or up 120% excluding the gain from the initial public offering (IPO) of a strategic
investment in Tradeweb in the prior year, driven by strong performance across products, particularly in Rates, Currencies &Emerging Markets and Credit. Equity Markets revenue was $2.4 billion, up 38%, predominantly driven by strong client activity
in derivatives and Cash Equities. Securities Services revenue was $1.1 billion, up 5%, predominantly driven by balance and fee
growth partially offset by deposit margin compression. Credit Adjustments & Other was a gain of $510 million driven by funding
spread tightening on derivatives.
Noninterest expense was $6.8 billion, up 19%, driven by higher revenue-related expense.
The provision for credit losses was $2.0 billion, predominantly driven by reserve builds across multiple sectors. Net charge-offs
were $204 million, up $132 million versus the prior year.

COMMERCIAL BANKING (CB)Results for CB($ millions)
Net revenue
Noninterest expense
Provision for credit losses
Net income/(loss)

2Q20
$

$

2,392 $
899
2,431(691) $

1Q20
2,178
988
1,010
147

2Q19
$

$

2,285
931
29
1,002

1Q20
$ O/(U) O/(U) %
$

$

214
(89)
1,421
(838)

2Q19
$ O/(U) O/(U) %

10% $
(9)
141
NM

107
(32)

5%
(3)

2,402
$ (1,693)

NM
NM

Discussion of Results11:
Net loss was $691 million, compared with net income of $1.0 billion in the prior year, driven by reserve builds.
Net revenue was $2.4 billion, up 5%, driven by higher deposit and loan balances, a gain on a strategic investment, as well as higher
deposit fees and investment banking revenue, predominantly offset by lower deposit margin.
Noninterest expense was $899 million, down 3%, driven by lower structural expense.
The provision for credit losses was $2.4 billion, driven by reserve builds across multiple sectors. Net charge-offs were $79 million,
up $64 million versus the prior year.

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JPMorgan Chase & Co.
News Release

ASSET & WEALTH MANAGEMENT (AWM)
Results for AWM($ millions)
Net revenue
Noninterest expense
Provision for credit losses
Net income

2Q20
3,610
2,506
223
$
658
$

1Q20
3,606
2,659
94
$
664
$

2Q19
3,559
2,596
2
$
719
$

1Q20
2Q19
$ O/(U) O/(U) %$ O/(U) O/(U) %
$
4
—% $
51
1%
(153)
(90)
(6)
(3)
129
137
221
NM
(6)
(61)
$
(1)% $(8)%

Discussion of Results:
Net income was $658 million, down 8%, driven by reserve builds.
Net revenue was $3.6 billion, up 1%, with higher deposit and loan balances, along with higher brokerage activity, largely offset
by deposit margin compression.
Noninterest expense was $2.5 billion, down 3%, driven by lower structural as well as volume- and revenue-related expense,
partially offset by higher investments.
The provision for credit losses was $223 million, driven by reserve builds.
Assets under management were $2.5 trillion, up 15%, predominantly driven by cumulative net inflows into liquidity and longterm products.

CORPORATE
Results for Corporate($ millions)
Net revenue
Noninterest expense
Provision for credit losses
Net income/(loss)

1Q20
2Q19
2Q20
1Q20
2Q19
$ O/(U) O/(U) %$ O/(U) O/(U) %(920)$(754) $166 $322 $NM $ (1,076)
NM
(85)
(37)
147
146
232
1
1
(2)
(4)
4
8
(50)
6
NM
(125) $
(443) (354)% $ (1,396)$(568) $
828 $NM

Discussion of Results:
Net loss was $568 million, compared with net income of $828 million in the prior year.
Net revenue was a loss of $754 million, compared with net revenue of $322 million in the prior year. Net revenue was down $1.1
billion, driven by lower net interest income on lower rates. The current quarter also included small net gains on certain legacy
private equity investments compared to net losses in the prior year.
Noninterest expense was $147 million, down $85 million.

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JPMorgan Chase & Co.
News Release2.

Notes on non-GAAP financial measures:a.

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 othercompanies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management
reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are nonGAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. The Firm’s definitionof managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present
total net revenue for the Firm and each of the reportable business segments on a fully taxable-equivalent (“FTE”) basis.
Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results
on a basis comparable to taxable investments and securities. These financial measures allow management to assess thecomparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related totax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the
Firm as a whole or by the lines of business. For a reconciliation of the Firm’s results from a reported to managed basis, seepage 7 of the Earnings Release Financial Supplement.

b.

Tangible common equity (“TCE”), return on tangible common equity (“ROTCE”) and tangible book value per share(“TBVPS”), are each non-GAAP financial measures. TCE represents the Firm’s common stockholders’ equity (i.e., total
stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than mortgage servicing rights),
net of related deferred tax liabilities. For a reconciliation from common stockholders’ equity to TCE, see page 9 of the Earnings
Release Financial Supplement. ROTCE measures the Firm’s net income applicable to common equity as a percentage of
average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. Book value per share
was $76.91, $75.88 and $73.88 at June 30, 2020, March 31, 2020, and June 30, 2019, respectively. TCE, ROTCE, and TBVPS
are utilized by the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.

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JPMorgan Chase & Co.
News Release
Additional notes:
3.

The capital metrics reflect relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including
neutralization of the effects of the Firm’s participation in the various programs and facilities established by the U.S. government.
For the period ended June 30, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1
capital of $6.5 billion. As of June 30, 2020, the SLR reflects the temporary exclusions of U.S. Treasury securities and deposits
at Federal Reserve Banks. Refer to Regulatory Developments Relating to the COVID-19 Pandemic on pages 10-11 and Capital
Risk Management on pages 39-44 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31,
2020 for additional information. Refer to Capital Risk Management on pages 85-92 of the Firm’s 2019 Form 10-K for additional
information on the Firm’s capital metrics.

4.

Last twelve months (“LTM”).

5.

Net of stock issued to employees.

6.

Excludes Commercial Card.

7.

The bridge book consists of certain held-for-sale positions, including unfunded commitments, in CIB and CB.

8.

On June 29, 2020, the Firm announced that the Federal Reserve Board has directed the Firm to discontinue its net share
repurchases, at least through the end of the third quarter of 2020.

9.

Credit provided to clients represents new and renewed credit, including loans and commitments.

10. In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to
be a reduction of card income, with no effect on net income. Prior-period amounts were revised to conform with the current
presentation.
11. In the first quarter of 2020, the Firm began reporting a Wholesale Payments business unit within CIB following a realignmentof the Firm’s wholesale payments businesses. The Wholesale Payments business comprises:
Merchant Services, which was realigned from CCB to CIBTreasury Services and Trade Finance in CIB. Trade Finance was previously reported in Lending in CIB.
In connection with the alignment of Wholesale Payments, the assets, liabilities and headcount associated with the MerchantServices business were realigned to CIB from CCB, and the revenue and expenses of the Merchant Services business isreported across CCB, CIB and CB based primarily on client relationships. Prior periods have been revised to reflect thisrealignment and revised allocation methodology.

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JPMorgan Chase & Co.
News Release
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $3.2 trillion and operations worldwide.
The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financialtransaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves
millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients
under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
JPMorgan Chase & Co. will host a conference call today, July 14, 2020, at 8:30 a.m. (Eastern) to present second quarter 2020
financial results. The general public can access the call by dialing (866) 541-2724 in the U.S. and Canada, or (706) 634-7246 forinternational participants. Please dial in 10 minutes prior to the start of the call. The live audio webcast and presentation slides
will be available on the Firm’s website, www.jpmorganchase.com, under Investor Relations, Events & Presentations.
A replay of the conference call will be available beginning at approximately 12:30 p.m. on July 14, 2020, through midnight, July28, 2020, by telephone at (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (international); use Conference ID # 1377456.
The replay will also be available via webcast on www.jpmorganchase.com under Investor Relations, Events & Presentations.
Additional detailed financial, statistical and business-related information is included in a financial supplement. The earnings releaseand the financial supplement are available at www.jpmorganchase.com.
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of1995. These statements are based on the current beliefs and expectations of JPMorgan Chase & Co.’s management and are subject
to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that
could cause JPMorgan Chase & Co.’s actual results to differ materially from those described in the forward-looking statements
can be found in JPMorgan Chase & Co.’s Annual Report on Form 10-K for the year ended December 31, 2019, and Quarterly
Report on Form 10-Q for the quarterly period ended March 31, 2020, which have been filed with the Securities and Exchange
Commission and are available on JPMorgan Chase & Co.’s website (https://jpmorganchaseco.gcs-web.com/financial-information/
sec-filings), and on the Securities and Exchange Commission’s website (www.sec.gov). JPMorgan Chase & Co. does not undertake
to update any forward-looking statements.

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